Achieved fourth quarter operating margin of
0.7% and adjusted operating margin (1) of 0.8%
Delivered $395 million of 2024 revenue
initiatives, $95 million above target
JetForward on track, helping to drive positive
adjusted operating margin (1) outlook in 2025
JetBlue Airways Corporation (NASDAQ: JBLU) today reported its
financial results for the fourth quarter of 2024.
"2024 was a year of rapid change for JetBlue as we introduced
our refocused strategy, JetForward, setting us on a path to get
back to profitability," said Joanna Geraghty, JetBlue’s chief
executive officer. "We finished the year strong, exceeding both
revenue and cost expectations with operational reliability
delivering for our customers throughout the holiday season. I am
proud of our crewmembers for navigating an immense amount of change
and continuing to deliver exceptional service for our customers and
our shareholders."
"Looking ahead to 2025, we are laser-focused on executing
JetForward and building on the momentum from 2024. While this year
will not come without its challenges, our strategy is in place to
tackle those obstacles head-on. With a healthy revenue backdrop,
continued cost control and incremental earnings from JetForward, we
believe we are well-positioned to deliver on our goal of achieving
a positive operating margin for the full year."
JetForward Contributed $90 Million to EBIT (1) in 2024,
On-Track to Hit $800 - $900 Million Target Through 2027
- 2024 revenue initiatives achieved $395 million of top-line
benefit, exceeding our $300 million target by $95 million. This
contributed $90 million of EBIT (1) to the JetForward program in
2024, which was originally forecasted to be realized in 2025.
- Reliable & Caring Service
- On-time performance improved by six points and customer
satisfaction scores improved nearly ten points in 2024 versus
2023.
- Ranked 6th overall in Wall Street Journal's 2024 Airline
Rankings, a three spot improvement from last place in 2023.
- Best East Coast Leisure Network
- Optimized ~20% of our network in 2024, with a significant
portion of exits and redeploys occurring from October 2024 through
January 2025.
- Closed 15 BlueCities and launched and announced service to
several new BlueCities.
- Products & Perks Customers
Value
- Delivered $90 million of incremental EBIT (1) driven by
preferred seating and adding a complementary carry-on bag to our
Blue Basic offering.
- Announced plans to introduce domestic first class cabin on all
non-Mint® aircraft beginning in 2026.
- A Secure Financial Future
- Successful conclusion of our structural cost program at $190
million of total program savings set the foundation for continued
cost control through JetForward.
- Deferred ~$3 billion of capital expenditures and raised over $3
billion of strategic financing in 2024.
Fourth Quarter 2024 Financial Results
- Net loss for the fourth quarter of 2024 under Generally
Accepted Accounting Principles ("GAAP") of $44 million or $(0.13)
per share. Net loss, excluding special items (1), for the fourth
quarter of 2024 of $72 million or $(0.21) per share.
- Fourth quarter of 2024 capacity decreased by 5.1%
year-over-year.
- Operating revenue of $2.3 billion for the fourth quarter of
2024, down 2.1% year-over-year.
- Operating expense per available seat mile ("CASM") for the
fourth quarter of 2024 decreased 0.4% 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 fourth quarter of 2024 increased 11.0%
year-over-year.
- Average fuel price in the fourth quarter of 2024 of $2.47 per
gallon, including hedges.
Fourth Quarter 2024 Key Highlights
- Maintained ~99% completion factor, and on-time performance
improved five points year-over-year.
- Investments in fleet health supported ~45% fewer controllable
cancels year-over-year.
- Awarded best economy class of U.S. airlines by The Points Guy
for the fifth time, aided by improvements to the Blue Basic
offering, enhanced personalization efforts and expanded service to
international destinations.
- Boosted Boston transatlantic flying with the announcement of
nonstop seasonal flying to Adolfo Suárez Madrid-Barajas Airport in
Spain and Edinburgh Airport in Scotland, with service beginning in
May 2025.
- Opened a crew base in our San Juan, Puerto Rico focus city,
bringing more than 400 jobs to Puerto Rico.
- Improved operating margin to 0.7% and adjusted operating margin
(1) by 2.4 points year-over-year to 0.8%.
- Fourth quarter year-over-year operating revenue per ASM
increased by 3.2%, mostly driven by strong close-in demand during
the November and December holiday peaks.
- Fourth quarter year-over-year CASM ex-Fuel (1) finished 2.5
points better than our revised guidance midpoint.
