Posted by Admin - Apr 28, 2010
JetBlue has made a name for themselves lately by offering low cost tickets on flights all across the country–indeed they have cornered the market on low priced flights. However, they had some bad news today–their first quarter revenue simply wasn’t enough to make up for their first quarter losses.
“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,” said Dave Barger, JetBlue’s chief executive. The first-quarter report was reminiscent of the high-cost issues the Forest Hills, N.Y.-based firm warned about at the beginning of the year. Much of the shortfall came from higher fuel costs, and a $15 million one-time charge to switch to a new reservation system.
They certainly seem to be feeling upbeat about such large losses–and I will say that I see why. The losses are quite temporary and the one-time charge of $15 million makes the earnings look a lot worse than it really is.