NEW YORK - JetBlue Airways (NASDAQ:JBLU) Corporation (NASDAQ:JBLU) today announced a positive financial performance for the second quarter of 2024, with earnings and revenue surpassing analyst expectations.
Shares were up about 20% following the results.
The airline reported an adjusted earnings per share (EPS) of $0.08, which was significantly higher than the analyst consensus of -$0.13. Revenue for the quarter reached $2.43 billion, also topping the consensus estimate of $2.4 billion.
JetBlue's second quarter performance demonstrated a 6.9% year-over-year (YoY) decrease in operating revenue, which stood at $2.4 billion. Despite this decline, the company managed to surpass its guidance targets and maintain a competitive edge in the market. Operating expenses saw a marginal year-over-year decrease of 0.1%, with a 2.6% increase in operating expense per available seat mile (CASM).
CEO Joanna Geraghty expressed satisfaction with the company's direction, stating, "We closed the first half of 2024 with meaningful year-over-year improvements in our operation and exceeded our second quarter guidance through strong execution, early evidence the changes we are implementing as part of our refocused strategy are yielding positive benefits."
Looking ahead, JetBlue anticipates a decrease in available seat miles (ASMs) ranging from 6.0% to 3.0% for the third quarter and a 5.0% to 2.5% decrease for the full year of 2024. Revenue is expected to decline YoY by 5.5% to 1.5% in the third quarter and by 6.0% to 4.0% for the full year. The company also forecasts a CASM ex-Fuel increase of 6.0% to 8.0% YoY for the third quarter and 6.5% to 8.5% for the full year.
CFO Ursula Hurley commented on the company's future, "While many of these underlying initiatives will take time to ramp to their full potential, with the strong foundation of JetForward, we are poised to generate $800 - $900 million of incremental EBIT from 2025 through 2027."
JetBlue's strategic plan, JetForward, targets an incremental EBIT of $800M - $900M by 2027, driven by enhanced customer service, network optimization, and cost transformation programs. The airline also announced a deferral of approximately $3.0 billion in capital expenditures through 2029 to improve cash flow and restore balance sheet health.
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