JetBlue posts Q1 loss but forecasts profit

Despite posting a loss for the first quarter of the year, JetBlue Airways is forecasting a profit for the second quarter as travel demand remains robust.

JetBlue is predicting per-share earnings of 35 cents to 45 cents for the current quarter, with revenue up 4.5% to 8.5% on the year and capacity rising 4.5% to 7.5%. The carrier estimates that the second quarter, which coincides with the start of the peak travel season, will be a solidly profitable quarter.

Although JetBlue lost $192 million, or 58 cents a share, in the first three months of the year, the carrier’s revenue increased 34% to $2.33 billion, slightly ahead of estimates.

Average fares rose over 9% in the first quarter from a year earlier to $214.07. However, expenses climbed more than 22% to $2.57 billion, with the fuel bill alone up 34% from a year earlier. JetBlue’s CEO and CFO emphasized the need to keep costs in check to offer low fares and maintain profitability.