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Unprecedented increase in fuel costs pushes JetBlue to a net loss in 2Q08


JetBlue reported a net loss of USD7.0 million in the three months ended 30-Jun-08 (2Q08), slipping from the USD21 million net profit reported in the previous corresponding period. The loss was primarily driven by the unprecedented spike in fuel costs, which cost JetBlue an additional USD144 million in 2Q08 compared to 2Q07 levels. [1326 words]

Unlock the following content in this report:


  • Slowing of passenger growth in 2Q08; gap between load factor and break-even load factor widens
  • Yield, unit revenue and unit cost increase in 2Q08
  • Burden of fuel costs increasing; fuel representing 44% of total operating costs
  • 1H08: Net losses worsen as revenue gains fail to keep pace with cost increases
  • To focus on cash preservation and liquidity; obtains new USD110 million line of credit
  • Suspends near-term capacity growth plans; defers ten E-190 deliveries

Graphs and data:

  • JetBlue financial highlights for three months ended 30-Jun-08
  • JetBlue quarterly operating margin: 1Q06 to 2Q08
  • JetBlue passenger number growth: Jan-03 to Jun-08
  • Aircraft fuel as a percentage of total operating expenses: 4Q03 vs 2Q08
  • JetBlue Airways fuel cost per gallon (USD): Feb-00 to Mar-08
  • JetBlue financial highlights for six months ended 30-Jun-08
  • 3Q08 and FY2008 outlook
  • JetBlue Airways capacity growth (ASK) growth: Jan-04 to May-08
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