JetBlue has posted a net loss of $60 million, or $0.17 per share, for the third quarter of 2024, while the adjusted net loss - excluding special items - was $54 million, or $0.16 per share. The airline's system capacity declined by 3.6% compared to the same period last year, aligning with operational recalibrations.
Operating revenue for the quarter increased slightly against the comparable quarter of the year prior by 0.5%, reaching $2.4 billion.
The airline also reported a notable reduction in operating expenses, down 4.2% from the previous year to match operating revenue at $2.4 billion. This resulted in an operating margin of -1.6%, a five-point improvement over the previous year’s third-quarter margin.
Cost per available seat mile (CASM) decreased by 0.7% compared to the third quarter of 2023. However, operating expenses, excluding special items, dropped by 4.1%, marking a significant year-over-year improvement.
Fuel prices, a critical factor in the airline's cost structure, averaged $2.67 per gallon during the quarter. In addition, revenue per available seat mile (RASM) increased by 2% to 9.28 cents, although on an adjusted basis for 1,000-mile stage length, RASM decreased by 5% year-over-year to 8.59 cents.
These results align with the airline’s guidance, which also projected pre-tax margins impacted by external events, including disruptions from Hurricane Helene. The airline’s pre-tax income margin was reported at 2.9%, with an adjusted pre-tax loss margin of 1.1%.
"We met or exceeded all of our financial targets for the third quarter and progressed on the implementation of our JetForward strategy, sustaining the momentum we established in the second quarter," said Joanna Geraghty, JetBlue's chief executive officer. She added that the progress made this year was “encouraging” but that “significant work” remained ahead on its “path to full year operating profitability”.
JetBlue premium services remained in demand, the airline confirmed that this was “further evidence” that customers's desire for premium services was “heathy and growing”. However, Geraghy stated that the airline expects unit costs to increase in the fourth quarter and that long-term capacity palnning remained challenged by aircraft on the ground due to engine issues, which she said the airline remains in discussions "over future AOGs, expectations and compensation".
During the quarter JetBlue received six new A220 aircraft, with several more expected to be delivered during the years fourth quarter. CFO Ursula Hurley commented on the earnings call that the airline expects aircraft deliveries to be funded with cash “further adding to our existing unencumbered asset base of about $5 billion”.
The airline ended the quarter with $4.1 billion in liquidity, which excludes jetBlue’s $600 million revolving credit facility. That figures includes proceeds from jetBlue's $3.2 billion debt raise in August, which consisted of senior secured notes and a term loan, both backed by TrueBlue loyalty program as well as $460 million worth of new convertible notes. The proceeds from the new convertible notes were used to retire a portion of jetBlue's existing 2026 convertible notes. The remaining capital is expected to prefund CapEx for the remainder of 2024 and through 2025 and provide “ample runway” for JetForward, explained Hurley on the earnings call.
The airline also signed an agreement alongside World Fuel Services and Valero Energy Corporation to bring first-ever ongoing supply of blended sustainable aviation fuel to New York, with initial delivery expected in 2024.