JetBlue Boosts Second Quarter Net Profit
JetBlue Airways reported a 16.7 percent increase in net profit for the second quarter as a result of “solid demand.”
Net income for the quarter to end June was USD$211 million, up from $181 million in the prior year period. Operating revenue came in at $1.84 billion, a 12.1 percent increase. With expenses of just under $1.49 billion, operating profit for the quarter was $354 million.
JetBlue hedged 10 percent of its fuel consumption for Q2, but paid an average of $1.61 per gallon, which contributed to the 18.5 percent higher fuel bill of $325 million.
The other major cost was for staff, with the $464 million total a 12 percent increase on last year.
The New York-based airline carried 10.3 million passengers, from 9.6 million in 2Q16. RPM passenger traffic rose 5 percent on an ASM capacity increase of 4.8 percent. Resulting load factor edged up 0.2 percentage points to 85.2 percent.
Unit revenue was up 5.9 percent, but cost per available seat mile rose by 6.8 percent in the quarter.
“Our second quarter unit revenue exceeded our initial guidance as a result of our targeted revenue initiatives and a solid demand environment,” JetBlue chief executive Robin Hayes said.
Looking forward, the airline expects capacity to increase between 6.5 and 7.5 percent in the third quarter, and between 5.5 percent and 6.5 percent for the full year.
Unit revenue is expected in the range -0.5 percent to 2.5 percent in Q3. Unit costs, excluding fuel, are expected to grow in the 1.5 percent to 3.5 percent for the third quarter, and between 2.0 percent and 3.5 percent for the full year.