JBLU not cash positive?

[Bill Nelson]

I just read a Motley Fool ariticle and they make reference to JBLU not being cash positive. How can this be? According to all of the Blueaide drinkers on this board JBLU rules the world.

As written by the Motley Fools

....As importantly, those years of profitability have Southwest net cash (cash minus debt) positive. For comparison, low-cost competitor AirTran (NYSE: AAI) is also cash positive, but hotshot JetBlue (Nasdaq: JBLU) is not. Then there is U.S. Airways (NYSE: UAIR), which is $16 billion in the hole. How will it ever defend its Philadelphia hub from Southwest while paying interest on a debt that size?


Whats the deal, pickel?

 

[airbaker]

WTF? I know this is in no way a scientific anaylsis, but my flights have been consistently hovering around 90-95% load factors. Unless we're way, way undercharging (although, I have to admit I've seen a lot of flip-flops on my flights lately) I'd like to think we are generating pretty healthy profits.

I think what the author was saying is that JetBlue doesn't have cash on hand greater than it's debt obligations. This isn't unusual considering our large aircraft order (well into the billions of $'s). Don't quote me, but I think our cash and short term investments is healthy at around $700 million; pretty descent for a 58 a/c airline.

Rumor has it another "big announcement" is on the way. I think it'll be good news.

 

[Skank]

Nobody here says that we rule the world, but cash flow negative? Doubtful.

 

[8vATE]

I was at the newest classe's "welcome" party in MIA on Tuesday
and Dave Barger said we should have a "double digit" profit margin for the first quarter..

Should be inline with their earlier projections?

Earnings are released on the 22nd..

FWIW.....

 

[blahshmah]

From the adjectives used I'd say the piece wasn't that objective.

Quarter earnings will be fine and good news is coming.