JetBlue Airways reported a 19 percent drop in second-quarter profit despite rising revenue as fuel prices battered the low-cost carrier and its rivals in the United States. The airline said on Tuesday its fuel costs jumped 57.6 percent from a year ago. This trend has dominated US airline earnings. JetBlue shares dipped 3.41 percent to $5.10 on Nasdaq and hit their lowest prices since March 2010.
"The sharp increase in the price of fuel has clearly had a negative impact on the entire industry," JetBlue Chief Executive Dave Barger said on a conference call with analysts and reporters. "While we expect more challenges ahead, we remain confident in the strength of our business model and in our ability to navigate through this environment," he said.
Other top airlines like United Continental Holdings and US Airways Group in the last week have reported narrowed profits in the second quarter due to rising fuel burdens. The airline industry is struggling to recover from a years-long downturn that has been exacerbated in recent years by economic woes that drained travel demand. Some experts fear that weaker demand could hamper airline bookings in the fall. JetBlue said its second-quarter earnings fell to $25 million, or 8 cents per share, from $31 million, or 10 cents per share, a year earlier.
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