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US travel airline profits dip"US TRAVEL" Can't find what you need? Try a Google Web Search in the box below!
10/29/2004 Oct. 29--Florida hurricanes that caused hundreds of flight cancellations, skyrocketing jet fuel costs and cutthroat competition are being blamed for a 71 percent third-quarter drop in profits at Us travel JetBlue Airways, company officials said Thursday. US travel is rebounding in Florida, but revenue losses tied to the canceled flights and fuel expenses are prompting JetBlue to search for ways to boost revenues. One way: effective Nov. 1, JetBlue is discontinuing its $3 discount each way for buying airline tickets online. JetBlue canceled 464 US travel flights into and out of its busy Florida market during the four hurricanes, losing an estimated $8 million to $10 million in revenue, JetBlue CEO David Neeleman said during a conference call. The airline's net income fell to $8.4 million, or 8 cents a share, from the prior year's $29 million, or 26 cents a share. JetBlue shares closed up 41 cents at $22.85 on the Nasdaq stock exchange. Can't find what you need? Try a Google Web Search in the box below!
The New York-based US travel airline, which uses Long Beach Airport as its West Coast hub, isn't alone in its poor performance July through September -- traditionally one of the industry's busiest times of the year. UAL, United Airlines' parent company, posted a $274 million third-quarter loss and cited record fuel costs and low airfares. Unless labor costs are slashed, UAL may not emerge from bankruptcy, the company said. The parent of US Airways also reported a $232 million third-quarter net loss that more than doubled its total of a year ago. In all, the seven largest American US travel carriers reported more than $1.3 billion in combined net losses for the quarter and lost $5.1 billion for the first nine months of 2004. "Although we're not completely happy with the results, given a lot of the challenges in the third quarter ... we're doing better than a lot of folks in the industry," Neeleman said. JetBlue is paying an average $1.08 for a gallon of jet fuel, compared with 81 cents a gallon last year, Neeleman said. Neeleman said JetBlue was structured for difficult US travel times. "We feel good about our future, very good, and we're looking forward to getting through the fourth quarter and getting on to next year," Neeleman said. "Let's just hope oil prices keep coming down." Crude oil futures prices were below $51 a barrel on Thursday. Can't find what you need? Try a Google Web Search in the box below!
Airline industry analyst Ray Neidl of Calyon Securities called the quarter another "disaster" for large "legacy" carriers, which include the top seven US travel airlines except money-making Southwest Airlines. "Three years after 9/11, they have not really shown much financial improvement," Neidl told the Associated Press. "We've had two years of economic growth and traffic is coming back very strong. Yet because of all the capacity, they have no control over pricing. And fuel costs are going through the roof."..... Compare airline tickets for US travel here /cheap airfares home |