JetBlue's Quarterly Profit Rise 50%; To Sell Some Airbus Jets
Published: July 24, 2007 1:30 PM
By Laura Mandaro
SAN FRANCISCO (Dow Jones) -- A drop in fuel costs and better sales in terms of available seating capacity lifted JetBlue Airways' profit 50% in the second quarter, financial results reported by the discount carrier showed Tuesday
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Forest Hills, N.Y.-based JetBlue (JBLU) said net income for the three months ended June 30 rose to $21 million, or 11 cents a share, from $14 million, or 8 cents, earned in the year-ago second quarter.
Sales rose 19%, reaching $730 million.
Analysts polled by Thomson Financial had forecast, on average, quarterly earnings of 12 cents to go with sales of $753 million.
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As it scales back, JetBlue said Tuesday it planned to sell three Airbus A320 jets from its fleet later this year and to defer 16 Embraer aircraft originally scheduled for delivery between 2007 to 2012, to 2013 to 2015.
"Slowing capacity growth will allow us to strengthen our balance sheet and facilitate earnings growth," said Chief Executive Dave Barger in a statement.
Average fares slipped 4.5% in the second quarter, but JetBlue's yields per mile gained 3.8%. Combined with slightly more crowded planes -- load factor rose 1.3 percentage points to 83.5% -- its passenger revenue per seat mile increased 5.4%.
In the third quarter, JetBlue anticipates operating margins increasing between 6% to 8%, down from the 10% it reported in the second quarter, as fuel costs rise to $2.18 a gallon from $2 in the second quarter. Fuel prices fell 2.8% in the second quarter.
Management also forecast capacity increasing between 10% to 12% for the third quarter and the year. In the second quarter, capacity increased 12%.
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