JetBlue Airways Corporation (JBLU) Bundle
A Brief History of JetBlue Airways Corporation
Company Overview
JetBlue Airways Corporation (NASDAQ: JBLU) is a major American low-cost airline, headquartered in New York City. Founded in 1998, JetBlue operates flights to over 100 destinations in the U.S., Caribbean, and Latin America.
Financial Performance
As of September 30, 2024, JetBlue reported a net loss of $60 million for the third quarter of 2024, compared to a net loss of $153 million during the same period in 2023. For the nine months ended September 30, 2024, the net loss was $751 million, significantly higher than the $207 million loss recorded in 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Loss (millions) | (60) | (153) | (751) | (207) |
| Loss per Share (Basic) | $(0.17) | $(0.46) | $(2.18) | $(0.63) |
| Total Operating Revenues (millions) | 2,365 | 2,353 | 7,002 | 7,290 |
| Total Operating Expenses (millions) | 2,403 | 2,509 | 7,702 | 7,453 |
Operating Expenses
For the third quarter of 2024, JetBlue's total operating expenses were $2.403 billion, reflecting a decrease of 4.2% from $2.509 billion in Q3 2023. The average fuel price decreased by 12.2% to $2.67 per gallon, which contributed to a $117 million reduction in aircraft fuel costs.
Liquidity Position
As of September 30, 2024, JetBlue reported liquidity of $4.1 billion, which includes unrestricted cash, cash equivalents, short-term investments, and long-term marketable securities. The company also had a $600 million line of credit available from Citibank.
Fleet Composition
As of September 30, 2024, JetBlue's operating fleet consisted of 287 aircraft. The breakdown of the fleet is as follows:
| Aircraft Type | Aircraft Count |
|---|---|
| Airbus A220 | 38 |
| Airbus A320 | 119 |
| Airbus A321 | 28 |
| Embraer E190 | 20 |
| Other | 82 |
Recent Developments
In March 2024, JetBlue's attempt to merge with Spirit Airlines was terminated due to legal challenges. The company incurred a total of $532 million in special items related to the Spirit acquisition and other costs associated with union contracts and voluntary opt-out costs.
Future Outlook
JetBlue aims to refocus its network in 2024 towards high-performing leisure routes and has announced plans to close 15 stations and exit over 50 routes. The company is also enhancing customer experience through new product offerings and airport lounge openings.
The landscape for the airline industry remains challenging, with JetBlue managing operational disruptions, such as aircraft engine inspections mandated by the FAA, impacting fleet availability and operational capacity.
A Who Owns JetBlue Airways Corporation (JBLU)
1. Major Shareholders
As of September 30, 2024, JetBlue Airways Corporation (JBLU) has several major shareholders, including institutional investors and mutual funds. The following table outlines the largest shareholders based on the percentage of shares owned:
| Shareholder | Shares Owned (millions) | Percentage of Total Shares |
|---|---|---|
| Vanguard Group Inc. | 45.3 | 8.9% |
| BlackRock Inc. | 42.1 | 8.4% |
| State Street Corporation | 36.7 | 7.3% |
| Invesco Ltd. | 30.9 | 6.1% |
| Fidelity Investments | 28.4 | 5.7% |
2. Insider Ownership
Insider ownership plays a crucial role in the governance of JetBlue. As of September 30, 2024, the following table shows the top executives and their respective ownership stakes:
| Name | Position | Shares Owned (millions) | Percentage of Total Shares |
|---|---|---|---|
| Robin Hayes | CEO | 1.2 | 0.24% |
| Joanna Geraghty | President | 0.9 | 0.18% |
| George Martin | CFO | 0.5 | 0.10% |
| Other Executives | Various | 2.3 | 0.46% |
3. Institutional Ownership
Institutional ownership is significant for JetBlue, reflecting confidence from large investment firms. The following table summarizes institutional ownership as of the end of Q3 2024:
| Institution | Shares Owned (millions) | Percentage of Total Shares |
|---|---|---|
| Vanguard Group | 45.3 | 8.9% |
| BlackRock | 42.1 | 8.4% |
| State Street | 36.7 | 7.3% |
| Invesco | 30.9 | 6.1% |
| Fidelity | 28.4 | 5.7% |
4. Recent Stock Performance
JetBlue's stock performance is reflective of market conditions and investor sentiment. As of September 30, 2024, the stock price was $6.12, with a market capitalization of approximately $3.08 billion. The stock performance over the past year shows a decline of about 15%. The following table summarizes recent stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $6.12 |
| Market Capitalization | $3.08 billion |
| 52-Week High | $9.25 |
| 52-Week Low | $5.50 |
| Year-to-Date Performance | -15% |
5. Conclusion on Ownership Structure
The ownership structure of JetBlue Airways Corporation is characterized by significant institutional ownership with notable shares held by top asset management firms. Insider ownership is relatively low but demonstrates a vested interest from management. The recent stock performance indicates challenges in the market but reflects the broader trends affecting the airline industry.
