JetBlue loses $22mil 1stQ

[Lampshade]

http://www.primenewswire.com/newsroom/news.html?d=117984

* Operating revenues for the quarter totaled $608 million,
representing growth of 24.0% over operating revenues of
$490 million in the first quarter of 2006.

* Operating loss for the quarter was $13 million, resulting
in a negative 2.2% operating margin, compared to an operating
loss of $25 million and a negative 5.2% operating margin in
the first quarter of 2006.

* Pre-tax loss for the quarter was $45 million, resulting in
a negative 7.3% pre-tax margin, compared with a pre-tax loss
of $47 million and a negative 9.7% pre-tax margin in the
year-ago period.

* Net loss for the quarter was $22 million, representing a loss
of $0.12 per diluted share, compared with first quarter 2006
net loss of $32 million, or a loss of $0.18 per diluted share.

 

[FlyBoeingJets]

The silence is deafening. This trend of little to no profit at JetBlue is a significant turn of events.

Delta and Continental, 2 airlines that serve New York with high frequency, showed profits. But JetBlue did not.

We might be back in the '90s in terms of market conditions. Legacies able to post a profit because of their big networks as upstart competitors start to post losses (even with lower costs and a decent product). The time tested strategy that allows high fares in fortress markets (CVG for Delta) and lower prices in others (with competition) is working.

Incidentally, it works for SWA too.

The going will continue to be tough for JetBlue, Frontier, Midwest, Spirit and Airtran for awhile. I see no relief for at least a year...probably longer.

 

[PositiveRate]

Neelman is going to be on Fastmoney tonight on CNBC.

 

[Splinter]

The silence is deafening. This trend of little to no profit at JetBlue is a significant turn of events.

Delta and Continental, 2 airlines that serve New York with high frequency, showed profits. But JetBlue did not.

We might be back in the '90s in terms of market conditions. Legacies able to post a profit because of their big networks as upstart competitors start to post losses (even with lower costs and a decent product). The time tested strategy that allows high fares in fortress markets (CVG for Delta) and lower prices in others (with competition) is working.

Incidentally, it works for SWA too.

The going will continue to be tough for JetBlue, Frontier, Midwest, Spirit and Airtran for awhile. I see no relief for at least a year...probably longer.

JetBlue will still post a profit for the year. They already stated that a 1st quarter loss was anticipated, months before Valentines Day. Continental and Delta are international carriers, so you cannot compare their NYC ops to JetBlue. Southwest is almost 5 times larger, so the economy of scale makes them a poor comparison. JetBlue still offers the best product in the industry, and of other LCC's can predicate their business on poor treatment of customers and employees and still fly, we'll be OK.

 

[gt1900]

FBJ... Just so you know, AAI is expecting to post a $1 million profit tomorrow, beating original estimates by about 8 million.. Estimates are for a 70 million profit for 07 and 110 million for 08.. BTW.. That 70 million included an operating loss of 7 million for 1st quarter, which AAI is expecting to beat tomorrow..

 

[Dogwood]

The silence is deafening. This trend of little to no profit at JetBlue is a significant turn of events.

Delta and Continental, 2 airlines that serve New York with high frequency, showed profits. But JetBlue did not.

We might be back in the '90s in terms of market conditions. Legacies able to post a profit because of their big networks as upstart competitors start to post losses (even with lower costs and a decent product). The time tested strategy that allows high fares in fortress markets (CVG for Delta) and competitive prices in others (with competition) is working.

Incidentally, it works for SWA too.

The going will continue to be tough for JetBlue, Frontier, Midwest, Spirit and Airtran for awhile. I see no relief for at least a year...probably longer.

Please don't compare us to the legacies.

It appears our loss is a result of having all our eggs in one basket. (JFK)

If we can eventually spread out a little we'll be somewhat protected from these wx systems, as we'll have a way to reroute people.

Don't count us out yet. The legacys all have have one or two, or even three BKs under their belt. They have stuck it to the taxpayers and to their own employees, then have a big party when they show a profit.

We try to pay our bills, as we run our airline. Sure our annual profit is much smaller, but at least we're running an honest company. We're 7 years old, made it thru 911, haven't missed paying a single bill, and we have 20 new aircraft arriving yearly, with 700 million in the bank. I don't see how that can be a bad thing.

