JetBlue reports third quarter results

JetBlue Airways has announced its record results for the third quarter of 2013.
"We are pleased to report our highest ever quarterly earnings and our fourteenth consecutive quarter of profitability," reported Dave Barger, JetBlue's CEO. "These results reflect the success of our network strategy in high value geography and our focus on offering customers a differentiated product while maintaining competitive costs."
JetBlue reported record third quarter operating revenues of $1.4 billion. Yield per passenger mile in 3Q13 was 13.83 cents, up 5.1% compared with the 3Q12. Passenger revenue per available seat mile (PRASM) for 3Q13 increased 5.4% year-over-year to 11.75 cents and operating revenue per available seat mile (RASM) increased 5.0% year-over-year to 12.82 cents.
"Our record revenue results demonstrate the strength of our network in our hometown of New York and throughout the rest of our core network," said Robin Hayes, JetBlue's Chief Commercial Officer. "We are also very pleased with the success of our focused growth strategy in Boston, Fort Lauderdale and the Caribbean & Latin America. The combination of our strong brand and unique JetBlue Experience once again allowed JetBlue to generate a revenue premium versus our competitors in many of our key markets."
Operating expenses for 3Q13 increased 8.1%, or $95 million, over the prior year period. JetBlue's operating expense per available seat mile (CASM) for 3Q13 increased 2.8% year-over-year to 11.47 cents. Excluding fuel and profit sharing, CASM increased 4.9% to 6.95 cents.
JetBlue continued to hedge fuel to manage price volatility. In 3Q13 JetBlue hedged approximately 29% of its fuel consumption and managed approximately 14% of its fuel consumption using fixed forward price agreements (FFPs), resulting in a realised fuel price of $3.14 per gallon, a 1.1% decrease over third quarter 2012 realised fuel price of $3.17. JetBlue recorded $3 million in losses on fuel hedges that settled during the third quarter.
JetBlue ended 3Q13 with approximately $954 million in unrestricted cash and short term investments. In addition, JetBlue maintains a $200 million line of credit and a revolving credit facility for up to $350 million.

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