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Sep 30, 2020
JetBlue Q3 2020 Earnings Report
JetBlue reported a GAAP loss per share of ($1.44). Revenue declined 76% year over year due to the impact of COVID-19, but exceeded initial expectations.
Key Takeaways
JetBlue Airways Corporation reported its Q3 2020 results, which were significantly impacted by the COVID-19 pandemic. The company reported a GAAP loss per share of ($1.44) and a GAAP pre-tax loss of ($578) million. Revenue declined 76% year over year, but the company managed to reduce operating expenses by 45%. JetBlue ended the quarter with approximately $3.1 billion in unrestricted cash, cash equivalents, and short-term investments.
Reported GAAP loss per share of ($1.44) in the third quarter of 2020 compared to a diluted earnings per share of $0.63 in the third quarter of 2019.
Third quarter 2020 revenue declined 76% year over year as a result of the impact of COVID-19.
Reduced third quarter 2020 capacity by 58% year over year compared to an initial planning assumption of a decrease of at least 45%.
JetBlue ended the third quarter with approximately $3.1 billion in unrestricted cash, cash equivalents, and short-term investments.
JetBlue
JetBlue
JetBlue Revenue by Segment
Revenue by Segment
Passenger Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
JetBlue expects average daily cash burn in the fourth quarter to range between $4 and $6 million. Planning assumption for the fourth quarter is for capacity to decline approximately 45% year over year, given current expectations for improved bookings. Planning assumption for the fourth quarter is a revenue decline of approximately 65% year over year.
Positive Outlook
- The booking curve extend slightly into the upcoming Thanksgiving and December holiday travel period
- Customers responding positively to promotional activity including an early holiday sale in late September.
- Estimate daily cash burn to be between $4 and $6 million dollars for the fourth quarter.
- Reached a second negotiated agreement with Airbus to defer additional aircraft and associated capital expenditure over the next few years.
- Reduced aircraft and non-aircraft CAPEX by approximately $2 billion dollars between 2020 and 2022.
Challenges Ahead
- There still quite a lot of uncertainty about the evolution of the coronavirus
- Planning assumption for the fourth quarter is a revenue decline of approximately 65% year over year.
- Northeast geography continues to be disproportionately impacted
- COVID-19 continues to affect demand for air travel
- Global economic conditions or an economic downturn leading to a continuing or accelerated decrease in demand for air travel
Revenue & Expenses
Visualization of income flow from segment revenue to net income