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Sep 30, 2022
JetBlue Q3 2022 Earnings Report
Reported first quarterly adjusted profit since the start of the pandemic.
Key Takeaways
JetBlue reported GAAP diluted earnings per share of $0.18 and adjusted diluted earnings per share of $0.21 for the third quarter of 2022. The company reached an important milestone in its recovery by generating its first quarterly adjusted profit since the start of the pandemic.
Reported GAAP diluted earnings per share of $0.18 in the third quarter of 2022 compared to diluted earnings per share of $0.63 in the third quarter of 2019.
Adjusted diluted earnings per share was $0.21 in the third quarter of 2022 versus adjusted diluted earnings per share of $0.59 in the third quarter of 2019.
GAAP pre-tax income of $105 million in the third quarter of 2022, compared to a pre-tax income of $254 million in the third quarter of 2019.
JetBlue ended the third quarter of 2022 with approximately $2.3 billion in unrestricted cash, cash equivalents, short-term investments, and long-term marketable securities, or 28% of 2019 revenue.
Forward Guidance
Looking ahead, JetBlue expects its profitability to carry through to another solid quarter of mid-single-digit pre-tax margins in the fourth quarter, and will look to expand on that further in 2023 as it continues to restore its earnings power. For the fourth quarter we expect capacity to be up 1% to 4% year over three, a modest sequential step-up versus the third quarter. For the fourth quarter, we expect unit revenue to increase between 15% and 19% year over three. For the fourth quarter, we are forecasting CASM ex-Fuel to increase 8.5% to 10.5% year over three.
Positive Outlook
- Expects profitability to carry through to another solid quarter of mid-single-digit pre-tax margins in the fourth quarter.
- Looks to expand on profitability further in 2023 as it continues to restore its earnings power.
- Expects capacity to be up 1% to 4% year over three in the fourth quarter.
- Sees strong leisure and VFR demand trends continuing in the fourth quarter.
- Confident in the demand backdrop for the year-end holiday peaks.
Challenges Ahead
- Continued fragile aviation ecosystem.
- Taking a cautious approach to operational investments.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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