June JetBlue Numbers

[Bake]

JetBlue Airways Reports June Traffic
Friday July 7, 9:13 am ET
NEW YORK, July 7, 2006 (PRIMEZONE) -- JetBlue Airways Corporation (NASDAQ:JBLU - News) reported today that its traffic in June increased 11.4 percent from June 2005, on a capacity increase of 20.8 percent.
Load factor for June 2006 was 82.1 percent, a decrease of 6.9 points from June 2005. JetBlue's preliminary completion factor was 99.8 percent and its on-time(1) performance was 71.1 percent. ``We continue to experience revenue improvement as evidenced by June's preliminary passenger revenue per available seat mile increase of 16 percent year over year, driven by the positive changes made to our revenue management process,'' said David Neeleman, CEO of JetBlue. ``Pricing our inventory in order to achieve a higher yield at a reduced load factor is giving us the positive results we are aiming for.''
(1) The U.S. Department of Transportation considers on-time arrivals to be those domestic flights arriving within 14 minutes of schedule. JETBLUE AIRWAYS TRAFFIC RESULTS June 2006 June 2005 % Change Revenue passenger miles (000) 1,997,663 1,793,823 11.4 Available seat miles (000) 2,433,919 2,014,568 20.8 Load factor 82.1% 89.0% (6.9) pts. Revenue passengers 1,499,206 1,240,043 20.9 Departures 12,552 9,012 39.3 Average stage length 1,273 1,433 (11.2) Y-T-D 2006 Y-T-D 2005 % Change Revenue passenger miles (000) 11,459,967 9,559,217 19.9 Available seat miles (000) 13,779,414 11,014,853 25.1 Load factor 83.2% 86.8% (3.6) pts. Revenue passengers 8,859,638 7,095,992 24.9 Departures 72,105 53,019 36.0 Average stage length 1,249 1,332 (6.2) SOURCE: JetBlue Airways Corporation

 

[32LT10]

The silence on this post is deafening. Adding capacity at a rate higher than seats filled is not the optimum outlook.

 

[IB6 UB9]

The silence on this post is deafening. Adding capacity at a rate higher than seats filled is not the optimum outlook.

What is your outlook on decreasing capacity?

 

[Zipperhead]

32lt10

It never takes long for 32LT10 to miss an opportunity to bash B6. Apparently United is doing an excellent job and every other airline should follow its lead.

 

[rayford steele]

``We continue to experience revenue improvement as evidenced by June's preliminary passenger revenue per available seat mile increase of 16 percent year over year, driven by the positive changes made to our revenue management process,'' said David Neeleman, CEO of JetBlue. ``Pricing our inventory in order to achieve a higher yield at a reduced load factor is giving us the positive results we are aiming for.''

Pretty much says it all.

 

[Green]

I wonder if costs are also up significantly year over year? Oil up, new fleet type introduced, aging aircraft, etc.etc....

 

[Blue Dude]

The silence on this post is deafening. Adding capacity at a rate higher than seats filled is not the optimum outlook.

"The silence is deafening?" Are you dense? It's all good news! Did you happen to notice that RASM was up 16%? Fares up = LF down. Obviously.

Also means yield is up about 25%. I'll take that any day over a LF rise. And you're worried about a LF drop, all the way down to a "rock bottom" 82%.

 

[Bavarian Chef]

April RASM up 16%
May RASM up 9%
June RASM up 16%

all preliminary numbers of course

less people (from a system straining historical load factor) plus
more per ticket
all equal good

when the numbers come out i guess we'll see. our LF dropped about as much as united's went up. interesting to see how the numbers for the two airlines play out as a comparison.

 

[A350]

The rasm numbers are very good....the load factor is OK....I would like to see it higher.

The drop in load factor is an intended consequence. At JB's historical high load factors, a major mechanical/weather scenario plays havoc with the system as there is not any capacity left to recover. That is why JB has had people in hotels for up to 3 days (my experience) waiting for a flight that had seats.

The new flights are all off to a very good start. Time will tell the tale.

A350

 

[Lear70]

"Pricing our inventory in order to achieve a higher yield at a reduced load factor is giving us the positive results we are aiming for.''

Finally... airline management begins to see the light.

90% Load Factor at only $.05 cents of RASM versus an 80% LF at $.10 cents of RASM is a no-brainer. Good for you blue guys and gals, hope the performance keeps up and pays off!

Don't worry about 32LT10, he misses the boat on a lot of stuff.

 

[DIAMONDDD]

It never takes long for 32LT10 to miss an opportunity to bash B6.

