JetBlue first-quarter profit tops estimates NEW YORK (Reuters) =97 Low-cost airline JetBlue Airways Corp. Thursday said= =20 first-quarter profit jumped 34%, and it placed an extensive order for new=20 Airbus aircraft as most of its far-bigger rivals feverishly slash costs to= =20 avoid bankruptcy. Three-year-old JetBlue reported a $17.6 million quarterly profit, a rarity= =20 in an industry whose stalwarts have already posted $2 billion in losses for= =20 the first quarter. The New York-based airline said it ordered 65 A320=20 aircraft from European planemaker Airbus, with an option for 50 more=20 aircraft. The deal, the biggest commercial aircraft order this year, would= =20 be valued according to catalogue prices at $3.71 billion to $3.97 billion,= =20 excluding the options. JetBlue's move to buy more planes will boost its=20 already-aggressive growth plan, Lehman Brothers analyst Gary Chase said.=20 The order gives JetBlue the ability to triple the size of its Airbus-only=20 fleet within 10 years. "We believe today's release is positive on all=20 fronts," Chase said. "We have been worried about cost execution at JetBlue,= =20 but the last two quarters clearly demonstrate that JetBlue is delivering." SWIMMING AGAINST THE CURRENT U.S. airlines are struggling to offset a long-standing revenue slump,=20 caused by the shrunken economy and less corporate spending, by cutting=20 costs across the board. But JetBlue, known for its live inflight television= =20 and leather seats, reported a first-quarter profit of 25 cents per share,=20 topping Wall Street estimates. A year earlier it reported a profit of $13=20 million, or 23 cents per share. Analysts on average had expected JetBlue,=20 which has shown a profit for nine straight quarters, to earn 22 cents per=20 share, according to Thomson First Call. JetBlue's growing customer base is= =20 now a thorn in the side of the industry leaders, who are aiming fare sales= =20 squarely at customers who fly JetBlue's routes. "The fare environment in=20 the first quarter of this year was much more difficult than it was last=20 year," JetBlue Chief Executive David Neeleman said in a conference call.=20 But JetBlue's revenue still jumped 63% to $217.1 million.AMR's American=20 Airlines, the No. 1 player in the industry, showed a billion-dollar=20 quarterly loss this week, while Delta Air Lines, Northwest Airlines and=20 Continental Airlines combined for another $1 billion in losses.Southwest=20 Airlines, the model for some aspects of JetBlue's business, reported a $24= =20 million profit, the only other major carrier to buck the loss-making trend. PAYING LESS FOR MORE Hundreds of airplanes now sit in the Western U.S. desert, because slow=20 demand has rendered them useless. But JetBlue, which uses only A320s to=20 save on maintenance costs, has repeatedly said it is "plane-constrained."=20 The industry-wide slowdown has let airlines drive hard bargains for new=20 planes, and Neeleman said JetBlue's strategy was to take advantage of the=20 downturn in pricing. Europe's EasyJet signed a deal for 120 Airbus A319=20 jets late last year, and Airbus was said to have offered a 40% discount.=20 Neeleman would not reveal terms of the new Airbus agreement but said=20 current orders and options could build JetBlue's fleet of A320s into the=20 largest in the world. "You can rest assured that pricing would be=20 commensurate with that position," Neeleman said. "We obviously deserve to=20 have a good price, and Airbus was cooperative." When asked if JetBlue was=20 likely to exercise its options for the 50 extra planes, Chief Financial=20 Officer John Owen said, "In the three-year history of this company, we=20 haven't had an option yet that we haven't exercised." International Aero=20 Engines AG will build engines to power the planes. United Technologies unit= =20 Pratt & Whitney and Britain's Rolls-Royce, both major IAE shareholders,=20 said they could each realize $500 million from the deal, which could be=20 worth up to $1.6 billion for IAE. *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week: http://www.pscutt.com TnT Webdirectory: http://search.co.tt *********************************************************