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Q4 2021 Results: JetBlue Posts $129m Loss Amid Omicron Disruption

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JetBlue today shared its fourth-quarter 2021 results. The New York-based airline reported much improved figures over the same period in 2020 but struggles of the pandemic continue to take their toll, leading to a Q4 2021 net loss of $129 million.

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JetBlue is still recovering from the ongoing impact of the global health crisis. Photo: Vincenzo Pace | Simple Flying

Losses remain

The hybrid carrier’s Q4 2021 passenger revenue was a total of $1.695 billion, a significant boost from the Q4 2020 revenue of $606 million. Moreover, passenger revenue for the whole of 2021 was $5.609 billion, more than double the $2.733 billion reported for 2020.

Overall, the increase in revenue is helping to reduce the net loss for the airline. The company’s Q4 2021 net loss of $129 million is a considerable reduction from the Q4 2020 net loss of $373 million. Moreover, the total 2020 net loss of $182 million is a portion of the $1.354 billion posted for the previous year.

JetBlue notes that the rise of new virus waves following the arrival of Omicron had a notable impact on the airline’s key market of the US Northeast. For instance, there was a huge spike in the firm’s home of New York, which reported a total of over 3 million virus cases middle of December. This number then rose to over 4 million by early January.

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In the Northeast, JetBlue has notable bases at New York JFK and Boston Logan. Photo: Vincenzo Pace | Simple Flying

Hope for 2022

As a result of this case rises, there were increased passenger cancellations that were matched by staff sickness. Regardless, JetBlue has its sights for a better start to the new year. It has its eyes on a profitable Q2 2022 and a strong summer season.

“While Omicron has temporarily weighed on demand in the very near-term, we expect sequential month-on-month improvement through the quarter, ultimately returning to sustained profitability in the spring and beyond. Furthermore, were it not for Omicron, we believe we would have generated higher revenue this quarter than in the first quarter of 2019,” stated JetBlue CEO Robin Hayes in the quarterly report.

“I firmly believe that 2022 will prove to be a transformational year for JetBlue’s structural profitability, as we look to restore our earnings power and create value for our stakeholders. And we plan to achieve this by pulling meaningful commercial levers, keeping our relentless focus on costs, and maintaining our measured approach to capital allocation.”

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With new virus cases now significantly dropping in New York, JetBlue has faith for the coming months. Photo: Vincenzo Pace | Simple Flying

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Twists and turns

JetBlue posted a GAAP loss per share of ($0.40) in the last quarter against diluted earnings per share of $0.56 in the same period in 2019. Additionally, the adjusted loss per share was ($0.36) in Q4 2021 against adjusted diluted earnings per share of $0.56 in Q4 2019.

Altogether, with capacity declining 5.4% since Q4 2019, revenue declined by 9.7%. Regardless, JetBlue has been showing promising signs of returning to profitability over the last year. The carrier will be looking to reap the benefits of its initiatives such as the launch of narrowbody flights to Europe and its leisure network shakeup to be consistently back in the black before the year is over.

What are your thoughts about JetBlue’s Q4 2021 results? What do you make of the company’s overall figures? Let us know what you think of the situation and the airline’s prospects in the comment section.

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