- Ended the quarter with $3.9 billion in unrestricted cash, cash
equivalents, short-term investments, and long-term marketable
securities (excluding our $600 million undrawn revolving credit
facility).
Outlook
"We have the right initiatives in place and solid momentum
headed into 2025," said Marty St. George, JetBlue's president. "Our
reliability initiatives are driving greater customer satisfaction
and our network changes are in the early stages of ramp. Our
efforts to expand and enhance our products and perks, including the
loyalty initiatives we plan to launch in 2025, are resonating and
deepening engagement with our core customers. We believe the
culmination of these efforts will boost our revenue performance in
2025 to ultimately drive positive operating margin for the
year."
First Quarter and Full Year
2025 Outlook
Estimated 1Q 2025
Estimated FY 2025
Available Seat Miles ("ASMs")
Year-Over-Year
(5.0%) - (2.0%)
~Flat
RASM Year-Over-Year
(0.5%) - 3.5%
3.0% - 6.0%
CASM Ex-Fuel (1)
Year-Over-Year
8.0% - 10.0%
5.0% - 7.0%
Fuel Price per Gallon (2),
(3)
$2.65 - $2.80
-
Adjusted Operating Margin (1)
-
0.0% - 1.0%
Interest Expense
-
~$600 million
Capital Expenditures
~$270 million
~$1.4 billion
"We expect to reach positive operating margin in 2025 by
building on the progress we made in 2024, delivering on our revenue
and reliability initiatives as part of JetForward, and continuing
our cost control efforts," said Ursula Hurley, JetBlue’s chief
financial officer. "I am confident we have the right team and plan
in place to deliver on our goals in 2025."
Earnings Call Details
JetBlue will conduct a conference call to discuss its quarterly
earnings today, January 28, 2025 at 10:00 a.m. Eastern Time. A live
broadcast of the conference call will also be available via the
internet at http://investor.jetblue.com. The webcast replay and
presentation materials will be archived on the company’s
website.
For further details, see the fourth quarter 2024 Earnings
Presentation available via the internet at
http://investor.jetblue.com.
About JetBlue
JetBlue is New York's Hometown Airline®, and a leading carrier
in Boston, Fort Lauderdale-Hollywood, Los Angeles, Orlando and San
Juan. JetBlue, known for its low fares and great service, carries
customers to more than 100 destinations throughout the United
States, Latin America, the Caribbean, Canada and Europe. For more
information and the best fares, visit jetblue.com.
Notes
(1)
Non-GAAP financial measure; Note
A provides a reconciliation of each non-GAAP financial measure used
in this release to the most directly comparable GAAP financial
measure and explains the reasons management believes that
presentation of these non-GAAP financial measures provides useful
information to investors regarding JetBlue's financial condition
and results of operations. In addition, refer to Note A for further
details on non-GAAP forward-looking information.
(2)
Includes fuel taxes and other
fuel fees.
(3)
JetBlue utilizes the forward
Brent crude curve and the forward Brent crude to jet crack spread
to calculate fuel price for the current quarter. Fuel price is
based on forward curve as of January 10, 2025.
Forward-Looking Information
This Earnings Release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, as amended. We intend such forward-looking statements to be
covered by the safe harbor provisions for forward-looking
statements contained in Section 27A of the Securities Act of 1933,
as amended (the "Securities Act"), and Section 21E of the
Securities Exchange Act of 1934, as amended (the "Exchange Act").
