Leading low cost airline
JetBlue Airways Corporation
) registered strong traffic growth in April. The carrier reported
airline traffic - measured in revenue passenger miles or RPMs - of
3.18 million, up 6.1% year over year, representing the third
consecutive month of high traffic after recording a dip in Jan
Consolidated capacity (or available seat miles/ASMs) was also up
5.9% year over year at 3.79 billion.
Moreover, the load factor or percentage of seats filled by
passengers 83.9%, up 20 basis points.
Passenger revenue per available seat mile (PRASM) increased 11%
year over year. The company registered a completion factor of
98.6%, with on-time performance of 77.4%.
In the first four months of this year, JetBlue has generated
RPMs of 11.8 billion (up 2.9% year over year) and ASMs of 14.2
billion (up 3.6% year over year). However, load factor, moved south
to 83.3% from the year-ago figure of 83.8%.
We expect JetBlue to sustain traffic growth in the coming days
based on increasing travel demand, network expansion, fleet
re-designing, optimization of unit revenues, capital expenditure
management and disciplined growth. The company's growing presence
in key markets and penetration into untapped arenas will further
support its momentum.
The company's further actions include adding services between
Fort Lauderdale and different Central American destinations like
Port of Spain, Montego Bay, Punta Cana, Trinidad and Tobago and
Dominican Republic in May 2014. The company currently serves 69
routes between the U.S. and the Caribbean Islands, which includes
over 200 daily flights. However, with the expected entry of
Southwest Airline Co.
) into the Caribbean Islands in July 2014, competition may
intensify for JetBlue, affecting its market share.
Currently, JetBlue has a Zacks Rank #3 (Hold).
Better-ranked stocks in this sector include
Alaska Air Group, Inc.
American Airlines Group Inc.
). Both the stocks sport a Zacks Rank #1 (Strong Buy).
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