JBLU's Q1 Loss Narrower Than Expected, Revenues Decline Y/Y

JetBlue Airways Corporation JBLU reported a first-quarter 2025 loss of 59 cents per share, narrower than the Zacks Consensus Estimate of a loss of 61 cents. Lower fuel costs aided the bottom line. In the year-ago quarter, JBLU reported a loss of 43 cents per share.

Operating revenues of $2.14 billion fell short of the Zacks Consensus Estimate of $2.15 billion and decreased 3.1% year over year. Passenger revenues, accounting for the bulk of the top line (92%), declined 3.1% year over year to $1.97 billion. The figure was just shy of our estimate of $2 billion. Other revenues rose 10.9% year over year to $171 million, well above our estimate of $149 million.

JetBlue Airways Corporation Price, Consensus and EPS Surprise

JetBlue Airways Corporation price-consensus-eps-surprise-chart | JetBlue Airways Corporation Quote

Other Details of JBLU’s Q1 Earnings

Revenue per available seat mile (RASM: a key measure of unit revenues) increased 1.3% year over year to 13.71 cents. Passenger revenue per available seat mile inched up 0.2% year over year to 12.62 cents. The average fare at JetBlue inched down 0.8% year over year to $212.58. The yield per passenger mile decreased 1.1% year over year.

Consolidated traffic (measured in revenue passenger miles) declined 3.1% year over year. Capacity (measured in available seat miles) dropped 4.3% year over year. Consolidated load factor (percentage of seats filled by passengers) improved 1 percentage point to 80.7% as the traffic decline was less than the capacity reduction. Our estimate for load factor was 85.4%.

Total operating costs (on a reported basis) declined 21% year over year to $2.3 billion. Expenses on salaries, wages and benefits increased 4.9% year over year. Expenses on aircraft fuel declined 18.3% year over year.

The average fuel price per gallon (including related taxes) was $2.57, down 13.5% year over year. JBLU’s operating expenses per available seat mile (“CASM”) decreased 0.4% year over year. Excluding fuel, CASM rose 8.3% to 11.45 cents.

JBLU’s Outlook

For second-quarter 2025, capacity is anticipated to decline in the 0.5-3.5% band. CASM, excluding fuel and special items, is predicted to climb 6.5-8.5%. Capital expenditures are expected to be roughly $400 million. RASM is forecasted to decline in the 3.5-7.5% band from second-quarter 2024 actuals. The average fuel cost per gallon is estimated to be between $2.25 and $2.4.

For 2025, capital expenditures are expected to be roughly $1.3 billion. Interest expenses are projected to be around $600 million. Projections for other key metrics for 2025 have not been provided. CEO Joanna Geraghty stated, "Given the macroeconomic uncertainty, we are not reaffirming our prior full-year guidance."

Delta Air Lines DAL, while kicking off the first-quarter 2025 earnings season on April 9, had withdrawn its outlook for 2025 due to the uncertainty. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

In the March quarter, Delta Air Lines reported earnings (excluding 9 cents from non-recurring items) of 46 cents per share, which surpassed the Zacks Consensus Estimate of 40 cents. Earnings increased 2.2% on a year-over-year basis due to low fuel costs.

Owing to the tariff-induced uncertainty, American Airlines AAL withdrew its 2025 financial guidance. Management stated that it would provide an update later in the year as visibility improves. AAL had reported first-quarter 2025 results on April 24.

In the March quarter, American Airlines’ loss (excluding 13 cents from non-recurring items) of 59 cents per share was narrower than the Zacks Consensus Estimate of a loss of 69 cents. In the year-ago quarter, AAL reported a loss of 34 cents per share. Operating revenues of $12.55 billion edged past the Zacks Consensus Estimate of $12.52 billion but decreased 0.2% year over year.

JBLU’s Zacks Rank

Currently, JBLU carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
 

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This article originally published on Zacks Investment Research (zacks.com).

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