jetblue reports small profit, loss for year

[Blue Dude]

How can the company cut available seats if they are continuting to take delivery of airplanes???

How many seats a month are going to be added with currently scheduled deliveries?

It's a capacity "cut" in the same way that Congress "cuts" spending. If you plan to increase capacity in a market by 10%, but only increase it by 8%, it's considered a 2% cut. Even though it actually increased by 8%. He's saying the capacity increase in a few markets will be less than forecast, not that overall capacity will go down.

 

[AAflyer]

They did raise prices, something like 10% average ticket price. It just wasn't enough to cover a 50%+ increase in the cost of fuel.

American did as well. I think another poster misunderstood this statement. It was not a bash, merely a point that almost EVRYONE has lost pricing control!

As for the too funny remark, every year we hope for a tailwind, and every year a stronger headwind approaches. You have to laugh or you will cry.

AA

 

[AAflyer]

During the CC David Neeleman stated that "capacity cuts" would most likely occur in markets with higher daily frequencies, like JFK-FLL. This would serve a two-fold benefit allowing B6 to raise tickets prices in those markets and still keep LFs high, while at the same time taking the extra aircraft and deploying them into new markets. So expect to see more new cities announced in 2006 for both A320 & E190.

Perhaps the most distressing thing I heard in the CC was DN's comments about what B6 has paying for fuel since Oct 1st. He said the price has spiked up to an average price of $2.40/gal and now makes fuel the highest cost item for the airline at 31%. This is a universal impact on all airlines over the near term (put your SWA disclaimer here) and will frustrate further the plans for airlines currently in BK.

BTW AA, if you want to find the boogie man in this debate about why fares are "low", you'll be more credible to lay blame at the feet of the usual suspects hiding out in BK protection. Have you ever heard of the economic term called "elastic demand?"

Speedbird,

An important characteristic of demand is the relationship among market price, quantity demand and consumer expenditure. The nature of demand is such that a reduction in market price will usually lead to an increase in quantity demanded. Given that consumer expenditure is the product of these two variables, the effect of a price reduction will have an uncertain impact on this expenditure. In some cases a reduction in price will be more than offset by a large increase in quantity demanded -- a situation where demand is price sensitive or price elastic.

Yes, I do understand the above concept, it just seems MANY (legacies and LCCs) airlines can not find that fine line.

AA

 

[8vATE]

8vATE, As I have said before. This stinks for everyone! I don't wish will upon JB or anyone. WAY TO MANY people nad families have suffered already.

I don't understand why you would wish a paycut upon myself? 8vATE, This concludes my conversation with you. You are not the enemy and neither am I. If you would like to bash my AArogant ways again I will leave you the last word.

AAflyer

Fair enough...

I don't wish ill will on anyone.
But your original post had a tint of JB bashing.

Truth of the matter.
The industry is in disarray and the "good ole days" are long gone.

I missed the boat by a good 25 years the way I figure it.

 

[G4G5]

But SWA doesn't compete in a large number of markets. Large as they are, they aren't everywhere at once. Even then, they often don't set the bottom price. What they do is set the highest fare in the market lower than it was. This is made possible in part by their fuel hedges, but that's a relatively recent advantage. Why is it they've been the legacy boogeyman for a decade or two if it was just about hedges?

It's because of the post 9-11 aviation economy. Their are only 2 choices for aircraft A320 or 737 and for the most part ch11 has allowed everyone to renegotiate leases to the point where everyone is basicly paying the same amount for their aircraft.

Internet pricing no longer gives anyone the advantage that it did just a few years ago.

CH11 has also allowed everyone to renegotate pilot pay rates to the point where generally speaking everyone is making the same pay rates. Ex a 5 year A320 pilot at JB($121) is making the same amount as a 5 year UAL pilot($120). Other then SWA, their are no large salery differences.

As NWA and JetBlue have shown the future of aircraft maintenance is abroad.

So if you can't gain a competitive advantage with labor costs, technology, maintenance or aircraft leases. Fuel is the next big hurdle. The problem once again lies in the fact that just about everyone is paying the same price for fuel, except SWA.

That's what has changed. Just 5 years ago the price of aircraft leases, maint and labor where no where near as close as they are today.

 

[BlueBusDriver]

Jfk-bos-jfk-bos-jfk.......

(Quote)
"JetBlue
from
$25*
each way
BETWEEN AND
New York City, NY (JFK) Boston, MA
7-day advance purchase is required.
Sale fare must be booked by Oct 21, 2005.
Travel must be completed between Oct 22, 2005 and Dec 21, 2005.
Blackout dates for travel are Nov 22, 2005 to Nov 28, 2005.
Other restrictions apply.*

Service to Boston begins Nov 8, 2005."



AAFlower....

Did you type this information or copy and paste? I'm pretty sure that you typed it in yourself. Look closely at the "Travel must be completed by" dates versus the "Service begins date".
Now...I've never claimed to be genius material, but how can you travel on these routes on October 22nd when the service doesn't begin until Nov 8th?
Just an observation.

 

[AAflyer]

(Quote)
"JetBlue
from
$25*
each way
BETWEEN AND
New York City, NY (JFK) Boston, MA
7-day advance purchase is required.
Sale fare must be booked by Oct 21, 2005.
Travel must be completed between Oct 22, 2005 and Dec 21, 2005.
Blackout dates for travel are Nov 22, 2005 to Nov 28, 2005.
Other restrictions apply.*

Service to Boston begins Nov 8, 2005."



AAFlower....

Did you type this information or copy and paste? I'm pretty sure that you typed it in yourself. Look closely at the "Travel must be completed by" dates versus the "Service begins date".
Now...I've never claimed to be genius material, but how can you travel on these routes on October 22nd when the service doesn't begin until Nov 8th?
Just an observation.

Actually I cut and pasted. Will go back and see what the website says. I have a Macintosh so the font always comes out as regular 12 type. However I did not alter what was cut and pasted.

AAflower? Is that meant to be funny, or are you showing the public that an A320 Captain gets his kicks off of name calling? I notice this board gets into name calling when debates get heated. Do you really think it does any good? I think it brings out the worst in us. For example I wanted to type something just as stupid back, but didn't. Hoping you will retract the name calling and stick with the subject.

Sincerely,

AAflyer

 

[AAflyer]

Blue BusDriver,

I think your company has made a mistake. Glad you caught it, I didn't. If you go to the JetBlue.com website then click. Latest Deals and News you will notice the marketing error.
Hopefully you will call and get this changed.

Regards,

AAflyer

 

[klhoard]

. . .<snip>. . You can only raise prices so fast without creating too much of a shock to consumers.

.
.
.
That hasn't seemed to stop the oil companies.. . .
.
.
.

 

[Dizel8]

..
That hasn't seemed to stop the oil companies.. . .

People NEED oil, but hey don't need a trip to Disney World and if you ask GM and Ford, apparently they no longer feel the need for a gasguzzling SUV either.