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JetBlue's Traffic Rises But Load Factor Declines in April

Zacks Equity Research

JetBlue Airways Corporation JBLU recently reported traffic figures for April. Traffic measured in revenue passenger miles (RPMs), increased 6.6% year over year to 4.59 billion. Consolidated capacity (or available seat miles/ASMs) expanded 7.4% to 5.39 billion on a year-over-year basis.

However, load factor or percentage of seats filled by passengers contracted 60 basis points (bps) to 85.1% 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 98.6% in the month with 73.4% flights on schedule.

JetBlue Airways Corporation Price


JetBlue Airways Corporation Price

JetBlue Airways Corporation price | JetBlue Airways Corporation Quote

In the first four months of 2019, the carrier posted a 7.1% rise in RPMs while ASMs grew 9.4%, both on a year-over-year basis. Meanwhile, load factor deteriorated 170 bps to 83.2%.

The company maintains its second-quarter revenue per available seat mile (RASM) projection. The metric is anticipated to rise 1-4% in the current quarter. Additionally, consolidated operating cost per available seat mile excluding fuel is expected to increase 1.5-3.5% in the ongoing quarter. Meanwhile, capacity is forecast to increase between 4.5% and 6.5% in the period.

Zacks Rank & Key Picks

JetBlue carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are SkyWest, Inc. SKYW, Swire Pacific Ltd. SWRAY and Delta Air Lines, Inc. DAL. While SkyWest and Swire Pacific sport a Zacks Rank #1 (Strong Buy), Delta Air Lines carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of SkyWest, Swire Pacific and Delta Air Lines have rallied more than 9%, 21% and 8%, respectively, in a year’s time.

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