JetBlue reported third quarter 2018 revenue per available seat mile (RASM) increased 1.7%, year over year, including 0.4 points of negative impact from severe weather during September.
Operating expenses per available seat mile, excluding fuel (CASM ex-fuel) growth of 3.2%, at the lower end of the updated guidance range of 3.0% to 5.0%. CASM ex-fuel for the third quarter includes a 2.0 point headwind related to recurrent costs of the pilot contract, effective as of August 1st.
JetBlue reported GAAP pre-tax income of US$68 million. Excluding the one-time costs, adjusted pre-tax income of US$180 million, a decrease of 39.5% from the third quarter of 2017.
Pre-tax margin of 3.4%, inclusive of the one-time costs. Excluding these one-time costs, adjusted pre-tax margin of 9.0%, a 7.4 point decrease year over year.
JetBlue ended the quarter with approximately US$937 million in unrestricted cash and short term investments, or about 12.6% of trailing twelve month revenue. In addition, JetBlue maintains approximately US$625 million in undrawn lines of credit.
The realized fuel price in the quarter was US$2.32 per gallon, a 36.6% increase versus third quarter 2017 realized fuel price of US$1.69.
JetBlue entered into forward fuel derivative contracts to hedge approximately 7.7% of its fuel consumption during the fourth quarter of 2018. Based on the fuel curve as of October 15th, JetBlue expects an average price per gallon of fuel of US$2.48 in the fourth quarter of 2018.
