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JetBlue Incurs Loss in Q3, Tops on Revenues, Tweaks 2024 View

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JetBlue Airways Corporation (JBLU - Free Report) reported third-quarter 2024 loss (excluding one cent per share from non-recurring items) of 16 cents per share, narrower than the Zacks Consensus Estimate of a loss of 26 cents. In the year-ago quarter, JBLU reported a loss of 39 cents.

Find the latest EPS estimates and surprises on ZacksEarnings Calendar.

Operating revenues of $2.36 billion beat the Zacks Consensus Estimate of $2.34 billion and increased 0.5% year over year. Passenger revenues, accounting for the bulk of the top line (92.9%), declined 0.1% to $2.19 billion. Other revenues rose 9.8% year over year to $167 million.

JetBlue Airways Corporation Price, Consensus and EPS Surprise

JetBlue Airways Corporation Price, Consensus and EPS Surprise

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

Other Q3 Details

Revenue per available seat mile (RASM: a key measure of unit revenues) grew 4.3% year over year to 14.13 cents. Passenger revenue per available seat mile grew 3.6% year over year to 13.13 cents. The average fare at JetBlue increased 2.8% year over year to $207.46. The yield per passenger mile rose 1.9% year over year.

Consolidated traffic (measured in revenue passenger miles) declined 1.9% year over year. Capacity (measured in available seat miles) dropped 3.6% year over year. Consolidated load factor (percentage of seats filled by passengers) improved 1.5 percentage points to 86.6% as the traffic decline was less than the capacity reduction. Our estimate for load factor is pegged at 83.2%.

Total operating costs (on a reported basis) declined 4.2% year over year to $2.40 billion. Expenses on salaries, wages and benefits increased 4.7% year over year. Expenses onaircraft fuel declined 16.8% year over year.

The average fuel price per gallon (including related taxes) was $2.67, down 12.2% year over year. The reported figure was below the company guided range of $2.70-$2.80.

JBLU’s operating expenses per available seat mile (CASM) decreased 0.7% year over year. Excluding fuel, CASM rose 4.8% to $10.62.

Outlook

For fourth-quarter 2024, capacity is anticipated to decline in the 4-7% band. CASM, excluding fuel and special items, is predicted to climb 13-15%. Capital expenditures are expected to be roughly $450 million.  Total revenues are forecasted to tumble in the range of 3-7%. The average fuel cost per gallon is estimated to be between $2.50 and $2.65.

For 2024, capacity is now envisioned to be down in the 2.5-4.5% range (prior view: down 2.5-5%). CASM, excluding fuel and special items, is predicted to be up in the 7%-8% range (prior view: up 6.5-8.5%). Total revenues are forecasted to tumble in the range of 4-5% (prior view: down 4-6%). The average fuel cost per gallon is estimated to be between $2.75 and $2.80 (prior view: $2.80-$3.00).

Capital expenditures are expected to be roughly $1.6 billion. 

JBLU’s Zacks Rank & Price Performance

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

The company’s shares gained 28.9% over the past six months, outperforming the 10.5% rise of the industry it belongs to.

Six-Month Price Comparison

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Performances of Other Transportation Companies

Delta Air Lines (DAL - Free Report) reported third-quarter 2024 earnings (excluding 47 cents from non-recurring items) of $1.50 per share, which fell short of the Zacks Consensus Estimate of $1.56. Earnings decreased 26.11% on a year-over-year basis, mainly due to high labor costs.

Revenues of $15.68 billion surpassed the Zacks Consensus Estimate of $15.37 billion and increased 1.2% on a year-over-year basis, driven by strong air travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.59 billion, flat year over year.

J.B. Hunt Transport Services, Inc. (JBHT - Free Report) third-quarter 2024 earnings of $1.49 per share outpaced the Zacks Consensus Estimate of $1.42 but declined 17.2% year over year.

Total operating revenues of $3.07 billionsurpassed the Zacks Consensus Estimate of $3.04 billion but fell 3% year over year. The downfall was owing to a 5% and 6% decrease in gross revenue per load in Intermodal (JBI) and Truckload (JBT), respectively, a decline in load volume of 10% and 6% in Integrated Capacity Solutions (ICS) and Dedicated Contract Services (DCS), respectively, and 6% fewer stops in Final Mile Services (FMS). These were partially offset by JBI load growth of 5%, which included growth in both the transcontinental and eastern networks and a 3% increase in revenue per load in ICS. Total operating revenue, excluding fuel surcharge revenue, decreased less than 1% from the year-ago reported quarter.

United Airlines Holdings, Inc. (UAL - Free Report) reported third-quarter 2024 EPS (excluding 43 cents from non-recurring items) of $3.33, which surpassed the Zacks Consensus Estimate of $3.10. Earnings decreased 8.8% on a year-over-year basis.

Operating revenues of $14.84 billion beat the Zacks Consensus Estimate of $14.76 billion. The top line increased 2.5% year over year due to upbeat air-travel demand. This was driven by a 1.6% rise in passenger revenues (which accounted for 91.3% of the top line) to $13.56 billion. Almost 45,559 passengers traveled on UAL flights in the third quarter, up 2.7% year over year.

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