Shares of JetBlue Airways (JBLU) were 6% higher on Tuesday after the airline company reported Q2 earnings that beat expectations on higher revenues that met analysts’ forecasts. The company also guided for year-over-year capacity growth in Q3 and FY16. Separately, the company said it has agreed to buy an additional 30 aircraft from Airbus to expand its Mint service. JetBlue will take delivery of 15 A321ceos starting in 2017, with five Mint deliveries expected in 2017 and the intention for most incremental deliveries in the following years to come in Mint.
Moreover, it expects to take delivery of 15 incremental A321neos, with a new engine option, starting in 2020. Q2 EPS was $0.53 per share, up from $0.44 per share a year earlier and beating the $0.49 per share consensus compiled by Capital IQ. Revenues rose 2% year-over-year to $1.64 billion and met analysts’ expectations.
For Q3, JetBlue expects capacity to increase between 5.5% and 7.5%. Cost per available seat mile excluding fuel and profit sharing is slated to grow 1% to 3%.
For FY16, the company continues to expect capacity growth of 8% and 9.5% CASM excluding fuel and profit sharing is forecast to be flat to up 1.5%, unchanged from a prior outlook.
