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JetBlue Airways’ Q1 Earnings: Losses Could Rise in 2020

Sushree Mohanty - Author

May 6 2020, Published 9:39 a.m. ET

JetBlue Airways (NASDAQ:JBLU) will likely report its results for the first quarter of fiscal 2020 on May 7 after the market opens. The airline industry has struggled for the past few months. Most of the companies have reported huge losses in the first quarter. Analysts expect the same from JetBlue Airways’ results. The stock has fallen 55.7% year-to-date. Let’s take a look at what analysts expect from the company in the first quarter and beyond.

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JetBlue Airways’ losses could rise

Analysts expect JetBlue Airways to report a 9.5% YoY (year-over-year) decline in its revenue to $1.6 billion in the first quarter. Sequentially, the revenue could also be lower than $2.03 billion in the fourth quarter of fiscal 2019. JetBlue’s revenue decline in the second quarter could be lower at $639.8 million. However, the revenues could continue to fall in the third and fourth quarter to $1.15 billion and $1.56 billion, respectively.

For the first quarter, analysts expect JetBlue Airways’ loss to be around $0.36 per share compared to a profit of $0.16 in the first quarter of fiscal 2019. The company also reported a profit of $0.56 in the fourth quarter of fiscal 2019. The losses could rise to $1.75 in the second quarter and slowly decline to $0.71 towards the third quarter. Analysts expect JetBlue Airways to only make a profit of $0.24 per share from the fourth quarter of fiscal 2020.

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Recently, Southwest Airlines (NYSE:LUV) and Delta Air Lines (NYSE:DAL) also reported their first-quarter results. Southwest Airlines reported revenue of $4.2 billion—a decline of 17.7% YoY and a loss of $0.15 per share. Delta Air Lines reported revenue of $8.6 billion and a loss of $0.51 per share in the first quarter.

Analysts’ recommendations

Currently, 15 analysts cover JetBlue Airways stock. Among the analysts, four recommend a “buy,” nine recommend a “hold,” one recommends a “sell,” and one recommends a “strong sell.” The average target price on the stock is $12.08. The target price represents an upside potential of 45% from the last closing price. The stock closed 3.8% lower at $8.29 on May 5. Spirit Airlines (NASDAQ:SAVE) will likely report its first-quarter results on Thursday. In April, JetBlue stock gained 8.8%, while Spirit Airlines stock gained 16.5%. Meanwhile, Southwest Airlines and Delta Air Lines have lost 12.2% and 9.1%, respectively.

Currently, the future looks grim for the airline industry. The second-quarter losses could be higher for most of the companies based on analysts’ estimates. We don’t know when the pandemic will end. Even when the pandemic ends, we don’t know when the sector will recover. According to a report from NPR, the International Air Transport Association estimates that the global airline industry could lose as much as $314 billion this year. We’ll have to wait and see what and how much of an impact the pandemic has on the sector.


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