Had it not been for one badly timed storm, and some very bad management decisions that week, Q1 would have shown about a 19 million profit.

Operationally we're no SWA, but we're not doing bad. Main problem is we have a lot of maturing to do. That takes time.

As I stand at the cockpit door, and see the smiles on the faces of the customers faces as they leave, and hear how they love JetBlue, I know we'll be just fine.

 

[PCL_128]

The going will continue to be tough for JetBlue, Frontier, Midwest, Spirit and Airtran for awhile. I see no relief for at least a year...probably longer.

You're trying to lump all LCCs together, and that just doesn't seem to be the case. JetBlue is developing a very bad trend of losses or razor-thin profits, not to mention returning "older" A-320s. These trends aren't the same at Airtran which has been consistently profitable for a very long time and taking on many new planes, Spirit which is about to double in size, and Midwest which very well could be merged into AirTran within the next year. JetBlue has some intrensic problems which just aren't mirrored at the other LCCs. I don't see this as an LCC problem. I see this as a JetBlue problem.

 

[SNOWBUM]

fart,fart,fart,poop,poop,fart,fart,fart,poop,poop

 

[Palomino]

As I stand at the cockpit door, and see the smiles on the faces of the customers faces as they leave, and hear how they love JetBlue, I know we'll be just fine.

the original Braniff made people smile, also...including the workers and their families. but, bills must be paid.

 

[Dogwood]

the original Braniff made people smile, also...including the workers and their families. but, bills must be paid.

Braniff had a lot of problems we don't have ... yet.

We're paying our bills, no problem.

Time will tell how this all plays out, but I feel pretty good about it.

After 15 years at my last legacy, I was miserable when I went to work during the last few years. These days it's much better, and I actually enjoy it. That has some value.

It's still intersting to read how folks love to beatup jetblue, when they need to be worrying about their own job.

I guess it's the natural tendency to want to sound like an industry expert.

 

[General Lee]

JetBlue will still post a profit for the year. They already stated that a 1st quarter loss was anticipated, months before Valentines Day. Continental and Delta are international carriers, so you cannot compare their NYC ops to JetBlue. Southwest is almost 5 times larger, so the economy of scale makes them a poor comparison. JetBlue still offers the best product in the industry, and of other LCC's can predicate their business on poor treatment of customers and employees and still fly, we'll be OK.

The best product in the industry? Unless you are on the tarmac for 10 hours. The Meltdown was not your best week. I would think you are not in the current running for any awards.

Bye Bye--General Lee

 

[Charlie Brown]

Had it not been for one badly timed storm, and some very bad management decisions that week, Q1 would have shown about a 19 million profit.

Source? (Just curious, not trying to start a fight. I am a big fan of JB and wish you guys all the best.)

 

[A350]

Brown:

$41 mil for the meltdown, $22 mil loss. My math says a $ 19 mil profit without the Valentines day deal.....if we took all the loss this quarter.

Spreading our wings at places other than JFK will certainly help fill the bill. The legacies are all adding in their hubs, and DAL has consistently built up JFK. Look for us to add some connect the dot type routes that keep our planes out of the delay and divert aplenty northeast couldn't hurt either.

I look for JB to do a complete route analysis....SWA did it a few years back and by tweaking their aircraft routings, was able to gain the equivalent flying of several jets. Nothing like being more efficient. Each one of our planes leaves JFK and generally comes back. If we can get it out of JFK and keep it away out west or in Florida, this makes perfect sense.

Of course, if the economy softens up, everyone will be in the hurt bag as fuel stays stubbornly high.

A350

 

[nimtz]

Had it not been for one badly timed storm, and some very bad management decisions that week, Q1 would have shown about a 19 million profit.

So five days of operations causes a swing of $41 million?!? If that's true any sensible Board of Directors would ensure the ENTIRE management team was sh!tcanned for such incompetence. However I have high doubts Jetblue would of showed profit in Q1 and so did the Street if you try looking at reality. You need to dial down to level 4 bluejuice.

 

[Dogwood]

Source? (Just curious, not trying to start a fight. I am a big fan of JB and wish you guys all the best.)

Great Question. No problem. I don't look for fights either.

The JB Financial call this morning. I'm not making this stuff up.

