JetBlue Posts Q2 Profits While Forecasting Turbulence Ahead

DALLASJetBlue (B6) has announced its Q2 2023 financial results, posting its highest quarterly profit since 2019 of US$138m. This compares to a loss of US$188m for the same period last year. Operating revenues were up by 6.7% to US$2.6bn.

Passenger numbers continued to rise, with the airline carrying some 11.2 million during the period, an increase of 7.8% from last year. B6 also reduced its operating expenses per available seat mile by 12.2%.

JetBlue (N3065J) Airbus A220-300 KBOS BOS. Photo: Jinyuan Liu/Airways.

Progress Made

It has been a busy few months for the New York-based carrier. It touched down in Paris for the first time on June 30, with the French capital becoming B6’s latest transatlantic service. The airline has continued its transition from the Embraer E190 to the Airbus A220, helping it realize over half its US$75m in expected savings. It also introduced a new livery, reflecting its ‘historical reputation as an innovative, industry-disrupting competitor.’

JetBlue’s Chief Executive Officer Robin Hayes said, “Thanks to the hard work of our fantastic Crewmembers, we generated our highest quarterly profit since 2019, demonstrating the progress we have made since the pandemic. These results were underpinned by record quarterly revenues and strong operational performance, reflecting the benefits from our significant investments and robust preparations for the peak summer travel period.”

B6 and AA have been forced to terminate their NEA. Photo: Marty Basaria/Airways.

Challenges Ahead

However, the second quarter has also been challenging for the airline, which has been reflected by a reduction in its expected earnings for the remainder of the year. Joanna Geraghty, JetBlue’s President and Chief Operating Officer, said that issues over the termination of the airlines Northeast Alliance (NEA) with American Airlines (AA), a challenging operating environment and slower domestic demand had led the low-cost carrier to reduce its Q3 revenues to be down 4-8% year-on-year and full-year revenue to increase 6-9%, less than the previous estimates. However, it still anticipates making a profit for the full year.

Ursula Hurley, JetBlue’s Chief Financial Officer, added, “While challenges persist in the near term, we are pulling every lever at our disposal to continue to drive cost efficiencies, including better utilization, technology upgrades, fleet modernization and our structural cost program. I remain confident in our ability to manage the near-term headwinds and focus on the factors we can control as we rebuild long-term margins and restore our historical earnings power.”

Featured Image: B6 unveiled its new livery in June. Photo: Darryl Sarno/Airways.

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