Jet Blue warns of possible Q3 Loss

Ty Webb

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JetBlue set for first loss





JetBlue's string of 18 consecutive quarterly profits since its inception "is in jeopardy" as concern about Hurricane Rita boosts oil prices, CEO David Neeleman said yesterday.

"Probably Rita is going to put the final nail in this quarter," Neeleman said at an airports conference in Toronto.

The rising price of jet fuel contributed to combined first- half losses of $4.8 billion at the five biggest U.S. airlines, while low-fare carriers such as Southwest and smaller rival JetBlue remained profitable.

The price of jet fuel, usually the second-largest expense for airlines after labor, has risen 24% this quarter alone.

New York-based JetBlue is expected to earn 1 cent a share this quarter. Its shares, which dipped to $17.90 earlier in the day, closed down 27 cents at $18.40 - well below the 52-week high of $26.32.

In this year's second quarter, JetBlue's profit fell 43% to $12.2 million, or 11 cents a share, as spending for jet fuel almost doubled. It was JetBlue's sixth straight decline in quarterly profit.



Bloomberg News​



 

FlyBoeingJets

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Just last month Neeleman said he could make money at $80/barrel. Was he stretching the truth or just drinking his own koolaid. Pass me my drink....I mean the one without the "secret ingredient".
 

mnboyev

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Is that a stoplight or a traffic signal ? I'm just curious...
 

banger

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FlyBoeingJets said:
Just last month Neeleman said he could make money at $80/barrel. Was he stretching the truth or just drinking his own koolaid. Pass me my drink....I mean the one without the "secret ingredient".
The price of oil wasn't the reason as much as the lack of refining capability. Oil could be at $80 barrel and Avgas can be below $2.00. After Katrina the price of Avgas rose to $2.40 and that might turn a small profit into a loss for the quarter.
 

flaps30

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its the spread between refined product and spot oil

:confused: The discount airline's CEO had told Reuters in July that he expected the airline to be profitable for the rest of the year, adding that it could continue to make a profit even with oil at $80 a barrel. While crude oil prices are now trading at around $66 a barrel, refining woes sparked by Hurricane Katrina sent jet fuel prices soaring to the equivalent of up to $100 a barrel.
 
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