JetBlue Airways saw second quarter profit slip year-on-year despite a sharp increase in revenue.
The American low-cost airline saw profits fall 19 per cent to $25 million in the three months to June 30th, despite a revenue increase of 22 per cent to a record $1.15 billion.
This is equal to $0.08 per diluted share.
Unit revenue at the Forest Hills, New York-based airline climbed more than 13 per cent, echoing a similar rise in its average fare to $158.
The disparity was blamed on a 26 per cent increase in expenses, driven primarily by a fuel bill that was $160 million more than the year-earlier quarter.
Maintenance expenses at JetBlue - the sixth-largest US airline by passenger traffic – also rose 29 per cent to $54 million.
JetBlue ended the second quarter with approximately $1.2 billion in unrestricted cash and short term investments.
“With manageable debt maturities and capital commitments in the near term, we believe we are well positioned to maintain strong liquidity and successfully navigate this challenging environment,” JetBlue chief financial officer, Ed Barnes.
“At the same time, our strong cash position gives us the flexibility to make smart strategic decisions and continue to seize opportunities in the competitive landscape, particularly in Boston and the Caribbean.”
To access all the latest information about the world’s major airlines via one mobile platform visit Airline.City.Mobi.