Jetblue downgraded on debt and weak results

[Heavy Set]

NEW YORK, May 17 (Reuters) - Moody's Investors Service on Thursday cut its ratings for JetBlue Airways Corp. (JBLU.O: Quote, Profile , Research), citing weak financial results and high levels of debt.
JetBlue suffered an embarrassing service disruption on Feb. 14 that exposed weakness in the No. 8 U.S. carrier's operations. For details, see [ID:nN10404382].

The company's ratings "were downgraded because of the continued high level of financial leverage following several years of rapid, largely debt-financed growth of its aircraft fleet," Moody's said in a news release.
Another factor was "weak financial results at JetBlue during a relatively good operating environment for the airlines," Moody's said.

Moody's lowered JetBlue's corporate family rating one notch to "B3," the sixth-lowest junk rating.


Its outlook on the company remains negative, which means Moody's may make another rating cut in the next 12 to 18 months.

 

[Bavarian Chef]

This is a total fabrication, completely untrue.

 

[Max Powers]

I love it when the kool aid sours

 

[Heavy Set]

This is a total fabrication, completely untrue.

I just got it off Yahoo finance.

 

[Bavarian Chef]

You and Max Powers are stoopider than you look. It's called sarcasm.

I fully expect a schwacking from the kool aid drinkers for not denying this reality.

 

[8vATE]

You and Max Powers are stoopider than you look. It's called sarcasm.

Not everyone loves your sarcasm?
They don't "get" you so you spout off calling them "stupid".

Why don't you go out and do some flying to bump up that 3000+ hours you have?


Funny how this AP release has additional comments the beginning post was missing?
============================
Moody's Cuts JetBlue Ratings

© 2007 The Associated Press
NEW YORK — Moody's Investors Service downgraded about $1.5 billion in JetBlue Airways Corp. debt securities further into junk status Thursday, citing the airline's continued high level of debt and weak financial results.
Moody's said the airline has paid for several years of rapid growth largely with debt but has struggled to turn that growth into profitability. Despite an improved operating environment for airlines, JetBlue has posted losses two years in a row.
While JetBlue "continues to have a meaningful cost advantage compared with most other airlines," the agency said, major carriers have lowered fares and have increased the competition in many markets.
The company has its advantages, Moody's said, including a new fleet of aircraft and strong employee productivity. But Moody's cautioned "the airline could be challenged to return to solid profitability, particularly if passenger demand growth slows or yields fall."
The agency downgraded its probability of default and corporate family ratings to B3 from B2. The outlook remains negative, Moody's said.
===================

This stuff is always being upped and downed.

"Stable" Legacy Worldwide Continental's rating is only slightly better to worse depending on the type of debt.

Moody's Investors Service late Tuesday raised the debt ratings of Continental Airlines Inc.
<IMG class=pixelTracking height=1 width=1 border=0>including taking its corporate family rating to B2, senior unsecured to B3 and preferred stock to Caa1. The outlook remains stable.

 

[DIAMONDDD]

Sounds like the beginning of the end for jetBlue? This time for sure.

 

[Frank Lorenzo]

JetBlue "continues to have a meaningful cost advantage compared with most other airlines," the agency said, major carriers have lowered fares and have increased the competition in many markets.
The company has its advantages, Moody's said, including a new fleet of aircraft and strong employee productivity.

"Strong Employee Productivity".

IOW, the employees are whores that are willing to work longer hours for less pay, and even do demeaning jobs outside of their traditional job description.

Yeah that's real good news - for stock holders and guys like myself that sit in the executive suite.

Once again, I would like to personally thank the JBLUsers for lowering the bar. With any luck, we will soon have the pilot profession on an even keel with city bus drivers and cab drivers.

 

[ultrarunner]

The up and down ratings are a given. They are done so that customers of the source can play the downgrades/upgrades....as they have the intel first. It's not really legal or ethical, but it happens...it's just the way it is.

Certainly nothing to get all excited about, that's for sure. Just another form of insider trading.

 

[Heavy Set]

The up and down ratings are a given. They are done so that customers of the source can play the downgrades/upgrades....as they have the intel first. It's not really legal or ethical, but it happens...it's just the way it is.

Certainly nothing to get all excited about, that's for sure. Just another form of insider trading.

Yeah, and today Delta got an upgrade. Crazy day right? Maybe Jetblue is having problems? How much debt does Jetblue have anyway to warrant this?

 

[Longhorn]

Gosh, this website is so predictable. The upgrades and downgrades are a cycle. They will never end, and the retoric on this site will never end as well.

 

[Bavarian Chef]

Yeah, and today Delta got an upgrade. Crazy day right? Maybe Jetblue is having problems? How much debt does Jetblue have anyway to warrant this?

4 billion, Heavy.

 

[PlaneDrvr]

4 billion, Heavy.

Chef,

I did know that it was up to $4B, thought it was still a little over $3B; but, 3 or 4, either way, still 'a lot' of debt for a company the size of JB.

Don't work there, turned down the opportunity, but have quite a few friends there, so hope things go better going forward.

Also, I like the 'sarcasm' the problem is that the 'kool-aide drinkers' and the guys who take all of this $hit toooooo seriously, just can't get it.

For what its worth, now back to you regular scheduled rant.

DA

 

[elag777]

I know... B6 should unload all its dedt on the backs of the employees and then reward the executives with outrageous bonuses! then say it has been re-invented and is new and improved! will provide superior service and never lose your stuff! no no say it can't be that would be DAL NOT! I think the rest of the industry should be very concerned that B6 will be back with avengance and be back very soon!

