Low-cost carrier, JetBlue Airways Corporation’s (JBLU – Free Report) second-quarter 2017 earnings (excluding special items) of 64 cents per share beat the Zacks Consensus Estimate by 8 cents, which pleased the investors.
Consequently, shares of the company rallied in early trading. Moreover, quarterly earnings improved 20.75% from the year-ago figure. Results were aided by higher revenues.
Operating revenues came in at $1,842 million, ahead of the Zacks Consensus Estimate of $1,822.1 million. Revenues improved 12.11% from the year-ago figure. Passenger revenues, which accounted for bulk of the top line (89.6%), improved 11% in the second quarter. Other revenues increased 22.8%.
Operating Statistics
Capacity, measured in available seat miles, expanded 4.8% year over year. Traffic, measured in revenue passenger miles, grew 5% in the second quarter. Load factor (percentage of seats filled by passengers) improved 20 basis points (bps) year over year to 85.2% in the reported quarter as traffic growth outpaced capacity expansion.
Yield per passenger mile improved 5.7% year over year to 13.6 cents in the reported quarter. Passenger revenue per available seat mile (PRASM: a key measure of unit revenue) increased 5.9% to 11.59 cents, while operating revenue per available seat mile (RASM) climbed 7% to 12.93 cents.
Operating Income and Expenses
In the second quarter, total operating expenses (on a reported basis) increased 11.9% year over year. Average fuel cost per gallon (including fuel taxes) escalated 12.3% to $1.61. Moreover, JetBlue’s operating cost per available seat mile (CASM) increased 6.8% to 10.45 cents in the reported quarter. Excluding fuel, the metric also climbed 5.1% to 8.16 cents on the back of rise in labor costs.
JetBlue Airways Corporation Price, Consensus and EPS Surprise
JetBlue Airways Corporation Price, Consensus and EPS Surprise | JetBlue Airways Corporation Quote
Balance Sheet
