JetBlue has reported a third quarter 2021 adjusted EPS of a loss of $0.12, driven by better than expected revenue growth due to strong demand. JetBlue posted a 5.5% decline in revenue over 2019 levels, which was better that the airline’s prediction of a 6-9% decline. Operating expenses fell per available seat mile decreased 2.1% year over two, while operating expenses per available seat mile, excluding fuel and special items (CASM ex-fuel) increased 12.7% year over two, which is in-line with the airline’s planning assumption of an 11% to 13% increase year over two. Capacity declined by 0.8% year over two, which was in line with expectations.
As of September 30, 2021, JetBlue’s adjusted debt to capital was 53%. JetBlue ended the third quarter of 2021 with approximately $3.3 billion in unrestricted cash, cash equivalents, and short-term investments, or 41% of 2019 revenue. This excludes its $550 million undrawn revolving credit facility.
During the quarter, JetBlue repaid $74 million in regularly scheduled debt and finance lease obligations, and prepaid the $115M CARES Act loan and $105M of bank loans.
JetBlue announces that it has been accelerating ESG efforts and doubling down on commitments, notably aligning executive compensation to ESG metrics and operating an ESG Subcommittee of its Board of Directors.
“As we work through our annual planning process, our teams are setting solid goals for our network, commercial and cost initiatives, and capital allocation priorities… I’m confident that we are setting JetBlue on a trajectory to restore our earnings power to beyond 2019 levels over the coming years, generating long-term value for all of our stakeholders,” said Robin Hayes, JetBlue’s Chief Executive Officer.
"We believe that demand is once again poised to re-accelerate into the peak holiday periods and beyond as people continue to adjust to a new normal. We are marching towards a full recovery and a return to sustained profitability, with margin as our ‘north star’. I am a firm believer that our unique business model – low costs, low fares, and a superior product – positions JetBlue to thrive in the years ahead.”
Joanna Geraghty, JetBlue’s President and Chief Operating Officer, added: “September took the brunt of the bookings softness associated with rising case counts tied to the Delta variant. That said, trends have stabilized and are improving. We expect robust revenue acceleration throughout the quarter as the holidays approach and demand continues to meaningfully improve.”
For the fourth quarter, JetBlue is planning for revenue to decline between (8%) and (13%) year over two. “We expect troughs to be challenging, exacerbated by a slower business travel recovery, but the holidays are performing meaningfully better, and we took tactical capacity actions to better align with the demand environment,” said Geraghty.