Posted on: 27 April 2016 by Mark Howells
JetBlue Airways has revealed its results for the first quarter of 2016 (1Q16) featuring a net income of $199 million, a 45% increase over the first quarter of 2015 (1Q15) net income of $137 million.
The operating income in 1Q16 was $349 million, compared with $253 million in 1Q15. This led to a pre-tax income of $323 million for the quarter, up from 1Q15’s pre-tax income of $222 million.
JetBlue’s revenue passenger miles for 1Q16 increased 14.1% year-over-year from 9,622,000,000 to 10,976,000,000 in line with a 14.1% growth in available seat miles from 11,419,000,000 to 13,029,000,000, resulting in a 1Q16 load factor of 84.2%. This is a 0.1 percentage point decrease in comparison to 1Q15.
The number of passengers JetBlue carried in 1Q16 rose by 12.6% to 9,119,000 from 8,095,000 in 1Q15. Passenger revenue per available seat mile for 1Q16 decreased 8% year-over-year to 11.35 cents and operating revenue per available seat mile decreased 7 % to 12.41 cents. JetBlue reported first quarter operating revenues of $1.6 billion, with overall operating costs coming down by 0.2%, or $3 million from the prior year.
The airline also continued to reduce its debt during 1Q16. Its operating expense per available seat mile decreased 12.6% year over year to 9.73 cents.
“Our disciplined growth strategy continues to yield strong performance. We have posted record first quarter results with higher margins than most of our competitors. These results would not have been possible without the amazing efforts of our 18,000 crewmembers. They truly are our biggest competitive advantage,” declared Robin Hayes, JetBlue’s president and CEO.
JetBlue had no fuel hedges in place in the first quarter and continues to be unhedged in the second quarter of 2016. During 2Q16, capacity is expected to increase between 9.5% and 11.5% and between 8.5% and 10.5% for the full year, consistent with prior guidance.