Back to top

Analyst Blog

JetBlue Airways (JBLU - Analyst Report) reported robust traffic results for Jan 2013, on the back of higher capacity. The company’s airline traffic – measured in revenue passenger miles or RPMs, which implies revenue generated per mile per passenger – increased 11.2% year over year to 2.78 billion in the reported month. Consolidated capacity (or available seat miles/ASMs) was 3.41 billion, up 9.9% from Jan 2012.

The load factor or percentage of seats filled by passengers was 81.7%, up 100 basis points. Passenger revenue per available seat mile (PRASM) remained flat year over year. The company registered a completion factor of 99.7%, with on-time performance of 78.3%.

Additionally, JetBlue Airways attempts to increase its coast-to-coast services through new flights. The company plans to start second daily non-stop flights from San Francisco International Airport (SFO) to Fort Lauderdale-Hollywood International Airport. A second daily summer seasonal flight will also start operating between SFO and Austin-Bergstrom International Airport. Both the flights will be effective from May 21.    

Long Island City, New York based JetBlue Airways delivered a break-even fourth quarter 2012, missing the Zacks Consensus Estimate earnings of 2 cents as well as the year-ago earnings of 8 cents per share. Total operating revenue climbed 4.2% year over year to $1.19 billion, but lagged the Zacks Consensus Estimate of $1.22 billion.

The American low-cost air service firm – that operates with the youngest and most fuel-efficient fleet among other major U.S. airlines – provides high-quality customer service. For the coming months, JetBlue Airways is well positioned for growth due to its strong brand name, superior in-flight services, fuel hedging strategy, strong liquidity positions and a non-unionized workforce.

However, rising fuel price, competitive pressures, and an uncertain economic situation remains an overhang on the stock. JetBlue Airways currently retains a Zacks Rank #3, implying a Hold rating.

Other Stocks

Airline stocks to look out for in the coming days are Delta Air Lines Inc. (DAL - Analyst Report), Deutsche Lufthansa Aktiengesellschaft (DLAKY) and Republic Airways Holdings Inc. (RJET - Snapshot Report). All the 3 firms currently hold a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%