Boston, MA 08/13/2014 (wallstreetpr) – JetBlue Airways Corporation (NASDAQ:JBLU) continues to climb to seven-year highs in the market with traders remaining optimistic there is no turning back for the airline. The airline continues to register growth in the ever competitive airspace industry despite its revenue figure rising at a slower rate compared to other big competitors such as Delta Air Lines, Inc.(NYSE:DAL), according to an article in Associated Press.
Revenue per Seat Increases
Growth metrics can clearly be seen by the airline announcing that its July traffic rose by 4.3% compared to the same period last year with the airline flowing passengers over 3.67 billion miles. Its capacity has already been bolstered by 3.5% with its average flight from July coming in at 88.3% full, up from 87.6% a year earlier. Increase in passengers flown in the month saw the airline register an increase in revenue per seat.
Other airlines also had an impressive run in the market with Southwest Airlines Co (NYSE:LUV) reporting a 4% increase in revenue for every seat flown with Delta Airlines also reporting a 3% increase of the same. The airlines shares have also been on a rally in the stock market on speculation that the current CEO, Dave Barger, is set to be replaced by president, Robin Hayes. The contract of the current CEO is set to expire on February next year.
Possible Revenue Streams
Joseph DeNardi, an analyst at Stifel, has said that investors have increasingly been pushing the airline to impose a fee on passengers first checked bag’s as well as add more seat to planes. The move is expected to further boost the airline’s revenue margins. It is still not clear as to whether the new CEO will play along with the suggestions.
Imperial catalyst analyst, Bob McAdoo, expects the airline to face stiff pressure on the need to make changes including the dropping and fixing of money loosing routes as well as adding more seats to its Airbus jets. The airline currently operates 850 flights a day in the U.S, Latin America and the Caribbean.
