JetBlue Airways’ 1Q net income rises to $3 million

JetBlue Airways Corporation (New York) today (April 21) reported its results for the first quarter 2011:

Operating income for the quarter was $45 million, resulting in a 4.4% operating margin, compared to operating income of $43 million and a 4.9% operating margin in the first quarter of 2010.

Pre-tax income of $6 million in the first quarter. This compares to a pre-tax loss of $1 million in the first quarter of 2010.

Net income for the first quarter was $3 million, or $0.01 per diluted share. This compares to JetBlue’s first quarter 2010 net loss of $1 million, or $0.00 per diluted share.

While fuel prices increased during the quarter, JetBlue continued to hedge to manage price volatility. Specifically, JetBlue hedged approximately 37% of its fuel consumption during the first quarter, resulting in a realized fuel price of $2.94 per gallon, a 34.5% increase over first quarter 2010 realized fuel price of $2.19. JetBlue recorded $2 million in gains on fuel hedges that settled during the first quarter.

JetBlue has hedged approximately 43% of its second quarter projected fuel requirements and 35% of its remaining 2011 projected fuel requirements using a combination of crude call options and collars, jet fuel swaps and heating oil collars. Based on the fuel curve as of April 15, JetBlue expects an average price per gallon of fuel, including the impact of hedges and fuel taxes, of $3.37 in the second quarter and $3.32 for the full year 2011.

Copyright Photo: Stephen Tornblom. Please click on the photo for information about this special color scheme.

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