JetBlue reported a net loss for the first quarter of 2023 (Q1 2023) of $192 million or 58 cents per share, with the adjusted loss coming to $111 million for 34 cents a share
The loss came despite the carrier reporting its highest-ever Q1 revenue, which jumped 34.1% to $2.3bn as capacity was expanded by 9% over the period.
The airline said its operating expenses per available seat mile (CASM) for the first quarter of 2023 increased 12.1%. Expenses minus fuel and related costs and taxes were up 1.2% over the period, taking in an average hedge-included jet fuel price of $3.50 a gallon.
“Thanks to our team's collective hard work, our first quarter financial results came in better than expectations, and we are forecasting strong sequential pre-tax margin improvement into the second quarter. We remain well on track in executing our comprehensive plan to enhance our long-term profitability and restore our historical earnings power,” said Robin Hayes, JetBlue’s the chief executive.
The carrier ended Q1 2023 with $1.7bn in unrestricted cash, cash equivalents, short-term investments, and long-term marketable securities, a war chest that did not include $600 million undrawn revolving credit facility. It was left with an adjusted debt to capital ratio of 53% after paying $109 million in debt and finance lease obligations during the three months.
During the he carrier saw its attempted merger with Spirit Airlines challenged in court by the US government, before it went on to announce new services to Amsterdam from Boston and New York as well as expanded flight offerings to Florida. It announced a deal with Shell Aviation for 10 million gallons of sustainable aviation fuel (SAF) for its Los Angeles operations and a collective purchase deal with Bank of America, JP Morgan Chase and others for SAF certificates.
“Demand trends remain robust into the second quarter, with strong demand for leisure and visiting-friends-and-relatives (VFR) travel particularly during peak periods. We're also pleased with the continued improvement in revenue and financial performance at our largest focus city, New York,” said Joanna Geraghty, JetBlue resident and chief operating officer.
“For the second quarter, we expect strong revenue growth to continue as demand remains robust and as we see continued momentum from our commercial initiatives. We are forecasting a solidly profitable quarter, and we remain confident in our full-year earnings outlook." said Hayes.