JetBlue Airways (B6) posted a $27 million year-over-year increase in net income to $30 million for the first quarter, up from $3 million in the year-ago quarter.The carrier said demand trends remained strong throughout the quarter, on a 12% year-over-year increase in capacity.
"Despite an uncertain economic environment, we delivered record revenue performance and fully offset the increase in fuel costs with higher revenues,” B6 president and CEO Dave Barger said.
Operating expenses, including a 22.7% year-over-year increase in fuel, jumped 15.2% to $1.1 billion. Operating income soared 97.4% to $89 million.
During the period, the airline recorded the highest quarterly average fare in its history—$159.93—and recorded a 67.5% year-over-year increase in maintenance costs.
Barger noted B6 will face significant maintenance cost challenges. During the quarter the carrier experienced a high volume of heavy maintenance checks due to the large bunching of Airbus A320 aircraft acquired during the 2000s, B6 CFO Mark Powers said. The carrier also had more Embraer E-190 engine removals than expected.
Powers, who has served as interim CFO since October 2011, has been appointed CFO.
Traffic increased 14.2% to 7.91 billion RPMs on a 12% rise in capacity to 9.54 billion ASMs, pushing load factor up 1.5 points to 82.9%. Yield was 13.86 cents, up 5.9% year-over-year, while passenger RASM climbed 8% to 11.49 cents and CASM lifted 2.8% to 11.69 cents. CASM ex-fuel fell 1% to 7.15 cents.
"Our first quarter PRASM results once again exceeded the domestic industry average, reflecting our continued success in attracting higher yielding business traffic, particularly in Boston," B6 CCO Robin Hayes said.
B6 expects capacity to increase between 4% and 6% in the second quarter, then between 6% and 8% for the full year, and plans to purchase several aircraft deliveries this year with cash.
Article Source : ATW Daily News
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