JetBlue's stock drops after May data shows capacity growth outpacing traffic
Shares of JetBlue Airways Corp. fell 1% in premarket trade Friday, after the air carrier said capacity growth outpaced traffic in May, while cutting its capacity growth outlook for the year. Traffic for the month increased 10.7% from a year ago, but capacity grew 12.1%, pushing May load factor down to 84.6% from 85.7%. Revenue per available seat mile (RASM) declined 7%. For the second quarter, RASM is now expected to fall between 7.5% to 8.5%, which is toward the lower end of previous expectations. For 2016, JetBlue reduced its outlook for capacity growth to between 8.0% and 9.5% from 8.5% to 10.5%. The stock has tumbled 19% year to date through Thursday, while the NYSE Arca Airline index has gained 2.2% and the S&P 500 has advanced 3.5%.
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