JetBlue(JBLU) - 2023 Q1 - Quarterly Report

Financial Performance - First quarter 2023 revenue increased by 34.1% year-over-year to $2.3 billion, up$592 million from the same period in 2022[89] - The company reported a net loss of $192 million for Q1 2023, an improvement from a net loss of$255 million in Q1 2022[94] - Total operating revenues for the three months ended March 31, 2023, were $2,328 million, compared to$1,736 million for the same period in 2022, representing a year-over-year increase of 34.1%[144] - Operating loss for the three months ended March 31, 2023, was $(242) million, an improvement from$(367) million in the same period of 2022[144] - Free Cash Flow for the three months ended March 31, 2023, was $233 million, compared to$113 million for the same period in 2022, indicating a significant increase of 106.2%[147] - Basic loss per share for the three months ended March 31, 2023, was $(0.58), compared to$(0.79) for the same period in 2022[144] Revenue and Passenger Metrics - Revenue passengers increased by 24.6% year-over-year to 10,192 thousand[95] - Revenue passenger miles (RPMs) rose to 13,375 million, reflecting a 22.4% increase from 10,927 million in the prior year[110] - The load factor improved by 8.8 percentage points to 79.8% from 71.0% year-over-year[110] - Average fare increased by 9.2% year-over-year to $214.07[95] Operating Expenses - Operating expenses for Q1 2023 increased by 22.2$2.57 billion[98] - Other operating expenses increased by $23 million, or 6.9$2,570 million, up from $2,103 million in the same period of 2022, reflecting a 22.2$765 million, with average fuel price increasing by 20.8% to $3.50 per gallon[99] - The average fuel cost per gallon increased by 20.8$3.50 from $2.90 year-over-year[110] - The company has hedged 30.5$282 million over the next 12 months[150] Future Outlook - The company expects Q2 2023 revenue to increase between 4.5% to 8.5% compared to Q2 2022[92] - Full year 2023 capacity is expected to increase between 5.5% to 8.5% compared to 2022[92] - CASM Ex-Fuel for Q2 2023 is expected to increase between 1.5% to 3.5%[92] Debt and Financing - As of March 31, 2023, total debt and finance lease obligations amounted to $15.0 billion, with$2.3 billion due in 2023 and $3.0 billion due in 2024[127] - Working capital deficits increased by$80 million to $1.9 billion as of March 31, 2023, primarily due to an increase in air traffic liability[124] - The company anticipates using a mix of cash and debt financing for aircraft scheduled for delivery in 2023, with potential increases in fixed costs regardless of financing method[130] - The company expects to meet its pre-delivery deposit requirements for aircraft through cash payments or short-term borrowing facilities[128] Fleet and Aircraft Orders - The aircraft order book includes 146 total aircraft scheduled for delivery from 2023 to 2027, with 28 aircraft expected in 2023 and 43 in 2024[128] - The average age of the operating fleet as of March 31, 2023, was 12.5 years, consisting of 130 Airbus A320, 63 Airbus A321, 24 Airbus A321neo, 15 Airbus A220, and 58 Embraer E190 aircraft[127] - The fleet consists of 228 owned aircraft and 62 leased under operating leases, with no finance leases[127] Compliance and Risks - The company remains in compliance with the covenants of its debt and lease agreements as of March 31, 2023[127] - Forward-looking statements indicate potential risks including the impact of the COVID-19 pandemic, competitive industry pressures, and uncertainties related to the merger with Spirit Airlines[134] - The company has no off-balance sheet arrangements that would significantly impact its financial condition or cash flows[131]