All statements other than statements of historical facts contained
in this Release are forward-looking statements. In some cases, you
can identify forward-looking statements by terms such as "expects,"
"plans" "intends," "anticipates," "indicates," "remains,"
"believes," "estimates," "forecast," "guidance," "outlook," "may,"
"will," "should," "seeks," "goals," "targets" or the negative of
these terms or other similar expressions. Additionally,
forward-looking statements include statements that do not relate
solely to historical facts, such as statements which identify
uncertainties or trends, discuss the possible future effects of
current known trends or uncertainties, or which indicate that the
future effects of known trends or uncertainties cannot be
predicted, guaranteed, or assured. Forward-looking statements
contained in this Earnings Release include, without limitation,
statements regarding our outlook and future results of operations
and financial position, including our expected return to
profitability, any expected headwinds, our product offerings and
loyalty initiatives, and our business strategy and plans and
objectives for future operations, including our JetForward
initiatives. Forward-looking statements involve risks,
uncertainties and assumptions, and are based on information
currently available to us. Actual results may differ materially
from those expressed in the forward-looking statements due to many
factors, including, without limitation, our extremely competitive
industry; the risk associated with the execution of our strategic
operating plans in the near- term and long-term; risks related to
the long-term nature of our fleet order book; volatility in fuel
prices and availability of fuel; increased maintenance costs
associated with fleet age; costs associated with salaries, wages
and benefits; risks associated with a potential material reduction
in the rate of interchange reimbursement fees; risks associated
with doing business internationally; our reliance on high daily
aircraft utilization; our dependence on the New York metropolitan
market; risks associated with extended interruptions or disruptions
in service at our focus cities; risks associated with airport
expenses; risks associated with seasonality and weather; our
reliance on a limited number of suppliers for our aircraft,
engines, and our Fly-Fi® product; the outcome of legal proceedings
with respect to the NEA and our wind-down of the NEA; risks
associated with cybersecurity and privacy, including potential
disruptions to our information technology systems and information
security breaches; heightened regulatory requirements concerning
data security compliance; risks associated with reliance on, and
potential failure of, automated systems to operate our business;
our inability to attract and retain qualified crewmembers; our
being subject to potential unionization, work stoppages, slowdowns
or increased labor costs; reputational and business risk from an
accident or incident involving our aircraft; risks associated with
damage to our reputation and the JetBlue brand name; our
significant amount of fixed obligations and the ability to service
such obligations; failure to comply with these covenants included
in the agreements governing our debt; financial risks associated
with credit card processors; risks associated with seeking
short-term additional financing liquidity; failure to realize the
full value of intangible or long-lived assets, causing us to record
impairments; risks associated with disease outbreaks or
environmental disasters affecting travel behavior; compliance with
environmental laws and regulations, which may cause us to incur
substantial costs; the impacts of federal budget constraints or
federally imposed furloughs; impact of global climate change and
legal, regulatory or market response to such change; increasing
scrutiny of, and evolving expectations regarding, environmental,
social and governance matters; changes in laws or government
regulations in our industry; acts of war or terrorism; and changes
in global economic conditions or an economic downturn leading to a
continuing or accelerated decrease in demand for air travel. It is
routine for our internal projections and expectations to change as
the year or each quarter in the year progresses, and therefore it
should be clearly understood that the internal projections,
beliefs, and assumptions upon which we base our expectations may
change prior to the end of each quarter or year.
Given the risks and uncertainties surrounding forward-looking
statements, you should not place undue reliance on these
statements. You should understand that many important factors, in
addition to those discussed or incorporated by reference in this
Earnings Release, could cause our results to differ materially from
those expressed in the forward- looking statements. Further
information concerning these and other factors is contained in
JetBlue's filings with the U.S. Securities and Exchange Commission
(the "SEC"), including but not limited to in our Annual Report on
Form 10-K for the year ended December 31, 2023, as updated by our
other SEC filings, including our Annual Report on Form 10-K for the
annual period ended December 31, 2024, to be filed with the SEC. In
light of these risks and uncertainties, the forward-looking events
discussed in this Earnings Release might not occur. Our
forward-looking statements speak only as of the date of this
Earnings Release. Other than as required by law, we undertake no
obligation to update or revise forward-looking statements, whether
as a result of new information, future events, or otherwise.
JETBLUE AIRWAYS
CORPORATION
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in millions, except per share
amounts)
(unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
(percent changes based on unrounded
numbers)
2024
2023
Percent
Change
2024
2023
Percent
Change
OPERATING REVENUES
Passenger
$
2,100
$
2,166
(3.1
)
$
8,617
$
9,008
(4.3
)
Other
177
159
11.5
662
607
9.0
Total operating revenues
2,277
2,325
(2.1
)
9,279
9,615
(3.5
)
OPERATING EXPENSES
Aircraft fuel
509
699
(27.3
)
2,343
2,807
(16.5
)
Salaries, wages and benefits
828
751
10.3
3,263
3,055
6.8
Landing fees and other rents
141
158
(10.5
)
659
657
0.4
Depreciation and amortization
168
159
5.8
655
621
5.5
Aircraft rent
19
28
(30.9
)
92
126
(27.2
)
Sales and marketing
83
78
6.7
328
316
4.0
Maintenance, materials and repairs
185
142
30.6
628
654
(4.1
)
Special items
1
29
(96.9
)
591
197
NM (1)
Other operating expenses
326
348
(6.6
)
1,404
1,412
(0.6
)
Total operating expenses
2,260
2,392
(5.5
)
9,963
9,845
1.2
OPERATING INCOME (LOSS)
17
(67
)
NM
(684
)
(230
)
NM
Operating margin
0.7
%
(2.9
)%
3.6
pts.