 

[BILL LUMBERG]

I know... B6 should unload all its dedt on the backs of the employees and then reward the executives with outrageous bonuses! then say it has been re-invented and is new and improved! will provide superior service and never lose your stuff! no no say it can't be that would be DAL NOT! I think the rest of the industry should be very concerned that B6 will be back with avengance and be back very soon!

"EFAG, how did DAL get into your pissant whining??
"Pull the blue kool-aid snorkel out of a$S and find a chair (read: look for work)before the music stops......"

Pretty insensitive and not a very thought out comment I put up above huh?? I just wanted to highlight and mimic how crybaby and childish your rant was above.....guys like you make people wish bad things on them.....

Anyhoo, good luck to JB, I don't wish anything bad....once everybody here realizes WE are labor and THEY are management, we'll be better off...........we are all in the same boat, just using different color paddles.

 

[Spectre]

Like companies don't get upgraded and downgraded by market analysts. I can remember a time when you could buy American stock at $2.00/share just a year ago. Were they going to close their doors at that time? These financial institutions and day traders love these market analysts. Without market fluctuations, how can investors make or lose any money?

Even after Feb 14, JetBlue will still be profitable this year. JetBlue is nowhere close to CH 11 or have they ever been like other airlines, (USAir, DAL, United, CAL, NWA). Even they are still around.

 

[BLUE BAYOU]

"Strong Employee Productivity".

IOW, the employees are whores that are willing to work longer hours for less pay, and even do demeaning jobs outside of their traditional job description.

Yeah that's real good news - for stock holders and guys like myself that sit in the executive suite.

Once again, I would like to personally thank the JBLUsers for lowering the bar. With any luck, we will soon have the pilot profession on an even keel with city bus drivers and cab drivers.

Lowering the bar? We continue to be the best LCC in the country rated by our customers and industry "experts" even after our February debacle; lowering the bar-- the A-320 captains here make more than UAL's captains. Why don't you direct your arrows at Virgin America or Skybus, wait till you see their payscales!!! I think you were denied a job here at Jetblue, I guess that's why all the hatred-- go find a life and lighten up Francis!!!

 

[radarlove]

Bonds are the canary in the coal mine.

It really is a big deal when they get downgraded.

 

[conman]

I can remember a time when you could buy American stock at $2.00/share just a year ago.

Spectre,

AMR was selling in the $28.00 per share last year, not $2.00.

 

[coogebeachhotel]

Bonds are the canary in the coal mine.

It really is a big deal when they get downgraded.

So true.

 

[mrvmo]

Over-under..........how many pages are there idiots going to argue for? I say 7. Any takers? Just got back from Vegas, still got the gambling bug!

 

[JBPA]

Not everyone loves your sarcasm?
They don't "get" you so you spout off calling them "stupid".

Why don't you go out and do some flying to bump up that 3000+ hours you have?

I for one love his sarcasm. Oops, gotta go get some more autopilot time. Can you hand me that USA Today when you're done with it?

 

[JetFumes]

Bonds are the canary in the coal mine.

It really is a big deal when they get downgraded.

Yah, big trouble! We'll be out of business in no time, just like US Air, Oh, wait, they're still around. Sorry, I meant Delta, no, they're still around, ok, so how is this a big deal again, I'm confused.

 

[Bavarian Chef]

I for one love his sarcasm. Oops, gotta go get some more autopilot time. Can you hand me that USA Today when you're done with it?

I have him on ignore, but thanks for letting me see his attack.

3000 hours? That's actual stick time. With Autopilot time my total is around 24,000,000.



Somebody asked about 4 billion: that was our total (3.9) at the end of 2006. I was lazy and that was all I snagged off of Yahoo Finance.

 

[Lampshade]

Yah, big trouble! We'll be out of business in no time, just like US Air, Oh, wait, they're still around. Sorry, I meant Delta, no, they're still around, ok, so how is this a big deal again, I'm confused.

You forgot independence air.

 

[8vATE]

4 billion, Heavy.

Yea..

Airplanes are expensive....

10 airplanes at $35,000,000 each.... $350,000,000
100 airplanes............................... $3,500,000,000.

You can take 35 years to get to 400 airplanes like SWA with little debt.

Or go the quicker, riskier route.
Maybe we should have done it the slow way.
That way I'd be an F/O.... therefore smart as YOU.

And maybe you'd be out working at Men's Warehouse.

Chef,
Your sarcasm is so much fun!

 

[8vATE]

I have him on ignore, but thanks for letting me see his attack.

That was an ATTACK?

Jeez,

This is the guy that said he ABHORs me!!


And "thanks for letting me see his attack"??????
Why am I on ignore.....??


Just look at his posts...

So much sarcasm.

He's got a cushy JetBlue job.
Never worked for an airline that really SUX..
No commuter/cargo trash time like me or a furlough...

A fun guy to be around I'm sure.

 

[shearedshaft]

What does JBLU pay as an interest rate on its bonds today?

 

[Bavarian Chef]

What does JBLU pay as an interest rate on its bonds today?

Good question. Who knows. Not sure what we have in debt as of today other than the 4 billion I found at the end of 2006 statement. Funding growth yes, still lots of debt ... yes. End of world ... no. We strengthened our cash postion at the end of the first quarter (2007), not sure where debt is now.

I dunno.

 

[SonicPig]

Lowering the bar? We continue to be the best LCC in the country rated by our customers and industry "experts" even after our February debacle; lowering the bar-- the A-320 captains here make more than UAL's captains. Why don't you direct your arrows at Virgin America or Skybus, wait till you see their payscales!!! I think you were denied a job here at Jetblue, I guess that's why all the hatred-- go find a life and lighten up Francis!!!

Yes, after the UAL pilots took 2 rounds of pay cuts with an 1113c gun pointed at their head, 40% if I remember. Are you really so proud of that?


The Pig.