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DALLAS — JetBlue Airways (B6) today reported its financial results for the fourth quarter of 2023, closing the year on a strong note.
The carrier reported a US$104 million net loss for the fourth quarter of 2023, or US$0.31 per share, under Generally Accepted Accounting Principles (GAAP). The adjusted net loss for the fourth quarter of 2023, excluding extraordinary items, was US$63 million, or US$0.19 per share. Capacity rose 3.3% in Q423 compared to the previous year, while operating revenue was US$2.3 billion, a 3.7% decrease from the previous year.
For the fourth quarter of 2023, operating expenses per available seat mile (CASM) fell 2.4% compared to the same period the previous year, and operating expenses per available seat mile grew 7.6% year over year, excluding fuel and related taxes, other non-airline operating expenses, and exceptional factors (referred to as "CASM ex-Fuel"). Finally, the average fuel price, including hedges, was US$3.08 per gallon in Q423.
JetBlue CEO Robin Hayes said, “We closed the year on a strong note thanks to the hard work and continued execution of our team as fourth-quarter revenue and costs beat our expectations. Looking ahead, I am confident that the next chapter of JetBlue, under Joanna’s leadership, will deliver a refreshed focus on our core customer, expanded opportunities for our crewmembers, and a return to JetBlue’s historical earnings power for our shareholders.”
Q423 Result Highlights
Q42023 highlights include the airline achieving US$70 million in cost savings under its structural cost program in 2023, keeping itself on track to deliver run-rate savings of US$175 million to US$200 million by the end of 2024. The airline also realized US$55 million in cumulative cost savings from its fleet modernization program, which is expected to deliver US$75 million in cost savings through 2024 as B6 replaces the Embraer E190s with "the margin-accretive A220s."
As for its balance sheet and liquidity, B6 reached an agreement to defer ~US$2.5 billion of planned aircraft capital expenditures from 2024–2027 to 2028 and thereafter, providing a more consistent level of annual aircraft deliveries through the end of the decade. The carrier ended the fourth quarter with US$1.7 billion in unrestricted cash, cash equivalents, short-term investments, and long-term marketable securities (excluding our US$600 million undrawn revolving credit facility).
2024 Outlook
“2024 is an important year of change for JetBlue, and we are taking aggressive action, including launching $300 million of revenue initiatives, to return to profitability and deliver value for our shareholders. We are moving with renewed rigor and discipline as we refocus our energy and play to our strengths, further deepening our unique competitive positioning,” said Joanna Geraghty, JetBlue’s president and chief operating officer.
For 2024, the airline sees positive momentum in its revenue growth. "Demand during peak periods remains strong, and we continue to manage our capacity during off-peak periods to reflect evolving demand trends. We plan to continue to refine our network and product offering to better serve our leisure customers while diversifying revenues with margin-accretive initiatives,” continued Geraghty.
Featured image: N3085J JetBlue Airways Airbus A220-300 KBOS BOS. Photo: Marry Basaria/Airways
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