June JetBlue Numbers

[Blue Dude]

Blue dude,

just out of curiosity where did you come up with the yield being up 25%?

It's a consequence of the RASM being up 16% and the LF being down 6.9%. The actual figure is about 24.6%. PM me if you want the math.

 

[mannyaplus11]

Like your future?

The drop in load factor is something to be concerned with, especially in the summer months. Rationalize it away anyway you can.

Drop in load factor, yes. However, we are earning more per seat than we did previously. We are earning more with less people than we did with full planes.
WE RAISED PRICES!!!! Can I make it any clearer?

 

[JP4user]

Drop in load factor, yes. However, we are earning more per seat than we did previously. We are earning more with less people than we did with full planes.
WE RAISED PRICES!!!! Can I make it any clearer?

Your RASM is increasing but fewer people are willing to pay that premium for your product. Financially yes a wash but it is a disturbing trend. Especially in the summer.

 

[A350]

Its a simple equation......at $1 per seat, there is infinite demand. At $100 per seat, there is demand, but less, and at some point there is no demand because the price exceeds the customers capability to pay or there are alternatives to the travel. The key in the airline business is to get the most for your seats. For the past few years, no matter what JB did, they made money and they added flights that got the jet away from JFK for the longest periods of time for the sake of gate space.

With fuel at $1 a gallon, transcons made a lot of sense, even at $99 each way. Now with fuel so high, it isn't profitable so JB has had to rethink their options. They have chosen to go back to the original business plan and fly shorter hauls that consume less fuel but are generally revenue positive.

An example.....an A320 leaves JFK and flies to LGB and back with an 85% load factor....at an average fare of $115 JB generates 30,500 in revenue. $21,000 of that is the fuel cost today. (10,500 gallons at $2 bucks) Not much left for salaries and overhead considering it takes 12 hours operating time to pull it off depending on the winds.

Take the same A320 and put it on the JFK-BOS-IAD shuttle. The same jet can fly 8 segments. It takes more fuel, but the jet at an 80% LF can generate $115,000 in revenue during the same 12 hours. The kicker is that the average fare on this type of flight is even higher. Therefore it is a much smarter move to ditch the transcon in favor of the shorter haul.

Class is over......Next.

A350

 

[Bavarian Chef]

Your RASM is increasing but fewer people are willing to pay that premium for your product. Financially yes a wash but it is a disturbing trend. Especially in the summer.

SO if the numbers for the second quarter are good, and the outlook for the rest of the year is positive (i.e. profitable), what type of objective commentary will you have? Any? Or are you and 32 ABSOLUTELY SURE that jb will fail?

 

[Neil Eubich]

Your RASM is increasing but fewer people are willing to pay that premium for your product. Financially yes a wash but it is a disturbing trend. Especially in the summer.

See....I think you're really not this dumb...you just like to see people spin up.....JB raised ticket prices and they WANT a lower LF......they are looking for a LF in the lower 80s.....if the LF starts to increase, they'll raise tickets again......it's not about LF (although I suspect you know this already) it's about RASM......a lower LF allows quicker turns, and during IROPS, allows more flexibility to get stranded passengers onto follow-up flights.......while LFs in the 90s looks sexy, it's really not where we want to be......now, if we had lower LFs and still weren't making $$, then I'd agree with you that this could be trouble.....

Let's all just get some popcorn, grab a beer, and enjoy the show that will be the 2d qt earnings report....I think it's going to be a good show!!

 

[Longhorn]

MOD INPUT

Guys and Gals,
Can we please try to keep this thread going without turning into another virtual fight. The thread had some good comments and viewpoints and I along with the others here would like to see the constructive arguments continue without all the putdowns, name calling and belittling of fellow pilots. While we may not all work for the same company, we are all in the same profession.....lets all try to act like it. PLEASE

 

[Booster]

JetBlue Earnings Ascend On Higher Fares

[FONT=&quot]FORBES MAG[/FONT]
[FONT=&quot]http://www.forbes.com/2006/07/10/jetblue-0710markets13.html?partner=alerts[/FONT]

[FONT=&quot]Market Scan
JetBlue Earnings Ascend On Higher Fares
Mary Crane, 07.10.06, [/FONT][FONT=&quot]5:20 PM ET[/FONT]
Having recently raised ticket prices, JetBlue will likely continue to hike its prices, boosting the discount airline's earnings, according to a Morgan Stanley report published Monday.
Analyst William J. Greene said JetBlue (nasdaq: JBLU - news - people ) has enjoyed accelerating revenue trends in top markets over the past few months and that the company's higher fares in these markets have played a major role determining his "overweight" rating for the stock.
JetBlue reported that its traffic in June increased 11.4% year-over-year, while passenger revenue per available seat mile increased 16%.
The strong trends should continue for JetBlue, Greene forecasted, leading to upside surprises in earnings in the second quarter and through the rest of the year.
For July, Morgan Stanley said best-available fares in JetBlue markets have exceeded growth-rate trends in the second quarter.
Twenty-one-day fares are up 22%, seven-day fares are up 23% and walk-up fares are up 14% in July, versus fare hikes of 13%, 16% and 9%, respectively, in the second quarter.
"Given the significant impact of improving price on an airline's bottom line, these results give us much greater conviction in our above-consensus second-quarter estimate of 4 cents per share," Greene wrote to investors in a report Monday.
Greene maintained a $16 price target on shares of JetBlue, which releases second-quarter earnings July 25.

 

[Lake Alice]

Good news for us and hopefully things will only go up from here.

Thanks for the post Booster.

 

[Yuppyguppy]

I'm sure just another 5 years or so

 

[Lake Alice]

and 5 will turn into 10, ten into 20 and so on...

 

[Bavarian Chef]

I'm sure just another 5 years or so

So you're saying I'll have a job for another five years? Hooray for me. My magic eight ball kept saying "try again later."

 

[brainhurts]

So you're saying I'll have a job for another five years? Hooray for me. My magic eight ball kept saying "try again later."

Mine kept doing the same thing so I threw it against the wall and it said:
"In the six years since its launch, JetBlue Airways has focused on creating a new airline category -- an airline that offers value, service and style. Based out of New York City, the low-cost carrier currently serves 39 destinations with more than 440 flights daily. Onboard JetBlue, customers enjoy roomy leather seats and 36 channels of free DIRECTV(r) programming(a), the most live TV available on any airline. On flights longer than two hours, a selection of first-run movies and bonus features from FOX InFlight(tm) is also available. JetBlue offers customers generous brand name snacks and beverages, including freshly brewed Dunkin' Donuts coffee, and delicious wines selected by the airline's Low Fare Sommelier, Josh Wesson from Best Cellars. On overnight flights from the West, the airline now offers Shut-Eye Service, with a Shut-Eye Kit(tm) designed exclusively for JetBlue by Bliss Spa and other special amenities including a "good morning" hot towel service. With JetBlue, all seats are assigned, all travel is ticketless, all fares are one-way, and an overnight stay is never required. For information or reservations call 1-800-JETBLUE (1-800-538-2583) or visit www.jetblue.com. "
It was really hard to read in that little triangle, but I think I got it all.

 

[Longhorn]

thats funny!!

 

[Bavarian Chef]

Ha, can't stop laughing, brain hurts.

 

[8vATE]

no it's jblu who's gonna be missing the boat. It's already been torpedoed once already this year and it's just gonna keep comin' kinda like the Bismark. Bail whilst you can.

Guess the soon to be announce profit for the 2nd qtr torpedos your facts?
And no..
It wasn't because we sold 5 airplanes..