Thu, Jan. 29, 2:29 PM
- Shares of JetBlue (NASDAQ:JBLU) are up 8.75% to $17.15 after the company beats profit estimates with its Q4 report.
- The carrier gave investors a lot to work with on the fuel riddle, forecasting it will spend $1.97 per gallon in Q1 after factoring in hedging.
- JetBlue is raising capacity aggressively, but its load factor and operating expenses per seat readings have held up nicely.
- Baggage fees are also starting to become a factor.
- Oil prices are lower today which is also a factor in the JetBlue rally.
- Previously: JetBlue Airways beats by $0.02, revenue in-line (Jan. 29 2015)
- Previously: Efficiency gains at JetBlue in Q4 even as capacity rises (Jan. 29 2015)
- Shares of JBLU appear to be gliding in for their first +$17 close ever.
Thu, Jan. 29, 8:01 AM
- JetBlue (NASDAQ:JBLU) reports revenue passenger miles increased 8.5% to 9.4B in Q4.
- The company's load factor improved 120 bps to 82.1% on a 7.0% rise in capacity.
- Operating expenses +2.1% during the quarter, although on a per available seat mile basis expenses were down 4.5% to $0.1117.
- JetBlue realized a fuel cost of $2.70 per gallon during the quarter, down 12.7% Y/Y, with 26% of its fuel purchases hedged.
- JBLU +0.8% premarket.
Thu, Jan. 29, 7:34 AM
Wed, Jan. 28, 5:30 PM
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Mon, Jan. 26, 8:23 AM
- Winter Storm Juno is expected to cause widespread flight cancellations on the East Coast this week.
- JetBlue (NASDAQ:JBLU) has the highest number of cancellations today per FlightAware.com.
- United Continental (NYSE:UAL), Southwest (NYSE:LUV), SkyWest (NASDAQ:SKYW) through ExpressJet, Delta Air Line (NYSE:DAL), and American Airlines Group (NASDAQ:AAL) will also be affected.
- What to watch: The impact of major weather events on the bottom line of airlines can be complicated. Losses can be minimal in some cases as load factors actually improve, but if business travelers don't rebook trips, the loss of revenue can be a negative factor.
Thu, Jan. 22, 9:31 AM
- Airline stocks are set to rally as news from the sector continues to be favorable.
- Double-digit fuel cost declines. Check.
- Fares holding. Check.
- Passenger revenue miles outpacing capacity gains. Check.
- Analyst ratings and EPS upgrades. Check.
- Related stocks: LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET, VA.
Tue, Jan. 20, 7:41 AM
- U.S. airlines are expected to return more cash to shareholders this year and pay down debt with the money saved from lower fuel expenses.
- The carriers may also use the improvement on their balance sheet to push for better financing terms on new aircraft purchases.
- A significant drop in airfares is lower on the list with demand in the U.S. at a strong level.
- Related stocks: VA, LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET.
- Previously: Airline math: Jet fuel down 30%, fares down 5% (Jan. 16 2015)
Fri, Jan. 16, 9:43 AM
- The airline fares component of CPI fell 4.7% Y/Y in December after increasing in both October and November.
- The spot price for jet fuel has dropped by more than 30% over the same time period (chart).
- Hedging strategies vary widely by airline and come into play when estimating profits in the sector.
- Previously: Hedge your bets on airliners (Dec. 23 2014)
- Related stocks: VA, LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET.
Tue, Jan. 13, 5:59 PM
- JetBlue's (NASDAQ:JBLU) December revenue passenger miles rose 5.6% Y/Y to 3.41B, a slowdown from November's 10.1%.
- Available seat miles rose 7.2% to 4.18B, and load factor fell 130 bps to 81.6%. Departures rose 6.5% to 26,774, and average stage length fell 0.5% to 1,109. Seat miles rose 6% in November, and load factor was up 310 bps.
- Shares are nearly unchanged AH.
Tue, Jan. 13, 7:58 AM
- Cowen Research's Helane Becker takes a positive view on pricing in the airline sector for 2015 on her view domestic demand will stay strong enough to keep the pressure off of airlines to drop fares.
- A gauge of recent comments by airline execs seems to indicate the analyst is correct and airfares will be held largely level - despite the sharp drop in oil prices.
- Delta Air Lines CEO: "It’s wonderful that fuel has run down–we love it. There’s a $2 billion opportunity out there if we hold fare levels constant."
- American Airlines Group CEO: "...we don’t have plans to go off and just proactively cut fares."
- Southwest Airlines CEO: "What I would not want to do to customers is take them through the same volatile ride with fares [as 2008], lowered in one day, raised in the next day."
