JetBlue Airways Corp (JBLU)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -545,000 | -654,000 | -798,000 | -630,000 | -137,000 | -40,000 | 237,000 | -140,000 | -280,000 | -488,000 | -640,000 | -740,000 | -667,000 | -967,000 | -1,493,000 | -1,687,000 | -1,727,000 | -1,033,000 | -260,000 | 405,000 |
| Interest expense (ttm) | US$ in thousands | 352,000 | 270,000 | 226,000 | 214,000 | 206,000 | 186,000 | 177,000 | 170,000 | 166,000 | 157,000 | 152,000 | 163,000 | 181,000 | 203,000 | 226,000 | 212,000 | 179,000 | 139,000 | 91,000 | 70,000 |
| Interest coverage | -1.55 | -2.42 | -3.53 | -2.94 | -0.67 | -0.22 | 1.34 | -0.82 | -1.69 | -3.11 | -4.21 | -4.54 | -3.69 | -4.76 | -6.61 | -7.96 | -9.65 | -7.43 | -2.86 | 5.79 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-545,000K ÷ $352,000K
= -1.55
JetBlue Airways Corp's interest coverage ratio over the period displayed a fluctuating trend, indicating the company's ability to cover its interest expenses with its operating income. The interest coverage ratio, calculated as earnings before interest and taxes (EBIT) divided by interest expense, provides insight into the company's capacity to meet its interest obligations.
Between March 31, 2020, and September 30, 2020, the interest coverage ratio fell significantly, turning negative, indicating that the company's operating income was insufficient to cover its interest expenses during this period. This negative trend persisted until the end of December 31, 2023, with the ratio gradually improving but remaining below 1, suggesting potential financial distress where the company may have been struggling to meet its interest payments.
However, there was a turnaround starting from June 30, 2023, where the interest coverage ratio became positive, indicating that the company's operating income was sufficient to cover its interest expenses. This positive trend continued until the end of December 31, 2024, suggesting an improvement in JetBlue Airways Corp's ability to meet its interest obligations from mid-2023 onwards.
It is essential for investors and stakeholders to monitor the interest coverage ratio closely, as a consistently low or negative ratio can indicate financial instability and potential difficulties in servicing debt obligations. Furthermore, a rising interest coverage ratio signifies improved financial health and better creditworthiness for the company.
Peer comparison
Dec 31, 2024