Jetblue looses 7.0 M

[brainhurts]

Sauerkraut plis.

 

[lowecur]

Jetblue's actual cash right now is close to $675M, since on 7/15/08 they needed to buy back some old convertibles that were due. The recent convertible offering was just a wash on that. They have another round of about $175M due to be bought back the remainder of the yr if I am reading things correctly, and you may see more convertibles offered to pay those off if cash flow is not sufficient. Lufthansa may step to the plate if the marketplace is not receptive, although I doubt that would be necessary.

They are obviously not getting any viable offers on Live TV. Whether they choose to sell it at a discount or be forced to do so depends on oil and economy the rest of the year. It will be hard for them to shrink themselves to profitability because they are so highly leveraged and need cash flow, so you will probably see a first class offering and the beginning of charges for Live TV. They could put the new terminal up for sale either partially or in full, although I doubt that's in the cards. More 320 sales will occur in 2009 but it's just a matter of whether it's 3 or up to 20. They've already said layoffs are in the cards, but exactly how many will depend on projections for a/c sales into 2009.

Oil cost reductions will benefit all as it will keep all legacy boats afloat and allow the orderly reduction of capacity. The downside is a slow death for some. Jetblue's fortunes will be hinged on the price of oil, management making the right moves, and a loyal workforce. Hopefully the stars will be in line by the end of 2009.

imp:​