JetBlue Airways (JBLU - Free Report) experienced traffic growth across its network for the month of May 2013.
The carrier reported airline traffic – measured in revenue passenger miles or RPMs, of 2.99 billion, up 9.4% year over year. Consolidated capacity (or available seat miles/ASMs) was also up 9.0% year over year at 3.51 billion.
The load factor or percentage of seats filled by passengers was 85.1%, up 30 basis points. Passenger revenue per available seat mile (PRASM) increased 1.0% year over year. The company registered a completion factor of 99.6%, with on-time performance of 80.3%.
For the five-month period ended May 2013, JetBlue Airways generated RPMs of 14.49 (up 7.3% year over year) and ASMs of 17.23 billion (up 6.9% year over year), on a consolidated basis. Load factor was 84.1%, reflecting an improvement of 30 basis points from the corresponding prior-year month.
We believe that JetBlue Airways is benefiting from growing travel demand, schedule redesigning and route expansion. The company is making continued progress in expanding its product and service offerings on board and on the ground to aid growth in ancillary revenues along with enhanced ticket pricing flexibility.
For the months ahead, the company expects the Latin American market to drive its growth momentum with already four destinations in the region, the latest being Lima. JetBlue is also banking heavily on the new services offered from Hartford to two new Floridian destinations – Fort Myers and Tampa – to register more passengers in the coming days.
JetBlue Airways – which operates with big players such as Delta Air Lines Inc. (DAL - Free Report) and United Continental Holdings Inc. (UAL - Free Report) as well as the popular low fare airline Southwest Airlines Co. (LUV - Free Report) – currently carries a Zacks Rank #3 (Hold).