NEW YORK–(BUSINESS WIRE)– JetBlue Airways Corporation (NASDAQ:JBLU) reported its preliminary traffic results for May 2019. Traffic in May increased 5.7 percent from May 2018, on a capacity increase of 5.4 percent.
Load factor for May 2019 was 86.0 percent, an increase of 0.2 points from May 2018. JetBlue’s preliminary completion factor for May 2019 was 99.7 percent and its on-time (1) performance was 77.6 percent. JetBlue expects second quarter revenue per available seat mile (RASM) to range between 2.0 and 4.0 percent.
(1) The U.S. Department of Transportation considers on-time arrivals to be those domestic flights arriving within 14 minutes of schedule.
JetBlue is New York’s Hometown Airline®, and a leading carrier in Boston, Fort Lauderdale-Hollywood, Los Angeles (Long Beach), Orlando, and San Juan. JetBlue carries more than 42 million customers a year to 100+ cities in the U.S., Caribbean, and Latin America with an average of more than 1,000 daily flights. For more information please visit jetblue.com.
PROVIDENCE, R.I.–(BUSINESS WIRE)– Bell, Textron Aviation Inc., Textron Aviation Defense LLC, Textron Systems, TRU Simulation + Training and Textron Airborne Solutions, all businesses of Textron Inc. (NYSE: TXT), have announced their plans for the Paris Air Show—the largest aerospace event in the world—which will be held June 17-23 at the Exhibition Center of Le Bourget. Textron will be displaying in Textron Pavilion A2.
“Our exhibit demonstrates a deep and diverse lineup of commercial and military aircraft, unmanned systems and simulation and training solutions,” says Textron’s Chairman and CEO Scott Donnelly. “We’re excited to show Paris Air Show attendees how focused we’ve been on delivering new levels of innovation and performance.”
Bell
Since the company’s beginning in 1935, Bell has set the pace for the helicopter industry, expanding the scope of vertical lift. Bell was the first to obtain commercial certification for a helicopter nearly 60 years ago – and since then, has delivered thousands of innovative aircraft to customers around the world. When it comes to developing the world’s first air taxi or producing life-saving commercial and military aircraft, Bell has the innovative minds and the relentless drive to revolutionize search and rescue operations, business travel and vertical takeoff and lift. And we are just getting started.
Discover these next-generation aircraft on static display during Paris Air Show this year:
The Bell 505 Jet Ranger X light single engine helicopter is the ideal military trainer aircraft and offers incredible value unlike any other helicopter in its class. With more than 150 delivered around the world, it is designed to be easier and safer to fly thanks to its superior standard equipment and state-of-the-art Garmin 1000H TM glass cockpit.
With over 330,000 hours on the global fleet, the Bell 429 is designed with the future in mind, enhancing occupant safety, with the adaptability to remain at the forefront as mission requirements evolve. The Bell 429 has been chosen by police forces, air medical teams and militaries around the world for time-sensitive missions.
The Bell 525 Relentless full-scale mock-up outfitted with Mecaer Aviation’s luxurious MAGnificent interior will be on static display this year. The aircraft offers customers a general leap forward, bringing new technological advances designed to benefit operators and increase safety standards of the industry. The 525 is expected to be the first commercial aircraft certified with Fly-By-Wire technology which greatly increases safety through reduced pilot workload and enhanced situational awareness.
Textron Aviation
Textron Aviation and Textron Aviation Defense—a subsidiary of Textron Aviation Inc.—will be showcasing their defense and special mission capabilities at the Paris Air Show, featuring static displays of the highly advanced Beechcraft AT-6 Wolverine, a flight inspection-configured Cessna Citation Latitude, an ISR-configured Beechcraft King Air 350i and a Cessna Grand Caravan EX equipped with an array of radars and sensors.
The Beechcraft AT-6 Wolverine is the world’s most cost-effective turboprop approach to light attack and armed reconnaissance, equipping the warfighter with the greatest level of mission configurability, the most advanced ISR technology, an optimized battlespace networking capability and the unwavering mission support of a global service network. The AT-6 Wolverine meets the full spectrum of U.S. Air Force Light Attack Aircraft (LAA) Integrated Weapon System (IWS) requirements.
