JetBlue Airways posted a narrow third-quarter loss yesterday, the latest sign that short-haul carriers face softening demand.
Shares of the airline rose, however, after it said it would pare expansion plans.
JetBlue, which is in the middle of a revamping plan to trim $120 million from annual expenses by 2007, said it would slow its growth rate over the next three years by reducing its fleet of 115 Airbus A320 and Embraer E190 planes.
“We feel very strongly that the slower growth will be a benefit to our investors,” the chief executive, David Neeleman, said in a conference call with analysts and others.
The company said it might take delivery of the 30 planes it had on order for next year and sell or lease older ones. But it did not specify how many planes or what types would be cut.
JetBlue posted a net loss of $500,000, or break even per share, in contrast to a net profit of $2.7 million, or 2 cents a share, in the period a year earlier. Analysts expected the company to break even, according to Reuters estimates.
Earnings were helped by a $7 million pretax gain from the sale of five A320 aircraft this year. That was part of a plan to damp growth that also included the deferral of 12 A320’s that were to be delivered in 2007.
JetBlue said operating revenue rose 39 percent, to $628 million, as the company added flights and raised ticket prices at the expense of filling seats. The airline’s load factor, the percentage of seats filled with paying customers, fell 6.2 points, to 80.4 percent. The company is trying to improve earnings by charging higher average fares even if that means empty seats.
Shares of JetBlue rose 53 cents, to $11.67.
