JetBlue made good this quarter

[FlyBoeingJets]

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060725:MTFH74237_2006-07-25_12-02-06_N25316854&type=comktNews&rpc=44

The JetBlue dudes said the cost cutting would work wonders.

Look like it has....Congrats


UPDATE 1-JetBlue 2nd-qtr earns flat, ahead of expectations

Tue Jul 25, 2006 8:02am EThttp://i.today.reuters.com/images/spacer.gif

NEW YORK, July 25 (Reuters) - Discount airline JetBlue Airways Corp. (JBLU.O: Quote, Profile, Research) on Tuesday said its quarterly earnings were flat, beating Wall Street's expectations, as cost-cutting and stronger revenue offset higher jet fuel prices.

The New York-based airline said net profit for the second quarter was $14 million, or 8 cents a share, compared to $13 million, or 8 cents a share in the same period last year.

The figures were well ahead of Wall Street expectations. Analysts expected JetBlue to post earnings of 4 cents a share, according to Reuters Estimates.


After reporting its second consecutive quarterly loss in the first quarter, JetBlue embarked on a turnaround effort that sought to cut annual costs by $50 million and increase revenue by $30 million.

The six-year-old carrier's restructuring comes amid signs that the airline industry is on the mend after years of losses. Southwest Airlines Inc. (LUV.N: Quote, Profile, Research), American Airlines parent AMR Corp. (AMR.N: Quote, Profile, Research), and United Airlines parent UAL Corp. (UAUA.O: Quote, Profile, Research) have all surprised investors with better-than-expected earnings.

Operating revenues rose 42 percent to $612 million as the company's revenue per seat rose 16 percent.

Assuming a jet fuel price of $2.20 a gallon in the third quarter, JetBlue said it expected a pretax profit margin of between a negative 1 percent and a positive 1 percent. For the full year, the airline forecast a pretax profit margin in the same range.



© Reuters 2006. All Rights Reserved.

 

[SWA/FO]

They cheated! They sold airplanes! What would they have made without their fuel hedge?

 

[Bavarian Chef]

They cheated! They sold airplanes! What would they have made without their fuel hedge?

Have you ever posted ANYTHING not funny? You are HI-FREAKIN-LARRY-US...


Just checked yahoo -- stock getting hammered in pre-trading because that outlook was poor. Maybe our ceo can turn some sentiment around in the earnings call.

Oh well.

 

[lowecur]

They cheated! They sold airplanes! What would they have made without their fuel hedge?

Actually they didn't sell the 5 a/c. It was reported that they will lease 5 320s to Blue Wing until 2009. Looks like they will be coming back into service, unless they are sold at that time.

Nice job by B6 increasing the yields. CASM continues to climb for all the carriers as fuel goes through the roof. Average stage length for Jetblue was reduced to the 1200 mi range but needs to come down to the 900 range to make the airline more viable. That will take at least 3 years to accomplish.

The need for the announcement of a midwest hub is mandatory in the next few months. They need to start connecting the dots as more 190s come on line, as the present point to point into JFK/BOS ain't gonna cut it. An MCO focus could relieve some of the pressure.

imp:

 

[lowecur]

Have you ever posted ANYTHING not funny? You are HI-FREAKIN-LARRY-US...


Just checked yahoo -- stock getting hammered in pre-trading because that outlook was poor. Maybe our ceo can turn some sentiment around in the earnings call.

Oh well.

Neeleman has learned his lesson. Guidance is going to be conservative from now on, letting the results speak for themselves. This quarter the estimate was 5 cents and they got 8 cents. With fuel where it is, Jetblue is doing the smart thing.

imp:

 

[On Your Six]

Actually they didn't sell the 5 a/c. It was reported that they will lease 5 320s to Blue Wing until 2009. Looks like they will be coming back into service, unless they are sold at that time.

Nice job by B6 increasing the yields. CASM continues to climb for all the carriers as fuel goes through the roof. Average stage length for Jetblue was reduced to the 1200 mi range but needs to come down to the 900 range to make the airline more viable. That will take at least 3 years to accomplish.

The need for the announcement of a midwest hub is mandatory in the next few months. They need to start connecting the dots as more 190s come on line, and the present point to point into JFK/BOS ain't gonna cut it. An MCO focus could relieve some of the pressure.

imp:

Any guesses on the Midwest hub? STL? MCI? IND? Will they need to select a current, proven location to build a hub or will they announce xyz city is the new focus city in the Midwest? STL would make sense with the new runway so long as they could secure some gates - far away from the AA terminal which is crappy......

 

[da90drivr]

Lowcur, do you have a link to where you found the Blue Wing info?

 

[Bavarian Chef]

STL. I hear it's a black hole, or maybe quicksand is a better description.

 

[coogebeachhotel]

Use 320 APU's to power the grid in STL

 

[J32driver]

STL. I hear it's a black hole, or maybe quicksand is a better description.

Whatchu talkin bout Willis!?!?!?