JetBlue staff handing out freebies

The only other major US airline to make money during the period was rival budget carrier Southwest Airlines, which reported a �21m profit last week.

The two budget airlines' results contrast with hefty losses from their full-service counterparts, which are still feeling the effects of a sharp drop in passenger numbers in the wake of the 11 September attacks.

Cost control

The budget carriers' stronger performance is attributed to their lower cost structure and their highly competitive ticket prices.

JetBlue, whose fares are 50%-70% less than comparable big-name airlines, has managed to win over legions of fliers who have become hooked on the quirky yet courteous service the airline provides.

Upscale extras, such as leather seats and personal television sets, have also wooed travellers not used to such amenities at JetBlue's deeply discounted fares.

It is a winning formula that helped push JetBlue to its first-ever annual profit in 2001 after just two years in business, despite the impact of 11 September.

Airline expansion

JetBlue is one of a few discount airlines to successfully launch in the north-eastern US, with a base at New York's John F Kennedy airport, where it does much of its business.

The airline keeps it costs low by forgoing costly in-flight meal service and by enticing fliers to book flights over the internet rather than over the telephone.

JetBlue, launched in February 2000, has had the support of deep-pocketed private investors, such as George Soros, through his Private Equity Partners Fund, and Weston Presidio.

Kew Gardens, New York-based JetBlue was set to first offer its shares last September but postponed its stock flotation due to the terrorist attacks on New York and Washington.

The flotation eventually went ahead on 12 April, raising $150m for the company in a massively oversubscribed offering.

JetBlue's shares were trading 1.75% lower at $44.80 on Thursday.