(7.4
)%
(2.4
)%
(5.0
)
pts.
OTHER INCOME (EXPENSE)
Interest expense
(150
)
(65
)
NM
(365
)
(210
)
73.3
Interest income
44
20
NM
111
70
58.1
Capitalized interest
3
5
(32.9
)
15
19
(21.2
)
Gain (loss) on investments, net
(1
)
3
NM
(27
)
9
NM
Gain on debt extinguishments
—
—
—
22
—
NM
Other
5
(6
)
NM
31
8
NM
Total other expense
(99
)
(43
)
NM
(213
)
(104
)
NM
LOSS BEFORE INCOME TAXES
(82
)
(110
)
25.2
(897
)
(334
)
NM
Pre-tax margin
(3.6
)%
(4.7
)%
1.1
pts.
(9.7
)%
(3.5
)%
(6.2
)
pts.
Income tax benefit
38
6
NM
102
24
NM
NET LOSS
$
(44
)
$
(104
)
57.5
$
(795
)
$
(310
)
NM
LOSS PER COMMON SHARE:
Basic
$
(0.13
)
$
(0.31
)
$
(2.30
)
$
(0.93
)
Diluted
$
(0.13
)
$
(0.31
)
$
(2.30
)
$
(0.93
)
WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic
351.4
337.8
346.0
332.9
Diluted
351.4
337.8
346.0
332.9
(1) Not meaningful or greater
than 100% change.
JETBLUE AIRWAYS
CORPORATION
COMPARATIVE OPERATING
STATISTICS
(unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
(percent changes based on unrounded
numbers)
2024
2023
Percent
Change
2024
2023
Percent
Change
Revenue passengers (thousands)
9,942
10,225
(2.8
)
40,498
42,534
(4.8
)
Revenue passenger miles (RPMs)
(millions)
13,273
13,628
(2.6
)
54,958
56,578
(2.9
)
Available seat miles (ASMs) (millions)
16,142
17,013
(5.1
)
66,082
68,497
(3.5
)
Load factor
82.2
%
80.1
%
2.1
pts.
83.2
%
82.6
%
0.6
pts.
Aircraft utilization (hours per day)
(1)
9.8
10.5
(6.7
)
10.1
10.9
(7.3
)
Average fare
$
211.18
$
211.83
(0.3
)
$
212.78
$
211.79
0.5
Yield per passenger mile (cents)
15.82
15.89
(0.4
)
15.68
15.92
(1.5
)
Passenger revenue per ASM (cents)
13.01
12.73
2.2
13.04
13.15
(0.8
)
Operating revenue per ASM (cents)
(RASM)
14.11
13.67
3.2
14.04
14.04
—
Operating expense per ASM (cents)
14.00
14.06
(0.4
)
15.08
14.37
4.9
Operating expense per ASM, excluding fuel
(cents) (2)
10.76
9.70
11.0
10.55
9.89
6.6
Departures
78,826
84,730
(7.0
)
319,987
347,218
(7.8
)
Average stage length (miles)
1,278
1,252
2.1
1,287
1,230
4.6
Average number of operating aircraft
during period (1)
288
284
1.5
286
282
1.5
Average fuel cost per gallon
$
2.47
$
3.18
(22.3
)
$
2.75
$
3.13
(12.1
)
Fuel gallons consumed (millions)
206
220
(6.5
)
853
897
(4.9
)
Average number of full-time equivalent
crewmembers
19,179
20,411
(6.0
)
19,822
20,632
(3.9
)
(1) Includes aircraft temporarily
removed from service, including aircraft impacted by the Pratt
& Whitney engine groundings and lack of engine
availability.
(2) Refer to Note A at the end of
our Earnings Release for more information on this non-GAAP
financial measure.
