Boston, MA 04/15/2014 (wallstreetpr) – JetBlue Airways Corporation (NASDAQ:JBLU) continues to strengthen its competitive position by launching regular services in new routes. Recently, JetBlue announced that the airline will launch a new route to connect from Fort Lauderdale-Hollywood International Airport (FLL) to Pittsburgh International Airport (PIT) on October, 2014. As of now, the airline operates in 26 nonstop routes out of FLL.
New route
The airline plans to launch five new routes in 2014/15 due to profitable growth opportunities between FLL, Boston Logan International Airport (BOS) and Ronald Reagan National Airport (DCA). The new route (FLL-PIT) will link the existing route from PIT to BOS and save time and money for passengers. The new routes will provide access to South Florida as well as Caribbean and Latin America. So, it benefits passengers by providing more travel options.
Operational gain
The growing customer base in BOS, DCA and FLL route will give strong demand for airlines to connect Florida, Boston, Caribbean and Latin America. JetBlue Airways Corporation (NASDAQ:JBLU) expects positive growth in revenue due to a strong network across those routes. In addition, the airline continues to strengthen its network in northeast to Florida and business and leisure network in Boston.
Strong demands across the network are unable to provide enough traffic due to severe winter weather conditions that may affect revenue in 1Q2014. However, the airline maintains the passenger traffic in March 2014, that increased by 0.9% with load factor of 84.8% and low passenger revenue per available seat mile (PRASM) compared same period last year.
Financial gain
JetBlue Airways Corporation (NASDAQ:JBLU) expects margin growth from maturing network. The Company reduces its debt with increasing fleet. Since 2008, JetBlue reduced net debt by ~$600 million ($266 million in FY2013) due to ~35% increase in fleet. So, it reduces the financial risk with net debt to adjusted EBITDA to 3.5x and debt to capital improved to 59% in 2013. During FY2013, JetBlue generated $121 million free cash flow and continues to improve financial position to generate free cash flow in the future.
