JetBlue's Q1 Results Hit By Hurricane, Maintenance Costs
New York-based airline JetBlue Airways Corp., which earlier this month announced passenger service from Worcester Regional Airport, recorded lower profits in the first quarter of 2013 compared to last year, it reported today.
The airline's net income was cut in half to $14 million, compared to $30 million during the first three months of 2012. With today's filing, JetBlue has posted profits for 12 consecutive quarters. Revenue for was $1.29 billion, up 8 percent.
CEO Dave Barger said in an announcement that Hurricane Sandy-related demand weakness during the peak President's Day travel period, as well as higher maintenance costs, were largely to blame for the lower earnings.
Maintenance costs for the quarter were up 30 percent over last year at $114 million. Fuel costs were also higher at $467 million, up 8 percent.
"While the first quarter was challenging, we remain focused on achieving sustainable, profitable growth and are optimistic about the rest of the year," Barger said.
JetBlue also announced today that it has secured a credit line of $350 million, adding to an existing $200 million line as well as $849 million in unrestricted cash and short-term investments.
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