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Wednesday, 21 February 2007, 23:54 GMT

JetBlue warns of widening losses

JetBlue plane tail fins High fuel prices and costly storm delays have prompted US airline JetBlue to warn of widening losses.

The no-frills carrier now expects a first quarter pre-tax margin of minus 10% to minus 8% against previous estimates of minus 4% to minus 2%.

Before the airline lowered its forecasts, analysts had predicted an earnings-per-share loss of 9 cents.

On Tuesday, the group said recent flight cancellations prompted by severe weather could it cost more than $30m.

The group added previous earnings forecasts released at the end of January had been based on assumed airline fuel costs of $1.89 a gallon, while the latest predictions were now based on estimated fuel costs of $1.94 a gallon.

The news came as the company continued its efforts to woo back customers after its recent flights debacle.

In a handful of US newspapers the company took out full page adverts declaring : "We are sorry and embarrassed. But most of all, we are deeply sorry.

On Tuesday the firm launched a customer bill of rights. Under the charter it has vowed to issue vouchers to compensate people hit by delays for anything from $25 to the full cost of their ticket for flight delays.



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Related to this story:
JetBlue vows to win back custom (20 Feb 07 |  Business )
Further flight delays for JetBlue (19 Feb 07 |  Business )
Deadly US storms sweep north-east (16 Jan 07 |  Americas )
US drops plan to open up airlines (05 Dec 06 |  Business )
Terror curbs spook budget airlines (15 Aug 06 |  Business )
US airline attacks foreign move (23 Feb 06 |  Business )
Last flight for US budget airline (05 Jan 06 |  Business )

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