Ahead Of JetBlue Airways' Q3 Results

(RTTNews) - Passenger carrier company JetBlue Airways Corp. (JBLU) is scheduled to release its third quarter results on Tuesday, October 27, 2015. The company is expected to report earnings of $0.57 per share on revenue of $1.69 billion for the quarter, according to analysts surveyed by Thomson Reuters.

Q3, FY15 Outlook

Cost per available seat mile, excluding fuel and profit sharing, or CASM, excluding fuel and profit sharing, is expected to increase between 1.0% and 3.0% in the third quarter 2015 and between zero and 1.5% for the full year. This represents a 0.5% reduction to the top end of JetBlue's CASM, excluding fuel and profit sharing, guidance range.

Capacity is expected to increase between 8.5% and 10.5% in the third quarter 2015 and between 7.0% and 9.0% for the full year, consistent with prior guidance. Currently, the company anticipates ending the year at the higher end of its annual capacity guidance.

September Traffic Up 13.3%

Traffic in September rose 13.3% to 3.09 million from 2.73 million last year, on a capacity increase of 13.1% that amounted to 3.82 million versus 3.38 million reported last year.

Load factor for September 2015 was 81.1%, an increase of 0.2 points from September 2014. JetBlue's preliminary completion factor was 99.6% and its on-time performance was 80.0%. Preliminary passenger revenue per available seat mile for the month of September increased about 1% year over year.

Q2 Performance

In the last quarter, the company had net income of $152 million or $0.44 per share compared to $230 million or $0.68 per share in the prior year period.

Net Income, excluding special items, increased to $152 million or $0.44 per share from the previous year's $61 million or $0.19 per share.

Pre-tax income was $250 million in the second quarter 2015. On a GAAP basis, pre-tax income was $345 million in the second quarter of 2014, which included the gain on sale of JetBlue's wholly-owned subsidiary LiveTV.

Total operating revenues increased 7.9% to $1.61 billion from $1.49 billion reported a year ago.

Analysts polled by Thomson Reuters expected earnings of $0.44 per share on revenue of $1.62 billion for the quarter. Analysts' estimates typically exclude certain special items.

"We are very pleased to report strong second quarter results based on solid demand across our network, safe and efficient operations, and good cost control," said Robin Hayes, JetBlue's President and CEO.

Yield per passenger mile in the second quarter was 14.28 cents, up 0.2% compared to the second quarter of 2014.

Catalysts

JetBlue Airways predominately provides air transportation services across the United States, the Caribbean and Latin America. The company's point-to-point system is the foundation of its operational structure, which allows it to optimize costs as well as accommodate customers' preference for non-stop itineraries. Further, a vast majority of JetBlue's operations are centered in and around the heavily populated northeast corridor of the U.S., which includes the New York and Boston metropolitan areas. This route structure enables it to keep off from the adverse currency impacts faced by its peers.

JetBlue's Passenger revenue per available seat mile or PRASM for the second quarter 2015 rose 1.4% year over year to 12.22 cents and operating revenue per available seat mile or RASM increased 0.4% year over year to 13.17 cents.

Revenue passenger miles for the second quarter grew 8.7% to 10.5 billion on a capacity increase of 7.5%, resulting in a second quarter load factor of 85.6%, an increase of 1.0 points year over year.