JetBlue to double share buyback as checked bag fees boost revenue

JetBlue Airways Tuesday said it was earning more than expected from checked bag fees and higher-priced fares and it plans to double the money it will return to shareholders via stock buybacks. The New York-based airline said new fares and fees for add-ons it rolled out last year, including a US$20 checked bag charge for its lowest-fare customers, generated an expected US$260m in 2016, compared with a prior forecast of US$200m. As part of the windfall, the carrier is expanding its share repurchase program to US$500m from US$250m through 2019. JetBlue also said it planned to increase flight capacity between 6.5 and 8.5% in 2017, down slightly from 2016's growth. "We are able to grow at a rate higher than the industry average and also deliver (pre-tax profit) margins that are above industry average," CEO Robin Hayes said. When asked about potentially buying CSeries jets from Bombardier Inc , Hayes said. "As an aviation buff, I'm a fan of the plane," he said, but added that JetBlue is not actively looking to order aircraft after a recent deal with Airbus Group SE .<br/>