- U.S. carriers: LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET, VA.
Wed, Jan. 7, 2:25 PM
- Despite the brisk rally in airline stocks, Credit Suisse thinks there is plenty of upside still left.
- "The market has been hesitant to fully price in benefits from the rapid fuel decline and consensus has yet to fully adjust for lower fuel," reads the optimistic CS note.
- Analysts with the firm tap United Continental (NYSE:UAL) as their top sector pick.
- Airline stocks: LUV, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET, VA.
Mon, Jan. 5, 3:18 PM
- ETF Series Solutions is planning a new ETF based on the airliner sector.
- The fund will hold 25 to 40 airline stocks and attempt to mirror the U.S. Global Jets Index.
- The development comes with airline stocks on a tear after jet fuel prices dropped sharply.
- Two former airline ETFs (FLYX and FAA) didn't survive long enough to cruise through the rally.
- Airline stocks: RYAAY, OTCPK:CPCAY, OTCPK:SINGY, CEA, ZNH, CPA, GOL, LFL, LUV, UAL, DAL, AAL, JBLU, ALK, HA, SAVE, ALGT, RJET, RYAAY, CPA, GOL, LFL, AVH, SAVE, VLRS.
- SEC Form N-1A
Mon, Jan. 5, 1:39 PM
- JetBlue (NASDAQ:JBLU) says it will add service between San Francisco and Las Vegas this month.
- Management projected in the fall the company would grow capacity from 6% to 8% in 2015.
- JBLU 2015 capacity estimates by region: Transcontinental +15% to +17%, Florida +4% to +6%, Latin America +4% to +6%, U.S. East +4% to +6%, U.S. West +3% to +5%, U.S. Central -5% to -3%.
Dec. 31, 2014, 10:32 AM
- American Airlines (AAL +1.7%) and JetBlue (JBLU +1.6%) could benefit if the U.S. relaxes travel restrictions to Cuba.
- The two carriers already offer services for charters to Cuba out of the Tampa airport.
- Airline passenger traffic to Cuba from the U.S. has risen from 7,775 in 2011 to almost 53K through Q3 in 2014, despite the tight current government restrictions.
- Industry watchers think the route could eventually be very popular due to tourism and demand from Cuban-Americans reconnecting with family.
Dec. 31, 2014, 10:07 AM
- Airline stocks are in rally mode again off of momentum driven by the latest slide in oil prices.
- Southwest Airlines (LUV +2.2%) is poised to end the year as the top performing stock of the S&P 500 Index with a +125% rip.
- Though jet fuel hedging strategies vary widely throughout the sector, a prolonged period of lower oil prices will allow all carriers to realize a benefit.
- Gainers: Republic Airways (NASDAQ:RJET) +4.4%, United Continental (NYSE:UAL) +2.4%, Virgin America (NASDAQ:VA) +1.9%, JetBlue (NASDAQ:JBLU) +1.8%, Alaska Air Group (NYSE:ALK) +1.7%, Allegiant Travel (NASDAQ:ALGT) +1.6%, Delta Air Lines (NYSE:DAL) +1.6%, SkyWest (NASDAQ:SKYW) +1.4%.
- Previous: Hedging strategies by airline
Dec. 23, 2014, 10:06 AM
- The type of hedging strategies used by airliners will play a big part in profitability in the sector after the sharp drop in jet fuel prices.
- Delta Airlines (NYSE:DAL) estimates it keeps about 65% of the drop in fuel costs, but will owe $800M to counterparties (the other side of the hedge) if oil is 20% lower on December 31, 2015 from where it stood on October 1, 2014. By Delta's estimation, a penny drop in oil prices is a net $40M to the good side.
- Southwest Airlines (NYSE:LUV) forecasts it will reap $0.80 for every $1 drop in oil prices, but disclosed a $615M liability to creditors if crude oil prices stay below 25% from the level of September 30.
- American Airlines Group (NASDAQ:AAL) will realize the full impact from the drop in fuel costs on its bottom line due to the decision by the company not to hedge at all.
- Other airliners could also have some hedging exposure, although details are light on the strategies employed in the sector.
- What to watch: Q1 reports and conference calls in the sector could be key in filling in some of the blanks. Related stocks: UAL, JBLU, ALK, HA, SAVE, ALGT, RJET, VA.
JBLU vs. ETF Alternatives
JetBlue Airways Corp is passenger airline company. The Company provides passenger airline services in the United States. Its services includePartner airlines, Getaways, Corporate, Cargo, Travel agents, Special assistance and Travel Insurance.
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