JetBlue Airways experienced a sharp drop in fourth quarter profits due to the impact Superstorm Sandy had on the northeast coast of the U.S. The airline profits went down 96%, which is more than analysts had predicted, due to the need for the airline to cancel 1700 flights over five days in October, when Sandy hit. More than half of the light cancellations were at JFK International Airport and the rest were at other airports throughout the northeast.
Jamie Baker, a JPMorgan Chase & Co. analyst in New York, called it an uninspiring quarter, but said it wasn’t surprising given the effects of Sandy. The airline’s net income fell below $1 million and shares have gone down 2.7% to $6.07. In addition, Sandy is still affecting travel, because schools will stay open during the upcoming Presidents Day holiday to make up for time lost during the storm. This will curtail travel plans for many people during a peak travel time.
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