jetblue post full year profit, small 4th quarter loss!

[Dizel8]

http://biz.yahoo.com/ap/080129/earns_jetblue.html?.v=4

 

[Full of LUV]

Congrats...

http://biz.yahoo.com/ap/080129/earns_jetblue.html?.v=4

Nice job, in the face of stiffening competition, JB seems to be holding their own and still growing.

 

[lowecur]

Both FL and B6 have done a nice job "treading water" this Q. They should both make a small profit for 2008, providing oil doesn't head seriously north of $100 bbl. This is what they want to do, until things shake out on the M&A front.

NWA numbers are the best so far of the Legacy. Kind of wonder if the Midwest deal will go through before an announcement on their proposed merger with DL. Me thinks DL just may play the UAL hand, as Steenland has taken a page from his unions on how to play hardball. DL will not want to drag out a protected negotiation with a new administration right around the corner. If Steenland thinks CAL's Kellner would be an easier target, he will be in for a big surprise. Kellner has no intention of giving up his authority to NWA or Steenland.

imp:​

 

[Lampshade]

Does the 4th qtr loss include the sale of a A320?

 

[lowecur]

Does the 4th qtr loss include the sale of a A320?

No. Sales will commence in 2008: 3 in 2nd Q, 1 in 3rd Q, and 2 in 4th Q. He also left the door open to sell more if necessary. This will leave a net 6 to the fleet for a total of 110 by the end of 2008. My guess is more will go out the door if the economy really tanks, but if consolidation is beneficial to B6...they will hold firm.


B6 will defer deliveries on 16 320's between 2010-14. This is an endorsement they intend to have more balance between the now reliable 190 and the 320. They have excercized options on 3 more 190s for 2009, bringing the delivery schedule from 6 to 9 for that year.

imp:​

 

[Lampshade]

I thought they sold 3 at the end of last year?

http://www.jetscape.aero/news/2007/article110107.php

 

[Cheeta]

I thought they sold 3 at the end of last year?

http://www.jetscape.aero/news/2007/article110107.php

We sell our older Airbus's every year. 3 - 6 a year and we take 12 new.

 

[DIAMONDDD]

Get ready.........brace yourself..........here it goes............




I see the beginning of the end of jetBlue.








It had to be said. Sorry.

 

[lowecur]

I thought they sold 3 at the end of last year?

http://www.jetscape.aero/news/2007/article110107.php

Could be on the 4th Q financials, but I would guess they probably took a small loss on the sale as buyer probably received a markdown if a/c was due for heavy mx.

imp:​

 

[maxblast72]

Get ready.........brace yourself..........here it goes............




I see the beginning of the end of jetBlue.








It had to be said. Sorry.

Not exactly, but a profit of 18 million is nothing to brag about. In a year where most airlines had a pretty decent profit, keeping less than 1 cent of every dollar brought in isn't exactly exciting.

 

[lowecur]

Not exactly, but a profit of 18 million is nothing to brag about. In a year where most airlines had a pretty decent profit, keeping less than 1 cent of every dollar brought in isn't exactly exciting.

It is considering that B6 was hamstrung through most of 2007 by the Neeleman School of how not to run a maturing airline. Check out how much Blue is up in the market today to understand what Wall St thinks of their prospects in 2008.

imp:​

 

[inthewind]

Could be on the 4th Q financials, but I would guess they probably took a small loss on the sale as buyer probably received a markdown if a/c was due for heavy mx.

imp:​

At my interview on the 11th they said that they were actually able to sell them for what they have in them because overseas demand is so high right now.

 

[HomerJ]

Not exactly, but a profit of 18 million is nothing to brag about. In a year where most airlines had a pretty decent profit, keeping less than 1 cent of every dollar brought in isn't exactly exciting.

Take out the 40 mil. we lost in 5 days back in February, and we had a nice 58 mil. dollar year. I know, I know, what's done is done...

 

[captain dad]

Slow sad decline?

Nice job, in the face of stiffening competition, JB seems to be holding their own and still growing.

I wish them all the best, but a very small gain for the year which is a direct result of selling aircraft off to look good...doesn't look good to me.

Someone explain to me how an airline grows but at the same time is selling off aircraft? Either you are making it or you aren't. Again, I wish them all well there, but I am smelling something funky, maybe JetBlueCheese. Working the margins on A/C sales doesn't make good economics.

I see the moral declining and a shift in original ethics. The fresh water spring may have turned into a stagnant frog pond. Good Luck.

 

[Tanker Clown]

You JetBlue guys need to find your General Lee. Then you could see how awsome your loss could be and how the company wanted the loss all along.

 

[maxblast72]

Someone explain to me how an airline grows but at the same time is selling off aircraft? Either you are making it or you aren't. Again, I wish them all well there, but I am smelling something funky, maybe JetBlueCheese. Working the margins on A/C sales doesn't make good economics.

