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.
JetBlue estimates Hurricane Sandy will reduce operating income in October and November by approximately $25 to $30 million.
(1) The U.S. Department of Transportation considers on-time arrivals to be those domestic flights arriving within 14 minutes of schedule.
JetBlue is New York's Hometown Airline TM with other focus cities in Boston, Fort Lauderdale, Los Angeles, Orlando and San Juan. Known for its award-winning service and free TV as much as its low fares, JetBlue offers the most legroom in coach of any U.S. airline (based on average fleet-wide seat pitch) as well as super-spacious Even More Space seats. JetBlue is also America's first and only airline to offer its own Customer Bill of Rights, with meaningful and specific compensation for customers inconvenienced by service disruptions within JetBlue's control. Visit www.jetblue.com/promise for details. JetBlue serves 74 cities with 750 daily flights and plans to launch service to Providence, Rhode Island later this November. JetBlue also plans to launch service to Charleston, South Carolina and Albuquerque, New Mexico in early 2013. With JetBlue, all seats are assigned, all fares are one-way, and an overnight stay is never required. For information or reservations call 1-800-JETBLUE (1-800-538-2583), TTY/TDD 1-800-336-5530, or visit www.jetblue.com.