JetBlue is cutting back on its capacity growth plans, as its fuel costs rose more than 40 percent year over year in the second quarter. The carrier will end service on "poorly performing routes," in particular flights during off-peak periods in markets where JetBlue has multiple frequencies, EVP of commercial and planning Marty St. George said. It also will pull back on capacity on flights within the Western U.S. and focus more on transcontinental routes and routes out of Boston and Fort Lauderdale, Fla., where the carrier still "has a lot of room to grow," he said.
JetBlue has cut 2 percentage points of projected capacity growth for the fourth quarter. The carrier expects total 2018 capacity will have risen between 6.5 percent and 7.5 percent year over year. Service disruptions last fall during the particularly destructive hurricane season of 2017 are skewing the numbers somewhat; capacity in the third quarter is expected to be up between 7.5 percent and 9.5 percent year over year.
Both Delta and United also are reevaluating capacity plans in light of fuel cost increases.
JetBlue passenger revenue rose 5.2 percent year over year in the second quarter to $1.86 billion. Traffic increased 7.5 percent as capacity rose 6.3 percent, pushing the carrier's load factor up 1 percentage point to 86.2 percent. The average fare during the quarter was $170.08, down 0.7 percent year over year.
JetBlue reported a loss of $120 million during the quarter, compared with $207 million in net income in the second quarter of 2017. The loss included a $319 impairment charge on the carrier's Embraer E190 fleet, which it is retiring.
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