Jet Blue makes money
JetBlue Airways should be profitable for the rest of the year, its chief executive said in a recent interview.
“At $60 (a barrel) oil, or $80 oil, we think we can continue to make a profit. Our competitors won’t,” CEO David Neeleman told Reuters.
JetBlue is falling short of its target operating margin in the “mid-teens” on a percentage basis, he said. But Mr Neeleman said the airline can eventually boost its margin because oil prices will either decline or rise so much that rivals such as Delta could be driven out of business.
“Either way, we’ll get there because our model works under these environments, and it’s not working for some of our competitors,” he said.
Mr Needlemen, who founded the airline, said he needs to add $10 to the price of a one-way ticket to offset each $20 increase in the price of a barrel of oil.
JetBLue has managed to lock itself into agreements that provide fuel at a set price under the recent rising price structure.
The airline plans an aggressive expansion, adding five more Brazilian-made, Airbus A321’s by November. New destination cities will be announced in August.
JetBlue is ranked 14th among US airlines.
Report by David Wilkening
David
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