Shares of JetBlue tumbled over 10% Wednesday after the company surprised the Street with a loss.
The company said winter storms cut revenue by $15 million and its transition to a new customer service and reservation system increased expenses by about the same amount.
Higher fuel costs also eroded the carrier's bottom line, a volatile scenario that affected all major airlines in the January-to-March period.
JetBlue reported a net loss of $1 million, or a penny per share, compared with net income of $12 million, or 5 cents a share for the year-ago period.
The consensus Wall Street per-share forecast for the quarter was a profit of 3 cents, according to Reuters I/B/E/S.
But before you write off this stock entirely it’s worth noting higher fares helped push revenue to $870 million, about $10 million shy of analysts' expectations.
Also traffic was up and planes flew more than three-quarters full on average.
Was the sell-off warranted or was it overdone? Before you place your bets check out our interview with CEO Dave Barger. Watch the video now!