Friday, 22 April 2011

JetBlue swings to profit despite high fuel costs

JetBlue Airways Corp met analyst expectations in a volatile cost environment, swinging to a quarterly profit despite sharply higher fuel prices.
Net income for the first quarter was $3 million, or a penny per diluted share. This compares to a net loss of $1 million, or nil cents a share, a year ago.
Analysts expected a gain of a penny per share, according to Thomson Reuters I/B/E/S. Operating revenue of $1 billion was also in line with Wall Street expectations.
JetBlue paid 34 per cent more for fuel over the year-ago period, but it recorded $2 million in hedging gains.
For the second quarter, unit costs, including fuel, are expected to increase between 18 and 20 per cent.