John F. Kennedy Airport in New York

 

JetBlue, a New York based airline, stated that winter storms decreased its revenue by $15 million and its shift to a new customer service and reservation system boosted expenses by a similar amount.

 

Increased fuel costs also wore the carrier’s bottom line, an unstable situation that affected all major airlines in the period from January to March.

 

JetBlue reported a net loss of $1 million, compared with a net income of $12 million, for the year-ago period. Elevated fares helped push revenue up to $870 million, about $10 million less of analysts’ expectations. Traffic was high and planes flew more than three-quarters full on average.

 

The second-quarter forecast requires improvement in unit revenue, an increase in capacity and increased costs, excluding fuel.

Chief Executive Dave Barger of JetBlue stated that the company was disappointed in its performance but was motivated by recent revenue trends strengthened by an improving economy.

 

The airline also expects good things from its new customer service system, an increasing presence in Boston, and its position as the largest domestic carrier at New York’s JFK International Airport.

 

“We are confident that we are taking the right steps to return to sustained profitability,” Barger said.

 

Source: Reuters

 

Leave a Reply

Your email address will not be published.

About The Author

CheapOair Staff