JetBlue Airways eyes benefit from lowering fuel costs

JetBlue Airways flights have not been able to profit much in the first quarter of this because of the ever increasing fuel costs. However, with the dropping fuel costs now the airline is looking to reap good profits. 

According to media reports, JetBlue Airways ended the first quarter of 2012 with approximately $1.2 billion in unrestricted cash and short term investments.

Mark Powers, JetBlue Airways’ CFO, said that with the strong cash position that the airline is currently having, there are plans to purchase several aircrafts this year with cash. “We believe this will be accretive to return on invested capital – an important metric for JetBlue Airways,” Powers said.

The high jet fuel prices have always been one of the biggest costs for airline companies. According to travel experts, the commodities market has provided a timely windfall for the industry as they are just about to enter their peak summer travel season. Since February, fuel costs have dropped by $0.40 per gallon, amounting to a $5.5 billion savings for the aviation industry. Leading U.S. carriers have predicted a record number of passengers taking international flights this summer.