jetblue post full year profit, small 4th quarter loss!

[lowecur]

Not exactly, but a profit of 18 million is nothing to brag about. In a year where most airlines had a pretty decent profit, keeping less than 1 cent of every dollar brought in isn't exactly exciting.

It is considering that B6 was hamstrung through most of 2007 by the Neeleman School of how not to run a maturing airline. Check out how much Blue is up in the market today to understand what Wall St thinks of their prospects in 2008.

imp:​

 

[inthewind]

Could be on the 4th Q financials, but I would guess they probably took a small loss on the sale as buyer probably received a markdown if a/c was due for heavy mx.

imp:​

At my interview on the 11th they said that they were actually able to sell them for what they have in them because overseas demand is so high right now.

 

[HomerJ]

Not exactly, but a profit of 18 million is nothing to brag about. In a year where most airlines had a pretty decent profit, keeping less than 1 cent of every dollar brought in isn't exactly exciting.

Take out the 40 mil. we lost in 5 days back in February, and we had a nice 58 mil. dollar year. I know, I know, what's done is done...

 

[captain dad]

Slow sad decline?

Nice job, in the face of stiffening competition, JB seems to be holding their own and still growing.

I wish them all the best, but a very small gain for the year which is a direct result of selling aircraft off to look good...doesn't look good to me.

Someone explain to me how an airline grows but at the same time is selling off aircraft? Either you are making it or you aren't. Again, I wish them all well there, but I am smelling something funky, maybe JetBlueCheese. Working the margins on A/C sales doesn't make good economics.

I see the moral declining and a shift in original ethics. The fresh water spring may have turned into a stagnant frog pond. Good Luck.

 

[Tanker Clown]

You JetBlue guys need to find your General Lee. Then you could see how awsome your loss could be and how the company wanted the loss all along.

 

[maxblast72]

Someone explain to me how an airline grows but at the same time is selling off aircraft? Either you are making it or you aren't. Again, I wish them all well there, but I am smelling something funky, maybe JetBlueCheese. Working the margins on A/C sales doesn't make good economics.

Actually, right now the margins on aircraft sales are real good as Asia and Africa are really hot for narrowbody Airbus and Boeing aircraft. Our management get calls every week trying to buy some of future orders of B737-700's.

Southwest management was asked last week if they were going to get into the aircraft leasing market after SW announced they were selling and releasing 22 of their aircraft in 2008 (still getting 29 new ones for a net gain of 7 aircraft). So it appears that accepting new deliveries while getting rid of some older ones makes sense financially now of days when trying to slow the growth rate down.

 

[PHXFLYR]

Please...one General Lee per webboard is more than enough,thank you.

PHXFLYR

 

[lowecur]

I wish them all the best, but a very small gain for the year which is a direct result of selling aircraft off to look good...doesn't look good to me.

Someone explain to me how an airline grows but at the same time is selling off aircraft? Either you are making it or you aren't. Again, I wish them all well there, but I am smelling something funky, maybe JetBlueCheese. Working the margins on A/C sales doesn't make good economics.

I see the moral declining and a shift in original ethics. The fresh water spring may have turned into a stagnant frog pond. Good Luck.

Captain Pops

Forbes has all the answers - read em an weep: :crying:

imp:​

Despite the better than expected results, the stock rose so much because of the anticipated growth in sales for the upcoming year.

For the first quarter JetBlue expects unit sales growth to increase 10-12% and 9-11% for the full year, well ahead of the 2.6% it reported in its fourth quarter.

FTN Midwest Securities analyst Michael Derchin credited the increase in the first quarter mostly to weak numbers for the comperable period last year, as 2007 suffered from foul weather.

A list of issues were at play for the rest of 2007, though. For example, JetBlue will only add 3 new cities in 2008, while in 2007 and 2006 they added 5 and 16 respectively.

“You can expect higher revenue from cities they are maturing in,” Derchin said, “load factors get higher and it helps get rid of introductory fares and allows you to charge higher prices.”

Of course, I'm sure 90% of the increase will be due to the sale of the 320's. Just think, next year they could sell all the 320's and just keep the 190's. I must have died and gone to heaven.

 

[captain dad]

Actually, right now the margins on aircraft sales are real good as Asia and Africa are really hot for narrowbody Airbus and Boeing aircraft. Our management get calls every week trying to buy some of future orders of B737-700's.

Southwest management was asked last week if they were going to get into the aircraft leasing market after SW announced they were selling and releasing 22 of their aircraft in 2008 (still getting 29 new ones for a net gain of 7 aircraft). So it appears that accepting new deliveries while getting rid of some older ones makes sense financially now of days when trying to slow the growth rate down.

Yes, I agree to sell off A/C options that aren't going to be used is good business. SWA and others have done that for decades. However, JB has had a tendency to sell A/C to show a profit on their balance sheet and then adjust accordingly after the fact. That is like paying off your Visa with your MasterCard. Plus SWA writes a check, 100% cash for each of its A/C that they buy. No loans. JB could sell to show profit themselves right out of business.

I wish them luck and I like their product more than the Legacy carriers. I just don't agree with some of their practices and I think their culture is sliding. No slams, just wondering if anyone else has seen it.

Good Luck, I really do wish you all well.

Most financial writers also suggest to not invest in airline stock. JB is still less than 50% of what it was a year ago.

 

[aerobato]

You JetBlue guys need to find your General Lee. Then you could see how awsome your loss could be and how the company wanted the loss all along.

Our interview process tends to weed out guys like that. We hire guys with a personality........