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JetBlue Airways Corporation’s (JBLU - Free Report) third-quarter 2018 earnings per share (excluding 27 cents from non-recurring items) of 43 cents surpassed the Zacks Consensus Estimate by a penny. However, the bottom line decreased 21.8% on a year-over-year basis primarily due to higher costs.
However, total operating revenues of $2,008 million fell short of the Zacks Consensus Estimate of $2,011.9 million. Nevertheless, the top line increased 10.5% from the year ago figure. Passenger revenues, which accounted for bulk of the top line (96.7%), improved 10.8% in the quarter under review. Other revenues increased 3.5%.
Operating Statistics in Q3
Capacity, measured in available seat miles, expanded 8.7% year over year. Traffic, measured in revenue passenger miles, grew 9.7% in the reported quarter. Load factor (percentage of seats filled by passengers) improved 80 basis points (bps) year over year to 85.9% as traffic growth outpaced capacity expansion in the three-month period.
Average fare at JetBlue during the quarter was up 2.5% to $175.66. Yield per passenger mile improved 1% year over year to 14.53 cents. Passenger revenue per available seat mile (PRASM: a key measure of unit revenue) increased 1.9% to 12.48 cents and operating revenue per available seat mile (RASM) inched up 1.7% to 12.91 cents. RASM was impacted negatively to the tune of 0.4 points due to inclement weather in September.
Expenses
In the third quarter, total operating expenses (on a reported basis) increased 28.1% year over year mainly owing high fuel costs. Average fuel cost per gallon (including fuel taxes) escalated 36.6% to $2.32. Moreover, JetBlue’s operating expenses per available seat mile (CASM) was up 17.8% to 12.38 cents in the reported quarter. Excluding fuel, the metric climbed 3.2% to 8.27 cents due to a rise in labor costs.
JetBlue Airways Corporation Price, Consensus and EPS Surprise
JetBlue, carrying a Zacks Rank #3 (Hold), exited the quarter with cash and cash equivalents of $454 million compared with $303 million at the end of 2017. Total debt, at the end of the quarter was $1,568 million compared with $1,199 million at the end of 2017. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Outlook
For the fourth quarter of 2018, the carrier expects capacity to increase between 7.5% and 9.5%. The metric is anticipated to increase in the range of 6.5% to 7% for 2018.
Consolidated operating cost per available seat mile, excluding fuel, is expected to decrease in the band of 1.5% to 3.5% in the fourth quarter. For the current year, the metric is still projected to grow in the range of 0.75% to 1.75%.
RASM is expected to grow between 1% and 4% in the final quarter of 2018. Fourth-quarter fuel cost, net of hedges, is anticipated to be $2.48 per gallon.
Upcoming Releases
Investors interested in the broader Transportation sector keenly await third-quarter earnings reports from key players, namely American Airlines Group Inc. (AAL - Free Report) , Southwest Airlines Co. (LUV - Free Report) and Union Pacific Corporation (UNP - Free Report) , all scheduled to release respective earnings numbers on Oct 25.
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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JetBlue (JBLU) Q3 Earnings Surpass Estimates, Decrease Y/Y
JetBlue Airways Corporation’s (JBLU - Free Report) third-quarter 2018 earnings per share (excluding 27 cents from non-recurring items) of 43 cents surpassed the Zacks Consensus Estimate by a penny. However, the bottom line decreased 21.8% on a year-over-year basis primarily due to higher costs.
However, total operating revenues of $2,008 million fell short of the Zacks Consensus Estimate of $2,011.9 million. Nevertheless, the top line increased 10.5% from the year ago figure. Passenger revenues, which accounted for bulk of the top line (96.7%), improved 10.8% in the quarter under review. Other revenues increased 3.5%.
Operating Statistics in Q3
Capacity, measured in available seat miles, expanded 8.7% year over year. Traffic, measured in revenue passenger miles, grew 9.7% in the reported quarter. Load factor (percentage of seats filled by passengers) improved 80 basis points (bps) year over year to 85.9% as traffic growth outpaced capacity expansion in the three-month period.
Average fare at JetBlue during the quarter was up 2.5% to $175.66. Yield per passenger mile improved 1% year over year to 14.53 cents. Passenger revenue per available seat mile (PRASM: a key measure of unit revenue) increased 1.9% to 12.48 cents and operating revenue per available seat mile (RASM) inched up 1.7% to 12.91 cents. RASM was impacted negatively to the tune of 0.4 points due to inclement weather in September.
Expenses
In the third quarter, total operating expenses (on a reported basis) increased 28.1% year over year mainly owing high fuel costs. Average fuel cost per gallon (including fuel taxes) escalated 36.6% to $2.32. Moreover, JetBlue’s operating expenses per available seat mile (CASM) was up 17.8% to 12.38 cents in the reported quarter. Excluding fuel, the metric climbed 3.2% to 8.27 cents due to a rise in labor costs.
JetBlue Airways Corporation Price, Consensus and EPS Surprise
JetBlue Airways Corporation Price, Consensus and EPS Surprise | JetBlue Airways Corporation Quote
Balance Sheet
JetBlue, carrying a Zacks Rank #3 (Hold), exited the quarter with cash and cash equivalents of $454 million compared with $303 million at the end of 2017. Total debt, at the end of the quarter was $1,568 million compared with $1,199 million at the end of 2017. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Outlook
For the fourth quarter of 2018, the carrier expects capacity to increase between 7.5% and 9.5%. The metric is anticipated to increase in the range of 6.5% to 7% for 2018.
Consolidated operating cost per available seat mile, excluding fuel, is expected to decrease in the band of 1.5% to 3.5% in the fourth quarter. For the current year, the metric is still projected to grow in the range of 0.75% to 1.75%.
RASM is expected to grow between 1% and 4% in the final quarter of 2018. Fourth-quarter fuel cost, net of hedges, is anticipated to be $2.48 per gallon.
Upcoming Releases
Investors interested in the broader Transportation sector keenly await third-quarter earnings reports from key players, namely American Airlines Group Inc. (AAL - Free Report) , Southwest Airlines Co. (LUV - Free Report) and Union Pacific Corporation (UNP - Free Report) , all scheduled to release respective earnings numbers on Oct 25.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>