JetBlue made good this quarter

[8vATE]

An MCO focus could relieve some of the pressure.

imp:

LowE..

Is MCO that high yielding a market that you think its integral in making money?

It always has struck me as a leisure, low yield market with lots of competition (SWA+Airtran) ...

?????

I would think getting into ORD would be much more lucrative yield wise...

 

[lowecur]

LowE..

Is MCO that high yielding a market that you think its integral in making money? You are not thinking ahead. Jetblue's yields will come from n/s flts from cities the size of SYR, using mostly the 190. It will work just fine.

It always has struck me as a leisure, low yield market with lots of competition (SWA+Airtran) ... ????? Can't help competition at this point. Every new city is going to see SWA/AAI competition. May the best airline win.

I would think getting into ORD would be much more lucrative yield wise...Yeah, that would be great if you could put a string of gates together. AMR/UAL will make sure that doesn't happen.

imp:

 

[Fins Up]

You may be right. I'm just used to him being a tool.

 

[lowecur]

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

Listened to the CC, and Neeleman and CFO are still insisting it is a sale. Two to go in Sept and three in October. Maybe B6 is selling them to Airbus, and Airbus is leasing back to Blue Wing.

imp:

 

[lowecur]

With the new WA legislation looking weak, it just may be that Jetblue wants to shake things up at DAL. The new WA would allow passthrough and access to 13 cities n/s. Jetblue just may look to mount a frontal assault at DAL with their 190s. 10 or 12 gates would open up much of the SW USA, and funnel pax to STL, KCI, or Hobby to further weaken WN. Interesting thoughts, although many would deem that a suicide.

imp:

 

[GogglesPisano]

Congrats Jet Blue!

 

[Bavarian Chef]

With the new WA legislation looking weak, it just may be that Jetblue wants to shake things up at DAL. The new WA would allow passthrough and access to 13 cities n/s. Jetblue just may look to mount a frontal assault at DAL with their 190s. 10 or 12 gates would open up much of the SW USA, and funnel pax to STL, KCI, or Hobby to further weaken WN. Interesting thoughts, although many would deem that a suicide.

imp:

Hey swami -- any mention of BlueStar Airlines in your tarot? I mean ... wait, sorry gotta go, Gecko's on the other line...

 

[Bavarian Chef]

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:

If this call did anything, it clearly stated how fuel is KILLING us. I have no facts to back it up, but I bet our profit was about 10 million dollars lower than projected due to another 10 cents a gallon on gas. As far as I know, we have no hedges. We have a catastrophic "cap" at 78 bux, but not sure what that is all about. Throw in a hurricane or two this fall and the fuel factor is only gonna hurt more. I am not so sure "conservative" is the right term.

I did hear a report on CNBC yesterday that talked about a lot more oil being discovered and brought into the market in Russia (for example) which could very well bring the price back down. Not sure I believe that one. Problem is, look at how our costs are skyrocketing despite our cost-cutting.



But wait, there's more: we just announced a fare sale. Brother.

 

[lowecur]

If this call did anything, it clearly stated how fuel is KILLING us. I have no facts to back it up, but I bet our profit was about 10 million dollars lower than projected due to another 10 cents a gallon on gas. As far as I know, we have no hedges. We have a catastrophic "cap" at 78 bux, but not sure what that is all about. The Airline made $6M this Q on hedges. Throw in a hurricane or two this fall and the fuel factor is only gonna hurt more. I am not so sure "conservative" is the right term. I did hear a report on CNBC yesterday that talked about a lot more oil being discovered and brought into the market in Russia (for example) which could very well bring the price back down. Not sure I believe that one. Problem is, look at how our costs are skyrocketing despite our cost-cutting. The CFO talked about reducing employees per plane from 91 to 80 in 2007. At todays average cost per employee, that's $100M savings on an annual basis. There's no doubt the deployment of 42 190s by the end of 2007 is costing the company big bucks in training. Neeleman said that sometime in the middle of 2007 that should begin to reach breakeven. After that, it's all gravy.


But wait, there's more: we just announced a fare sale. Brother.

Also, lot's of charters for football teams this fall. Good way to make a buck till the winter season arrives.

imp:

 

[Lake Alice]

I remember hearing that we would have a less than stellar '06 but 2007 and beyond were going to be great for some reason. Why is that?