Jetblue Airways Prelim October PRASM Up 2%; Guides Nov PRASM Down 3-4%
JetBlue Airways Corporation (NASDAQ: JBLU) reported its preliminary traffic results for October 2012. Traffic in October increased 1.0 percent from October 2011, as capacity remained relatively flat.
Load factor for October 2012 was 84.3 percent, an increase of 0.8 points from October 2011. JetBlue's preliminary completion factor was 92.9 percent and its on-time (1) performance was 74.1 percent.
As a result of Hurricane Sandy, JetBlue cancelled approximately 1,700 flights over a five day period. "Despite the devastation caused by the storm, our crewmembers rose to the challenge and came to the aid of one another and our customers," said Dave Barger, JetBlue's President and Chief Executive Officer. "I am grateful for the dedication of our crewmembers in getting our airline back to normal operations and taking care of our customers."
Given JetBlue's significant presence in the Northeast, JetBlue estimates Hurricane Sandy reduced October passenger revenue by approximately $20 million. JetBlue's preliminary passenger revenue per available seat mile (PRASM) for the month of October increased two percent year over year, which includes a benefit of approximately two points due to Hurricane Sandy.
November passenger revenue is expected to be reduced by approximately $20 to $25 million primarily due to slow demand recovery in the wake of the storm. For the month of November, PRASM is expected to decrease between three and four percent year over year.
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