The final estimated cost of the storm was 41 million. We lost 22 million, as a result.

 

[waterski]

The best product in the industry? Unless you are on the tarmac for 10 hours. The Meltdown was not your best week. I would think you are not in the current running for any awards.

Bye Bye--General Lee

Actually we are.

JetBlue Named Best Low Cost/No Frills Airline by OAG for Second Year in a RowNEW YORK, April 19, 2007 (PRIME NEWSWIRE) -- JetBlue Airways (Nasdaq:JBLU) has been named Best Low Cost/No Frills Airline by OAG, the global travel and transport information company, as part of their 2007 OAG Airline of the Year Awards. This marks the second year running that JetBlue has been named top airline in this category. The New York-based low-fare, low-cost carrier was among 42 airlines and airports that received nominations in 15 regional and global categories during the 25th Anniversary ceremony this week in London.
"On behalf of JetBlue's 12,000 crewmembers, I am pleased and honored that frequent fliers from around the world have recognized JetBlue with this highly coveted award," said JetBlue Founder and CEO, David Neeleman. "This mark of distinction truly goes to all of our crewmembers who bring humanity back to air travel one customer at a time, while still offering low fares and more frills, including the most legroom in coach." (a)
The OAG Airline of the Year Awards have grown in stature and prestige over more than two decades. For airlines around the world, they are among the most valued and respected of all the accolades, representing the views of their most important customers -- the frequent traveler. Independent and unbiased, the OAG awards recognize excellence, both in the air and on the ground.
JetBlue Airways has created a new airline category based on value, service and style. Based in New York City, and now in its eighth year, the low-cost carrier currently serves 51 destinations with more than 550 flights daily. JetBlue has the most legroom in coach (a) and is America's first and only airline to offer its own Customer Bill of Rights, with meaningful compensation for customers inconvenienced by flight delays or cancellations (b). In addition to its signature seatback personal television service (c), the low-fare, high-value airline offers customers generous brand name snacks and beverages, including freshly brewed Dunkin' Donuts(r) coffee, and delicious wines selected by the airline's Low Fare Sommelier, Josh Wesson from Best Cellars(r). JetBlue service between Boston and Martha's Vineyard, Nantucket, Provincetown, and Hyannis, MA is operated by JetBlue's marketing partner, Cape Air. With JetBlue, all seats are assigned, all travel is ticketless, all fares are one-way, and an overnight stay is never required. For information or reservations call 1-800-JETBLUE (1-800-538-2583) or visit www.jetblue.com

 

[Dogwood]

The best product in the industry? Unless you are on the tarmac for 10 hours. The Meltdown was not your best week. I would think you are not in the current running for any awards.

Bye Bye--General Lee

Wrong again General. We've got a closet full of them, and just won another a couple of weeks ago.

True that was not our best week, but our customers have given us a second chance, it seems.

If we make a habit of repeated days like that, we'll have problems, no doubt.

 

[LearLove]

Neelman is going to be on Fastmoney tonight on CNBC.

FASTMONEY - how ironic. not only for JB but for the way the rest of the industry/airlines are run these days let alone everyother bussiness in america today.

 

[StarChecker]

The best product in the industry? Unless you are on the tarmac for 10 hours. The Meltdown was not your best week. I would think you are not in the current running for any awards.

Bye Bye--General Lee

JetBlue...one bad week

Delta....daily horror show at the JFK Express Gates. Walk down and check it out. Pick any day...it's a nightmare EVERY day. Then tell me you'd send your worst enemy onto one of Freedom's Dash-8's after screaming over the 100 people surrounding each ticket counter...


We're gonna be just fine...best product in the industry. I'm a native NY'er and people here are fanatical about JetBlue. I know tons of people who refuse to fly on any other airline and I don't blame them.

 

[Headfake14]

...I'm flatered that some of you need to knock us (JB) down. I can see you are concerned. The day you stop trying to smear my airline is the day I start being concerned.

Dogwood, I agree, once we can spread out more and not tie everything to JFK, WX won't be such an issue. I look foward to our SFO operation taking off.

 

[FlyinGuy]

Waterski, Not to knock your success that was printed in that article, but I think there are several airlines that can find an orginization that will list them as the "best in the industry"... I also believe that JB has a good product and will do just fine.

