JetBlue Airways (NASDAQ:JBLU) reported Q1 EPS of ($0.80), $0.06 better than the analyst estimate of ($0.86). Revenue for the quarter came in at $1.74 billion versus the consensus estimate of $1.72 billion.
Financial Performance and Outlook:
“We are extremely pleased with the demand and revenue momentum, which accelerated throughout the quarter and resulted in first quarter revenue that was roughly six points ahead of our original January forecast; we also executed within the range of our original cost guidance despite abnormally elevated winter weather events. Looking ahead, we are reducing our full-year capacity growth as we work to restore operational reliability and catch up on a backlog of training events, and also as we remain mindful of elevated fuel prices,” said Ursula Hurley, JetBlue’s Chief Financial Officer.
“For the second quarter, we are forecasting CASM ex-Fuel(2) to increase 15% to 17% year over three, reflecting some inefficient, close-in capacity reductions in Q2, frontline premium and incentive pay to support the operation, ramp-up costs to maintain our hiring pace for the summer, and our recently signed deal with Air Line Pilots Association.
Our revenue performance for the second quarter is expected to be a record result. However, significantly higher fuel prices and investments in the operation are delaying our return to sustained pre-tax profitability. That said, we believe we are on a path to building back our margins and creating value for our owners through strong revenue growth, disciplined cost control, and a methodical approach to capacity decisions.”
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