JetBlue, launching service in November from Bradley International Airport, reported a surprise first-quarter loss on Wednesday as higher costs offset better revenue. This ends a yearlong streak of profitable results, The Associated Press reports.
The company, based in Forest Hills, N.Y., said Wednesday it lost $1 million, or a penny per share, for the three months ended March 31. The company’s costs for jet fuel increased and it had a one-time $15 million expense for switching to a new reservation system.
Revenue rose 10 percent to $870 million. JetBlue Airways Corp. said bad winter storms in the Northeast reduced revenue by $15 million.
Thomson Reuters says analysts were expecting a profit of 3 cents per share on revenue of $880.5 million.
In the 2009 first quarter, JetBlue earned $12 million, or 5 cents per share. Prior to that, the last time it made money in the first three months of the year was 2005. The period is often the weakest of the year for airlines.
“While we are disappointed to report a loss for the quarter, we are confident that we are taking the right steps to return to sustained profitability,” CEO Dave Barger said in a statement.
Discount airline AirTran Holdings Inc. now has the longest profit streak among U.S. airlines, with five straight profitable quarters.
JetBlue says it is encouraged by recent revenue trends as the economy improves and it starts to see the benefits of its new reservation system.
