JetBlue Airways Corporation (JBLU) displayed better traffic across its network for the month of Nov 2013. The carrier reported airline traffic – measured in revenue passenger miles or RPMs – of 2.70 billion, up 0.9% year over year. Consolidated capacity (or available seat miles/ASMs) was also up 5.1% year over year at 3.45 billion.
The load factor or percentage of seats filled by passengers, however, was 78.3%, down 320 basis points. Passenger revenue per available seat mile (PRASM) decreased 2% year over year. The company registered a completion factor of 99.6%, with on-time performance of 84.8%.
For the first eleven months of 2013, JetBlue Airways generated RPMs of 32.60 (up 6.2% year over year) and ASMs of 38.92 billion (up 6.6% year over year), on a consolidated basis. At Nov end, load factor was 83.8%, reflecting a decline of 30 basis points from the corresponding prior-year period.
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 support its momentum.
The airline also entered into an interline ticketing agreement with Silver Airways which offers the highest number of flights in Florida and the Bahamas. JetBlue is also vying to get a share of the slots at Washington Reagan National Airport, which is a stipulation in the merger between U.S. Airways and American Airlines. These initiatives are expected to boost performance going forward.
JetBlue Airways – which operates with the likes of Delta Air Lines Inc. (DAL), United-Continental Holdings Inc. (UAL) and Southwest Airlines Co. (LUV) – carries a Zacks Rank #2 (Buy).
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