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JetBlue Airways (JBLU) April Traffic Rises 8.2%, Capacity Up

Zacks Equity Research

The Long Island City, NY-based carrier JetBlue Airways Corporation JBLU posted a significant rise in air traffic for the month of Apr 2017. Traffic – measured in revenue passenger miles (RPMs) – improved 8.2% year over year to 4.06 billion.

On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) expanded 6.6% to 4.77 billion. Load factor or percentage of seats filled by passengers increased 120 basis points (bps) to 85.3% in the month. Load factor increased as traffic growth outpaced capacity expansion in April. The low-cost carrier registered a completion factor (system wide) of 98.5% in the month, with 72.4% flights on schedule.

On a year-to-date basis, the carrier posted a 5% rise in RPMs, while ASMs rose 4.8% to both on a year-over-year basis. Load factor inched up 10 bps year over year to 84.3%.

JetBlue maintains its projection for revenue per available seat mile (RASM) for the second quarter of 2017 at the range of 3%–6%.

The company recently reported first-quarter 2017 numbers. The carrier posted mixed results, with earnings beating estimates and revenues missing the same. Other key sector participants like Hawaiian Holdings HA and Allegiant Travel Company ALGT also recently released their first-quarter 2017 numbers.

Price Performance

Shares of JetBlue have outperformed the Zacks categorized Transportation- Airline industry over the last three months. The stock gained 8.97%, while the industry rose 6.17%. The impressive traffic results are expected to boost the stock performance.

Zacks Rank & Key Pick

JetBlue currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the airline space is Deutsche Lufthansa AG DLAKY, with a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

Shares of Deutsche Lufthansa rallied 44% on a year-to-date basis.

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JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
 
Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report
 
Allegiant Travel Company (ALGT): Free Stock Analysis Report
 
Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report
 
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Zacks Investment Research