JetBlue Makes Money In 3Q On Lower Costs

SAMANTHA BOMKAMP

NEW YORK (AP) — JetBlue said Thursday it won't rule out charging for a first checked bag, but it's looking for other ways to stay profitable in weak economic times without "nickel and diming" customers.

The low-cost airline, based in Forest Hills, N.Y., is instead focused on setting up a new reservation system, and said it probably won't make any bold moves to add or expand fees until it fully implements the system early next year.

CEO Dave Barger said the company will "never say never" in regards to adding a fee for a first checked bag. JetBlue currently charges for a second bag, while rival Southwest Airlines doesn't charge for the first two bags.

JetBlue's Barger said in a conference call with analysts that despite tough current economic conditions, the carrier still expects to make a profit in the fourth quarter of this year, as it has in every other quarter of 2009. The company made money in the third quarter thanks to lower costs and cheaper fares that drew more passengers.

In what traditionally has been a strong season for the airlines — the critical summer vacation months — JetBlue Airways Corp. was one of just three airlines in the black, with most large airlines posting losses. Discount carrier AirTran and Alaska posted profits, while Southwest lost $16 million.