JetBlue Airways Corporation (JBLU) Mission Statement
Mission Statement Overview
JetBlue Airways Corporation (JBLU) aims to inspire humanity through its mission to provide a superior service experience to its customers while maintaining a commitment to sustainability and community engagement.
Financial Performance Indicators
As of September 30, 2024, JetBlue reported a net loss of $751 million for the nine-month period, compared to a net loss of $207 million for the same period in 2023.
Operational Statistics
| Operational Metrics | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Revenue Passengers (thousands) | 30,556 | 32,309 | (5.4) |
| Revenue Passenger Miles (millions) | 41,685 | 42,950 | (2.9) |
| Available Seat Miles (millions) | 49,940 | 51,484 | (3.0) |
| Load Factor (%) | 83.5 | 83.4 | 0.1 |
Revenue Breakdown
For the nine months ended September 30, 2024, JetBlue's passenger revenue was $6.518 billion, reflecting a decrease of 4.7% compared to $6.842 billion in 2023.
Other revenue increased by 8.2% to $484 million in 2024 from $448 million in 2023.
Cost and Operating Expenses
| Expense Categories | 2024 (in millions) | 2023 (in millions) | Change ($) |
|---|---|---|---|
| Aircraft Fuel | 1,835 | 2,108 | (273) |
| Salaries, Wages, and Benefits | 2,434 | 2,304 | 130 |
| Landing Fees and Other Rents | 518 | 499 | 19 |
| Depreciation and Amortization | 487 | 462 | 25 |
| Other Operating Expenses | 1,078 | 1,064 | 14 |
Liquidity and Cash Flow
As of September 30, 2024, JetBlue had total cash, cash equivalents, and restricted cash of $2.801 billion, compared to $1.122 billion in 2023.
Future Outlook and Strategic Initiatives
JetBlue's strategic initiatives include enhancing customer experience and expanding its network, focusing on high-performing leisure and transcontinental routes.
TrueBlue® Loyalty Program
The TrueBlue® loyalty program continues to play a significant role in JetBlue's revenue model, with loyalty revenue contributing approximately $476 million for the nine months ended September 30, 2024.
How JetBlue Airways Corporation (JBLU) Works
Overview of Operations
JetBlue Airways Corporation (JBLU) operates as a low-cost airline, providing passenger air transportation services. In 2024, the airline has focused on enhancing its operational efficiencies while expanding its route offerings, particularly in leisure markets. As of September 30, 2024, JetBlue's operating fleet consisted of 287 aircraft, including various models from the Airbus A220, A320, and A321 families.
Financial Performance
For the nine months ended September 30, 2024, JetBlue reported:
- Net loss: $751 million
- Operating loss: $700 million
- Operating margin: (10.0)%
- Loss per share: $2.18
In comparison, for the same period in 2023, the figures were:
- Net loss: $207 million
- Operating loss: $163 million
- Operating margin: (2.2)%
- Loss per share: $0.63
Revenue Breakdown
Operating revenues for the nine months ended September 30, 2024, were as follows:
| Type of Revenue | 2024 ($ millions) | 2023 ($ millions) | Change ($ millions) | Change (%) |
|---|---|---|---|---|
| Passenger Revenue | 6,518 | 6,842 | (324) | (4.7) |
| Other Revenue | 484 | 448 | 36 | 8.2 |
| Total Operating Revenues | 7,002 | 7,290 | (288) | (3.9) |
Operating Expenses
For the nine months ended September 30, 2024, JetBlue's operating expenses were detailed as follows:
| Expense Type | 2024 ($ millions) | 2023 ($ millions) | Change ($ millions) | Change (%) |
|---|---|---|---|---|
| Aircraft Fuel | 1,835 | 2,108 | (273) | (12.9) |
| Salaries, Wages, and Benefits | 2,434 | 2,304 | 130 | 5.7 |
| Other Operating Expenses | 3,433 | 3,041 | 392 | 12.9 |
| Total Operating Expenses | 7,702 | 7,453 | 249 | 3.4 |
Cash Flow Analysis
For the nine months ended September 30, 2024, JetBlue's cash flow from operations was $161 million compared to $486 million in 2023. The significant changes in cash flow were influenced by:
- Net cash used in investing activities: $(2,165) million
- Net cash provided by financing activities: $3,488 million
Operational Metrics
Key operational metrics for the third quarter of 2024 include:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue Passengers (thousands) | 10,596 | 10,911 | (2.9) |
| Revenue Passenger Miles (millions) | 14,491 | 14,777 | (1.9) |
| Available Seat Miles (millions) | 16,740 | 17,362 | (3.6) |
| Load Factor (%) | 86.6 | 85.1 | 1.5 |
Debt and Financing
As of September 30, 2024, JetBlue's total long-term debt was approximately $8,231 million, with significant maturities due in the coming years:
| Year | Maturity ($ millions) |
|---|---|
| 2024 | 111 |
| 2025 | 341 |
| 2026 | 663 |
| 2027 | 344 |
| 2028 | 444 |
| Thereafter | 6,328 |
Recent Developments
In July 2024, JetBlue launched its strategic framework known as JetForward, aiming to improve service reliability, enhance network offerings, and secure financial stability. The airline has also made significant network adjustments, including the closure of 15 stations and over 50 route exits to focus on high-demand leisure markets.
