Virgin America (VA) Reports In-Line Q4 EPS

Virgin America (NASDAQ: VA) reported Q4 EPS of $1.20, in-line with the analyst estimate of $1.20. Revenue for the quarter came in at $391.5 million versus the consensus estimate of $392.16 million.

2015 full year revenue per available seat mile (RASM) decreased 1.0 percent compared to 2014, to 12.05 cents.

First Quarter 2016 Outlook

Virgin America is scheduled to take delivery of two A320 aircraft during the first quarter of 2016. The Company expects capacity, as measured by available seat miles, to increase by approximately 14.0 percent to 16.0 percent for the first quarter of 2016 as compared to the first quarter of 2015. Based on current revenue trends, the Company expects PRASM to decrease between 3.0 percent and 5.0 percent versus the first quarter of 2015. The Company expects CASM excluding special items, fuel and profit sharing to increase between 2.0 percent and 3.0 percent versus the first quarter of 2015. CASM excluding special items, fuel and profit sharing is increasing in the first quarter due primarily to Virgin America's previously announced pay and benefit initiatives that were implemented in April 2015, partially offset by underlying unit cost improvement as the company resumes capacity growth. The Company continues to expect CASM excluding special items, fuel and profit sharing to decrease between 1.0 percent and 2.0 percent for the full year 2016.

Based on Virgin America's hedge portfolio and current market prices for aviation fuel products, the Company expects Virgin America's economic fuel cost per gallon inclusive of related taxes and hedge costs to average between $1.55 and $1.65 for the first quarter of 2016. This number may change depending on fluctuations in market prices for jet fuel during the quarter.

For earnings history and earnings-related data on Virgin America (VA) click here.

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