Pre tax loss of $398 Million for JetBlue in first quarter 2022

JetBlue has released details of its performance for the first quarter of this year which shows a massive pre-tax loss of $398 million. 

Robin Hayes, JetBlue’s Chief Executive Officer commented: “Our first-quarter results were characterized by a very strong demand acceleration, with revenue coming in more than six points ahead of our initial view in January. We delivered positive year-over-three revenue growth in the month of March as we exited the quarter with tremendous revenue momentum driven by very strong underlying travel demand across all of our core segments,

To help restore our operational reliability, we are reducing our capacity growth further as we plan more conservatively for the summer and make investments to de-risk the operation. These actions will create more resiliency in the operation, and set us up for a better May, and an even better June and strong summer peak. As we strive to provide the high quality of service that our Customers have come to expect from us, we’re taking proactive measures to invest in and improve our operational performance.

Despite the current operating and fuel environment, we are seeing underlying momentum on our path to transforming JetBlue’s structural profitability. We are making great progress on many of our long-term initiatives in 2022, and these will be meaningful drivers of our earnings growth in the coming years.”

ETBLUE AIRWAYS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)
(unaudited)
		Three Months Ended March 31,
		2022				2021				Percent Change
OPERATING REVENUES
Passenger		$	1,603			$	670			139.5
Other			133				63			111.0
Total operating revenues			1,736				733			137.0
OPERATING EXPENSES
Aircraft fuel and related taxes			571				193			195.0
Salaries, wages and benefits			688				521			32.0
Landing fees and other rents			132				115			14.8
Depreciation and amortization			143				125			15.1
Aircraft rent			26				25			4.2
Sales and marketing			57				23			152.9
Maintenance, materials and repairs			152				104			45.8
Other operating expenses			334				210			59.2
Special items			-				(289	)		(100.0	)
Total operating expenses			2,103				1,027			104.8
OPERATING LOSS			(367	)			(294	)		24.6
Operating margin			-21.1%				-40.2%			19.1		pts.
OTHER INCOME (EXPENSE)
Interest expense			(37	)			(58	)		(35.6	)
Interest income			4				4			15.6
Gain on investments, net			2				4			(53.3	)
Other			-				(3	)		(99.6	)
Total other income (expense)			(31	)			(53	)		41.1
LOSS BEFORE INCOME TAXES			(398	)			(347	)		14.7
Pre-tax margin			-22.9%				-47.3%			24.4		pts.
Income tax benefit			(143	)			(100	)		42.8
NET LOSS		$	(255	)		$	(247	)		3.3
LOSS PER COMMON SHARE:
Basic		$	(0.79	)		$	(0.78	)
Diluted		$	(0.79	)		$	(0.78	)
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic			320.5				316.3
Diluted			320.5				316.3

JETBLUE AIRWAYS CORPORATION
COMPARATIVE OPERATING STATISTICS
(unaudited)
		Three Months Ended March 31,
		2022			2021			Percent Change
Revenue passengers (thousands)			8,177			4,463		83.2
Revenue passenger miles (millions)			10,927			5,808		88.1
Available seat miles (ASMs) (millions)			15,383			9,090		69.2
Load factor			71.0%			63.9%		7.1		pts.
Aircraft utilization (hours per day)			9.9			5.9		67.8
Average fare		$	195.99		$	149.97		30.7
Yield per passenger mile (cents)			14.67			11.52		27.3
Passenger revenue per ASM (cents)			10.42			7.36		41.5
Revenue per ASM (cents)			11.29			8.06		40.0
Operating expense per ASM (cents)			13.67			11.30		21.0
Operating expense per ASM, excluding fuel (cents)(1)			9.87			12.25		(19.4	)
Departures			78,393			44,049		78.0
Average stage length (miles)			1,231			1,277		(3.6	)
Average number of operating aircraft during period			282.0			266.0		6.0
Average fuel cost per gallon, including fuel taxes		$	2.90		$	1.72		68.4
Fuel gallons consumed (millions)			197			112		75.2
Average number of full-time equivalent crewmembers			19,304			14,493		33.2

(1) Refer to Note A at the end of our Earnings Release for more information on this non-GAAP financial measure. Operating expense per available seat mile, excluding fuel (“CASM Ex-Fuel”) excludes fuel and related taxes, other non-airline operating expenses, and special items.