Actually, right now the margins on aircraft sales are real good as Asia and Africa are really hot for narrowbody Airbus and Boeing aircraft. Our management get calls every week trying to buy some of future orders of B737-700's.

Southwest management was asked last week if they were going to get into the aircraft leasing market after SW announced they were selling and releasing 22 of their aircraft in 2008 (still getting 29 new ones for a net gain of 7 aircraft). So it appears that accepting new deliveries while getting rid of some older ones makes sense financially now of days when trying to slow the growth rate down.

 

[PHXFLYR]

Please...one General Lee per webboard is more than enough,thank you.

PHXFLYR

 

[lowecur]

I wish them all the best, but a very small gain for the year which is a direct result of selling aircraft off to look good...doesn't look good to me.

Someone explain to me how an airline grows but at the same time is selling off aircraft? Either you are making it or you aren't. Again, I wish them all well there, but I am smelling something funky, maybe JetBlueCheese. Working the margins on A/C sales doesn't make good economics.

I see the moral declining and a shift in original ethics. The fresh water spring may have turned into a stagnant frog pond. Good Luck.

Captain Pops

Forbes has all the answers - read em an weep: :crying:

imp:​

Despite the better than expected results, the stock rose so much because of the anticipated growth in sales for the upcoming year.

For the first quarter JetBlue expects unit sales growth to increase 10-12% and 9-11% for the full year, well ahead of the 2.6% it reported in its fourth quarter.

FTN Midwest Securities analyst Michael Derchin credited the increase in the first quarter mostly to weak numbers for the comperable period last year, as 2007 suffered from foul weather.

A list of issues were at play for the rest of 2007, though. For example, JetBlue will only add 3 new cities in 2008, while in 2007 and 2006 they added 5 and 16 respectively.

“You can expect higher revenue from cities they are maturing in,” Derchin said, “load factors get higher and it helps get rid of introductory fares and allows you to charge higher prices.”

Of course, I'm sure 90% of the increase will be due to the sale of the 320's. Just think, next year they could sell all the 320's and just keep the 190's. I must have died and gone to heaven.

 

[captain dad]

Actually, right now the margins on aircraft sales are real good as Asia and Africa are really hot for narrowbody Airbus and Boeing aircraft. Our management get calls every week trying to buy some of future orders of B737-700's.

Southwest management was asked last week if they were going to get into the aircraft leasing market after SW announced they were selling and releasing 22 of their aircraft in 2008 (still getting 29 new ones for a net gain of 7 aircraft). So it appears that accepting new deliveries while getting rid of some older ones makes sense financially now of days when trying to slow the growth rate down.

Yes, I agree to sell off A/C options that aren't going to be used is good business. SWA and others have done that for decades. However, JB has had a tendency to sell A/C to show a profit on their balance sheet and then adjust accordingly after the fact. That is like paying off your Visa with your MasterCard. Plus SWA writes a check, 100% cash for each of its A/C that they buy. No loans. JB could sell to show profit themselves right out of business.

I wish them luck and I like their product more than the Legacy carriers. I just don't agree with some of their practices and I think their culture is sliding. No slams, just wondering if anyone else has seen it.

Good Luck, I really do wish you all well.

Most financial writers also suggest to not invest in airline stock. JB is still less than 50% of what it was a year ago.

 

[aerobato]

You JetBlue guys need to find your General Lee. Then you could see how awsome your loss could be and how the company wanted the loss all along.

Our interview process tends to weed out guys like that. We hire guys with a personality........

 

[Tanker Clown]

Our interview process tends to weed out guys like that. We hire guys with a personality........

Your HR people should share this with Delta. This guy is probably responsible for millions of compaint letters from customers.

 

[greenbayfan]

However, JB has had a tendency to sell A/C to show a profit on their balance sheet and then adjust accordingly after the fact. That is like paying off your Visa with your MasterCard.

It still amazes me how many people come on these web boards pretending like they know what the hell they are talking about......

JB doesn't sell aircraft to show a profit, they sell them to get rid of older aircraft that require more maint. at a time when these aircraft are in high demand overseas. Don't read into this as some numbers game, it is a wise move to lower the average age of the fleet. Instead of thinking of it as paying off your VISA with your MasterCard, think of it as selling your 2000 VW for more than you purchased it for so you can buy an '08 that will be covered under warranty....

 

[captain dad]

Thanks for straightening me out on that whole thing. Your fleet is how old?

Look at the numbers on profitablility from "base product" and then from aircraft sales. If an airline can't make it, off of its own ticket sales and needs to rely on A/C sales margins as a profit strategy, I would consider that a weakness.

Just my opinion, no slam intended.

Good Luck. I hope it all works out.

 

[Bavarian Chef]

Thanks for straightening me out on that whole thing. Your fleet is how old?

Look at the numbers on profitablility from "base product" and then from aircraft sales. If an airline can't make it, off of its own ticket sales and needs to rely on A/C sales margins as a profit strategy, I would consider that a weakness.