How JetBlue Airways Corporation (JBLU) Makes Money
Revenue Sources
JetBlue Airways Corporation generates revenue primarily through two main sources: passenger revenue and other ancillary revenues.
Passenger Revenue
Passenger revenue is the largest component of JetBlue's earnings. This includes income from ticket sales, baggage fees, and other travel-related charges. For the nine months ended September 30, 2024, passenger revenue was reported at $6.518 billion, down 4.7% from $6.842 billion in the same period of 2023. The decrease was attributed to a 3.0% reduction in capacity and a 1.8% decrease in yield per passenger mile.
Other Revenue
Other revenue encompasses various streams, including loyalty program income, vacation packages, airport concessions, and advertising. For the same nine-month period in 2024, other revenue increased by 8.2% to $484 million from $448 million in 2023, driven largely by an increase in the marketing component of TrueBlue® points.
| Revenue Source | 2024 (Nine Months Ended September 30) | 2023 (Nine Months Ended September 30) | Change (%) |
|---|---|---|---|
| Passenger Revenue | $6.518 billion | $6.842 billion | -4.7% |
| Other Revenue | $484 million | $448 million | +8.2% |
| Total Operating Revenue | $7.002 billion | $7.290 billion | -3.9% |
Yield and Average Fare
The average fare increased slightly to $213.31 in 2024 from $211.77 in 2023, representing a 0.7% rise. The yield per passenger mile decreased to 15.64 cents from 15.93 cents, a decline of 1.8%.
Operating Expenses
Operating expenses play a significant role in JetBlue's financial performance. For the nine months ended September 30, 2024, total operating expenses were reported at $7.702 billion, up from $7.453 billion in 2023. Key expenses include:
| Expense Category | 2024 (Nine Months Ended September 30) | 2023 (Nine Months Ended September 30) | Change ($ million) |
|---|---|---|---|
| Aircraft Fuel | $1.835 billion | $2.108 billion | -$273 million |
| Salaries, Wages, and Benefits | $2.434 billion | $2.304 billion | +$130 million |
| Landing Fees and Other Rents | $518 million | $499 million | +$19 million |
| Depreciation and Amortization | $487 million | $462 million | +$25 million |
| Maintenance, Materials, and Repairs | $442 million | $512 million | - $70 million |
| Special Items | $590 million | $168 million | +$422 million |
Net Loss and Financial Performance
As of September 30, 2024, JetBlue reported a net loss of $751 million compared to a loss of $207 million for the same period in 2023. The loss per share was $2.18 for 2024 versus $0.63 in 2023.
Liquidity and Financing Activities
JetBlue had approximately $4.1 billion in liquidity at the end of September 2024, which included unrestricted cash, cash equivalents, and short-term investments. Key financing transactions for the nine months ended September 30, 2024 included:
- Raised approximately $2.8 billion through the issuance of senior secured notes and term loans.
- Issued $460 million of convertible senior notes.
- Entered into $607 million of sale-leaseback transactions.
- Repaid $631 million on outstanding debt and finance lease obligations.
Operational Statistics
The following operational statistics were reported for the nine months ended September 30, 2024:
| Operational Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Revenue Passengers (thousands) | 30,556 | 32,309 | -5.4% |
| Revenue Passenger Miles (millions) | 41,685 | 42,950 | -2.9% |
| Available Seat Miles (ASMs) (millions) | 49,940 | 51,484 | -3.0% |
| Load Factor (%) | 83.5% | 83.4% | +0.1 pts |
Future Outlook and Strategic Initiatives
JetBlue's strategic initiatives include the JetForward plan, which focuses on enhancing customer service, expanding its leisure network, and improving operational efficiency. The company is also working to address challenges related to aircraft availability due to engine inspections mandated by the FAA.
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Article updated on 8 Nov 2024
Resources:
- JetBlue Airways Corporation (JBLU) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of JetBlue Airways Corporation (JBLU)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View JetBlue Airways Corporation (JBLU)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.