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How Fast Is JetBlue Airways Adding New Seats?

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JetBlue Airways’ capacity growth

JetBlue Airways’ (JBLU) capacity rose 5.2% YoY (year-over-year) in November 2016, but that was significantly less than 13.0% in the first six months of 2016. It was also less than 6.3% YoY growth in the third quarter of 2016.

YTD (year-to-date) through November 2016, JBLU’s capacity has increased 10.4% YoY. Average growth in the first half of 2016 was ~12.7%. For 2015, capacity rose 9.5%.

Airline capacity is measured by available seat miles (or ASM). ASM is the number of seats available multiplied by the number of miles.

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What to expect

Slow growth could continue in December 2016. For 4Q16, JBLU is expecting a 3.0%–5.0% YoY increase in capacity. That will include the 0.50 percentage point negative impact from Hurricane Matthew. For the first two months, the average is already at 5.4% YoY.

For 2016, capacity growth for JetBlue Airways is expected to be 8.5%–9.0% YoY compared to the earlier expected growth of 8.5%–10.5%.

For information on the November 2016 performances of Alaska Air Group (ALK), American Airlines (AAL), United Continental Holdings (UAL), and Southwest Airlines (LUV), please read Flying High: Analyzing Alaska Air Group’s Key Operating Metrics, How Did American Airlines Perform in November 2016? Analyzing Southwest Airlines’ Key Metrics for November 2016, and United Continental’s November Traffic Data: What You Should Know.

JBLU forms ~0.40% of the iShares Core S&P Mid-Cap (IJH).

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