Just my opinion, no slam intended.

Good Luck. I hope it all works out.

Selling airplanes isn't jb's profit strategy. What the strategy is though, well, I haven't figured that one out yet.

 

[Hardcorr]

Clown, I've said it at least ten times but I will say it again. You are a major flightinfo tool. At least the General is in the game Get yourself an Airline Job and maybe you'll have some street-cred. Give it a rest.

 

[elag777]

You JetBlue guys need to find your General Lee. Then you could see how awsome your loss could be and how the company wanted the loss all along.

You are a real "clown" tanker! :laugh:

 

[Dave's kid]

Thanks for straightening me out on that whole thing. Your fleet is how old?

Look at the numbers on profitablility from "base product" and then from aircraft sales. If an airline can't make it, off of its own ticket sales and needs to rely on A/C sales margins as a profit strategy, I would consider that a weakness.

Just my opinion, no slam intended.

Good Luck. I hope it all works out.

You have turned into quite the JB hater. A year and a half ago all you could stop posting about was how great JB was. Now that you were turned down in Phase 2 you almost can't control yourself from slamming us. What gives?

 

[captain dad]

I am not a JB hater. I really like the product and enjoy flying on them. I just have my opinions. My veiws have changed from a couple of years ago, yes that is true. Since then I have seen the "culture" start to slide. I don't know if that is the proper word for it, but I hear more and more complaints from ramp people, gate agents, and crews alike. I don't know if it is due to deeper financial pressure, working harder than ever or just the realities of airline life sinking in. Personally, I don't care, but at the same time I don't mean to slam or offend. I have a few friends at JB and wish them all well. I truly hope that JB is around for a long time to come. Just because I don't agree with some of the practices doesn't make me a hater. I don't hate anyone...(NWA is on the fence). Just kidding.:laugh:

As for me being turned down in phase two, I was very hurt at the time, but I truly believe everything happens for a reason and that turned into a blessing in disguise. I have since gone in a new direction and if I am lucky I won't ever return to the airline business. The main reason I post on FI is to stir the pot and try to gain some inside info. Again, no slam just a little adgitation.

I look forward to the JFK terminal / ramp work being completed 100% All my best.

 

[learflyer]

I am not a JB hater. I really like the product and enjoy flying on them. I just have my opinions. My veiws have changed from a couple of years ago, yes that is true. Since then I have seen the "culture" start to slide. I don't know if that is the proper word for it, but I hear more and more complaints from ramp people, gate agents, and crews alike. I don't know if it is due to deeper financial pressure, working harder than ever or just the realities of airline life sinking in. Personally, I don't care, but at the same time I don't mean to slam or offend. I have a few friends at JB and wish them all well. I truly hope that JB is around for a long time to come. Just because I don't agree with some of the practices doesn't make me a hater. I don't hate anyone...(NWA is on the fence). Just kidding.:laugh:

As for me being turned down in phase two, I was very hurt at the time, but I truly believe everything happens for a reason and that turned into a blessing in disguise. I have since gone in a new direction and if I am lucky I won't ever return to the airline business. The main reason I post on FI is to stir the pot and try to gain some inside info. Again, no slam just a little adgitation.

I look forward to the JFK terminal / ramp work being completed 100% All my best.

I mean if there are no prior convictions, murders, or jail time in one's record, WTF is it they see that they have to turn guys down is phase 2?

 

[clickclickboom]

I am not a JB hater. I really like the product and enjoy flying on them. I just have my opinions. My veiws have changed from a couple of years ago, yes that is true. Since then I have seen the "culture" start to slide. I don't know if that is the proper word for it, but I hear more and more complaints from ramp people, gate agents, and crews alike. I don't know if it is due to deeper financial pressure, working harder than ever or just the realities of airline life sinking in. Personally, I don't care, but at the same time I don't mean to slam or offend. I have a few friends at JB and wish them all well. I truly hope that JB is around for a long time to come. Just because I don't agree with some of the practices doesn't make me a hater. I don't hate anyone...(NWA is on the fence). Just kidding.:laugh:

As for me being turned down in phase two, I was very hurt at the time, but I truly believe everything happens for a reason and that turned into a blessing in disguise. I have since gone in a new direction and if I am lucky I won't ever return to the airline business. The main reason I post on FI is to stir the pot and try to gain some inside info. Again, no slam just a little adgitation.

I look forward to the JFK terminal / ramp work being completed 100% All my best.

You make it sound like you are on the ramp doing daily satisfaction surveys.. Every airline out there has sold planes or options at some point. The analysis was done and with the favorable interest rates and the deal that we got from Airbus for our fleet it is actually cheaper for us to buy new depreciate the frame and the fact that we can get $25,000,000 a bird after 5 years is just icing on the cake

Our net 2008 gain will be 12 airframes 6 190 and 6 bus