JetBlue Airways Stock Falls After Q2 Results, Q3 Outlook Fails To Impress Investors - JetBlue Airways (NASDAQ:JBLU)

JetBlue Airways Corporation JBLU reported a second-quarter adjusted EPS loss of $(0.65), compared to adjusted EPS of $0.60 in 2Q19, beating the consensus of $(0.74).
Total operating revenue increased to $1.49 billion from $215 million a year ago and was down 29% compared to 2Q19, beating the consensus of $1.44 billion.
Operating expenses increased 116.3% year-over-year to $1.35 billion and declined 27% compared to 2Q19.
Operating margin recovered to 9.8% from -190.8% in 2Q20. Adjusted EBITDA loss was $(86) million, compared to $379 million in 2Q19.
Load factor improved to 79.2% from 33.8% a year ago.
The company reduced net debt by $1.2 billion to $0.9 billion. As of June 30, 2021, JetBlue's adjusted debt to capital was 55%.
JetBlue ended the quarter with ~$3.7 billion in unrestricted cash, cash equivalents, and short-term investments.
The realized fuel price in the quarter was $1.91 per gallon, a 12% decline vs. 2Q19. JetBlue has not entered into forward fuel derivative contracts to hedge its fuel consumption for the third quarter of 2021.
Q3 Outlook: The company expects a revenue decline of (4%) and (9%) year over two. It expects significant sequential improvement of approximately 20 points in Q3.
"We expect unit revenue to continue to improve on top of increasing capacity, with load factors in the mid-to-high 80s this summer," COO Joanna Geraghty said.
The assumption for Q3 capacity is between flat to down (3%) year over two. EBITDA will range between $75 and $175 million.
Price Action: JBLU shares are trading down by 6.78% at $14.98 on the last check Tuesday.
Photo by Adam Moreira via Wikimedia

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