How Did JetBlue Perform Operationally In October?
Although JetBlue’s third quarter results saw an increase in revenue, the bottom line remained flat due to an increase in labor and maintenance expenses. The increase in revenue was primarily attributable to the reduction in capacity undertaken to turnaround the unit revenues. Keeping with the trend, in the month of October 2016, the low cost carrier grew its capacity by 5.5%. Including this month, so far in the year, capacity is up as much as 10% for JetBlue. Further, the capacity was being used efficiently as indicated by the 80 bps gain in the load factor.
The capacity discipline, in turn, reduced the pressure on unit revenues which came in at -3%. Of the total decline in unit revenues, the majority of the fall was said to be a result of the impact of hurricane Matthew. Its passenger traffic and passengers boarded increased by 6.5% and 4.2% respectively, in the month, bringing the year to date figures to 10.1% and 6.9%, respectively.
W expect the company’s unit revenues to turn around early next year, on the back of the strength of its premium Mint services and expansion plans in Camagüey and Holguín in Cuba.
- Gaining Over 20% This Year, What Lies Ahead For JetBlue Stock Following Q1 Results?
- Should You Pick JetBlue Stock At $6 After Q4 Beat?
- What’s Next For JetBlue Stock After A 35% Fall This Year?
- Here’s What To Expect From JetBlue’s Q2
- Will JetBlue Stock Recover To Its Pre-Inflation Shock Highs?
- What Led To A 62% Fall In JetBlue Stock Since 2019?
Have more questions about JetBlue Corporation (NYSE:JBLU)? See the links below:
- Higher Expenses Weigh On JetBlue’s Q3’16 Results, Even As Unit Revenues Improve
- JetBlue’s Q3’16 Earnings Preview: Reduction In Capacity Expansion To Arrest The Decline In Unit Revenues
- How Did JetBlue Perform Operationally In September?
- How Has The State Of Air Travel In The U.S. Changed Over The Years?
- How Has JetBlue’s Financial Position Improved Over The Last Few Years?
- Is Renewable Diesel The Way Forward For The U.S. Aviation Industry?
- How Did JetBlue Perform Operationally In August?
- Can Passenger Airlines Revive The Growth In The Air Cargo Industry?
- How Are The U.S. Carriers Taking Advantage Of The Restoration Of Diplomatic Ties Between U.S. And Mexico/Cuba?
- Why Has Trefis Revised Its Price Estimate For JetBlue To $18 Per Share?
- Capacity Growth Fuels JetBlue’s Q2’16 Revenues, Slightly Offset By Declining PRASM
- JetBlue’s Q2’16 Earnings Preview: Capacity Expansion And Mint Services To Drive Results
- What Impact Will Crude Oil Prices Have On JetBlue’s Enterprise Value?
- How Are US Air Fares Correlated To Crude Oil Prices?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for JetBlue Corporation
View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap