JetBlue Reports Q2 Pre-Tax Loss of $160 Million

By Paul Riegler on 24 July 2018
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IMG_8285JetBlue Airways announced financial results for the second quarter of 2018.

The airline posted a pre-tax loss of $160 million, citing the impact of the holiday calendar and fuel prices that increased by 40%.

The New York-based airline reported second quarter revenue of $1.93 billion, a 5% increase from $1.84 billion in Q2 2017.

Second quarter revenue per available seat mile, or RASM, decreased by 1.2%. This included 2.5 points of negative impact from holiday travel that took place in Q1 as well as a 1.25 point benefit occurring in Q2 2017 from completion factor and co-brand incentive payments, the airline said.

“The team is focused on mitigating the impact of higher fuel in order to stabilize and improve our margins,” said Robin Hays, the airline’s CEO. “We are planning a series of adjustments to both capacity and our ancillary revenue to take effect over the coming months.”

The airline’s passenger traffic in the second quarter was 13.03 billion revenue passenger miles, or RPMs, up 7.5% from 12.13 billion RPMs in the second quarter of 2017. Capacity was up by 6.3% year-over-year, to 15.14 billion available seat miles, or ASMs, from 14.25 billion ASMs in 2017.

Meanwhile, passenger load factor in the second quarter rose by 1 percentage point, up to 86.2% from 85.2% in the same period during the previous year.

The carrier’s realized fuel price for the second quarter was $2.28 per gallon, up 42%, while the average JetBlue fare was down 0.7% to $170.08.

Looking ahead to the third quarter, the New York based airline sees capacity increasing by 7.5% to 9.5%. For the full year, however, the carrier expects capacity to increase between 6.5% to 7.5%, including a 2 point reduction in Q4. The cost per available seat miles is expected to be 1% to 3% higher.

(Photo: Accura Media Group)

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