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DALLAS — JetBlue (B6) and Southwest Airlines (WN) have published their fourth-quarter and full-year financial reports for 2022.
We begin with B6, which reported a net income of US$24m or US$0.07 per share for the fourth quarter of 2022 under Generally Accepted Accounting Principles (GAAP). Excluding one-time items, the airline's adjusted net income for the fourth quarter of 2022 was US$72 million or US$0.22 per share.
JetBlue's Q422 capacity increased by 2.4% compared to the fourth quarter of 2019, with operating revenue of US$2.4 billion, the highest fourth-quarter operating revenue in company history.
Revenue per available seat mile (RASM) for the Long Island-based airline increased 16.1% for the fourth quarter of 2022 compared to the fourth quarter of 2019, despite a negative impact from Hurricane Nicole. Operating expenses per available seat mile (CASM) for the fourth quarter of 2022 increased by 28.4% compared to the fourth quarter of 2019.
JetBlue returned to profitability in the second half of 2022 with revenue growth at record levels, combined with an acute focus on maintaining an optimal low-cost structure.
In the fourth quarter of 2022, WN reported a net loss of US$226m, or US$0.38 loss per diluted share, excluding special items. For the full year, they reported a net income of US$539 million, or US$0.87 per diluted share, excluding special items.
Southwest also reported record fourth-quarter and full-year operating revenues of US$6.2bn and US$23.8bn, respectively. the Dallas-based airline ended the year with a liquidity of US$13.3 billion, significantly more than its debt outstanding of US$8.1bn.
The WN report also states that, based on current revenue and cost trends, the airline expects a first-quarter 2023 net loss.
Comments from JetBlue, Southwest Airlines CEOs
“Thanks to the outstanding efforts of JetBlue’s crewmembers, we closed the year with strong fourth quarter performance, driving the highest full-year revenue result in our history, and solid cost execution as we hit our full-year cost target. We believe we’re well positioned to further build on that success in 2023, with a disciplined plan to continue strengthening our foundations – both operationally and financially,” said Robin Hayes, JetBlue’s Chief Executive Officer.
Bob Jordan, Southwest's President and Chief Executive Officer, stated, "Due to the operational disruptions in late December, which resulted in more than 16,700 flight cancellations, we incurred a fourth-quarter pre-tax negative impact of approximately $800 million (or approximately $620 million on an after-tax basis), which resulted in a fourth-quarter 2022 net loss. Despite the negative financial impacts in the first quarter of 2022 due to the Omicron variant and in the fourth quarter of 2022 due to the operational disruptions, we generated full-year 2022 net income, excluding special items, of $723 million."
"With regard to the operational disruptions," continued the WN CEO, "I am deeply sorry for the impact to our Employees and Customers. We have swiftly taken steps to bolster our operational resilience and are undergoing a detailed review of the December events. In addition, our Board of Directors has established an Operations Review Committee that is working with the Company's Management to help oversee the Company's response. As part of our efforts, we are also conducting a third-party review of the December events and are reexamining the priority of technology and other investments planned in 2023."
Read the full B6 report here and the full WN report here.
Featured image: Marat Basaria/Airways
https://airwaysmag.com/american-alaska-q4-full-year-results/
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