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JETBLUE ANNOUNCES THIRD QUARTER RESULTS
NEW YORK (October 27, 2015) -- JetBlue Airways Corporation (NASDAQ: JBLU) today reported its results for the third quarter 2015:
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Operating income of $351 million in the third quarter. This compares to operating income of $164 million in the third quarter of 2014.
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Pre-tax income of $322 million in the third quarter. This compares to pre-tax income of $132 million in the third quarter of 2014.
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Net income of $198 million, or $0.58 per diluted share. This compares to JetBlue’s third quarter 2014 net income of $79 million, or $0.24 per diluted share.
Financial Performance
JetBlue reported record third quarter operating revenues of $1.7 billion. Revenue passenger miles for the third quarter increased 9.2% to 11.1 billion on a capacity increase of 10.4%, resulting in a third quarter load factor of 85.3%, a decrease of 0.9 point year over year.
Yield per passenger mile in the third quarter was 14.02 cents, up 0.5% compared to the third quarter of 2014. Passenger revenue per available seat mile (PRASM) for the third quarter 2015 decreased 0.6% year over year to 11.96 cents and operating revenue per available seat mile (RASM) was essentially flat year over year at 13.01 cents.
Operating expenses for the quarter decreased 2.0%, or $29 million, over the prior year period. Interest expense for the quarter declined 16.2%, or $5 million, as JetBlue continued to reduce its debt. JetBlue’s operating expense per available seat mile (CASM) for the third quarter decreased 11.2% year over year to 10.30 cents. Excluding fuel and profit sharing, third quarter CASM1 increased 2.4% to 7.31 cents.
Operational Performance
System on time departures, or D0, decreased 2.4 points year-over-year in the third quarter. System arrival performance, or A14, improved 1.4 points. Completion factor improved 0.5 points.
“We posted another strong result in the third quarter as our revenue growth outperformed the industry and we ran an efficient and safe operation. These results are a testament to the hard work of our 18,000 crewmembers that provide outstanding customer service and inspire humanity each day.” said Robin Hayes, JetBlue’s President and CEO.
Fuel Expense and Hedging
In the third quarter JetBlue had hedges in place for approximately 14% of its fuel consumption. This resulted in a realized fuel price of $1.85 per gallon, a 39% decrease versus third quarter 2014 realized fuel price of $3.05. JetBlue recorded $27 million in losses on fuel hedges settling during the third quarter.
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JetBlue has hedged approximately 15% of its fourth quarter 2015 projected fuel requirements using a combination of jet fuel swaps and collars. Based on the fuel curve as of October 16th, JetBlue expects an average price per gallon of fuel, including the impact of hedges and fuel taxes, of $1.77 in the fourth quarter. JetBlue currently has no fuel hedges in place for 2016 or beyond.
Liquidity and Cash Flow
JetBlue ended the quarter with $1.1 billion in unrestricted cash and short term investments, or about 18% of trailing twelve month revenue. In addition, JetBlue maintains approximately $600 million in undrawn lines of credit.
During the third quarter, JetBlue repaid $54 million in regularly scheduled debt and capital lease obligations. JetBlue anticipates paying approximately $91 million in regularly scheduled debt and capital lease obligations and plans to buy out the leases on six A320 aircraft during the fourth quarter.
On September 15 JetBlue closed its previously announced Accelerated Share Repurchase program. In total, JetBlue purchased 6.8 million shares at a weighted average share price of $22.06. In addition, in September 2015 JetBlue entered into a Rule 10b5-1 trading plan agreement as part of its share buyback program announced in 2012, covering purchases of up to 3 million shares from October 30, 2015 through December 31, 2015.
“We continue to post strong financial results, generate healthy free cash flow, and strengthen our balance sheet.” said Mark Powers, JetBlue’s Chief Financial Officer. “Looking forward, we will allocate our capital to investments that will improve our return on invested capital and enhance the execution of the initiatives we outlined at our last Investor Day.”
Fourth Quarter and Full Year Outlook
CASM excluding fuel and profit sharing is expected to increase between zero and 2.0% in the fourth quarter 2015 and between zero and 1.0% percent for the full year. This represents a 0.5% reduction to the top end of our full year CASM excluding fuel and profit sharing guidance range.
Capacity is expected to increase between 8.5% and 10.5% in the fourth quarter 2015 and between 8.5% and 9.5% for the full year. The 0.5% increase to the high end of our full year capacity guidance range is a function of additional Mint service driven by higher utilization of our Mint fleet, and continued better than expected completion factor.
