JetBlue Airways Reports September Traffic
October 11 2017 - 8:00AM
Business Wire
JetBlue Airways Corporation (NASDAQ: JBLU) reported its
preliminary traffic results for September 2017. Traffic in
September decreased 4.4 percent from September 2016, on a capacity
decrease of 0.9 percent. Load factor for September 2017 was 80.2
percent, a decrease of 3.0 points from September 2016. JetBlue’s
preliminary completion factor was 90.7 percent and its on-time (1)
performance was 70.1 percent in September 2017. Third quarter
revenue per available seat mile (RASM) is expected to increase
approximately 0.9 percent year-over-year.
“Our thoughts are with all of those impacted by hurricanes in
recent months,” said Robin Hayes, President and Chief Executive
Officer of JetBlue. “The third quarter presented unprecedented
weather challenges for JetBlue, with two of the largest hurricanes
in our history impacting our network. We remain committed to the
rebuilding efforts, particularly in Puerto Rico. We are confident
that the adjustments we are making to our network will minimize any
ongoing financial impact in 2018.”
Revised Guidance and Preliminary Impact of Hurricanes Irma
and Maria on Third Quarter 2017The following reflects the
estimated operational and financial impact from hurricanes Irma and
Maria combined, as well as revised guidance for the third quarter
of 2017:
- Third quarter revenue was negatively
impacted by approximately $44 million. Operating income was reduced
by approximately $30 to $35 million, or 6 to 7 cents per diluted
share.
- Available seat miles (capacity) was
reduced approximately 2.7 percentage points by the hurricanes. For
the third quarter, JetBlue now expects capacity to increase
approximately 3.7%.
- Revenue per available seat mile (RASM)
was positively impacted by an approximate 0.3 percentage points by
the hurricanes.
- Cost per available seat mile, excluding
fuel (CASM ex-fuel) is expected to be 2.75 percentage points higher
than previously expected. JetBlue now expects third quarter CASM
ex-fuel to increase between 2.75% and 3.25%, including an
approximate 1.5 percentage point benefit from the favorable timing
of expenses now expected in the fourth quarter.
- JetBlue expects fuel cost per gallon of
$1.71 in the third quarter.
Preliminary Impact of Hurricanes Irma and Maria on Fourth
Quarter 2017For the fourth quarter of 2017 JetBlue projects the
following financial and operating impact due to the hurricanes
(JetBlue expects to provide fourth quarter guidance on October
24th, 2017):
- Based on current booking trends,
JetBlue anticipates revenue will be negatively impacted by
approximately $70 to $90 million in the fourth quarter. Operating
income is anticipated to be reduced by $50 to $70 million, or 10 to
13 cents per diluted share, expected to be evenly split between
Hurricanes Irma and Maria.
- Capacity growth in the fourth quarter
is expected to be approximately 3.0 percentage points lower than
previously planned, due to reduced flying in the Caribbean.
- RASM growth is expected to be
negatively impacted between (1.0) to (2.0) percentage points, with
the impact due to ongoing recovery in demand from Hurricane Irma.
JetBlue anticipates Florida markets, where demand was negatively
impacted by Hurricane Irma, to return to normal by the middle of
the fourth quarter.
- CASM ex-fuel growth is expected to be
negatively impacted by approximately 2.5 percentage points due to
reduced flying in the Caribbean.
The following table summarizes JetBlue’s preliminary estimates
for impact of both storms combined:
PRELIMINARY 2017 STORM IMPACT
3Q 2017 4Q 2017 2017 Available seat
miles (ASMs) (2.7%) (2.9%) (1.4%) Revenue per ASM +0.3 pts (1.0) to
(2.0) pts (0.25) to (0.50) pts CASM ex-Fuel Approx. +2.75 pts
Approx. +2.5 pts Approx. +1.5 pts Revenue (millions) ($44) ($70) –
($90) ($114) – ($134) Operating Income (millions) ($30) – ($35)
($50) – ($70) ($80) – ($105) EPS Impact ($ cents) (6) – (7) (10) –
(13) (16) – (20)
JETBLUE AIRWAYS TRAFFIC RESULTS
September 2017 September 2016 % Change
Revenue passenger miles (000) 3,280,011 3,432,671 (4.4 )% Available
seat miles (000) 4,089,399 4,125,193 (0.9 )% Load factor 80.2 %
83.2 % (3.0) pts. Revenue passengers 2,775,111 2,918,173 (4.9 )%
Departures 26,140 26,574 (1.6 )% Average stage length (miles) 1,050
1,063 (1.2 )%
Y-T-D 2017 Y-T-D 2016 %
Change Revenue passenger miles (000) 35,712,264 34,434,123 3.7
% Available seat miles (000) 42,131,491 40,421,330 4.2 % Load
factor 84.8 % 85.2 % (0.4) pts. Revenue passengers 30,251,347
28,731,032 5.3 % Departures 265,980 253,325 5.0 % Average stage
length (miles) 1,072 1,099 (2.5 )%
(1) The U.S. Department of Transportation considers on-time
arrivals to be those domestic flights arriving within 14 minutes of
schedule.
JetBlue is New York's Hometown Airline®, and a leading carrier
in Boston, Fort Lauderdale-Hollywood, Los Angeles (Long Beach),
Orlando, and San Juan. JetBlue carries more than 38 million
customers a year to 101 cities in the U.S., Caribbean, and Latin
America with an average of 1,000 daily flights. For more
information please visit jetblue.com.
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