NASDAQ$JBLU

JetBlue Airways Corp · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

JetBlue reported a GAAP loss per share of ($1.44). Revenue declined 76% year over year due to the impact of COVID-19, but exceeded initial expectations.

JetBlue Airways Corporation reported its Q3 2020 results, which were significantly impacted by the COVID-19 pandemic. The company reported a GAAP loss per share of ($1.44) and a GAAP pre-tax loss of ($578) million. Revenue declined 76% year over year, but the company managed to reduce operating expenses by 45%. JetBlue ended the quarter with approximately $3.1 billion in unrestricted cash, cash equivalents, and short-term investments.

  • Reported GAAP loss per share of ($1.44) in the third quarter of 2020 compared to a diluted earnings per share of $0.63 in the third quarter of 2019.
  • Third quarter 2020 revenue declined 76% year over year as a result of the impact of COVID-19.
  • Reduced third quarter 2020 capacity by 58% year over year compared to an initial planning assumption of a decrease of at least 45%.
  • JetBlue ended the third quarter with approximately $3.1 billion in unrestricted cash, cash equivalents, and short-term investments.

Headline financials

Total Revenue

$492M

Previous: $2.09B-76.4%
EPS (adj)

-$1.75

Previous: $0.59-396.6%
Average Fuel Cost per Gallon

$1.23

Previous: $2.06-40.3%
Free Cash Flow

-$393M

Previous: $187M-310.2%
Net Income

-$393M

Previous: $187M-310.2%
Operating Income

-$516M

Previous: $247M-308.9%
Gross Profit

-$209M

Previous: -$616M+66.1%
Cash & Equivalents

$2.45B

Previous: $695M+252.9%
Total Assets

$13.4B

Previous: $11.3B+18.7%
Stock-Based Comp

$5M

Previous: $7M-28.6%

Revenue & EPS history

JetBlue · Revenue · Quarterly

$492M

Q3 2020-76.4%vs Q3 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

JetBlue · $492M total across 2 segments · Q3 2020

  • Passenger
    $445M
  • Other
    $47M

Forward guidance

JetBlue expects average daily cash burn in the fourth quarter to range between $4 and $6 million. Planning assumption for the fourth quarter is for capacity to decline approximately 45% year over year, given current expectations for improved bookings. Planning assumption for the fourth quarter is a revenue decline of approximately 65% year over year.

Tailwinds

  • The booking curve extend slightly into the upcoming Thanksgiving and December holiday travel period
  • Customers responding positively to promotional activity including an early holiday sale in late September.
  • Estimate daily cash burn to be between $4 and $6 million dollars for the fourth quarter.
  • Reached a second negotiated agreement with Airbus to defer additional aircraft and associated capital expenditure over the next few years.
  • Reduced aircraft and non-aircraft CAPEX by approximately $2 billion dollars between 2020 and 2022.

Headwinds

  • There still quite a lot of uncertainty about the evolution of the coronavirus
  • Planning assumption for the fourth quarter is a revenue decline of approximately 65% year over year.
  • Northeast geography continues to be disproportionately impacted
  • COVID-19 continues to affect demand for air travel
  • Global economic conditions or an economic downturn leading to a continuing or accelerated decrease in demand for air travel

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-2.3%

Avg return

Earnings day

-2.7%

Avg return

5 days after

+1.8%

Avg return

30 days after

40%

27 / 68 earnings

Positive

+13.3%

Q1 2020

Best reaction

-25.7%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.8%-1.6%+8.7%
Q4 2025-6.1%-4.1%+14.2%
Q3 2025-12.3%-11.0%-4.2%
Q1 2025+2.7%+17.0%+24.3%
Q4 2024-25.7%-18.7%-19.7%
Q3 2024-23.1%-21.2%-18.6%
Q2 2024+8.1%-6.2%-15.9%
Q1 2024-21.3%-23.0%-25.4%
Q4 2023-3.5%+4.4%+17.8%
Q3 2023-12.1%+4.5%+5.2%
Q2 2023-11.2%-14.0%-23.8%
Q1 2023+0.9%+4.7%+0.1%
Q4 2022-5.2%-4.9%-3.1%
Q3 2022-1.1%+2.9%+5.2%
Q2 2022+0.0%+1.0%-10.4%
Q1 2022-14.0%-15.7%-18.8%
Q4 2021+2.9%+10.1%+14.9%
Q3 2021-4.4%-4.8%-1.9%
Q2 2021-4.7%-8.0%-5.6%
Q1 2021-2.7%-1.0%-0.1%
Q4 2020-2.3%-1.7%+25.5%
Q3 2020-11.5%-4.7%+26.0%
Q2 2020-2.7%+1.1%+13.4%
Q1 2020+13.3%+0.5%+70.7%
Q4 2019+4.3%+2.4%+4.1%
Q3 2019+7.8%+7.1%+6.3%
Q2 2019+3.2%+2.2%-5.0%
Q1 2019+8.1%+7.7%+4.5%
Q4 2018+2.7%+5.1%-0.1%
Q3 2018-4.5%-1.8%+8.9%
Q2 2018-13.1%-8.9%-4.6%
Q1 2018-3.7%-3.2%-4.4%
Q4 2017-7.0%-6.3%-3.3%
Q3 2017-0.8%-2.5%+0.1%
Q2 2017-3.0%-3.1%-15.0%
Q1 2017+2.3%+0.4%+4.9%
Q4 2016-9.7%-9.9%-10.1%
Q3 2016-6.4%-7.9%+11.9%
Q2 2016+7.4%+6.1%-7.3%
Q1 2016+1.1%
Q4 2015+0.3%
Q3 2015-6.0%
Q2 2015+2.6%
Q1 2015+5.2%
Q4 2014+6.5%
Q3 2014-2.0%
Q2 2014+1.2%
Q1 2014-7.8%
Q4 2013+2.8%
Q3 2013-4.2%
Q2 2013-1.7%
Q1 2013-3.6%
Q4 2012+1.0%
Q3 2012+0.4%
Q2 2012-1.3%
Q1 2012-0.2%
Q4 2008-1.2%
Q4 2011-1.2%
Q3 2011+3.5%
Q2 2011-3.4%
Q1 2011+1.7%
Q4 2010+0.9%
Q3 2010+1.0%
Q3 2009+1.0%
Q4 2009-1.9%
Q2 2009-1.9%
Q2 2010-1.9%
Q1 2010-0.9%

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