(Adds estimates comparison)
April 24 JetBlue Airways Corp on
Thursday reported lower quarterly profit that fell short of
estimates as higher salaries boosted operating expenses.
Net income came to $4 million, or 1 cent a share, for the
first quarter, compared with $14 million, or 5 cents a share, a
Analysts expected profit of 7 cents a share, on average,
according to Thomson Reuters I/B/E/S.
Quarterly revenue rose 3.8 percent to $1.35 billion. JetBlue
said it canceled 4,100 flights because of severe winter weather,
which reduced revenue by about $50 million and profit by about
Operating expenses rose 5.5 percent. While fuel costs fell,
expenses tied to salaries rose nearly 18 percent. JetBlue had
cautioned earlier this year that wage increases for pilots would
boost its costs this year.
Holding down costs has posed challenges for JetBlue, which
has 80 percent of its operations in the U.S. Northeast. Its
pilots this week voted to join a union, a move that could
eventually add to costs.
(Reporting by Karen Jacobs in Atlanta; Editing by Jeffrey