JetBlue Lands on Red

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Is JetBlue (Nasdaq: JBLU) now just another airline? The company posted a loss in the first quarter. It's the second consecutive quarter that the discount carrier has closed out in the red after an industry-envying streak of profitability.

JetBlue is looking to bounce back into the black in the current quarter, but it still expects to close out the year with a loss. Higher crude-oil prices and other rising costs have the company exploring expense-cutting initiatives. This will include deferring some of its Airbus A320 jet deliveries -- its Embraer (NYSE: ERJ) E190 orders will remain on track -- and selling at least two of the A320s in its existing fleet.

For the quarter, JetBlue lost $0.18 a share. That reversed a profit of $0.04 per share a year earlier. Jet fuel was the major culprit here, climbing from $1.31 a gallon to $1.86 a gallon over the past year. The top line fared considerably better, with operating revenues soaring 31.4% higher. This came on a 27.2% uptick in capacity. In other words, the company was able to milk more out of its fleet in revenue.

JetBlue has to be careful here. Even though the carrier hasn't been able to charge a premium for its flights in a cutthroat, cut-rate sector, JetBlue's bells and whistles are what set it apart from the competition. There may come a time when the company is able to justify higher fares thanks to its generous in-flight offerings. Although it may be tempted to shave off some of its overhead, it would be a shame to see the company scale back on its free signature snacks, DirecTV (NYSE: DTV) video channels on every seat, and digital audio programming courtesy of XM Satellite Radio (Nasdaq: XMSR).

No, I don't think that will happen. It's those very features that will come to differentiate JetBlue and guide it to a much safer landing on the greener side of profitability.

JetBlue and Embraer have been singled out toMotley Fool Stock Advisorsubscribers. XM Satellite Radio is an active pick forRule Breakersreaders.

Longtime Fool contributor Rick Munarriz has enjoyed the two JetBlue flights that he has taken. He does not own shares in any company mentioned in this story.The Fool has a disclosure policy. Rick is also part of theRule Breakersnewsletter research team, seeking out tomorrow's ultimate growth stocks a day early.