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JetBlue trims profit outlook

NEW YORK (Bloomberg) — JetBlue Airways Corp., buffeted by winter storms that disrupted 1,600 flights in two consecutive months and cut into revenue, trimmed its full-year profit forecast.Operating profit will be seven percent to nine percent of revenue, down from an earlier forecast of eight percent to ten percent, and its pretax margin will be two percent to four percent, down from three percent to five percent, the New York-based carrier said.

“It’s hard for the whole year to talk about revenue,” JetBlue chief executive officer David Neeleman said at a JPMorgan Chase & Co. conference in New York. “Our visibility is only 60 to 90 days forward. We made an adjustment, and you try to hit the number the best you can.”

Shares of JetBlue rose 17 cents to $12.14 at 9:50 a.m. New York time in Nasdaq Stock Market composite trading. The stock has gained 16 percent in the 12 months before today.

April bookings are “a bit soft” compared with last year, primarily because the Easter holiday falls early this year, Neeleman said. Summer bookings “look fine” and haven’t been affected by the airline’s winter storm disruptions, he said.

JetBlue canceled 1,191 flights due to a February 14 storm that stranded about 130,000 passengers in airport terminals and aboard grounded planes.

The airline dropped 400 of its 550 flights on March 16 for another storm. JetBlue has said the cancellations, flight delays, refunds and other costs will total about $30 million.

JetBlue did not alter first-quarter guidance it provided on February 21, when it forecast an operating loss of two percent to four percent of revenue. It previously had forecast a profit of 2 percent to 4 percent.

JetBlue is expected to have a loss of 15 cents a share, the average estimate of 13 analysts in a Bloomberg survey.