JetBlue Airways Corporation has reported its financial results for the third quarter of 2024, this week. The company has seemed losses to just $54 million for the quarter, based on net revenues of over $2.3 billion. The airline is facing a financial crunch as it axes numerous bases and routes and has a less-than-shiny future.
Joanna Geraghty, JetBlue's chief executive officer states: "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. "Thanks to our crewmembers' efforts and our improved operational performance in the third quarter, we saw a double digit increase in customer satisfaction year-over-year. I am proud to lead this incredible team, particularly as they continue to deliver the JetBlue experience in the face of operational challenges like Hurricanes Helene and Milton."
"We are pleased by our positive year-over-year unit revenue performance in the third quarter. Our self-help capacity actions have helped to better match supply with demand during off-peak flying. Demand remained healthy in peak periods and close-in, and was further supported by improving competitive capacity, particularly in the Latin region, and the ramp of our revenue initiatives," said Marty St. George, JetBlue's president. "During the quarter, we announced new products and perks, such as lounges and a premium co-branded credit card, and progressed on the implementation of our reliability and network initiatives. Today, we are also announcing the upcoming enhancement of our Even More Space offering."
JetBlue to Launch EvenMore® to Meet Growing Premium Travel Demand
In support of its "products and perks customers value" priority move under JetForward, JetBlue today announced plans to evolve its Even More Space extra legroom seat into a compelling new offering with enhanced merchandising and greater visibility. The new approach is designed to boost customer consideration for JetBlue and strengthen the airline’s competitive position in the premium leisure segment.
Starting from mid-November, we plan to give Even More Space greater visibility in the booking process by offering it to customers directly on the flight search results page on jetblue.com. In addition, customers may continue to purchase Even More Space seats in the seat selection map. As we move into 2025, JetBlue will rebrand the offering EvenMore® to include new benefits and amenities with the existing extra legroom seat, creating an appealing offering for customers considering buying up for more space and perks. JetBlue plans to announce the new amenities early next year prior to the launch.
"We’re thrilled to enhance our popular extra legroom seats, giving customers even more reasons to choose JetBlue," said Marty St. George. "A key part of the EvenMore® transformation is making it easier for customers to find and book these enhanced options right from the start."
Progressing on Roll-Out and Implementation of JetForward Strategy
- Reliable & Caring Service
- Realized benefits from initiatives to drive operational reliability, with on-time performance improving by 12 points and customer satisfaction scores improving by double digits year-over-year in 3Q.
- Best East Coast Leisure Network
- Year-to-date, optimized over 20% of JetBlue's 2023 network, representing 15 station closures and over 50 route exits.
- Redeployed aircraft to our strengths in leisure-focused routes originating from Northeast airports, such as Providence, Rhode Island's T.F. Green International Airport and Hartford, Connecticut's Bradley International Airport, where JetBlue is well-positioned to build scale locally.
- Products & Perks Customers Value
- Announced enhancements to the airport experience with lounges coming to John F. Kennedy International Airport's Terminal 5, in late 2025, and Boston Logan International Airport coming soon thereafter.
- Expanded co-brand portfolio with the announcement of a premium co-branded credit card.
- Launched changes to Blue Basic fare, allowing customers to bring a carry-on bag onboard, making JetBlue's basic economy offering one of the industry’s best values for price-conscious customers.
- A Secure Financial Future
- Raised ~$3.2 billion of financing to retire existing debt, prefund capital expenditures in 2024 and 2025, and support the runway of JetForward .
Third Quarter 2024 Financial Results
- Net loss for the third quarter of 2024 under U.S. Generally Accepted Accounting Principles ("GAAP") of $60 million or $0.17 loss per share. Excluding special items, adjusted net loss for the third quarter of 2024 of $54 million (1) or $0.16 (1) loss per share.
- Third quarter 2024 system capacity decreased by 3.6% year-over-year.
- Operating revenue of $2.4 billion for the third quarter of 2024, an increase of 0.5% year-over-year.
- Operating expense of $2.4 billion for the third quarter of 2024, a decrease of 4.2% year-over-year.
- Operating expense per available seat mile ("CASM") for the third quarter of 2024 decreased 0.7% year-over-year.
- Operating expense, excluding special items for the third quarter of 2024, decreased 4.1% (1) year-over-year.
- Operating expense per available seat mile, excluding fuel, other non-airline operating expenses, and special items ("CASM ex-Fuel") (1) for the third quarter of 2024 increased 4.8% (1) year-over-year.
- Operating margin of (1.6)% for the third quarter of 2024, an increase of five points year-over-year.
- Average fuel price in the third quarter of 2024 of $2.67 per gallon.
Third Quarter 2024 Key Highlights
- Improved adjusted operating margin by ~five points year-over-year to (0.4)%.
- Delivered improved operational performance with a completion factor of ~98%, up from ~96% in 3Q23.
- Third quarter year-over-year unit revenue increased by 4.3%, underpinned by healthy demand in peak periods, improved close-in bookings, competitive capacity moderation in the Latin region and self-help capacity measures.
- Progressed on our $300 million 2024 revenue initiative target, delivering ~$275 million of incremental top-line benefit year-to-date, ~$135 million more than 2Q24.
- Executed on our cost initiatives, as evidenced by structural cost program savings of $169 million to-date and fleet modernization cost avoidance of $95 million to-date.
- Ended the quarter with ~$4.1 billion in liquidity, excluding our undrawn $600 million revolving credit facility.
- 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.