JetBlue Reports a Loss Despite Higher Revenues

JetBlue Airways Corp. said Tuesday it posted a third-quarter loss despite higher revenue, as increased costs pushed the airline into the red.

The New York-based carrier reported a third-quarter loss of $500,000, or less than 1 cent a share, for the period ended Sept. 30. That compares with net income of $2.7 million, or 2 cents a share, in the prior third quarter.

Revenue rose about 39 percent in the latest quarter to $628 million from $453 million.

However, operating expenses of $587 million were up 34 percent from the third quarter of 2005.

The revenue growth came mainly from an increase in capacity. David Neeleman, JetBlue's chairman and chief executive, said that "the revenue environment remained challenging" as the airline continued rapid expansion. At the same time, passenger demand slowed with new airport security strictures introduced in August.

JetBlue, which has contracts with Embraer-Empresa Brasileira de Aeronautica SA and Airbus, had originally planned to take delivery on 30 aircraft next year, which would have expanded capacity by 18 percent to 20 percent. Neeleman said JetBlue no longer plans to take delivery on all 30 aircraft and that the plans for slower growth will affect deliveries from both of its suppliers in coming years.

JetBlue now plans to increase its network capacity between 14 percent and 17 percent in 2007.

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