JetBlue partnering with Israel’s El Al; sees more revenue and flying across system

JetBlue posts $30M 2Q profit with bright outlook

NEW YORK — JetBlue Airways on Thursday joined most of the nation’s largest airlines in posting a profit, as more passengers returned to the sky in the second quarter.

JetBlue also issued an optimistic outlook for the rest of the year, forecasting higher revenue and more flying to the destinations it serves. It’s also teaming up with other airlines to bring more passengers to its network. The company said it will partner with El Al Israel Airlines, which will allow travel on both airlines on a single ticket. The company has similar agreements with Irish carrier Aer Lingus, German airline Lufthansa and American Airlines.

JetBlue, based in Forest Hills, N.Y., also said it will give priority boarding to customers who pay extra for its “even more legroom” seats starting Sept. 1. Priority boarding, offered by several other major airlines, is aimed at courting business travelers. Most other airlines charge a small fee for the service. JetBlue passengers who sit in the roomier seats pay between $10 and $40 extra depending on the length of their flight.

The airline has been trying to get more business travelers on board by offering more flights at New York’s JFK airport, Boston Logan and Ronald Reagan Washington National Airport.

In the second-quarter, JetBlue earned $30 million, or 10 cents per share. That compares to $20 million, or 7 cents per share, in the same quarter last year.

Revenue increased to $939 million from $807 million a year ago.

JetBlue ended the quarter with about $1 billion in unrestricted cash and short-term investments. That’s about the same as at the end of the first three months of the year.

The airline said demand is improving, as passenger traffic rose almost 9 percent in the second quarter.

JetBlue expects passenger revenue per available seat mile, an important industry standard, to rise by 12 to 15 percent in the third quarter compared to a year ago and to increase by nine to 12 percent for the whole year. The airline plans to expand capacity by six to eight percent in the third quarter and for the full year. Airlines increase capacity — the number of seats in the air — by flying more planes and larger aircraft.

JetBlue’s expenses rose 15.5 percent in the quarter, much of that was due to higher fuel costs, which were 12.3 percent above the same quarter of 2009. The airline has been hedging fuel to manage price volatility. It lost $2 million on hedging bets that went the wrong way in the second quarter. JetBlue has hedged almost half of its projected fuel needs for the rest of the year.

Shares rose 42 cents, or 7.1 percent, to $6.30 in afternoon trading.