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.
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.