JP4User should be coming along here shortly as well.

 

[Yuppyguppy]

no it's jblu who's gonna be missing the boat. It's already been torpedoed once already this year and it's just gonna keep comin' kinda like the Bismark. Bail whilst you can.

 

[DIAMONDDD]

no it's jblu who's gonna be missing the boat. It's already been torpedoed once already this year and it's just gonna keep comin' kinda like the Bismark. Bail whilst you can.

Thanks,
I just called in and quit, just in case you are correct.

 

[rayford steele]

no it's jblu who's gonna be missing the boat. It's already been torpedoed once already this year and it's just gonna keep comin' kinda like the Bismark. Bail whilst you can.

Too much time on reserve now that you've been recalled huh?

 

[32LT10]

Finally... airline management begins to see the light.

90% Load Factor at only $.05 cents of RASM versus an 80% LF at $.10 cents of RASM is a no-brainer. Good for you blue guys and gals, hope the performance keeps up and pays off!

Don't worry about 32LT10, he misses the boat on a lot of stuff.

Using your logic would it not make sense for B6 to also desire a higher LF to increase those margins? Would a company not want to make the most money they could? Coming from a company that has not made money in a while I find someone saying, "well it is good to carry fewer people than we added seats and that is a good thing" as very odd.

 

[32LT10]

The rasm numbers are very good....the load factor is OK....I would like to see it higher.

The drop in load factor is an intended consequence. At JB's historical high load factors, a major mechanical/weather scenario plays havoc with the system as there is not any capacity left to recover. That is why JB has had people in hotels for up to 3 days (my experience) waiting for a flight that had seats.

The new flights are all off to a very good start. Time will tell the tale.

A350

With a comendable 99.8% completion factor, why all the disruptions in schedule? Are you misconnecting that many people? I thought the idea and majority of the B6 experience was O&D, not connections.

 

[Longhorn]

32LT10...

The point was that we would rather have an 80% LF and higher rasm by raising ticket prices than high FL and low rasm. Sure, in a perfect world a 90-95% LF AND high rasm would be great but its just not going to happend right now. When the summer gets near the end and kids are back in school, holidays I bet you will see the LF creep back into the 85-90% again. Its just nice to see that the rasm came up. All in all, our LF is actually not that bad. Wish it was higher...yes, but its ok for now.

 

[Truckdriver]

Coming from a company that has not made money in a while

Kind of funny when a UAL guy is saying run from JBLU because they haven't made money in awhile. It's been what, 2 quarters. If you think JBLU is sinking because they have lost money for a couple of quarters, and a small amount of money at that, you should have been running from UAL about 6 years ago. UAL hasn't made money in 6 years, but UAL employees need to keep telling themselves that they are turning it around. "Your doing a great job guys, keep up the work we are turning it around. The business plan shows us making money next year after we cut your pay again."

 

[32LT10]

Kind of funny when a UAL guy is saying run from JBLU because they haven't made money in awhile. It's been what, 2 quarters. If you think JBLU is sinking because they have lost money for a couple of quarters, and a small amount of money at that, you should have been running from UAL about 6 years ago. UAL hasn't made money in 6 years, but UAL employees need to keep telling themselves that they are turning it around. "Your doing a great job guys, keep up the work we are turning it around. The business plan shows us making money next year after we cut your pay again."

Truck driver,

I ment coming from a company that had not made money as in I COME FROM A COMPANY THAT HAS NOT MADE MONEY. I am trying to have a normal coversation about the numbers from B6 and you think it is all about YOU. Lighten up Chuck. When it comes to losing money I believe MY company may have perfected the art.

 

[32LT10]

32LT10...

The point was that we would rather have an 80% LF and higher rasm by raising ticket prices than high FL and low rasm. Sure, in a perfect world a 90-95% LF AND high rasm would be great but its just not going to happend right now. When the summer gets near the end and kids are back in school, holidays I bet you will see the LF creep back into the 85-90% again. Its just nice to see that the rasm came up. All in all, our LF is actually not that bad. Wish it was higher...yes, but its ok for now.

Longhorn,

I hope it does turn in the right direction for you.

Cheers.

 

[8vATE]

I am trying to have a normal coversation about the numbers from B6 and you think it is all about YOU. Lighten up Chuck.

Maybe it would be easier to have a "normal" conversation with you 32LT10 if you didn't have such a crappy reputation on the boards.

 

[Bavarian Chef]

Using your logic would it not make sense for B6 to also desire a higher LF to increase those margins? Would a company not want to make the most money they could? Coming from a company that has not made money in a while I find someone saying, "well it is good to carry fewer people than we added seats and that is a good thing" as very odd.

