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JetBlue Posts Robust May Traffic Data, Revises Q2 RASM View


JetBlue Airways Corporation JBLU posted an impressive rise in air traffic for May. Traffic measured in revenue passenger miles (RPMs), increased 8.9% year over year to 4.34 billion. Consolidated capacity (or available seat miles/ASMs) also expanded 7.6% to 5.06 billion on a year-over-year basis.

Load factor or percentage of seats filled by passengers improved 110 basis points (bps) to 85.8% in the month as traffic growth outpaced capacity expansion.

The Long Island City, NY-based low-cost carrier registered a completion factor (system wide) of 98.8% in the month with 71% flights on schedule.

JetBlue Airways Corporation Price

JetBlue Airways Corporation Price | JetBlue Airways Corporation Quote

In the first five months of 2018, the carrier posted a 5.4% rise in RPMs while ASMs grew 4.6%, both on a year-over-year basis. Also, load factor inched up 70 bps to 85.1%.

The company has revised its guidance for unit revenues in the second quarter of 2018. It now anticipates revenue per available seat mile (RASM) to decrease 2.5-0.5% year over year compared with the previous outlook of a decline of 3% to flat. This view includes a 2.5 point adversity from holiday placement and 1.25 point negativity from completion factor and co-brand incentive payments.

Zacks Rank & Key Picks

JetBlue holds a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the broader Transportation sector are GATX Corporation GATX, SkyWest, Inc. SKYW and Expeditors International of Washington, Inc. EXPD. While GATX and SkyWest carry a Zacks Rank #2 (Buy), Expeditors sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of GATX, SkyWest and Expeditors have rallied more than 17%, 6% and 20%, respectively, in the past six months.

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