 

[ATR-DRIVR]

The best product in the industry? Unless you are on the tarmac for 10 hours. The Meltdown was not your best week. I would think you are not in the current running for any awards.

Bye Bye--General Lee

General, I have been lurking for several months and have to know just why are you so anti-JB? Yeah, we were 'on the tarmac for 10hrs'. BFD, YOU WERE JUST A COUPLE OF AIRPLANES DOWN FROM US. You had several airplanes that were out there just as long, so it wasn't YOUR best week either. I got that from a F/A who was on it!!!
As far as awards, you really should read more instead of posting.

 

[elag777]

General, I have been lurking for several months and have to know just why are you so anti-JB? Yeah, we were 'on the tarmac for 10hrs'. BFD, YOU WERE JUST A COUPLE OF AIRPLANES DOWN FROM US. You had several airplanes that were out there just as long, so it wasn't YOUR best week either. I got that from a F/A who was on it!!!
As far as awards, you really should read more instead of posting.

Yeah what he said General Pee Pee!:nuts:

 

[Smoking Man]

JetBlue...one bad week

Delta....daily horror show at the JFK Express Gates. Walk down and check it out. Pick any day...it's a nightmare EVERY day. Then tell me you'd send your worst enemy onto one of Freedom's Dash-8's after screaming over the 100 people surrounding each ticket counter...

:beer:

 

[Lear70]

The best product in the industry? Unless you are on the tarmac for 10 hours. The Meltdown was not your best week. I would think you are not in the current running for any awards.

Bye Bye--General Lee

General, when was the last time you were on a JB flight?

I take DAL every week back and forth to work, and I greatly appreciate the ride.

That said, if JB were running BNA-ATL several times a day, you'd never see my butt on a DAL flight.

JB has a FANTASTIC product... beats DAL hands-down.

Their financial performance is a completely different issue... altogether.

 

[Charlie Brown]

Dogwood,
Thanks for the reply. I was unaware they had made those numbers known. I also had no idea the issue in JFK was so costly. Ouch. Here's to better times ahead:beer:

 

[another cfii]

General, when was the last time you were on a JB flight?

I take DAL every week back and forth to work, and I greatly appreciate the ride.

That said, if JB were running BNA-ATL several times a day, you'd never see my butt on a DAL flight.

JB has a FANTASTIC product... beats DAL hands-down.

Their financial performance is a completely different issue... altogether.

Hey Rich,

How's Airtran treating you guys?? I hope your commute to BNA is much better to ATL than to DTW. It's all going peachy here at 9E, but I don't think my retro check is coming in the mail anytime soon. I think my ears have dropped to the floor waiting for SG to call me... Though these days, the first class date gets my dedication (that is, until the better offer comes along

I think most of us here are a bit envious of how JB is actually trying to run a decent business, trying to treat pax the "right" way. With that said, for us pilots, it's still business as usual. The highest bidder gets our loyalty. QOL and pay is more important than anything. If JB starts pulling any labor/mgmt crap, we'll see that place go down the drain in a dime. And that's exactly why SWA gets it. You'll never see a legacy FO running down the ramp in the rain trying to do his walkaround, so that they can do a 30 minute turn in hub.

 

[FDJ2]

Actually we are.

JetBlue Named Best Low Cost/No Frills Airline by OAG for Second Year in a

Funny, that doesn't state that JBLU has the best product in the industry, just best among no frills airlines, according to OAG.

 

[Flydaplane]

Well since we're talking about awards and best carrier awards here's one for you...too bad we don't go enough places to matter to anyone but MKE and MCI passengers.

Midwest Airlines

"The best care in the air" on every flight, every day.
Awards

• Travel+Leisure magazine recognized Midwest Airlines as Best Domestic Airline in 2004, 2003 and 2002 - a total of five times in eight years.
• OAG, publishers of the Official Airline Guide, named Midwest Airlines Best Airline based in North America in 2003 and Best Economy/Coach Class Airline in 2002.
• Condé Nast Traveler Business Travel Awards rated Midwest Airlines #1 Domestic Airline in its class in 2003 and 2002.
• The prestigious Zagat Airline Survey rated Midwest Airlines the #1 Domestic Airline in its last four surveys.

