U.S. carrier JetBlue Airways Corp reported a 16.6 percent rise in second-quarter profit, helped partly by improving average fares.
Net income rose to $211 million, or 64 cents per share, in the quarter, from $181 million, or 53 cents per share, a year earlier. Total operating revenue rose 12.1 percent to $1.84 billion.
Analysts, on average, expected quarterly earnings of 57 cents per share on revenue of $1.83 billion, according to Thomson Reuters I/B/E/S.
Shares rose 3 percent to $23.45 in premarket trading.
Unit revenue, which compares sales to flight capacity, climbed 7 percent in the quarter, rising for the first time in eight quarters.
“Our second quarter unit revenue exceeded our initial guidance as a result of our targeted revenue initiatives and a solid demand environment,” JetBlue President and Chief Executive Officer Robin Hayes said in a statement.
Unit revenue has lagged in much of the sector for the last several quarters as increased competition and cheaper fares have weighed on the industry.
In the latest period, JetBlue said that excluding fuel, its operating expenses per available seat mile rose 5.1 percent to 8.16 cents. The New York-based carrier forecast an increase in that metric of between 1.5 percent and 3.5 percent for the third quarter.
JetBlue expects third-quarter capacity, or how many seats an airline flies and how far it flies them, to increase between 6.5 percent and 7.5 percent year over year.
