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JetBlue's (JBLU) Traffic Up in June, Q2 RASM View Bullish

Zacks Equity Research

JetBlue Airways Corporation JBLU recently reported traffic figures for June. Traffic, measured in revenue passenger miles (RPMs), increased 4.7% year over year to 4.61 billion. Also, consolidated capacity (or available seat miles/ASMs) expanded 4.8% to 5.3 billion on a year-over-year basis.

However, load factor or percentage of seats filled by passengers contracted 10 basis points (bps) to 86.9% in the month as capacity expansion exceeded traffic growth.

This Long Island City, NY-based low-cost carrier registered a completion factor (system wide) of 99.5% in the month with 70.1% flights on schedule.

JetBlue Airways Corporation Price


JetBlue Airways Corporation Price

JetBlue Airways Corporation price | JetBlue Airways Corporation Quote

In the first six months of 2019, the carrier posted 6.5% rise in RPMs while ASMs grew 7.9%, both on a year-over-year basis. As a result, load factor deteriorated 110 bps to 84.3%.

JetBlue now anticipates second-quarter revenue per available seat mile (RASM) to increase approximately 3.1% year over year. Previously, the company estimated the metric to climb in the range of 2-4% year over year. Placement of Easter/Passover holiday in April is expected to positively impact the metric.

Zacks Rank & Other Key Picks

JetBlue carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the same space are Air China Ltd. AIRYY, Copa Holdings, S.A. CPA and United Airlines Holdings Inc UAL, each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Air China, Copa Holdings and United Airlines have rallied more than 18%, 27% and 8%, respectively, so far this year.

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