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Ryanair Holdings PLC (RYAAY) - $25 value - yours FREE >>
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JetBlue Airways Corporation (JBLU) - $25 value - yours FREE >>
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JetBlue (JBLU) June Traffic Improves, RASM Declines 4.5%
Low-cost carrier JetBlue Airways Corp. (JBLU - Free Report) witnessed an improvement in air traffic in the month of June. Traffic – measured in revenue passenger miles (RPMs) – was 3.95 billion, up 11.6% from 3.54 billion recorded a year ago. On a year-over-year basis, consolidated capacity or available seat miles (ASMs) soared to 10.5% to 4.58 billion.
Load factor or percentage of seats filled by passengers increased to 86.2% while it was 85.3% in Jun 2015. The increase in the metric was due to traffic growth outpacing capacity expansion. JetBlue’s preliminary revenue per available seat mile (RASM) in the month dropped roughly 4.5% on a year-over-year basis.
Moreover, for the first six months of 2016, JetBlue generated RPMs of 22.52 billion (up 12.1% year over year) and ASMs of 26.62 billion (up 12.6%). However, the load factor declined 30 basis points to 84.9%.
Routes Expansion
JetBlue is one of the best-performing budget airlines in the U.S. The company’s focus on route expansion in order to improve operations in its service areas by driving passenger count along with boosting supplementary revenues augurs well. Additionally being chosen as one of the many US based carriers by the U.S. Department of Transportation to operate scheduled flights to Cuba is an immensely stimulating news for JetBlue.
Moreover, in sync with its customer-centric efforts, JetBlue recently declared that it would cover TSA Pre enrollment cost for its most frequent fliers or the Mosaic TrueBlue members. The airline has introduced this limited time offer to cut down waiting time at TSA screening checkpoints.
Citing pressures due to lower demand for travelling in the wake of numerous terrorist attacks, most airline companies have been trimming their outlook for the year. The list includes Delta Airlines (DAL - Free Report) , European low-cost carrier Ryanair Holdings (RYAAY - Free Report) and American Airlines Group (AAL - Free Report) .
JetBlue currently carries a Zacks Rank #5 (Strong Sell)
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