JetBlue reveals quarterly loss after Spirit merger

New York-based JetBlue, which flies to Heathrow and Gatwick from JFK and Boston, sealed a deal to become the fifth major carrier in the US last week after its $7.6 billion merger with Fort Lauderdale-based Spirit.

“I’m very pleased we found a path forward with Spirit, and we can’t wait to welcome their incredible 10,000 team members to JetBlue as we create a true, national low-fare challenger to the dominant ‘Big Four’ airlines,” said Robin Hayes, JetBlue’s chief executive.

“Together we will expand our uniquely disruptive combination of award-winning service and competitive low fares to more customers across the country as we combine the best of both airlines.”

JetBlue saw record revenue during April, May and June of $2.3 billion, up 66%, however it recorded a loss of $188 million, compared with a $64 million profit year on year. The blame for this is largely due to JetBlue’s fuel bill, which jumped from $336 million to $910 million.

Hayes said: “We reported a record-breaking revenue result for the second quarter, and we’re on pace to top it again here in the third quarter and drive our first quarterly profit since the start of the pandemic.

“While high fuel prices and our short-term operational investments are weighing on our margins this summer, we’re making steady underlying progress on our long-term initiatives to structurally improve our profitability and enhance our long-term earnings power.”

JetBlue’s merger with Spirit – which will go ahead in 2024 if US regulators approve – will see the combined airline offer more than 1,700 daily flights to 125 destinations in 30 countries.

The enlarged airline will have a fleet of 458 and an order book of more than 300 Airbus aircraft. Annual savings of $600-700 million are expected due mainly to the expanded network.