You are right about the LF -- we want to fly MORE people and earn MORE per ticket. But high LFs stress the system in places like JFK and BOS.

 

[Bavarian Chef]

With a comendable 99.8% completion factor, why all the disruptions in schedule? Are you misconnecting that many people? I thought the idea and majority of the B6 experience was O&D, not connections.

I wouldn't say we misconnect, but jfk makes it very hard (weather, traffic, controllers, delays etc) to keep up those connections every now and then. We don't lock the door ten minutes prior, either (in most cases). We actually give our customers a chance to make the flight, unlike my experiences with jumping on ua. Our gate agents don't rule the company and get bonuses for on-time departures like ua (at least I think they don't, will find out). I wondered why a ua pilot who was nonreving with his family asked me to tell the captain that there were still standbys left to board, later found out it's because ua gate agents will close the door and not tell the captain in order to make the numbers. Huh?

In case anyone was wondering though, our flight attendants rule the company. Sad.

 

[Green]

"The silence is deafening?" Are you dense? It's all good news! Did you happen to notice that RASM was up 16%? Fares up = LF down. Obviously.

Also means yield is up about 25%. I'll take that any day over a LF rise. And you're worried about a LF drop, all the way down to a "rock bottom" 82%.

Blue dude,

just out of curiosity where did you come up with the yield being up 25%?

 

[FDJ2]

The decrease in load factor would be worrisome if the RASM hadn't increased as much as is claimed. What's happening with JBLUs CASM?

 

[elag777]

The decrease in load factor would be worrisome if the RASM hadn't increased as much as is claimed. What's happening with JBLUs CASM?

It was always in the plan to lower the LF so recovering from an IROP would be less stressful. When the snow storm of Feb hit B6 had a hard time finding seats for customers for over a week. It is a trade off with LF and RASM and Rasm is up exponentially. Which more than offsets the cost of the lower LF and compensation offered during an IROP. I also think that you continue to see the lowest Casm - fuel in the industry and Casm with fuel almost the lowest. You will see a modest profit for B6 in Q2.

 

[Fins Up]

Maybe it would be easier to have a "normal" conversation with you 32LT10 if you didn't have such a crappy reputation on the boards.

I"m gonna have to agree here. 32LT10, as soon as I see your username next to a post, I assume it's going to be bashing someone, usually JB. Most of the time that turns out to be true.

There was another user who brought hate and discontent to every post and was regularly thrashed by the masses. I believe he figured it out and managed to become more civil. You don't have to agree with everything on the boards, but you don't have to always go picking a fight either. Good luck to you and UA. We're all doing this job because we want to, not because we have to.

 

[lowecur]

The decrease in load factor would be worrisome if the RASM hadn't increased as much as is claimed. What's happening with JBLUs CASM?

Up, up, and away. Shorter average stage length & the 190 will see to that. The deal is to keep the RASM ahead of the CASM, which JB should be able to do with the new yield mgt and shorter routes. With oil where it is, the days of 6 and 7 cents CASM are quickly disappearing, and will be a faint memory in a few years. The water-mark will be somewhere probably in the 9 cent area, as SWA will raise all boats as their pricing power wanes in many markets. Pricing power will be spread across a wide network of LCCs and legacy carriers, as the traveling public will pay the high prices as long as the economy is in sync...........but watch the domino's fall once a recession hits.

imp:

 

[Bavarian Chef]

Up, up, and away. Shorter average stage length & the 190 will see to that. The deal is to keep the RASM ahead of the CASM, which JB should be able to do with the new yield mgt and shorter routes. With oil where it is, the days of 6 and 7 cents CASM are quickly disappearing, and will be a faint memory in a few years. The water-mark will be somewhere probably in the 9 cent area, as SWA will raise all boats as their pricing power wanes in many markets. Pricing power will be spread across a wide network of LCCs and legacy carriers, as the traveling public will pay the high prices as long as the economy is in sync...........but watch the domino's fall once a recession hits.

imp:

Dude, I love your posts. Read like a Hollywood screenplay. You forgot to mention the asteroid that is heading towards the Earth and the Virgin Galactica A350 set on intercepting it and saving the whole freakin' planet.

 

[lowecur]

Dude, I love your posts. Read like a Hollywood screenplay. You forgot to mention the asteroid that is heading towards the Earth and the Virgin Galactica A350 set on intercepting it and saving the whole freakin' planet.

You're such a kidder! Stop using my ink!

imp: