JetBlue: The Low Cost Airline Posted The Best Q3 Results

JetBlue (JBLU), the low-cost airline, reported its earnings for the third quarter on October 25. The company topped its earnings estimate and met its revenue expectations. Investors were delighted with the results, considering that Delta Airlines (DAL), only a day ago, reported results that missed both revenue and earnings estimates. Also, the results for US Airways (LCC), though satisfactory, raised some concerns within the investor body after the airlines reported a decline in yield and PRASM in their mainline business stream.

The improvement in flight schedules after the second winter storm (after Sandy) came quicker than what the market had expected. Also, oil analysts were reported saying that US oil inventories and production are high and therefore fuel prices are expected to fall in the near-term. Despite the pilot shortage problems, JBLU seems like a growth story and a lot will depend on how it manages its ex-fuel operating costs, especially maintenance costs, as the fleet is going through a heavy maintenance cycle.

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