United, Southwest, JetBlue Q1 Results Hurt By Severe Winter Weather

(RTTNews) - United Continental Holdings, Inc. (UAL) reported Thursday a loss for the first quarter that widened last year. Adjusted loss per share came in narrower than analysts' expectations, but revenues missed. Southwest Airlines Co. (LUV) reported a surge in profit for the quarter, reflecting lower fuel expenses and revenue growth, with adjusted earnings per share topping estimates and revenues matching.

Meanwhile, JetBlue Airways Corp. (JBLU) reported a profit that plunged from last year, with both earnings per share and quarterly revenues missing Street view.

The results of the three airline's were severely impacted by the unprecedented extreme winter weather that marked the first quarter. United's loss increased by about $200 million, Southwest was impacted by the cancellation of more than 7,500 flights, and JetBlue had to cancel 4,100 flights in the Northeast.

"This quarter's financial performance is well below what we can and should achieve. We are taking the appropriate steps with our operations, network, service and product to deliver significantly better financial results," UAL Chairman, President and CEO Jeff Smisek said.

Chicago, Illinois-based United Continental reported a net loss of $609 million or $1.66 per share for the first quarter, wider than $417 million or $1.26 per share in the prior-year quarter. Excluding charges, adjusted net loss for the quarter was $489 million or $1.33 per share, compared to adjusted net loss of $358 million or $1.08 per share in the year-ago quarter.

On average, 18 analysts polled by Thomson Reuters expected the company to report a loss of $1.35 per share for the quarter. Analysts' estimates typically exclude special items.

Total operating revenue for the quarter edged down 0.3 percent to 8.70 billion from $8.72 billion in the same quarter last year, but missed fourteen Wall Street analysts consensus estimate of $8.71 billion by a whisker.

Consolidated passenger revenues declined 2.3 percent to $7.38 billion from last year.

Consolidated revenue passenger miles and consolidated available seat miles each dropped by 0.3 percent, driven largely by adverse weather, resulting in an unchanged consolidated load factor of 81.1 percent.

Total operating expenses edged up 0.7 percent to $9.05 billion from last year, with aircraft fuel expenses declining 4.4 percent from a year ago.

Dallas, Texas-based Southwest Airlines reported net income of $152 million or $0.22 per share for the first quarter, higher than $59 million or $0.08 per share in the prior-year quarter. Excluding items, adjusted net income for the quarter was $126 million or $0.18 per share, compared to $53 million or $0.07 per share in the year-ago quarter.

On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $0.17 per share for the quarter. Analysts' estimates typically exclude special items.

Total operating revenues for the quarter increased 2 percent to $4.17 billion from $4.08 billion in the same quarter last year, and matched thirteen Wall Street analysts' consensus estimate of $4.17 billion. Passenger revenues rose 2.5 percent from last year to $3.93 billion.

Gary Kelly, chairman, president, and CEO, stated, "I am delighted to report record first quarter earnings, which increased significantly year-over-year, despite the disruption caused by more than 7,500 of our flights canceled due to extreme weather conditions and the impact of the shift in timing of the Easter and Passover holidays."

The company noted that operating unit revenues grew 3.1 percent, on a 1.1 percent decline in available seat miles and a 2.6 percent rise in average seats per trip from last year.

Traffic increased 1.7 percent, while capacity declined 1.1 percent from last year. Load factor increased 2.2 percentage points to 79.3 percent from the year-ago quarter.

Total operating expenses declined 1.6 percent to $3.95 billion from last year, with fuel and oil expenses declining 9.8 percent from a year ago.

"We have a significant amount of fleet activity planned this year, as we wind down the AirTran brand and continue to modernize our fleet, resulting in a larger than normal number of aircraft out of scheduled service. Accordingly, we expect relatively flat 2014 available seat miles, year-over-year," Kelly added.

Meanwhile, New York's hometown airline JetBlue Airways reported net income of $4 million or $0.01 per share for the first quarter, lower than $14 million or $0.05 per share in the prior-year quarter. Analysts expected the company to report earnings of $0.07 per share for the quarter.

Total operating revenues for the quarter grew 3.8 percent to $1.35 billion from $1.30 billion in the same quarter last year, but missed eleven Wall Street analysts' consensus estimate of $1.37 billion.

Passenger revenues grew 3.6 percent to $1.23 billion, and other revenues increased 5.9 percent from last year.

Traffic for the quarter increased 1.8 percent on a capacity growth of 2.7 percent, resulting in a load factor of 83.1 percent a decrease of 0.8 points from last year.

Operating expenses for the quarter grew 5.5 percent to $1.31 billion from last year, with aircraft fuel expenses edging down 0.8 percent.

Looking ahead to the second quarter, JetBlue projects CASM to increase between 3.5 and 5.5 percent, while excluding fuel and profit sharing, it is expected to increase between 4.5 and 6.5 percent. Capacity is expected to increase between 5.5 and 7.5 percent.

For fiscal 2014, the company expects CASM to rise between 2 and 4 percent, while, excluding fuel and profit sharing, it is expected to increase between 3.5 and 5.5 percent. Capacity is expected to increase between 4 and 6 percent.

In Thursday's regular trading session, UAL is currently trading at $43.47, down $2.59 or 5.62% on a volume of 3.88 million shares, and JBLU is trading at $8.30, down $0.29 or 3.38% on a volume of 10.08 million shares, while LUV is trading at $24.21, up $0.12 or 0.54% on a volume of 2.80 million shares.