And there's more...

For Eighth Straight Year, Midwest Airlines Recognized in Conde Nast Traveler Business Travel Awards Poll
MILWAUKEE, Sept 29, 2005 /PRNewswire-FirstCall via COMTEX News Network/ -- For the eighth year in a row, Milwaukee-based Midwest Airlines has been recognized in the annual Conde Nast Traveler Business Travel Awards poll.
Midwest Airlines placed first in three of the six categories in the 2005 poll of single-class domestic airlines.
Midwest ranked number one in the seat comfort/legroom category with a score of 71.4, followed by JetBlue (65.7), Song (41.1), Frontier (29.2) and Independence Air (26.5).
In the food/beverages category, Midwest came in first with 58.0 points, more than 20 points above its closest competitor. Song (37.7), Horizon (37.2), JetBlue (29.2) and Independence Air (19.7) were also recognized.
Midwest also came out on top in the category of cabin service with a score of 64.4 points. Runners-up included JetBlue (62.2), Song (50.3), Horizon (43.7) and Independence Air (40.3).
Midwest Airlines also came in a strong second in the overall domestic single-class airline category with a score of 52.6. Others on the list include JetBlue (54.1), Song (46.7), Frontier (30.7) and Horizon (30.3).
In announcing the awards, Conde Nast Traveler noted that "The love affair between business travelers and smaller carriers shows no signs of abating, at least not when it comes to flying domestically. The three top-ranked single-class airlines -- JetBlue, Midwest and Song -- all receive higher overall scores than the premium classes of the major U.S. carriers ... Midwest and JetBlue, for example, score 71.4 and 65.7, respectively, for Seat Comfort/Legroom. By comparison, American Airlines places first for premium- class seats among the multiclass carriers, with a score of just 45.7."

 

[General Lee]

Actually we are.

JetBlue Named Best Low Cost/No Frills Airline by OAG for Second Year in a RowNEW YORK, April 19, 2007 (PRIME NEWSWIRE) -- JetBlue Airways (Nasdaq:JBLU) has been named Best Low Cost/No Frills Airline by OAG, the global travel and transport information company, as part of their 2007 OAG Airline of the Year Awards. This marks the second year running that JetBlue has been named top airline in this category. The New York-based low-fare, low-cost carrier was among 42 airlines and airports that received nominations in 15 regional and global categories during the 25th Anniversary ceremony this week in London.
"On behalf of JetBlue's 12,000 crewmembers, I am pleased and honored that frequent fliers from around the world have recognized JetBlue with this highly coveted award," said JetBlue Founder and CEO, David Neeleman. "This mark of distinction truly goes to all of our crewmembers who bring humanity back to air travel one customer at a time, while still offering low fares and more frills, including the most legroom in coach." (a)
The OAG Airline of the Year Awards have grown in stature and prestige over more than two decades. For airlines around the world, they are among the most valued and respected of all the accolades, representing the views of their most important customers -- the frequent traveler. Independent and unbiased, the OAG awards recognize excellence, both in the air and on the ground.
JetBlue Airways has created a new airline category based on value, service and style. Based in New York City, and now in its eighth year, the low-cost carrier currently serves 51 destinations with more than 550 flights daily. JetBlue has the most legroom in coach (a) and is America's first and only airline to offer its own Customer Bill of Rights, with meaningful compensation for customers inconvenienced by flight delays or cancellations (b). In addition to its signature seatback personal television service (c), the low-fare, high-value airline offers customers generous brand name snacks and beverages, including freshly brewed Dunkin' Donuts(r) coffee, and delicious wines selected by the airline's Low Fare Sommelier, Josh Wesson from Best Cellars(r). JetBlue service between Boston and Martha's Vineyard, Nantucket, Provincetown, and Hyannis, MA is operated by JetBlue's marketing partner, Cape Air. With JetBlue, all seats are assigned, all travel is ticketless, all fares are one-way, and an overnight stay is never required. For information or reservations call 1-800-JETBLUE (1-800-538-2583) or visit www.jetblue.com

Maybe the OAG folks forgot about the Valentine meltdown. Oh well, a lot of New Yorkers didn't, and now Jetblue is saying there is weakening demand. You think? Maybe a connection there? I dunno...

Bye Bye--General Lee