“Thanks to the hard work of our fantastic Crewmembers, we generated our highest quarterly profit since 2019, demonstrating the progress we have made since the pandemic. These results were underpinned by record quarterly revenues and strong operational performance, reflecting the benefits from our significant investments and robust preparations for the peak summer travel period,” said Robin Hayes, JetBlue’s Chief Executive Officer.
Second Quarter 2023 Key Highlights
Financial performance
Reported adjusted earnings per share (“EPS”) (1) for the second quarter of 2023 at the high end of guidance reflecting continued execution on commercial initiatives, operational planning and cost discipline.Marked sixth consecutive quarter meeting or exceeding quarterly cost expectations.Cost initiativesRealized over half of the $75 million in expected savings from our fleet modernization program to-date, as we transition from the Embraer E190 to margin accretive Airbus A220's.Expanded serviceBegan daily service between New York's John F. Kennedy International Airport and Paris Charles de Gaulle, expanding JetBlue's transatlantic service with plans to launch service between Boston and Paris in 2024.Continued expansion in the Caribbean with new routes in Puerto Rico and the announcement of service to Belize and St. Kitts and Nevis.Spirit transaction progressAnnounced termination of the Northeast Alliance (“NEA”) with American Airlines following an unfavorable court ruling to enable greater focus on Spirit transaction.Announced agreement with Frontier to divest all of Spirit Airlines Inc. (“Spirit”) holdings at New York’s LaGuardia Airport conditioned upon closing of the JetBlue-Spirit transaction, reflecting JetBlue’s commitment to an ongoing divestiture program supporting healthy ultra low-cost carrier service and greater competition through the transaction.Customer enhancementsIntroduced a brand-new livery reflecting JetBlue’s historical reputation as an innovative, industry-disrupting competitor.Launched new TrueBlue® loyalty program offering new perks and options to customers, which to-date has generated exceptional growth and engagement, particularly from Mosaic customers.
Balance Sheet and Liquidity
$1.8 billion in unrestricted cash, cash equivalents, short-term investments, and long-term marketable securities at quarter-end (excluding our $600 million undrawn revolving credit facility).Adjusted debt to capital ratio of 52% (1) as of June 30, 2023.Paid $200 million in debt and finance lease obligations during the second quarter of 2023.
“I'm proud of our team for their continued commitment to our customers as we faced a more challenging than expected operating environment driven by severe air traffic control restrictions and exacerbated by weather. However, our investments in the operation are making a difference and enabling us to recover more quickly as we manage through unforeseeable disruptions,” said Joanna Geraghty, JetBlue’s President Chief Operating Officer.
Outlook
“Overall leisure demand trends are healthy and we continue to see robust demand during peak periods, led by strength in Latin America, visiting-friends-and-relatives and transatlantic travel, ” said Ms. Geraghty.
“Looking ahead, we are updating our full-year earnings outlook to reflect near-term headwinds related to the termination of the NEA, a challenging operating environment in the northeast and a greater than expected shift of pent-up COVID demand to long-haul international markets which is pressuring demand for domestic travel during the peak summer travel period. While we remain on track to deliver a profitable year and record revenue performance, we are taking action, including redeploying capacity to mitigate these current challenges and improve margins.