Textron Aviation has engineered and designed innovative interior and avionics options that optimize the Latitude for installations of Flight Inspection systems and has enabled a more cost-effective and rapid installation for its customers. The Latitude’s flight inspection systems have been outfitted with the latest technology in en-route and terminal navigation aids while the aircraft features an extended range of border-to-border flight calibration, the payload capacity for extensive onboard test equipment and a dual flight inspection and executive transportation configuration.
The Beechcraft King Air 350i surpasses its predecessor’s high-caliber performance with more payload capability and range and delivers a quieter interior with standard Wi-Fi and Pro Line Fusion™ avionics with full touch-screen simplicity. The King Air is the world’s most popular business turboprop aircraft—a title sustained over five decades of continuous enhancement.
The freedom to configure the Cessna Grand Caravan EX to meet changing demands empowers operators to meet diverse surveillance mission requirements. External mounting provisions enable use of advanced electro optical/infrared (EO/IR) systems that transmit imaging to cabin mission computers and available cockpit repeaters. Intelligence is shared in real time via tactical radio and satellite downlink.
NEW YORK–(BUSINESS WIRE) – JetBlue Airways Corporation (NASDAQ:JBLU) today reported its results for the first quarter 2019:
Reported diluted earnings per share of $0.14 in the first quarter of 2019 compared to $0.28 in the first quarter of 2018. Adjusted diluted earnings per share was $0.16 in the first quarter of 2019 versus $0.26 in the first quarter of 2018. Note A to this earnings release includes the GAAP to Non-GAAP reconciliation between reported and adjusted diluted earnings per share.
GAAP pre-tax income of $58 million, a decline of 48.5% from $113 million in the first quarter of 2018. Excluding the one-time costs, adjusted pre-tax income of $70 million(1), a decline of 38.2% from the first quarter of 2018.
Pre-tax margin of 3.1%, inclusive of the one-time costs, a 3.3 point decline from the first quarter of 2018. Adjusted pre-tax margin of 3.7%(1), a 2.7 percentage point decline year over year.
Highlights from the First Quarter 2019
First quarter 2019 revenue per available seat mile (RASM) declined 3.1%, year over year, driven by holiday calendar placement, improved completion factor and certain areas of softness observed in the trough period. Excluding the 0.75 point impact from high completion factor, RASM declined 2.4% year over year, slightly better than the mid-point of our guidance range of down (3.5%) to down (1.5%).
Operating expenses per available seat mile, excluding fuel (CASM ex-fuel) (1) increased 0.9%, below the low end of our initial guidance range of 1.5% to 3.5%. This increase includes a benefit of approximately 0.75 points from improved completion factor.
Key Guidance for the Second Quarter and Full Year 2019:
Capacity is expected to increase between 4.5% and 6.5% year over year in the second quarter 2019. For the full year 2019, JetBlue expects capacity to increase between 4.5% and 6.5%.
RASM growth is expected to range between 1.0% and 4.0% for the second quarter 2019 compared to the same period in 2018. Our guidance includes a benefit of 2.25 points of impact related to the calendar placement shift of Easter and Passover between the first and second quarters of 2019.
CASM ex-fuel is expected to increase between 1.5% and 3.5% for the second quarter of 2019, principally driven by engine maintenance timing and the year-over-year impact of the pilot contract effective on August 1st, 2018. For the full year 2019, JetBlue continues to expect year over year CASM ex-fuel to be between flat and 2.0%.
For further details see the latest Investor Update and the First Quarter 2019 Earnings Presentation available via the internet at http://investor.jetblue.com.
JetBlue will conduct a conference call to discuss its quarterly earnings today, April 23, 2019 at 10:00 a.m. Eastern Time. A live broadcast of the conference call will also be available via the internet at http://investor.jetblue.com.
Executing our Plan to Reach our EPS Commitments “We are very proud of our team and the work they do every day to deliver the JetBlue experience. This quarter our financial performance was mainly impacted by the calendar placement of Easter and Passover holidays and, as disclosed in March, a softer revenue environment than initially expected,” said Robin Hayes, JetBlue’s Chief Executive Officer.
“In recent years we have repeatedly demonstrated our ability to adapt to the changing environment around us to achieve our margin commitments – and 2019 is proving to be no different. We believe we will successfully execute our five ‘building blocks’ introduced at our 2018 Investor Day, and we remain committed to our goal of delivering earnings per share between $2.50 and $3 dollars by 2020. We also continue to expect margin expansion in 2019, and to further expand our margins in 2020.”
