JetBlue Airways announces Q3 operational results, reports loss

JetBlue Airways recently announced its Q3 operational results sounding rather pessimistic. The airline stated that it has suffered losses attributing several factors.

The airline reported Q3 net income of US$35 million, down 40.7% y-o-y from US$59 million. JetBlue Airways in a statement outlined higher fuel expenses of US$162 million y-o-y among the major causes for the negative outcome.

Dave Barger, President and CEO of JetBlue Airways, while announcing the Q3 operational results said that severe weather and challenging economic conditions were the chief factors resulting in huge losses.

According to the operational results, Q3 revenue climbed 16% to US$1.2 billion, on a 22.1% rise in expenses to US$1.09 billion, including a 55.3% rise in fuel-related charges. The operating income was down 23.1% to US$108 million for Q3.

The impact of Hurricane Irene was too huge and worrisome.  The hurricane led to the cancellation of 1,400 flights over 3 days resulting in US$8 million negative impact on operating income.

JetBlue Airways reported rise in passenger traffic by 8.2% to 8.33 billion RPMs on an 8.3% increase in capacity to 9.86 billion ASMs, resulting in a load factor of 84.5%, down 0.1 point.