JetBlue 2016 Net Profit Jumps 12 Percent

JetBlue on Thursday announced net income of USD$172 million for the fourth quarter, down 9.5 percent on the previous year.

Operating revenue for the quarter was $1.64 billion, a 3 percent increase on the prior year period, but expenses rose 6.5 percent to $1.34 billion.

For the full year, JetBlue reported a $759 million net profit, a 12 percent rise on 2015.

2016’s revenue came in at $6.63 billion, a 3.4 percent rise, with expenses for the year up 2.3 percent at $5.32 billion. As a result, operating income rose 7.9 percent to $1.31 billion for the full year.

Passenger traffic (in revenue passenger miles - RPM) was up 9.4 percent on a capacity increase (available seat miles - ASM) of 8.9 percent. Resulting load factor came in at 85.1 percent, a 0.4 percentage point increase from 2015.

Looking forward, JetBlue expects a capacity increase of between 4.5 and 6.5 percent in 1Q17. For the full year, capacity is expected to grow by 6.5 to 8.5 percent.

Costs (per available seat mile - CASM) are expected to increase by between 3 and 5 percent in the first quarter, and between 1 and 3 percent for the full year. CASM projections exclude fuel.