JetBlue Airways Corp. Earnings Analysis: Q2 2016 By The Numbers

| About: JetBlue Airways (JBLU)

JetBlue Airways Corp. (NASDAQ:JBLU) reports financial results for the quarter ended June 30, 2016.

We analyze the earnings alongside the following peers of the company - United Continental Holdings, Inc. (NYSE:UAL), Delta Air Lines, Inc. (NYSE:DAL), Southwest Airlines Co. (NYSE:LUV), SkyWest, Inc. (NASDAQ:SKYW), Allegiant Travel Company (NASDAQ:ALGT), Alaska Air Group, Inc. (NYSE:ALK), Hawaiian Holdings, Inc. (NASDAQ:HA), Republic Airways Holdings, Inc. (OTCPK:RJETQ), American Airlines Group, Inc. (NASDAQ:AAL) and Spirit Airlines, Inc. (NASDAQ:SAVE) - that have also reported for this period.

Highlights

  • Summary numbers: Revenues of USD 1643 million, Net Earnings of USD 180 million.
  • Gross margins narrowed from 23.76% to 23.43% compared to the same period last year, operating (EBITDA) margins now 24.89% from 24.44%.
  • Earnings growth due to contribution of one-time items.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income growth:

2015-06-30 2015-09-30 2015-12-31 2016-03-31 2016-06-30
Relevant Numbers (Quarterly)
Revenues (mil.) 1612 1687 1594 1616 1643
Revenue Growth (%YOY) 7.97 10.33 10.24 6.11 1.92
Earnings (mil.) 152 198 190 199 180
Earnings Growth (%YOY) -33.91 150.63 115.91 45.26 18.42
Net Margin (%) 9.43 11.74 11.92 12.31 10.96
EPS 0.44 0.58 0.56 0.59 0.53
Return on Equity (%) 22.1 27.26 24.41 24.03 20.4
Return on Assets (%) 7.32 9.37 8.81 8.98 7.78
Click to enlarge

Market Share Versus Profits

Revenues History

Earnings History

JBLU's change in revenue this period compared to the same period last year of 1.92% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting the company is holding onto its market share. Also, for comparison purposes, revenues changed by 1.67% and earnings by -9.55% compared to the immediate last period.

Revenues Growth Versus Earnings Growth
Earnings Growth Analysis
The company's gross margins showed no year-on-year improvement. In spite of this, earnings rose, influenced primarily by the improvement in operating margins (EBITDA margins) from 24.44% to 24.89%. For comparison, gross margins were 25.56% and EBITDA margins were 27.23% in the last period.
Gross Margin Versus EBITDA Margin
Margins
JBLU's operating (EBIT) margins contracted from 19.42% to 19.05%. In spite of this, the company's earnings rose. This was influenced primarily by one-time items, which improved pretax margins from 15.51% to 17.59%.
EBIT Margin Versus PreTax Margin
EBIT Margin History
PreTax Margin History

Company Profile
JetBlue Airways Corp. provides air transportation services. It carries more than 30 million customers a year to 86 cities in the U.S., Caribbean, and Latin America, with an average of 850 daily flights. The company offers flights and tickets to more than 82 destinations, with accommodations such as free TV, free snacks, and most legroom. JetBlue Airways was founded by David Gary Neeleman in August 1998, and is headquartered in Long Island City, NY.

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