Breaking Down The Third Quarter
JetBlue’s third-quarter results saw it post a net loss of USD 153 million. This was in comparison to the USD 57 million profit that it recorded in the same period one year prior.
Meanwhile, operating revenue also saw reductions with an 8% drop, leaving total figures at USD 2.4 billion for the third quarter.
JetBlue says that capacity, however, increased in available seat miles by 7%, but load factor fell by 1% to 85.1%.
Average fuel prices in the third quarter of 2023 sat at USD 2.94 per gallon, including hedges.
Highlights For The Third Quarter
While the quarter financially was bleak, JetBlue unveiled some key highlights it witnessed for the third quarter.
It announced new seasonal transatlantic services between New York JFK and Boston to Dublin Airport from 2024. Additionally, New York JFK to Edinburgh, too.
JetBlue said its fleet progressed with the modernisation of fleet as 18 Embraer E190s were removed from the fleet. A transition process towards the Airbus A220 is expected to save the company USD 55 million by the end of this year.
The expectation is that by switching to the more efficient A220, the cost savings will continue, with JetBlue targeting USD 75 million through 2024.
What’s Going Wrong At JetBlue?
For JetBlue, however, the underlying focus will be on the loss recorded and how this has occurred.
JetBlue executives say that the quarter presented a significant amount of challenges that proved tricky to navigate.
Notably, the airline saw significant weather-related impacts alongside rising fuel prices. The latter broadly impacts the industry and will impact many companies’ fourth-quarter outlooks.
Comments From Executives
We continue to see healthy travel demand during peak periods and the fourth quarter holidays. However, industry capacity is outpacing domestic demand during off peak travel periods. For the fourth quarter, our growth will be driven primarily by international as we proactively work to manage our capacity and reduce schedules in off-peak periods.Joanna Geraghty, JetBlue’s President and Chief Operating Officer.
While we have been able to offset some of the costs associated with the challenging operational backdrop, the sheer magnitude of the air traffic control and weather-related delays has been staggering. We remain focused on controlling what we can control, including our structural cost program and fleet modernization plans.Ursula Hurley, JetBlue’s Chief Financial Officer.