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JetBlue’s (JBLU) August Traffic Rises, Load Factor Falls

Zacks

JetBlue Airways Corporation JBLU reported traffic figures for August. Traffic, measured in revenue passenger miles (RPMs), increased 3.9% year over year to 4.91 billion. Consolidated capacity (or available seat miles/ASMs) also expanded 6.1% to 5.64 billion on a year-over-year basis.

However, load factor or percentage of seats filled by passengers contracted 180 basis points (bps) to 86.9% in the month as traffic growth was outpaced by capacity expansion.

The Long Island City, NY-based low-cost carrier registered a completion factor (system wide) of 99% with 67.8% flights on schedule.

JetBlue Airways Corporation Price

JetBlue Airways Corporation Price

JetBlue Airways Corporation price | JetBlue Airways Corporation Quote



In the first eight months of 2019, the carrier posted a 5.9% rise in RPMs while ASMs grew 7.3%, both on a year-over-year basis. On the contrary, load factor deteriorated 110 bps to 85.2%.

The company maintains its projection for third-quarter revenue per available seat mile (RASM). The metric is anticipated to either slide up to 2% or remain flat year over year. The view includes a 1.25-point negativity from low bookings to Puerto Rico, a 0.75-point adversity each from Hurricane Dorian and challenges in Punta Cana, and a 1-point headwind from lower-than-expected demand across its system.

Zacks Rank & Key Picks

JetBlue carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are Controladora Vuela Compania de Aviacion, S.A.B. de C.V. VLRS, Copa Holdings, S.A. CPA and Allegiant Travel Company ALGT. While Controladora Vuela and Copa sport a Zacks Rank #1 (Strong Buy), Allegiant carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Controladora Vuela, Copa and Allegiant have rallied more than 96%, 29% and 51% so far this year, respectively.

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