JetBlue Airways regroups after hurricane disruption; plans lower capacity growth in 2018

JetBlue Airways will spend the rest of 2017 rejigging its network in order to offset the effects of Hurricane Maria, which struck Puerto Rico, home to its focus city of San Juan, in 3Q2017. The Caribbean, and Puerto Rico in particular, represent a large [proportion of jetBlue's international ASMs, and jetBlue plans to redeploy capacity from Puerto Rico to elsewhere in its network until some level of normality settles on the region.

JetBlue is in the process of readjusting its ASM deployment for the remainder of 2017 and early 2018, and the airline is warning that fallout from the storms will pressure its unit revenue in 4Q2017. Its unit revenue forecast for that period ranges from a 3% decline to a flat performance.

jetBlue expects its capacity growth to be lower year-on-year in 2018, but comparisons are murky, given the effects from weather events that plagued the airline's network in 3Q2017. However, the airline is assuring that its capacity growth next year should fall on the lower end of its mid to high-single digit target range.