JBLU Q1 2024 Earnings

Call Details

• Call Title: JetBlue Airways Corporation Q1 2024 Earnings Call
• Date: April 23, 2024 at 2:00 PM UTC
• Management Team:
  • Joanna Geraghty (Chief Executive Officer)
  • Marty St. George (President)
  • Ursula Hurley (Chief Financial Officer)
  • Koosh Patel (Director of Investor Relations)
  • Dave Clark (Head of Financial Planning and Analysis, Investor Relations and Strategy)

Call Summary

Financial Performance

• First quarter system revenues declined 5.1% year-over-year and unit revenues were down 2.5% year-over-year.
• Capacity contracted 2.7% year-over-year in Q1, which exceeded prior guidance.
• Completion factor for Q1 was 98.7%, which management attributed to schedule resiliency investments.
• The company delivered $40 million of revenue-initiative benefits in Q1 and reported $562 million of special items in the quarter, of which ~$530 million related to Spirit costs.
• Structural cost program generated $30 million incremental savings in Q1 and $100 million to date, with a year-end run-rate target of $175 to $200 million.
• First-quarter unit costs excluding fuel (CASMx fuel) increased 7.1% year-over-year, and maintenance spending was shifted later in the year.

Guidance

• Second quarter revenue is expected to decline 6.5% to 10.5% year-over-year, driven by difficult 2023 comps and Latin region capacity pressure.
• Second quarter capacity is expected to be down 2% to 5% year-over-year.
• Second quarter CASMx fuel is expected to increase 5.5% to 7.5% year-over-year, with full year CASMx fuel growth expected in the mid- to high-single-digit range.
• The company no longer expects to approach break-even adjusted operating margin for the full year 2024.
• The $300 million cumulative revenue initiative target remains on track to be achieved by Q4 2024, with ramp into 2025 expected.
• Fleet delivery plan for 2024 remains at 27 aircraft, including 20 A220s, and 19 additional deliveries expected after Q1.