JetBlue made good this quarter

[Bavarian Chef]

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

imp:

AHA! You really are David Neeleman!

Ahem ... training is a fixed cost. Fuel Hedging ... should have looked a little closer. News to me and probably to most pilots. Do Pop Warner teams travel on jb?

Reducing the number of employees per plane? Can't wait to see how that pans out on the next IROP.

 

[Andy]

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.

There is a significant amount of oil in Russia. Turkmenistan, Azerbaijan, and Kazakhstan also have a lot of oil.
The problem with Russian oil is that a lot of it is in 'environmentally challenging' locations. ie Siberia. Russia needs US oil technology in order to tap into that oil supply. Problem is, Russia won't open up bidding on those contracts to US companies until Russia is admitted to the WTO. I think that they hit another snag in the process last week, so it could be a while before the Russian oil starts to get tapped.
The oil in Turkmenistan, Azerbaijan, and Kazakhstan has a different problem; one of transportation. There needs to be a pipeline built across Afghanistan and Pakistan out into the Arabian Sea in order to get a decent quantity of that oil.

Higher fuel prices have spurred additional oil exploration; it takes more than a year to bring new supplies on line.

We are currently experiencing oil prices at historic highs. While there is upside potential (especially with the Israel/Lebanon factor), I wouldn't be surprised to see oil prices fall as new supplies are introduced to the world oil market.

 

[Andy]

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

imp:

Surely you're not talking NFL teams. Last year, the Redskins were 'forced' to charter a 767-200 because larger aircraft weren't available from United. The amount of gear and all the other sh!t that goes on the road with a team would take up more space than a 320 can provide.

 

[C601]

UPDATE 5-JetBlue 2nd-quarter EPS flat; outlook disappoints

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

"JetBlue's 'core' -- nonfuel -- guidance has been diminished," said J.P. Morgan analyst Jamie Baker in a note. "Fuel cannot be blamed and its valuation continues to stretch well beyond reasonable airline levels."

http://yahoo.reuters.com/news/artic...7-25_20-22-45_N25316854&type=comktNews&rpc=44

 

[seahorse]

Yeah but how much of that profit is attributed to not having to pay for cabin cleaners?

 

[Bavarian Chef]

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

"JetBlue's 'core' -- nonfuel -- guidance has been diminished," said J.P. Morgan analyst Jamie Baker in a note. "Fuel cannot be blamed and its valuation continues to stretch well beyond reasonable airline levels."

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060725:MTFH87751_2006-07-25_20-22-45_N25316854&type=comktNews&rpc=44

A quote from your article:

"But chief executive David Neeleman said on a conference call that jet fuel prices were solely to blame for the softer guidance and the company's cost-cutting efforts were about 5 percent ahead of schedule."

Tell the whole story.

 

[C601]

A quote from your article:

"But chief executive David Neeleman said on a conference call that jet fuel prices were solely to blame for the softer guidance and the company's cost-cutting efforts were about 5 percent ahead of schedule."

Tell the whole story.

Well I guess we will have to wait until quarter to find out if he his right... But then again if he is not, just blame the fuel prices....

 

[lowecur]

Surely you're not talking NFL teams. Last year, the Redskins were 'forced' to charter a 767-200 because larger aircraft weren't available from United. The amount of gear and all the other sh!t that goes on the road with a team would take up more space than a 320 can provide.

He just said charters. I'm sure there are plenty of alumni charters, or even schools that charter two a/c so they can take "the band."

imp:

 

[Bavarian Chef]

He just said charters. I'm sure there are plenty of alumni charters, or even schools that charter two a/c so they can take "the band."

imp:

Military charters, yes. Taking "the band" to a football game, oh the humanity.

 

[Bavarian Chef]

Well I guess we will have to wait until quarter to find out if he his right... But then again if he is not, just blame the fuel prices....

What airline did you say you work for?

 

[FlyAuburn]

Rumor is Auburn Football team. Sign me up! I'll take the Tiger Paws (dance team) any day. Just kidding - I wish! :bawling:

 

[FlyAuburn]

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?

Maybe is because there will be more "connecting the dots" between all the cities that we have opened this year. DN did say that we will increase frequency in those. Also, better utilization on the 190 after recovering from the last rough winter. I may be wrong.
From the call, I got the impression that that the A/C helped considerably in the small profit. :beer:

 

[8vATE]

Military charters, yes. Taking "the band" to a football game, oh the humanity.

I think it was mentioned already..

But we have quite a few Gitmo charters lined up too.

 

[FlyAuburn]

I think it was mentioned already..

But we have quite a few Gitmo charters lined up too.

BTW, charters are not cheap. Anything around 1.5 hours each leg could run around 90k round trip (A-320). "Signem" up!

 

[Bavarian Chef]

I will gladly take the band for 90k and if need be, any dance team or cheerleading squad or maybe even a mascot or two.

 

[JP4user]

Yeah but how much of that profit is attributed to not having to pay for cabin cleaners?

You are not allowed to bash JetBlue in any form on this forum.

Neeleman sure has tamed his predictions compared to earlier comments about future financial performance. Not a bash blue boys, just an observation.

 

[curtaindriver]

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

"JetBlue's 'core' -- nonfuel -- guidance has been diminished," said J.P. Morgan analyst Jamie Baker in a note. "Fuel cannot be blamed and its valuation continues to stretch well beyond reasonable airline levels."

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060725:MTFH87751_2006-07-25_20-22-45_N25316854&type=comktNews&rpc=44

They didn't sell aircraft this quarter. Don't make statements you know nothing about. Right now there is only an "LOI" for the five aircraft. Those numbers will downgrade debt, as well.

CD

 

[Hair-on-Fire]

We are currently experiencing oil prices at historic highs.

Actually, the inflation adjusted price for the peak during the Arab oil embargo is about $86/barrel. Still have a ways to go.

 

[B6Driver]

"Still have a ways to go."

Lets all hope not.

 

[vetrider]

I think maybe SWA/FO was jabbin everyone that sais SWA is cheating about hedges. Maybe I'm wrong, but I think he was joking.

CD

I think you are right, that was my take too.

 

[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