“We believe our work will position us for success into the next decade. Next year we anticipate the first delivery of our margin-accretive A220s, a game-changing aircraft to further help us reduce our unit costs, improve our margins and increase our EPS. We are thrilled that we recently converted 13 A321s in our order book to A321 LRs, and we expect to begin our European service by adding London from Boston and New York starting in 2021,” said Joanna Geraghty, JetBlue’s President and Chief Operating Officer.
Revenue Performance and Outlook
First quarter RASM declined 3.1% year over year. Excluding the 0.75 point headwind from improved completion factor, RASM was slightly better than the mid-point of our guidance range of down (3.5%) to down (1.5%). “Our RASM was negatively impacted by three drivers: this year’s holiday calendar placement, improved completion factor, and certain areas of softness we observed in the trough period,” said Marty St. George, JetBlue’s EVP Commercial and Planning.
“Looking into the second quarter, we expect RASM growth between 1.0% and 4.0% year over year. Our guidance includes an anticipated 2.25 point positive impact of Easter/Passover holiday placement shift into April. March RASM showed clear signs of a weaker trough, which extended into the first half of April. The April peak, however, is showing the strength we had expected, and very early look at May and June points to sequential RASM acceleration.”
Cost Performance, Outlook and Balance Sheet
“Our first quarter CASM ex-fuel represents a unit cost increase below the mid-point of our guidance range. For the second quarter, we expect CASM ex-fuel growth to range between 1.5% and 3.5%. As a reminder, both our first quarter and second quarter guidance include an approximately three-point impact from our pilot contract signed last August,” said Steve Priest, JetBlue’s EVP Chief Financial Officer.
“We could not be prouder of the hard work across JetBlue to deliver on our commitments to hit our goals. We are encouraged by the CASM ex-fuel progress we made in the first quarter, and the progression we anticipate for the rest of the year. In the first half we will continue to digest our first pilot contract, and despite our capacity reduction from early March, our guidance range remains between 0 and 2 percent.”
Capital Allocation and Liquidity
JetBlue ended the quarter with approximately $876 million in unrestricted cash, cash equivalents, and short term investments, or about 11.3% of trailing twelve month revenue. In addition, at the end of the quarter, JetBlue maintained approximately $625 million in undrawn lines of credit. JetBlue repaid $133 million in regularly scheduled debt and capital lease obligations for the first quarter.
Fuel Expense and Hedging
The realized fuel price in the quarter was $2.05 per gallon, a 2.0% decline versus first quarter 2018 realized fuel price of $2.09.
JetBlue entered into forward fuel derivative contracts to hedge approximately 7% of its fuel consumption for the second quarter of 2019. Based on the fuel curve as of April 12th, JetBlue expects an average all-in price per gallon of fuel of $2.21 in the second quarter of 2019.
About JetBlue
JetBlue is New York’s Hometown Airline®, and a leading carrier in Boston, Fort Lauderdale-Hollywood, Los Angeles (Long Beach), Orlando, and San Juan. JetBlue carries more than 42 million customers a year to 100+ cities in the U.S., Caribbean, and Latin America with an average of more than 1,000 daily flights. For more information please visit jetblue.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which represent our management’s beliefs and assumptions concerning future events. When used in this document and in documents incorporated herein by reference, the words “expects,” “plans,” “anticipates,” “indicates,” “believes,” “forecast,” “guidance,” “outlook,” “may,” “will,” “should,” “seeks,” “targets” and similar expressions are intended to identify forward-looking statements. Forward-looking statements involve risks, uncertainties and assumptions, and are based on information currently available to us. Actual results may differ materially from those expressed in the forward-looking statements due to many factors, including, without limitation, our extremely competitive industry; volatility in financial and credit markets which could affect our ability to obtain debt and/or lease financing or to raise funds through debt or equity issuances; our significant fixed obligations and substantial indebtedness; volatility in fuel prices, maintenance costs and interest rates; our reliance on high daily aircraft utilization; our ability to implement our growth strategy; our ability to attract and retain qualified personnel and maintain our culture as we grow; our reliance on a limited number of suppliers; our dependence on the New York and Boston metropolitan markets and the effect of increased congestion in these markets; our reliance on automated systems and technology; our being subject to potential unionization, work stoppages, slowdowns or increased labor costs; our presence in some international emerging markets that may experience political or economic instability or may subject us to legal risk; reputational and business risk from information security breaches or cyber-attacks; changes in or additional domestic or foreign government regulation; changes in our industry due to other airlines’ financial condition; acts of war or terrorism; global economic conditions or an economic downturn leading to a continuing or accelerated decrease in demand for air travel; the spread of infectious diseases; adverse weather conditions or natural disasters; and external geopolitical events and conditions. It is routine for our internal projections and expectations to change as the year or each quarter in the year progresses, and therefore it should be clearly understood that the internal projections, beliefs and assumptions upon which we base our expectations may change prior to the end of each quarter or year.
Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. You should understand that many important factors, in addition to those discussed or incorporated by reference in this press release, could cause our results to differ materially from those expressed in the forward-looking statements. Potential factors that could affect our results include, in addition to others not described in this press release, those described in Item 1A of our 2018 Form 10-K under “Risks Related to JetBlue” and “Risks Associated with the Airline Industry”. In light of these risks and uncertainties, the forward-looking events discussed in this press release might not occur.
São Paulo, Brazil, April 18, 2019 – Embraer announces that the company’s new Praetor 600 super-midsize business jet was granted its Type Certificate by Brazil’s Civil Aviation Authority (ANAC—Agência Nacional de Aviação Civil), having been announced in October 2018 at NBAA-BACE and becoming the only super-midsize business jet to be certified since 2014.
The Praetor 600 is the best performing super-midsize jet ever developed, surpassing all its main design goals and becoming capable of flying beyond 4,000 nautical miles in long-range cruise speed or beyond 3,700 nautical miles at Mach .80 from runways shorter than 4,500ft, complemented by an outstanding payload capability.
“Our engineering and program teams have outperformed again by passionately designing, developing and certifying the class-leading Praetor 600 business jet, exceeding specifications and expectations, and ahead of schedule,” said Paulo César Souza e Silva, Embraer CEO. “This advanced aircraft reflects not only our journey of innovation, it is also a preview of the future of this great company.”
“The most disruptive and technologically advanced super-midsize business jet has arrived. The Praetor 600 will fascinate our customers with the highest performance, technology and comfort in its class and raise the customer experience to an unprecedented level,” said Michael Amalfitano, President & CEO, Embraer Executive Jets. “I want to thank and congratulate the Embraer family for bringing to market an aircraft that will create true value for customers and shareholders alike.”
The Praetor 600 is now the farthest-flying super-midsize jet, able to make nonstop flights between London and New York, São Paulo and Miami, Dubai and London. With four passengers and NBAA IFR Reserves, the Praetor 600 has an intercontinental range of 4,018 nautical miles (7,441 km). Take Off Field Length for such a mission is only 4,436 ft (1,352 m). At M0.80, range is 3,719 nm (6,887 km) with four passengers and NBBA IFR Reserves.
The
Praetor 600 is the first super-midsize jet with full fly-by-wire
technology, which powers the Active Turbulence Reduction that not only
makes every flight the smoothest but also the most efficient possible.
The Embraer DNA Design interior eloquently explores every dimension of the only super-midsize to feature a six-foot-tall, flat-floor cabin, stone flooring and a vacuum service lavatory, all in the same certified aircraft. The class-exclusive Active Turbulence Reduction and 5,800-foot cabin altitude, complemented by a whisper silent cabin, have set the highest standards in customer experience in the super-midsize category. In addition to the full-service galley and a wardrobe, eight fully reclining club seats may be berthed into four beds, and the baggage space is the largest in the class.
Advanced technology throughout the cabin is also a trait of the Embraer DNA Design, beginning with the industry-exclusive Upper Tech Panel that displays flight information and offers cabin management features also available on personal devices through Honeywell Ovation Select. High-capacity, ultra high-speed connectivity for all aboard is available through Viasat’s Ka-band, with speeds of up to 16Mbps and unlimited streaming, another industry-exclusive in super-midsize jets.
The Praetor 600 features Collins Aerospace’s newest edition of the acclaimed Pro Line Fusion flight deck. Capabilities such as the industry-first vertical weather display, air-traffic-control-like situational awareness with ADSB-IN, predictive wind shear radar capability, as well as Embraer Enhanced Vision System (E2VS) with a Head-up Display (HUD) and an Enhanced Video System (EVS), an Inertial Reference System (IRS) and a Synthetic Vision Guidance System (SVGS) are some of the highlights on the Praetor 600 flight deck.
