JetBlue Posts Profit, Axes Agency Commissions

JetBlue Airways, which went public earlier this month, today reported a first-quarter net income of $13 million and an impressive 17.5 percent operating margin. Passenger revenues jumped 108 percent.

Moreover, as major U.S. carriers face the challenge of lower average ticket prices, JetBlue said its average ticket price rose nearly 14 percent, to just over $109. However, passenger yield and unit revenue each were down about 4 percent.

The carrier also reported its highest-ever load factor, 80.8 percent, which CEO David Neeleman said, "is quite an accomplishment given that our capacity increased 117 percent over the first quarter of 2001 and 18 percent over the fourth quarter of 2001."

The carrier expects its second-quarter margin to be lower due to a boost in first-quarter numbers from the Easter and Passover holidays, and said it ended the quarter with $92.5 million in cash and cash equivalents.

The carrier's stock price, which began trading two weeks ago at $27 and quickly rose to $45, still was hovering near $45 at press time.

Meanwhile, citing a decline in travel agent bookings as a percentage of overall bookings in the past month, JetBlue yesterday fell in line with major carriers in eliminating base travel agent commissions.