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JetBlue Airways continues to battle cost spikes compounded by weaker demand in 2Q2013

Analysis

Unit cost pressure that has bogged JetBlue down for more than a year continued in 2Q2013 and was compounded by a sluggish economy that helped to decrease the airline's yields and unit revenues. While the carrier has slightly refined some of its capacity growth, cost escalation is continuing into the near future as FY2013 unit costs are now forecast to grow higher than the carrier previously anticipated.

It is not exactly clear when the balance will shift and JetBlue will achieve lower unit costs and bolster its unit revenues. But the carrier is issuing a positive outlook for 3Q2013 as its management believes JetBlue should record a favourable revenue performance for the Jul-2013 and Aug-2013 timeframe.

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