jetblue reports small profit, loss for year

[Dizel8]

By reducing service in markets that are saturated and introducing new markets. Or just simply flying the airplanes less.

 

[8vATE]

It says SO MUCH when the LCCs can not raise prices to cover fuel expenses. Let it be a lesson. You spoil the American consumer with air fares cheaper than they were in the 80s and now they revolt if they have to pay $5 more for a ticket.
Too Funny.

AA

Sounds like a great AArogant comment.

So "spoiling" the American consumer is who's fault?
Inept airline management?
The consumer is at fault?

All you guys spouting off "raise fares" need to come to a fundamental realization.

Airline passengers are discretionary spenders to a large degree just like other consumers.

A LOT of them DON'T HAVE to fly.
Some do... Some don't.

Raising fares will reduce demand.
There will be further capacity reductions.

To a large degree this is what needs to happen.
But there is a lot of unrational airline managers out there more than happy to sell their product at a loss, rape labor, cancel pensions and now operate under the protection of CH 11.

 

[Rez O. Lewshun]

To a large degree this is what needs to happen.
But there is a lot of unrational airline managers out there more than happy to sell their product at a loss, rape labor, cancel pensions and now operate under the protection of CH 11.

And carve themselves out a nice compensation package.

Air Line Pilots who presume to know anything about business....classic....

Point the jet where they tell you. Do it safely and effeciently... try to have fun. Negotiate what you can. Done. Any questions?

 

[AAflyer]

Common, is AArogant the best you can do? I have that thrown in my face enough, it is no longer original. However I do agree about selling seats at a reduced cost that can not cover the cost of the ticket.

Oh! Looky here, this must be one of those fares.

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.

The airline business brings in 10% of the GNP. yes some people fly on occasion, but many need to fly. If they can afford the gas for their car, and everything else that costs more; milk, a pair of jeans, coffee, orange juice.Then they can pay another $5- $10 for an airline ticket.

When you are company sets fares like below, what are the other airlines supposed do? Match you or pull out of the market. If JB posts a loss for the year due to high fuel prices pleases do not rationalize your cheap tickets to me.

I guess your comment suggest that the average consumer will not pay more and as we go forward we should all subsidize the flying public.

AAflyer

PS. I am still paid well, and unlike you I have a pension. (Still 80% funded)

Sounds like a great AArogant comment.

So "spoiling" the American consumer is who's fault?
Inept airline management?
The consumer is at fault?

All you guys spouting off "raise fares" need to come to a fundamental realization.

Airline passengers are discretionary spenders to a large degree just like other consumers.

A LOT of them DON'T HAVE to fly.
Some do... Some don't.

Raising fares will reduce demand.
There will be further capacity reductions.

To a large degree this is what needs to happen.
But there is a lot of unrational airline managers out there more than happy to sell their product at a loss, rape labor, cancel pensions and now operate under the protection of CH 11.

 

[Dizel8]

Those are obviously sale fares, since the company is trying to break into a new market. All airlines do this or have sale fares when demand is low, ie $200 to London in the fall/winter.

 

[MedFlyer]

I agree.......RAISE THE F-ING TICKET PRICES!!

JetBlue did. Yields were up 6.0% and RASM was up 9.4%. Unfortunately, costs rose even faster...CASM was up 14.3%.

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

 

[SpeedBird]

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?"

 

[Dizel8]

Not sure low fares are so much a problem of airlines in Ch.11, but low fares are the reason for Ch.11. I think the competetive enviroment is the real reason, the all encompassing desire to maintain or increase marketshare, to hell with the associated cost.

We have seen major carriers operate low cost divisions, even though the cost structure is the same as mainline. How that works, I am not sure, but perhaps it does on paper.

No one is willing to raise the fares to the level they should be and unfortunately, collusion is illegal. Now, there has been several attempts to raise fares, but they have been squashed by hold outs.

It is interesting to note, that had oil been trading at "normal prices" even with so many seats, most, if not all, of the airlines would have posted profits. It is a catch 22, with the consumer being squeezed at the pump, having less expendable cash overall, the airlines need to have lower fares. Fares so low, that they do not cover the expense of jetfuel.

How much higher does fares need to go, I am not sure, but probably not that much. AA, while posting a loss, it was relatively small and considering how many tickets they sell, even something as small as ten or twenty dollars per ticket, would have put them in the black. (I should mention, that I think AA has done an outstanding job, while avoiding Ch.11.)

Twenty dollars really should be nothing to the average passenger, he probably spends more than that at the airport for coffee, a sandwich and a magazine. However, he will scour the interwebs for hours, trying to save 5 bucks on a ticket. Sadly, all the airlines are more than willing to accomodate him.

 

[lowecur]

Frontier is down about 25% on the SWA announcement. I just bought a few shares as I don't see SWA tearing up DEN.

Jetblue is down around 4%. With a 3/2 stocksplit coming up in what Dec, that should bring the price in around $10 if the stock trades down to my anticipated $15 range. I will probably wet my beak between $6-8 per share as S&P has forecast a loss for the year of .10 per share($15M). This points to a 4Q loss of .25-.35 per share, or a $39-55M. Those fare give-aways to stimulate the new shuttle are killers.

:beer: Beer Me!

 

[8vATE]

Common, is AArogant the best you can do? I have that thrown in my face enough, it is no longer original. However I do agree about selling seats at a reduced cost that can not cover the cost of the ticket.

Oh! Looky here, this must be one of those fares.

JetBlue
from
$25*
each way
BETWEEN AND
New York City, NY (JFK) AAflyer

PS. I am still paid well, and unlike you I have a pension. (Still 80% funded)

Yea..

Thought you would like that.

The $25 fare is a short term introductory fare.
Neeleman said today that its for "shock" value and in fact lessens advertising expenses since it gets so much media exposure.

As far as "you're still well paid and have a pension." typical arrogant comment.

When the legacies were paying top dollar I don't recall you guys ever leading the industry. And I'm so happy you think a 5 year old airline should match AA's mature rates.

You should devote your free time to preparing for more givebacks.