JetBlue Airways reported a net loss for the first quarter of $1 million, compared with a net income of $12 million in the first quarter of 2009.
Operating income for the quarter was $42 million, resulting in a 4.8 percent operating margin, compared to operating income of $73 million and a 9.3 percent operating margin in the first quarter of 2009. The airline’s pre-tax loss for the quarter was $2 million, compared to a pre-tax income of $20 million in the first quarter of 2009.
JetBlue reported record first quarter revenues of $870 million despite severe winter storms in the Northeast, which reduced revenue by an estimated $15 million. Revenue passenger miles for the first quarter increased 7.1 percent to 6.5 billion on a 6.1 percent increase in capacity, resulting in a first quarter load factor of 76.8 percent, an increase of 0.8 points year over year.
Yield per passenger mile in the first quarter was 12.13 cents, up 3.8 percent compared to the first quarter of 2009. Passenger revenue per available seat mile (PRASM) for the first quarter 2010 increased 4.9 percent year over year to 9.32 cents and operating revenue per available seat mile (RASM) increased 3.4 percent year-over-year to 10.32 cents.
Operating expenses for the quarter increased 15.1 percent, or $108 million, over the prior year period, including approximately $15 million in one-time expenses related to the transition to Sabre, JetBlue’s new customer service and reservations system.
JetBlue’s operating expense per available seat mile (CASM) for the first quarter increased 8.5 percent year-over-year to 9.83 cents. Excluding fuel, CASM increased 8.9 percent to 6.81 cents. These non-fuel unit costs were negatively impacted by storm related flight cancellations that occurred in February and March.
While fuel prices increased during the quarter, JetBlue continued to hedge fuel to help manage price volatility. Specifically, JetBlue hedged approximately 65 percent of its fuel consumption during the first quarter, resulting in a realized fuel price of $2.19 per gallon, a 7.5 percent increase over first quarter 2009 realized fuel price of $2.03. JetBlue recorded $2 million in gains on fuel hedges that settled during the first quarter.
For the second quarter of 2010, PRASM and RASM are expected to increase between 6 and 9 percent year over year. CASM is expected to increase between 12 and 14 percent over the year-ago period. Excluding fuel, CASM in the second quarter is expected to increase between nine and 11 percent year over year. PRASM and RASM for the full year are expected to increase between 6 and 9 percent year over year.
CASM for the full year is expected to increase between 8 and 10 percent over full year 2009. Excluding fuel, CASM in 2010 is expected to increase between three and five percent year over year. Capacity is expected to increase between 4 and 6 percent in the second quarter and to increase between six and eight percent for the full year.
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