Leading passenger airline
JetBlue Airways Corporation
) has registered steady traffic growth in July 2014. The carrier
reported airline traffic - measured in revenue passenger miles or
RPMs - of 3.67 million, up 4.3% year over year, representing the
sixth consecutive month of traffic growth post a dip in numbers in
Consolidated capacity (or available seat miles/ASMs) was also up
3.5% year over year at 4.16 billion. However, the load factor or
percentage of seats filled by passengers was 88.3%, up 70 basis
Passenger revenue per available seat mile (PRASM) increased 1%
year over year. The company registered a completion factor of 97%,
with on-time performance of 65.8%.
In the first seven months of this year, JetBlue has generated
RPMs of 21.97 billion (up 3.9% year over year) and ASMs of 25.97
billion (up 4.3%). However, load factor has trickled down to 84.6%
from the year-ago figure of 84.9%.
JetBlue recently reported steady second-quarter 2014 results
with the top line beating the Zacks Consensus Estimate, while the
bottom line was on par with the same. The company's efforts to
upgrade its products and services to cater to customers' needs
resulted in the year-over-year growth.
The passenger carrier has launched its premium service offering
- Mint - on flights operating between New York and Los Angeles at
an attractive one way fare of $599 to beef up comfort travel.
We expect this Zacks Rank #2 (Buy) carrier to deliver traffic
growth in the future owing to slot wins at the Reagan Washington
National Airport and expansion in major growth regions across the
Americas with New York to Curacao being the recent one.
Further, to augment the flying experience for its customers,
JetBlue recently launched an automatic check-in service, which will
allow passengers to receive their boarding pass via email 24 hours
prior to the slated flight time. Currently restricted to domestic
Even More Space seats, the service intends to enhance passenger
convenience by cutting down on time to get through the airport and
finally board the aircraft.
Other Stocks to Consider
Other well-placed stocks worth considering within this sector
include Southwest Airlines Co. (
), Republic Airways Holdings Inc. (
) and Spirit Airlines Inc. (
). All the stocks currently sport a Zacks Rank #1 (Strong Buy).
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SOUTHWEST AIR (LUV): Free Stock Analysis Report
REPUBLIC AIRWAY (RJET): Free Stock Analysis
JETBLUE AIRWAYS (JBLU): Free Stock Analysis
SPIRIT AIRLINES (SAVE): Free Stock Analysis
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