Denver, CO – (Stocksntrade) – 05/01/2014 – JetBlue Airways Corporation (NASDAQ:JBLU) reported first quarter 2014 operating revenues of $1.3 billion, and operating income of $41 million. This doesn’t compare all that well to $59 million in operating income for the first quarter of 2013. Pre-tax income for the first quarter this year was $6 million, as compared to $23 million for the same quarter last year.
JetBlue managed to generate $4 million in net income for the first quarter, or $0.01 per diluted share. This is nowhere near the $14 million, or $0.05 per diluted share, which the company reported for the first quarter last year.
The company piled the blame on the severe winter weather in their main Northeast markets in New York and Boston, which forced them to cancel 4,100 flights in the quarter, leading to a reduction of $35 million in the operating income.
Statement by JetBlue Airways Corporation (NASDAQ:JBLU) CEO Dave Barger
JetBlue Airways Corporation (NASDAQ:JBLU) CEO Dave Barger said that, “Today, we reported our sixteenth consecutive quarter of profitability. While first quarter results were negatively impacted by severe winter weather in the Northeast, we believe our maturing network in high-value geography together with our differentiated product and service will help JetBlue expand margins and improve shareholder returns in 2014.”
Unionization a Drag on JetBlue Airways Corporation (NASDAQ:JBLU)
Winter weather notwithstanding, JetBlue Airways Corporation (NASDAQ:JBLU) also has to contend with some growing up pains which the company has been shielded from until now. When JetBlue pilots decided to join the Air Line Pilots Association, it put an end to JetBlue’s status as the only non-unionized company among the major American carriers.
Needless to say, it won’t be as easy now for Jetblue management to keep the costs low, and that’s going to take away some of the exuberance from the stock. The flipside of it is that JetBlue shares are now attractively priced, and investors in for the long run will find value in the stock going forward.