Record revenue helped JetBlue Airways minimize its third-quarter losses as the New York JFK-based LCC reported a $4 million deficit that represented a reversal from the $23 million profit posted in the year-ago quarter but a sound result compared to its domestic competitors.
The company maintained positive EBIT, and while it "see[s] continued strength in our bookings in the near term," it "remains committed to a no-growth view" in 2009, according to CEO Dave Barger. JetBlue opened its new terminal at JFK Wednesday (ATWOnline, Oct. 23).
Operating revenue rose 17.9% year-over-year to $902 million but could not keep pace with a 28.3% increase in expenses to $880 million, driven by a 58.6% jump in fuel costs to $394 million. Operating profit sank 72.8% to $22 million from $79 million in the third quarter of 2007.
Barger said the carrier is "focused on the turmoil in the financial markets and the economic challenges that lie ahead," while CFO Ed Barnes said that "market conditions created a unique opportunity for us to retire debt and lower future interest expense." He added, "With our focus on revenue enhancements, cost control, capacity rationalization and liquidity preservation, we believe that we are well-positioned to withstand today’s uncertainty."
Barger said JetBlue entered into an agreement to sell two additional A320s in the current quarter. It already has sold nine (and delivered six) this year. Net 2008 fleet additions will be three A320s and four E-190s.
Third-quarter traffic was level at 6.85 billion RPMs while capacity fell 2.4% to 8.15 billion ASMs, lifting load factor 2 points to 84%. Yield climbed 13.2% to 11.78 cents, operating unit revenue was up 20.8% to 11.07 cents and operating CASM rose 31.5% to 10.8 cents, or 13.8% to 5.96 cents excluding fuel.
Nine-month loss of $19 million compared to a $22 million profit in the year-ago period. Cumulative operating profit fell 56.7% to $60 million.
by Brian Straus http://www.atwonline.com/news/story.html?storyID=14473