JetBlue will conduct a conference call to discuss its quarterly earnings today, October 27, at 10:00 a.m. Eastern Time. A live broadcast of the conference call will be available via the internet at http://investor.jetblue.com.
Holy crap! I can't wait for tomorrow
Rip city today! Give me $28 tomorrow!
No vacation for you lol
Would love to see $26 prior and $28 after. 4am in Hawaii and I'm
Wide awake trading.
Earnings tomorrow!
GSCO pulling the rug unloading under the bid...
GSCO needs to get the hell out of this stock
Close over the 50MA $$24.61 and we are golden.
We keep getting downgrades all of a sudden for no good reason, they know the 3rd and 4th qt. are going to be off the chart, what's wrong with these people, they must be driving to price down so they can buy cheep before the earnings come out.
Holy cow! This is unbelievable
Yeah the chart is ugly as sin. Filled the gap at $23.88 but not much else looking promising.
I sold at close of business at 27 Monday only because I felt it was getting to pricy. Now, thinking of getting back in but just not sure. It has come a very long way in a fairly short period of time. Gas driven, earnings driven, manipulation, who the heck knows anymore.
Technically broken. Sad that this is looking like a sell. I should have dumped all the fluff over $26.
JBLU has been in favor for some time. Right now the forces are working against it. Don't really know why or for how long.
I don't know how these crooks aren't in prison. They completely set these stocks up>> Absolutely. Some stocks are continually upgraded and downgraded and the ones doing it are making money. They do it hap hazard with no accountability. Yes, they should be in prison for stock manipulation.
goldman just pulled this crap on AAL and now its up over 10% within a week and a half since the downgrade. I don't know how these crooks aren't in prison. They completely set these stocks up
Holy-moly, is this oversold! WTF?
There's a lot of shorts invested in this. Reminds me of the AAL takedown a while ago. Same big gap down, buying up 1-2%, then shoots back down.
Where's the DOJ in these instances.... >>Yes, all this upgrading and downgrading has turned into nothing but a sham. As far as this DOJ goes, they don't care about people like us anymore. They are just a political body which is a sham in and of itself.
The stock that is worth $36 based on future revenues gets downgraded. The stock that has outperformed others based on its growth and 0 international exposure gets pounded. Where's the DOJ in these instances....
Make that over a 2 point drop.
This is ridiculous man. Absolutely uncalled for. They are well within capacity guidance and had a 13% increase in traffic. These white collar crooks drive me nuts.
JetBlue stock price target cut to $27 from $28 at J.P. Morgan>> How stupid is that? A one point cut in target price which can generate a 1.5 point drop in price.
CHXE GSCO working L2/L3. Gonna be a long day. Walks away.
Downgraded to neutral at JPM. PT lowered to $27.
Crushed AH. Report looked good to me...
I would not have lasted 20 minutes in Navy SEAL training. Jets yes, SEALs no.
BEEN A YEAR SINCE I WENT LONG HERE @ $11.09! What a ride.
Cheers to that! Almost joined the navy several times. That and Air Force. I wanted to do the seal training but I have a stigmatism that prevented that.
All I know as a retired Navy pilot, I have friends currently flying for just about every airlines out there, and way and far the happiest ones fly for good old JBLU.
I'm out been here since $6.40 >> Sure can't argue with that kind of a profit, but bad news not withstanding, no reason this stock not be in the 30s next year.
Picked up heavy day trade shares $26.16. Will double down at LOD if it drops again.
Who's the AH talking down the airlines today, oils not up enough to drive them down?
Wow, some guys unload this brutally on Friday
So tempted to unload more core here but I'll hold "loosely".
Yeah man LUV, JBLU, DAL best and only earnings plays
Nice... ya I always play DAL and LUV for earnings... love AAL but got burned last ER...
Absolutely. But just shedding shares in the way up. Built a core starting at $11.09 and added on the way up $13's $16's $18's $22's etc.
It's up a lot on he year compared to other undervalued carriers which is why I've been unloading and playing with other carriers.
Glad to see everybody is killing here... just dumped my calls up over 3k%... does this break 30 this year?
20k shares left on core. Will reload on some fluff closer to airline earnings next month.
You know the company's gold when consumers send letters pleading for your product.
http://www.tallahassee.com/story/news/2015/09/09/tlh-sends-support-letters-jetblue/71969124/
$29 PT Upgrade from argus today.
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