Jetblue Airways (JBLU) Q2 2024 earnings summary

Executive summary

• Achieved adjusted pre-tax income of $34M and adjusted net income of $26M for Q2 2024, with EPS of $0.08, driven by operational improvements and cost control, despite year-over-year declines.

• Launched JetForward strategy, focusing on reliability, network optimization, product enhancements, and financial discipline, targeting $800M–$900M incremental EBIT by 2027.

• Deferred 44 A321neo aircraft deliveries, reducing CapEx by $3B through 2029/2030+ and improving free cash flow outlook.

• Major network restructuring with closure of 15 BlueCities and over 50 route exits since early 2024, focusing on core geographies.

• Maintained strong liquidity at $1.6B, excluding a $600M undrawn credit facility.

Financial highlights

• Q2 2024 operating revenue was $2.43B, down 6.9% year-over-year; operating expenses were $2.37B, nearly flat year-over-year.

• Adjusted operating margin for Q2 2024 was 2.4%, down from 9.9% in Q2 2023; adjusted pre-tax margin was 1.4%.

• System capacity decreased 2.7% year-over-year; completion factor improved to 98.8%.

• Premium product revenue (Even More Space, Mint) showed strong growth; other revenue increased 9.1% year-over-year.

• Achieved $145M in structural cost savings year-to-date and $83M in fleet modernization savings through Q2 2024.

Outlook and guidance

• Q3 2024 guidance: ASMs down 6.0%–3.0% year-over-year, revenue down 5.5%–1.5%, CASM ex-fuel up 6.5%–8.5%, fuel price $2.82–$2.97/gallon.

• Full-year 2024 guidance: ASMs down 5.0%–2.5%, revenue down 6.0%–4.0%, CASM ex-fuel up 6.5%–8.5%, capex ~$1.6B.

• 2025 capacity expected to be flat year-over-year due to Pratt & Whitney engine groundings.

• Targeting break-even operating margin for 2025, with focus on cost control and network optimization.

• Targeting $800M–$900M incremental EBIT from 2025–2027, with benefits expected to be realized evenly.