JetBlue profit rises on lower fuel costs

Cheaper fuel, and a dramatic shift to charging for checked bags for the first time this summer, helped JetBlue Airways (JBLU) post a $198 million profit, or 58 cents per share, in the third quarter.

The July through September showing was more than double the $79 million profit reported  during the same three-month period last year.

"We are happy with our results in the third quarter,'' Robin Hayes, JetBlue’s President and CEO, said during an earnings call with investors Tuesday.

The airline's operating income also jumped to $351 million vs. $164 million during the third quarter of 2014.

JetBlue launched new fare tiers, which included it's first checked bag charge, on June 30. It was a significant change for the carrier, but officials say that it is paying off, with the carrier seeing $40 million in revenue from the new fare bundles during the third quarter.

"While we are still in our early stages . .. .we believe we are on pace to exceed the initial target of $65 million'' estimated for the year, Hayes said, noting that "fare options was much more than the implementation of first checked bags. It was a significant change for JetBlue'' impacting the airline's technology and culture.

Another cultural shift for the airline, upending its single cabin model to offer a new, premium "Mint'' section for transcontinental flights, has also proven successful and will expand. Mint flights will be available between Boston and San Francisco in March 2016, and between Boston and Los Angeles next fall. Meanwhile, seasonal Mint service on Saturdays between New York and Barbados will start on Nov. 7, and launch between Boston and Barbados in March 2016

JetBlue's strong financial results will lead to an early partial profit sharing payment of $50 million, "an accelerated use of cash that would otherwise be paid in 2016,’’ said Mark Powers, JetBlue's chief financial officer.

JetBlue shares were down 7.82% to $24.16 per share in late morning trading.