JETBLUE AIRWAYS CORPORATION
SELECTED CONSOLIDATED BALANCE SHEET DATA
(in millions)
		March 31,			December 31,
		2022			2021
		(unaudited)
Cash and cash equivalents		$	1,834		$	2,018
Total investment securities			1,060			863
Total assets			13,803			13,642
Total debt			3,926			4,006
Stockholders' equity			3,598			3,849

Note A – Non-GAAP Financial Measures

JetBlue uses non-GAAP financial measures in this press release. Non-GAAP financial measures are financial measures that are derived from the consolidated financial statements, but that are not presented in accordance with generally accepted accounting principles in the United States, or GAAP. We believe these non-GAAP financial measures provide a meaningful comparison of our results to others in the airline industry and our prior year results. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, our financial performance measures prepared in accordance with GAAP. Further, our non-GAAP information may be different from the non-GAAP information provided by other companies. The information below provides an explanation of each non-GAAP financial measure and shows a reconciliation of non-GAAP financial measures used in this press release to the most directly comparable GAAP financial measures.

NON-GAAP FINANCIAL MEASURE
RECONCILIATION OF OPERATING EXPENSE, (LOSS) INCOME BEFORE TAXES,
NET (LOSS) INCOME AND (LOSS) EARNINGS PER SHARE
EXCLUDING SPECIAL ITEMS AND NET GAIN ON INVESTMENTS
(in millions, except per share amounts)
(unaudited)
		Three Months Ended March 31,
		2022				2019
Total operating revenues		$	1,736			$	1,871
Total operating expenses		$	2,103			$	1,795
Less: Special items			-				12
Total operating expenses excluding special items		$	2,103			$	1,783
Operating (loss) income		$	(367	)		$	76
Add back: Special items			-				12
Operating (loss) income excluding special items		$	(367	)		$	88
Operating margin excluding special items			-21.1%				4.7%
(Loss) income before income taxes		$	(398	)		$	58
Add back: Special items			-				12
Less: Net gain on investments			2				-
(Loss) income before income taxes excluding special items and net gain on investments		$	(400	)		$	70
Pre-tax margin excluding special items and net gain on investments			-23.0%				3.7%
Net (loss) income		$	(255	)		$	42
Add back: Special items			-				12
Less: Income tax (expense) benefit related to special items			-				3
Less: Net gain on investments			2				-
Less: Income tax (expense) related to net gain on investments			(1	)			-
Net (loss) income excluding special items and net gain on investments		$	(256	)		$	51
(Loss) earnings per common share:
Basic		$	(0.79	)		$	0.14
Add back: Special items, net of tax			-				0.02
Less: Net gain on investments, net of tax			0.01				-
Basic excluding special items and net gain on investments		$	(0.80	)		$	0.16
Diluted		$	(0.79	)		$	0.14
Add back: Special items, net of tax			-				0.02
Less: Net gain on investments, net of tax			0.01				-
Diluted excluding special items and net gain on investments		$	(0.80	)		$	0.16

Adjusted debt to capitalization ratio

Adjusted debt to capitalization ratio is a non-GAAP financial measure which we believe is helpful to investors in assessing the company's overall debt profile. Adjusted debt includes aircraft operating lease liabilities, in addition to total debt and finance leases, to present estimated financial obligations. Adjusted capitalization represents total equity plus adjusted debt.

NON-GAAP FINANCIAL MEASURE
ADJUSTED DEBT TO CAPITALIZATION RATIO
(in millions) (unaudited)
		March 31, 2022			December 31, 2021
Long-term debt and finance leases		$	3,545		$	3,651
Current maturities of long-term debt and finance leases			381			355
Operating lease liabilities - aircraft			246			256
Adjusted debt		$	4,172		$	4,262
Long-term debt and finance leases			3,545			3,651
Current maturities of long-term debt and finance leases			381			355
Operating lease liabilities - aircraft			246			256
Stockholders' equity			3,598			3,849
Adjusted capitalization		$	7,770		$	8,111
Adjusted debt to capitalization ratio			54%			53%

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