JetBlue Airways on Thursday reported a pre-tax loss for the fourth quarter, which includes a non-cash charge, and forecast reduced capacity in early 2009.
The airline said it took a USD$53 million charge in the period related to the valuation of its auction rate securities and had not completed evaluating tax deductibility, preventing it from finalizing net results until mid-February.
JetBlue's pre-tax loss of USD$49 million compares with a pre-tax loss of USD$3 million for the year-ago period.
"Against the backdrop of record fuel prices and unprecedented economic challenges, we effectively managed our capacity and strengthened our network," JetBlue CEO Dave Barger said.
JetBlue hedged about 24 percent of its fuel consumption, resulting in a 14 percent increase in fuel costs over the fourth quarter of 2007.
Capacity is expected to decrease between 5 percent and 7 percent in the first quarter of 2009 and stage length is expected to decrease roughly 6 percent over the same period last year.
Operating revenue for the fourth quarter was USD$811 million, up 9 percent. JetBlue ended the quarter with USD$561 million in cash and cash equivalents.