JETBLUE AIRWAYS
CORPORATION
SELECTED CONSOLIDATED BALANCE
SHEET DATA
(in millions)
December 31, 2024
December 31, 2023
(unaudited)
Cash and cash equivalents
$
2,449
$
1,166
Total investment securities
1,497
564
Total assets
16,841
13,853
Total debt
8,539
4,716
Stockholders' equity
2,641
3,337
Note A - Non-GAAP Financial Measures
We report our financial results in accordance with GAAP;
however, we present certain non-GAAP financial measures in this
Earnings Release. Non-GAAP financial measures are financial
measures that are derived from the consolidated financial
statements, but that are not presented in accordance with GAAP. We
present these non-GAAP financial measures because we believe they
provide useful supplemental information that enables a meaningful
comparison of our results to others in the airline industry and our
prior year results. Investors should consider these non-GAAP
financial measures in addition to, and not as a substitute for, our
financial performance measures prepared in accordance with GAAP.
Further, our non-GAAP information may be different from the
non-GAAP information provided by other companies. The information
below provides an explanation of each non-GAAP financial measure
used in this Earnings Release and shows a reconciliation of certain
non-GAAP financial measures used in this Earnings Release to the
most directly comparable GAAP financial measures.
With respect to JetBlue’s CASM Ex-Fuel (1), Adjusted Operating
Margin (2) guidance and EBIT (3) targets, JetBlue is not able to
provide a reconciliation of forward-looking measures where the
quantification of certain excluded items reflected in the measure
cannot be calculated or predicted at this time without unreasonable
efforts. In these cases, the reconciling information that is
unavailable includes a forward-looking range of financial
performance measures beyond our control, such as fuel costs, which
are subject to many economic and political factors beyond our
control. For the same reasons, we are unable to address the
probable significance of the unavailable information, which could
have a potentially unpredictable and potentially significant impact
on our future GAAP financial results.
(1) CASM Ex-Fuel is a non-GAAP measure that excludes fuel, other
non-airline operating expenses, and special items.
(2) Adjusted Operating Margin is a non-GAAP measure that
excludes special items.
(3) EBIT is a non-GAAP measure that excludes interest and income
taxes from net income (loss).
Operating expense per available seat mile, excluding fuel,
other non-airline operating expenses, and special items ("CASM
ex-fuel")
CASM is a common metric used in the airline industry. Our CASM
for the relevant periods are summarized in the table below. We
exclude aircraft fuel, operating expenses related to other
non-airline businesses, such as JetBlue Technology Ventures and
JetBlue Travel Products, and special items from total operating
expenses to determine Operating expenses ex-fuel, which is a
non-GAAP financial measure, and we exclude the same items from CASM
to determine CASM ex-fuel, which is also a non-GAAP financial
measure. We believe the impact of these special items distorts our
overall trends and that our metrics are more comparable with the
presentation of our results excluding such impact.
We believe Operating Expenses ex-fuel and CASM ex-fuel are
useful for investors because they provide investors the ability to
measure our financial performance excluding items that are beyond
our control, such as fuel costs, which are subject to many economic
and political factors, as well as items that are not related to the
generation of an available seat mile, such as operating expense
related to certain non-airline businesses and special items. We
believe these non-GAAP measures are more indicative of our ability
to manage airline costs and are more comparable to measures
reported by other major airlines.
Special items for 2024 include Spirit-related costs, union
contract costs, voluntary opt-out costs, Embraer E190 fleet
transition costs, and other special items.
Special items for 2023 include Spirit-related costs and union
contract costs.
The table below provides a reconciliation of our total operating
expenses ("GAAP measure") to Operating Expenses ex-fuel, and our
CASM to CASM ex-fuel for the periods presented.
NON-GAAP FINANCIAL
MEASURE
RECONCILIATION OF OPERATING
EXPENSE AND OPERATING EXPENSE PER ASM (CASM), EXCLUDING
FUEL
(unaudited)
Three Months Ended December
31,
$
Cents per ASM
($ in millions; per ASM data in cents;
percent changes based on unrounded numbers)
2024
2023
Percent
Change
2024
2023
Percent
Change
Total operating expenses
$
2,260
$
2,392
(5.5
)
14.00
14.06
(0.4
)
Less:
Aircraft fuel
509
699
(27.3
)
3.15
4.11
(23.3
)
Other non-airline expenses
13
14
(3.3
)
0.08
0.09
1.9
Special items
1
29
(96.9
)
0.01
0.17
(99.5
)
Operating expenses, excluding
fuel
$
1,737
$
1,650
5.3
10.76
9.70
11.0
Twelve Months Ended December
31,
$
Cents per ASM
($ in millions; per ASM data in cents;
percent changes based on unrounded numbers)
2024
2023
Percent
Change
2024
2023
Percent
Change
Total operating expenses
$
9,963
$
9,845
1.2
15.08
14.37
4.9
Less:
Aircraft fuel
2,343
2,807
(16.5
)
3.55
4.10
(13.5
)
Other non-airline expenses
60
64
(5.2
)
0.09
0.09
(1.7
)
Special items
591
197
NM (1)
0.89
0.29
NM (1)
Operating expenses, excluding
fuel
$
6,969
$
6,777
2.8
10.55
9.89
6.6
(1) Not meaningful or greater
than 100% change.
