JetBlue Airways (JBLU 16.91, +0.57, +3.5%) climbed 3.5% after the company reported its March metrics and updated its guidance for the first quarter.
JetBlue's capacity in March increased by 12.6%, outpacing a 7.9% increase in passenger traffic. Load factor decreased by 3.7% yr/yr to 85.3%.
The company announced that a higher than expected completion factor reduced its revenue per available seat mile by 0.75%. Due to this impact, the company expects that its Q1 revenue per available seat mile will be down about 3.1% yr/yr, which is toward the lower end of its previous guidance for a decrease between 1.5% and 3.5%.
The disappointment resulting from the company's revenue guidance has been partially offset by reduced cost guidance. A higher completion factor lowered the company's cost per available seat mile, excluding fuel, by about 0.75%. As a result, the company expects that its cost per available seat mile, excluding fuel, could be lower than its previous guidance for an increase between 1.5% and 3.5%.
Another offsetting factor came from last night's CNBC report about an event scheduled for this afternoon, during which the company is expected to announce it will begin flying across the Atlantic. The addition of trans-Atlantic routes would expand the company's footprint while putting some competitive pressure on other carriers like American Airlines (AAL 33.86, +0.55, +1.6%), Delta Air Lines (DAL 57.60, +0.65, +1.1%), and United Continental (UAL 84.39, +0.14, +0.2%).
While the company's revenue per available seat mile guidance was on the low end of the previous outlook, new cost guidance represented an improvement. Expectations for an unveiling of a new route are providing an added measure of support.