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Mar 31, 2020
JetBlue Q1 2020 Earnings Report
Reported a GAAP loss per share of ($0.97) and total operating revenues of $1,588 million.
Key Takeaways
JetBlue Airways Corporation reported its Q1 2020 results, which were negatively impacted by COVID-19. The company reported a GAAP loss per share of ($0.97). Total operating revenues were $1,588 million, a 15.1% decrease year over year. JetBlue is focused on preserving liquidity, reducing operating expenses, and managing capital expenditures.
Reported GAAP loss per share of ($0.97) in the first quarter of 2020 compared to a diluted earnings per share of $0.14 in the first quarter of 2019.
First quarter 2020 revenue declined 15.1% year over year as a result of a 52% decline in March revenue due to the impact of COVID-19.
Increased cash, cash equivalents and short-term investments from $1.3 billion at the end of 2019 to approximately $1.8 billion at end of first quarter of 2020.
JetBlue expects to reduce its daily cash burn from an average of $18 million in the second half of March to just below $10 million in May, excluding the CARES Act support of approximately $5 million per day through the end of the third quarter.
JetBlue
JetBlue
JetBlue Revenue by Segment
Revenue by Segment
Passenger Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
JetBlue expects capacity to be down about 80% compared to its original plan for the second quarter of 2020. By the end of May, the company anticipates it will have lowered its operating expenses by approximately 50% year over year. JetBlue expects to reduce its daily cash burn to just below $10 million in May, excluding CARES Act support.
Positive Outlook
- Expects to have a better sense of third and the fourth quarter of 2020 by early summer.
- Believes inherent strengths as a trusted brand with an unparalleled culture and superior product will serve them well.
- Plans to continue to be thoughtful as they adapt to changing customer needs.
- Liquidity position reached $3.1 billion by the close of April.
- Lowered cash burn from an average of $18 million per day during the second half of March, to just under $10 million per day by May, excluding proceeds from the Payroll Support Program.
Challenges Ahead
- Overall number of bookings remained extremely limited.
- Working assumption for the second quarter is for capacity to be down about 80% compared to original plan.
- Revenue declined 15.1% year over year.
- March capacity declined 19% year over year.
- GAAP pre-tax loss of ($354) million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income