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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.
Revenue by Segment
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 & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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