U.S. airline JetBlue Airways Corp. (NASDAQ:$JBLU) released its second quarter earnings on July 25. The airline operator saw an impressive 16.6% rise in profit, partially due to the decision to increase JetBlue’s average fare price. Following the release of the report, JetBlue’s stock went up by about 3% in pre-market trading.
JetBlue’s net income in the second quarter was $211 million, or $0.64 per share. This was quite a rise when compared to 2016’s second quarter, when the company’s net income was $181 million, or $0.53 per share. The net income reported this quarter also surpassed average analyst expectations. According to Thomson Reuters I/B/E/S, the average analyst estimated net income to be about $0.57 per share. As well, total operating revenue, which JetBlue reported to be $1.84 billion, almost matched the average analyst expectation of $1.83 billion.
The good news doesn’t stop there. JetBlue also posted a rise in unit revenue – a first for the company in almost eight quarters. JetBlue’s unit revenue had suffered due to more competition within the industry as well as the pressure to put out cheaper fare prices. In its 2017 second quarter, however, the company saw its unit revenue rise by 7%.
JetBlue President and CEO Robin Hayes stated that the successful second quarter results were largely due to the company’s targeted revenue initiatives as well as a strong demand environment.
Operating expenses per available seat mile in JetBlue’s second quarter was 8.16 cents. The expense did not include fuel.
The company expects its operating expense per available seat mile to increase by about 1.5% to 3.5% in the third quarter. Third quarter capacity for JetBlue is projected to increase by about 6.5% to 7.5% annually.
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