Operating Expense, Operating Income (Loss), Operating Margin,
Pre-tax Loss, Pre-tax Margin, Net Loss and Loss per Share,
excluding Special Items, Gain (Loss) on Investments and Gain on
Debt Extinguishments
Our GAAP results in the applicable periods were impacted by
credits and charges that were deemed special items.
Special items for 2024 include Spirit-related costs, union
contract costs, voluntary opt-out costs, Embraer E190 fleet
transition costs, and other special items.
Special items for 2023 include Spirit costs and union contract
costs.
Certain net gains and losses on our investments and the gain on
debt extinguishments were also excluded from our 2024 and 2023 GAAP
results.
We believe the impact of these items distort our overall trends
and that our metrics are more comparable with the presentation of
our results excluding the impact of these items. The table below
provides a reconciliation of our GAAP reported amounts to the
non-GAAP amounts excluding the impact of these items for the
periods presented.
NON-GAAP FINANCIAL
MEASURE
RECONCILIATION OF OPERATING
EXPENSE, OPERATING INCOME (LOSS), OPERATING MARGIN, PRE-TAX LOSS,
PRE-TAX MARGIN, NET LOSS, LOSS PER SHARE, EXCLUDING SPECIAL ITEMS,
GAIN (LOSS) ON INVESTMENTS AND GAIN ON DEBT EXTINGUISHMENTS
(unaudited, in
millions)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2024
2023
2024
2023
Total operating revenues
$
2,277
$
2,325
$
9,279
$
9,615
RECONCILIATION OF OPERATING
EXPENSE
Total operating expenses
$
2,260
$
2,392
$
9,963
$
9,845
Less: Special items
1
29
591
197
Total operating expenses excluding special
items
$
2,259
$
2,363
$
9,372
$
9,648
RECONCILIATION OF OPERATING INCOME
(LOSS)
Operating income (loss)
$
17
$
(67
)
$
(684
)
$
(230
)
Add back: Special items
1
29
591
197
Operating income (loss) excluding special
items
$
18
$
(38
)
$
(93
)
$
(33
)
RECONCILIATION OF OPERATING
MARGIN
Operating margin
0.7
%
(2.9
)%
(7.4
)%
(2.4
)%
Operating income (loss) excluding special
items
$
18
$
(38
)
$
(93
)
$
(33
)
Total operating revenues
2,277
2,325
9,279
9,615
Adjusted operating margin
0.8
%
(1.6
)%
(1.0
)%
(0.3
)%
RECONCILIATION OF PRE-TAX LOSS
Loss before income taxes
$
(82
)
$
(110
)
$
(897
)
$
(334
)
Add back: Special items
1
29
591
197
Less: Gain (loss) on investments, net
(1
)
3
(27
)
9
Less: Gain on debt extinguishments
—
—
22
—
Loss before income taxes excluding special
items, gain (loss) on investments and gain on debt
extinguishments
$
(80
)
$
(84
)
$
(301
)
$
(146
)
RECONCILIATION OF PRE-TAX
MARGIN
Pre-tax margin
(3.6
)%
(4.7
)%
(9.7
)%
(3.5
)%
Loss before income taxes excluding special
items
$
(80
)
$
(84
)
$
(301
)
$
(146
)
Total operating revenues
2,277
2,325
9,279
9,615
Adjusted pre-tax margin
(3.5
)%
(3.6
)%
(3.2
)%
(1.5
)%
RECONCILIATION OF NET LOSS
Net loss
$
(44
)
$
(104
)
$
(795
)
$
(310
)
Add back: Special items
1
29
591
197
Less: Income tax benefit (expense) related
to special items (1)
30
(15
)
45
31
Less: Gain (loss) on investments, net
(1
)
3
(27
)
9
Less: Income tax benefit (expense) related
to gain (loss) on investments, net
—
—
6
(2
)
Less: Gain on debt extinguishments
—
—
22
—
Less: Income tax expense related to gain
on debt extinguishments
—
—
(5
)
—
Net loss excluding special items, gain
(loss) on investments and gain on debt extinguishments
$
(72
)
$
(63
)
$
(245
)
$
(151
)
(1) Fourth quarter 2024 income tax benefit
relates to a reassessment of the valuation allowance related to the
tax impact of the Spirit transaction costs originally recorded in
March 2024 due to the termination of the Merger Agreement.
