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Dec 31, 2021
JetBlue Q4 2021 Earnings Report
JetBlue reported a GAAP loss per share of ($0.40) and an adjusted loss per share of ($0.36) for the fourth quarter of 2021.
Key Takeaways
JetBlue Airways Corporation reported its Q4 2021 results, with a GAAP loss per share of ($0.40) and an adjusted loss per share of ($0.36). The company's revenue declined by 9.7% year over two, but was within the initial planning assumption range despite the impact from the Omicron wave.
Reported GAAP loss per share of ($0.40) in the fourth quarter of 2021 compared to diluted earnings per share of $0.56 in the fourth quarter of 2019.
Adjusted loss per share was ($0.36) in the fourth quarter of 2021 versus adjusted diluted earnings per share of $0.56 in the fourth quarter of 2019.
GAAP pre-tax loss of ($163) million in the fourth quarter of 2021, compared to a pre-tax income of $220 million in the fourth quarter of 2019.
Adjusted EBITDA in the fourth quarter of 2021 was $31 million, within the planning assumption range of $(50) to $50 million.
JetBlue
JetBlue
Forward Guidance
JetBlue expects sequential month-on-month improvement through the first quarter of 2022, ultimately returning to sustained profitability in the spring and beyond. For the first quarter of 2022, the company expects revenue to decrease between 11% and 16% year over three, and capacity to range between (1%) and 2% year over three.
Positive Outlook
- Trends have largely stabilized and are improving across all geographies.
- Sequential month-on-month improvement leading to a profitable Q2 and a very strong summer peak is expected.
- Confident that we’re on a path to sequential pre-tax margin improvement with sustained profitability in the spring and beyond.
- Expect to achieve greater operating leverage as we grow revenue while continuing to improve our unit cost performance.
- Balance sheet continues to be among the strongest in the industry.
Challenges Ahead
- Omicron has temporarily weighed on demand in the very near-term.
- Expect revenue to decrease between 11% and 16% year over three due to the large negative impact from Omicron on Q1 demand.
- Estimate CASM ex-fuel will increase between 13% to 15% year over three for the first quarter of 2022.
- Expect elevated unit costs in the first half of the year.
- Omicron disproportionately impacted the Northeast, hitting New York particularly hard, driving increased Customer cancellations and bookings softness