JetBlue claim its capacity growth to have outpaced traffic the last month

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    Latest reports from air carrier, JetBlue Airways Corp. (NASDAQ:JBLU), claim its capacity growth to have outpaced traffic the last month – while cutting its annual capacity growth outlook.

    Exclusive data obtained from Market Watchers cite (for readers’ concern):

    |(**RASM) Revenue per available seat mile drooped by 7%|

    (**for 2Q, RASM could be positioned at between 7.5% – 8.5% – lower than previous laid forecast)

    |May traffic had increased by 10.7% from previous annual estimates|

    |The capacity expanded by 12.1% – pushing May load factor down to 84.6% from 85.7%|

    Not to mention, this year, JetBlue reduced its outlook for capacity growth in between 8.0% and 9.5% from 8.5% to 10.5%.

    INSIGHT: JBLU’s stock has tumbled 19% year to date.

    UPDATE: TheStreet Ratings team rates the stock as a “buy” with a ratings score of B; objectively according to its ‘risk-adjusted’ total return prospect over a 12-month investment horizon.

    Expenditure:

    Apart from labor, bearish crude oil has always been another major expense for most of the carriers. On a related note, the plunging crude oil accounted nearly 17% of JBLU’s operating expenses during 1Q.

    In accord with New York-based air carrier, unit revenue fell 7% in May this year – followed by a 12.5% drop in April 2016.

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    I cover technology, utilities and biotechnology for Markets Morning, and I help out occasionally with other industry sectors. I’ve written about investment and personal finance topics for more than 20 years from a lowly copywriter to editor-in-chief, so I’ve done a little bit of everything. For what it’s worth, I have a BA from Duke University and an MBA from Rollins College. I’m married with one daughter, and that’s worth more than everything else put together.

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