Benzinga | Jan 27, 2022 10:08AM EST

JetBlue Stock Gains Post Q4 Results, Hopes On Sequential Month-On-Month Improvement

* JetBlue Airways Corp (NASDAQ:JBLU) reported a fourth-quarter FY21 adjusted loss per share of $(0.36) compared to adjusted EPS of $0.56 in 4Q19, beating the consensus of $(0.38).

* Capacity declined by 5.4% year over two, in line with its planning assumption of a 4%-7% decline year over two.

* Operating revenue declined 9.7% compared to 4Q19 and improved 177.3% year-over-year to $1.83 billion, missing the consensus of $1.86 billion.

* Operating expenses per available seat mile increased 14.4% compared to 4Q19 and Operating expenses per available seat mile, excluding fuel and special items, increased 16.3% year over two.

* Total operating expenses increased by 75.1% Y/Y to $1.95 billion.

* The operating margin recovered to -6.5% from -68.7% in 4Q20. Adjusted EBITDA was $31 million, compared to $368 million in 4Q19.

* Load factor improved to 76.4% from 52.4% a year ago. The realized fuel price in the quarter was $2.37 per gallon, a 14.2% increase versus the 4Q19.

* JetBlue's adjusted debt to capital was 53% as of December 31, 2021. The company held ~$2.8 billion in cash and equivalents.

* "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," said CEO Robin Hayes.

* 1Q22 Outlook: JetBlue expects revenue to decrease between 11% and 16% year over three due to the large negative impact from Omicron on Q1 demand. It expects sequential month-on-month improvement leading to a profitable Q2 and a very strong summer peak.

* The airline expects capacity to range between (1%) and 2% year over three.

* FY22 Outlook: JetBlue plans to grow capacity between 11% and 15% versus 2019. CASM ex-fuel is expected to increase 1% - 5% versus 2019.

* Price Action: JBLU shares traded higher by 2.66% at $13.87 on the last check Thursday.