(Rewrites first paragraph, updates with growth plan details, profit forecast)
WASHINGTON, July 24 (Reuters) - JetBlue Airways Corp (JBLU.O: Quote, Profile, Research) on Tuesday reported a higher second-quarter net profit and said it would continue to slow growth by deferring some regional jet orders and selling other aircraft.
JetBlue reported net income of $21 million, or 11 cents per share, compared with $14 million, or 8 cents, a year ago.
Wall Street analysts expected earnings of 11 cents per share, according to Reuters Estimates.
Revenue for the quarter was up 19.4 percent to $730 million while fuel expenses decreased 2.8 percent over the same period a year ago to $2 per gallon.
Passenger revenue per available seat mile was up 5.4 percent to 8.46 cents, while costs excluding fuel rose 3.3 percent. Capacity was up 12 percent while passenger traffic rose 13.7 percent.
The company said it would defer 16 Embraer (EMBR3.SA: Quote, Profile, Research) 190 regional jet aircraft originally scheduled for delivery between 2007-2012 to 2013-2015. JetBlue will also sell three Airbus (EAD.DE: Quote, Profile, Research) A320s later this year.
"Slowing capacity growth will allow us to strengthen our balance sheet and facilitate earnings growth," said Dave Barger, who took over as chief executive from David Neeleman in May.
JetBlue stretched deliveries and sold five Airbus jets in 2006.
JetBlue expects to report a third-quarter operating margin between 6 and 8 percent based on an assumed aircraft fuel cost of $2.18 per gallon, net hedges. Pre-tax margin for the quarter is expected between 1 and 3 percent.
JetBlue shares were down 22 cents, or 2 percent, at $11.08 in early trading.
WASHINGTON, July 24 (Reuters) - JetBlue Airways Corp (JBLU.O: Quote, Profile, Research) on Tuesday reported a higher second-quarter net profit and said it would continue to slow growth by deferring some regional jet orders and selling other aircraft.
JetBlue reported net income of $21 million, or 11 cents per share, compared with $14 million, or 8 cents, a year ago.
Wall Street analysts expected earnings of 11 cents per share, according to Reuters Estimates.
Revenue for the quarter was up 19.4 percent to $730 million while fuel expenses decreased 2.8 percent over the same period a year ago to $2 per gallon.
Passenger revenue per available seat mile was up 5.4 percent to 8.46 cents, while costs excluding fuel rose 3.3 percent. Capacity was up 12 percent while passenger traffic rose 13.7 percent.
The company said it would defer 16 Embraer (EMBR3.SA: Quote, Profile, Research) 190 regional jet aircraft originally scheduled for delivery between 2007-2012 to 2013-2015. JetBlue will also sell three Airbus (EAD.DE: Quote, Profile, Research) A320s later this year.
"Slowing capacity growth will allow us to strengthen our balance sheet and facilitate earnings growth," said Dave Barger, who took over as chief executive from David Neeleman in May.
JetBlue stretched deliveries and sold five Airbus jets in 2006.
JetBlue expects to report a third-quarter operating margin between 6 and 8 percent based on an assumed aircraft fuel cost of $2.18 per gallon, net hedges. Pre-tax margin for the quarter is expected between 1 and 3 percent.
JetBlue shares were down 22 cents, or 2 percent, at $11.08 in early trading.
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