JetBlue made good this quarter

[Caveman]

B6 is still a fledgling airline. It came into existance and prospered during one of the most difficult times in aviation history. We're hiring, we pay a liveable wage, the company is growing, and we're making a modest profit. All of this is good for the industry and pilots in particular. Yet, some of you still want to pick at us for some reason. B6 ain't perfect, but from where I sit it's pretty dang good and it's way better than the regional I came from. Congrats to us for turning a $40M loss into a $14M profit in a short 6 months while fuel costs were still rising. I don't give a rat's ass about what the ANALysts have to say. That has more to do with B6 as an investment opportunity compared to other choices. Exxon is a better investment right now, but we are a well run profitable company and our chances look pretty good for long term profitability.

 

[Pat Fabin]

So why has every other airline, legacy and LCC alike reported profits this quarter that have doubled or tripled over last year while jetBlue's profit was flat? I think the company isn't doing nearly as well as it should be given its youth.

 

[sayagain?]

So why has every other airline, legacy and LCC alike reported profits this quarter that have doubled or tripled over last year while jetBlue's profit was flat? I think the company isn't doing nearly as well as it should be given its youth.

Does the fact that contracts have been gutted, pension payments lost, employees furloughed, work rules changed, bankruptcies, etc...maybe some of these have come into play?

 

[MD80DRVR]

So why has every other airline, legacy and LCC alike reported profits this quarter that have doubled or tripled over last year while jetBlue's profit was flat? I think the company isn't doing nearly as well as it should be given its youth.

Maybe it has something to do with the fact we're buying lots of new airplanes, building a hotel, building a new terminal, buying new simulators, opening new cities, hiring tons of people etc....

 

[Caveman]

So why has every other airline, legacy and LCC alike reported profits this quarter that have doubled or tripled over last year while jetBlue's profit was flat? I think the company isn't doing nearly as well as it should be given its youth.

You're looking back 1 year. Let's go back 5 years. During that time the legacys lost billions of dollars. Now you're crowing because a couple made a profit this quarter. It will take years to recoup those losses. Also, most of the 'profit' for those companies came out of the wallets of the employees and the debtors. So far, JetBlue hasn't asked for a dime from us, it has paid all of it's bills and over that same 5 years we've shown a net profit. That's why.

 

[Acefaser]

If they sold aircraft to break even this quarter, next quarter they will be pissing againest the wind

The 5 aircraft were not included in this quarter's profit.

 

[Pat Fabin]

All I'm saying is that due to all of the events over the last 4-5 years, the playing field is effectively leveled and with that being the case, your airline is lagging economically and piling on debt. I'm certainly not crowing about legacy profits....its about time. And I'm painfully aware of the sacrifices that made them possible. BUT, in a time when even the most disorganized, bloated carriers are making huge profits, its a troubling sign that jetBlue is not doing the same....especially when it has so many things in its favor.

Points to management that is not up to task. Easy to start em up, harder to keep em going I guess.

 

[Bavarian Chef]

JetBlue Could Fly Higher: Report
R.M. Schneiderman, 07.26.06, 10:16 AM ET

JetBlue Airways appears poised to realize more gains following better-than-expected second-quarter results, according to a report by Prudential Equity Research.
On Tuesday, JetBlue posted earnings per share of 8 cents versus Prudential's estimate of 5 cents and the Street estimate of 4 cents.
"The quarter reflected more progress than we had anticipated," said Bob McAdoo, a Prudential analyst.
McAdoo said the company is "redirecting its growth from long-haul to short/medium haul flights," which will create increasingly positive results.
Revenue generated per passenger mile was up 17% from the pervious quarter, according to the analyst. And revenue per available seat flow increased by 14% over the same time period.
"Company guidance translates to approximately a range of a loss of 8 cents to a profit of 8 cents for the year," he said.
"We believe guidance for the balance of the year probably understates likely future positive results."
The research firm gave JetBlue an "overweight" rating and a price target of $14.


http://www.forbes.com/2006/07/26/jetblue-0726markets03.html?partner=msn

Let's hope so.

 

[8vATE]

All I'm saying is that due to all of the events over the last 4-5 years, the playing field is effectively leveled and with that being the case, your airline is lagging economically and piling on debt.

Growing is expensive..
Opening 13 new cities in a year can have a lot of startup costs, real estate, hiring and advertising.

Buying airplanes means debt.

We could have chosen to grow the SWA way.
Look at their history.
Its impeccable. But they were VERY cautious, slow and methodical in their growth for their first 30 years.

Make no mistake.. no airline is bulletproof.

As a previous poster mentioned... Jetblue tries to pay and treat their people fairly.

When the E190 rates are adjusted upwards, things will be much better too.

But do we have problems?... sure we do.
But our product, IMO, is great and our leadership will get us through this.

 

[curtaindriver]

JetBlue is 25% of the size of these legacies. The net profit percentage is a more tangible number to compare. The legacies, are established, not growing at high rates and are gutted as far as costs go. The future only holds a growing number as far as costs go. JetBlue has costs that will actually decrease because of "econimies of scale". The 190 is supposedly going to start being a "break even" airplane next summer, and begin to be profitable shortly there after. Jetblue just needs to survive at this time, and will hopefully be quite prosperous in the near future.

CD