JetBlue 3Q earnings hold steady with more passengers, lower fares
JetBlue Airways reported $199 million in third-quarter net income Tuesday, matching results from a year earlier and just missing analyst expectations.
Earnings of 58 cents per diluted share just missed analyst expectations of 60 cents per share, according to S&P Global Market Intelligence. Last year, the New York-based airline raked in $198 million in net income in July, August and September.
The results came on a 2.6% rise in revenue, to $1.7 billion. JetBlue continued to enjoy lower fuel costs, with a 14.4% drop from the same period a year earlier to $293 million.
But expenses also grew 3% to nearly $1.4 billion. Wages rose 8% to $421 million. Maintenance and repairs rose 15.9% to $153 million.
JetBlue carried 7.7% more passengers than during the same period a year earlier, and its planes were a little more full, at 86.3%. But the average fare dropped 6%, to about $158 from about $168.
JetBlue gives makeover to T5 at its New York JFK Hub
JetBlue CEO Robin Hayes said in a statement he was particularly pleased with how workers responded to Hurricane Matthew, which menaced the East Coast, where the airline’s routes are concentrated, in early October. Hayes told analysts that the storm during a holiday hurt the airline more than 585 cancellations would suggest, cutting profits about $13 million.
Marty St. George, executive vice president for commercial and planning, said when the storm shut down two hubs around the Columbus day holiday it reduced the amount that planes were full on Oct. 10 by seven points.
"There as incredible melt-away," he said. "They didn’t take the outbound, the didn’t take the returns."
The third quarter also saw JetBlue pioneer the return of scheduled flights to Cuba on Aug. 31 after a hiatus of more than 50 years. The airline plans to begin serving three new destinations in Cuba, including Havana in late November as its 100th destination.
“We were immensely proud this quarter to offer the first commercial flight from the United States to Cuba in 50 years with our inaugural Fort Lauderdale to Santa Clara flight on Aug. 31," Hayes said. “We believe we are in a great position to be the carrier of choice given our strong presence in Florida, longstanding Cuban charter experience and our success in similar markets, such as the Dominican Republic."