Jetblue Airways Corporation: Case Study: Jetblue Airways Corporation
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JetBlue Airways Corporation, a passenger carrier company, providing air transportation services. It serves 87 destinations in27 states in the United States, the District of Columbia, the Commonwealth of Puerto Rico, the U.S Virgin Islands, and 17 countries in the Caribbean and Latin America.
Second quarter, 2015 results were solid along with rise in operating revenue, Net income and diluted earnings per share.
“We are very pleased to report strong second quarter results based on solid demand across our network, safe and efficient operations, and good cost control”…C.E.O…Robin Hayes.
Impressive second quarter, 2015…
Operating revenue for the quarter increased to $1.6 billion compared to $1.4 billion for the same quarter last year. Revenue passenger miles for the quarter increased to 8.7% to $10.5 billion on a capacity of 7.5%, resulting in a second quarter load factor of 85.6%, an increase of 1.0 points year over year.
Additionally, operating expenses decreased to $1.3 billion from $1.4 billion for the previous year’s same quarter. The airline fuel cost per gallon decreased by 31% year-over-year to $2.13, as compared with $3.09 in second quarter, 2014. . Lower fuel costs helped the unit operating expenses to fall by 8.7% year-over-year. Also, interest expense for the quarter declined $7 million, as jet blue continues to repay its debt.
Further, operating income for the quarter increased to $282 million higher than previous year’s second