JetBlue reveals 3Q15 results

JetBlue has recorded strong financial results across the third quarter of 2015 (3Q15) despite a slight fall in load factor and passenger revenue per available seat mile (PRASM).In terms of traffic, though JetBlue’s revenue passenger miles (RPMs) for 3Q15 grew by 9.2% to 1.1 billion in comparison to 3Q14, a capacity increase of 10.4% across the respective periods resulted in an overall load factor of 85.3%, a decrease of 0.9 percentage points year-over-year.Elsewhere, PRASM for 3Q15 decreased 0.6% year-over-year to 11.96 cents and operating revenue per available seat mile (RASM) was essentially flat year over year at 13.01 cents.Despite this, the carrier has reported record third quarter operating revenues of $1.7 billion. One reason for this could be that while operating expenses for the quarter decreased 2%, or $29 million, over the prior year period – with JetBlue’s operating expense per available seat mile (CASM) decreasing 11.2% to 10.30 cents – yield per passenger mile during 3Q15 was 14.02 cents, up 0.5% compared to the third quarter of 2014. In the third quarter JetBlue had hedges in place for approximately 14% of its fuel consumption. This resulted in a realised fuel price of $1.85 per gallon, a 39% decrease against the third quarter of 2014’s realised fuel price of $3.05. Interest expense for the quarter also declined 16.2%, or $5 million, as JetBlue continued to reduce its debt. All of these factors resulted in JetBlue’s 3Q15 operating income reaching $351 million, which is over double that of the $164 million it made in 3Q14. Similarly, the carrier’s pre-tax income for the same period was $322 million, up from $132 million in the third quarter of 2014. Finally, JetBlue has announced its net income for 3Q15 was $198 million, compared to its 3Q14 net income of $79 million.“We posted another strong result in the third quarter as our revenue growth outperformed the industry and we ran an efficient and safe operation. These results are a testament to the hard work of our 18,000 crewmembers that provide outstanding customer service and inspire humanity each day,” averred Robin Hayes, JetBlue’s President and CEO.“We continue to post strong financial results, generate healthy free cash flow, and strengthen our balance sheet,” added Mark Powers, JetBlue’s chief financial officer. “Looking forward, we will allocate our capital to investments that will improve our return on invested capital and enhance the execution of the initiatives we outlined at our last Investor Day.”

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