JetBlue’s Stock Rises As The Airline Reports Growth in Unit Revenue
While investors continue to be pessimistic about the prospects of the airline industry, JetBlue’s (NASDAQ: JBLU) stock price rose 2.2% on Wednesday as the airline reported an increase of 8.4% in passenger traffic on a capacity increase of 7.8% in May. Although the news may not impact the industry as a whole, we believe that it will be helpful in reinforcing investor confidence in JetBlue as an investment.
- JetBlue’s exceptional performance is driven by the use of a single class of jets, which enables the airline to improve its operational efficiency.
- The airline has consistently increased its passenger revenue per available seat mile (PRASM), a measure of unit revenue, while its rivals continue to experience pricing pressure in their key markets.
- With strong operational efficiency and weak crude oil prices, we expect JetBlue to deliver notable earnings growth in the second quarter.
JetBlue’s Price Movement (9th-11th June)
Source: Google Finance
See our complete analysis for JetBlue Airways here
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Useful Links
- JetBlue Airways Reports May Traffic, 10th June 2015
- JetBlue’s 1Q profits surge due to capacity additions and low fuel costs
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