NON-GAAP FINANCIAL
MEASURE
RECONCILIATION OF OPERATING
EXPENSE, OPERATING INCOME (LOSS), OPERATING MARGIN, PRE-TAX LOSS,
PRE-TAX MARGIN, NET LOSS, LOSS PER SHARE, EXCLUDING SPECIAL ITEMS,
GAIN (LOSS) ON INVESTMENTS AND GAIN ON DEBT EXTINGUISHMENTS
(CONTINUED)
(unaudited)
Three Months Ended
December 31,
Twelve months ended
December 31,
CALCULATION OF LOSS PER SHARE
2024
2023
2024
2023
Loss per common share
Basic
$
(0.13
)
$
(0.31
)
$
(2.30
)
$
(0.93
)
Add back: Special items
—
0.09
1.71
0.59
Less: Income tax benefit (expense) related
to special items (1)
0.08
(0.04
)
0.13
0.09
Less: Gain (loss) on investments, net
—
0.01
(0.08
)
0.03
Less: Income tax benefit (expense) related
to gain (loss) on investments, net
—
—
0.02
(0.01
)
Less: Gain on debt extinguishments
—
—
0.06
—
Less: Income tax expense related to gain
on debt extinguishments
—
—
(0.01
)
—
Basic excluding special items, gain (loss)
on investments and gain on debt extinguishments
$
(0.21
)
$
(0.19
)
$
(0.71
)
$
(0.45
)
Loss per common share
Diluted
$
(0.13
)
$
(0.31
)
$
(2.30
)
$
(0.93
)
Add back: Special items
—
0.09
1.71
0.59
Less: Income tax benefit (expense) related
to special items (1)
0.08
(0.04
)
0.13
0.09
Less: Gain (loss) on investments, net
—
0.01
(0.08
)
0.03
Less: Income tax benefit (expense) related
to gain (loss) on investments, net
—
—
0.02
(0.01
)
Less: Gain on debt extinguishments
—
—
0.06
—
Less: Income tax expense related to gain
on debt extinguishments
—
—
(0.01
)
—
Diluted excluding special items, gain
(loss) on investments and gain on debt extinguishments
$
(0.21
)
$
(0.19
)
$
(0.71
)
$
(0.45
)
(1) Fourth quarter 2024 income
tax benefit relates to a reassessment of the valuation allowance
related to the tax impact of the Spirit transaction costs
originally recorded in March 2024 due to the termination of the
Merger Agreement.
Earnings Before Interest and Taxes (EBIT)
EBIT is a non-GAAP financial measure that reflects our net loss
prior to interest expense, interest income, capitalized interest,
and income tax benefit. We believe EBIT is useful for investors
because it is an indicator of the company's operating performance.
Management reviews the estimated amount of EBIT attributable to
JetForward initiatives within a given period, referred to in this
release as "incremental EBIT," to evaluate progress against our
financial and operational targets. Incremental EBIT reflects the
estimated impact of strategic initiatives on profitability, such as
fleet optimization, network changes, and cost reduction
programs.
While EBIT provides a useful lens to evaluate the financial
impact of strategic initiatives, it should be considered alongside
GAAP measures to understand the Company's overall performance.
The table below reflects a reconciliation of net loss to EBIT
for the period presented.
NON-GAAP FINANCIAL
MEASURE
RECONCILIATION OF NET LOSS TO
EBIT
(unaudited)
Twelve Months Ended
December 31,
($ in millions)
2024
Net loss
$
(795
)
Less:
Interest expense
(365
)
Interest income
111
Capitalized interest
15
Income tax benefit
102
EBIT
$
(658
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250128764842/en/
JetBlue Investor Relations Tel: +1 718 709 2202
ir@jetblue.com
JetBlue Corporate Communications Tel: +1 718 709 3089
corpcomm@jetblue.com
JetBlue Airways (NASDAQ:JBLU)
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