- Global: +2.9% capacity, +1.9% scheduled services year-on-year;
Global seat capacity up 2.9% in Jan-2012: OAG
You may also be interested in the following articles...
JetBlue Airways’ 3Q2014 results dampened by excess capacity in the Caribbean and Latin America
Competitive pressure in JetBlue’s Latin American and Caribbean markets has led to a revision of the airline’s ROIC targets for 2014, which will result in the second consecutive year that the company has missed its stated goals in that metric.
The airline is taking the long view with respect to the industry capacity additions in its international markets that have historically been a point of strength in JetBlue’s network, and believes Latin American and the Caribbean remain key to its network diversification strategy.
On a broader scale, JetBlue faces the same challenges going forward that it has encountered for the better part of a year – making investments that seem to take longer to generate returns than investors would prefer. Even as the airline prepares for an executive leadership change, investor impatience remains strong.
Southwest Airlines draws questions about raising return targets after posting strong 3Q2014 results
Robust US domestic demand helped to drive a strong 3Q2014 financial performance at Southwest Airlines as nearly 99% of the airline’s total capacity is deployed in the domestic market. Southwest delivered solid results across the board, in both top-line revenue growth and cost performance and in other important metrics including passenger unit revenue growth and unit cost.
The airline recorded a pre-tax 19% return on invested capital (ROIC) for the 12 months ending 30-Sep-2014, which is leading to questions about the possibility of raising its targets in that metric as Southwest seems poised to reach its stated goal of 15% pre-tax ROIC for CY2014.
Southwest’s limited international exposure could continue to benefit the airline in the short term as large US network airlines American, Delta and United are refining their capacity in certain global regions in an attempt to restore a favourable supply-demand balance.