Categories AlphaGraphs, Consumer, Earnings

JetBlue’s shares gain 3% after Q4 results beat estimates

JetBlue Airways Corporation (JBLU) topped market estimates on revenue and earnings for the fourth quarter of 2018, sending shares up 3.5% during premarket hours on Thursday.

Total operating revenues grew 12% to $1.97 billion from the year-ago period. Reported net income dropped 74.1% to $169 million or $0.55 per share compared to the prior-year quarter. Last year’s fourth quarter earnings results included a one-time tax benefit. Adjusted EPS grew to $0.50 from $0.32 last year, helped by strong non-fuel cost control and revenue growth.

JetBlue Airways fourth quarter 2018 earnings infographic
JetBlue Airways Q4 2018 Earnings Infographic

During the quarter, revenue per available seat mile (RASM) grew 2.4% year-over-year, driven by strong close-in demand trends across the network. RASM ended above the midpoint of the company’s guidance range of 1-4%, excluding a 0.3 point impact from strong completion factor.

CASM, ex-fuel dropped 3.6%, below the low-end of the guidance range of down 3.5% to down 1.5%. This drop includes a benefit of around 0.3 points from improved completion factor. Load factor dropped by 0.6 points to 82.5% year-over-year.

Also see: JetBlue Q4 2018 Earnings Conference Call Transcript

The realized fuel price in the fourth quarter was $2.24 per gallon, an increase of 18.5% from $1.89 in the prior-year quarter. JetBlue entered into forward fuel derivative contracts to hedge around 7% of its fuel consumption for the first half of 2019. The company currently expects the average price per gallon of fuel to be $2.01 in the first quarter of 2019.

Earnings Preview: Higher fuel costs might impact JetBlue’s Q4 earnings

For the first quarter of 2019, capacity is expected to increase between 7.5% and 9.5% year-over-year. RASM growth is expected to range between down 2% and plus 1%. CASM, ex-fuel, is expected to grow 1.5% to 3.5%.

For full-year 2019, capacity is expected to grow 5-7%. The company expects CASM, ex-fuel, to be between flat and 2% on a year-over-year basis. Looking ahead, JetBlue expressed confidence in its ability to achieve its EPS target of $2.50 to $3.00 in 2020.


Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Infographic: How Starbucks (SBUX) performed in Q1 2023

Starbucks Corporation (NASDAQ: SBUX) reported first quarter 2023 earnings results today. Consolidated net revenues increased 8% year-over-year to $8.7 billion, in line with projections.   Global comparable store sales increased

Earnings: Google parent Alphabet (GOOG, GOOGL) reports lower Q4 profit

Alphabet Inc. (NASDAQ: GOOGL, GOOG) on Thursday reported a 1% increase in fourth-quarter 2022 revenues, with strong contributions from the cloud business. The company, which owns the largest internet search

HOG Earnings: Key quarterly highlights from Harley-Davidson’s Q4 2022 financial results

Harley-Davidson, Inc. (NYSE: HOG) reported fourth quarter 2022 earnings results today. Revenue increased 12% year-over-year to $1.14 billion. Net income attributable to Harley-Davidson, Inc. rose 94% YoY to $42 million,

Add Comment
Viewing Highlight