JetBlue's May Not Have The Ability To Increase Earnings This Year

[Joshua949]

JetBlue\'s May Not Have The Ability To Increase Earnings This Year

[ QUOTE ]
JetBlue Stock Falls


Information from a Reuters report.

Shares of JetBlue Airways Corp. tumbled more than 8 percent Thursday, as J.P. Morgan analyst Jamie Baker reduced earnings estimates and as the carrier announced it filled a smaller percentage of seats last month.

Shares of JetBlue were off $2.33 in midday trading on the NASDAQ. Baker said he expects earnings to fall over the next nine months and that he no longer believes in JetBlue's ability to increase earnings in 2004.

JetBlue issued an earnings warning in December and the competitive capacity in JetBlue markets is expected to increase up to 16 percent over the next two quarters.

Baker's note came one day after American Airlines said it would offer a free-trip promotion to passengers it serves in some markets that are also key to the expansion of JetBlue. AMR Corp. , parent company of American, is one of several companies planning 25 percent capacity growth in Boston, where JetBlue began operating on Wednesday, Baker said.

JetBlue plans to increase its own capacity by 37 percent in 2004, but it will still be outdone by increased capacity from competitors, Baker said.

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[BoeingDrew]

Re: JetBlue\'s May Not Have The Ability To Increase Earnings This Year

Even if AA isn't sucessful in regaining market share in N.Y., they still have won the pyscological part of it. They seemed to have already reduced investors confidence in JetBlue's growth. This has been coming for a long time though. You can't be on top forever.
I'm hoping this is a sucessful fight for AA, i'm sick and tired of all hype around LCC in general.

 

[vipermcg]

Re: JetBlue\'s May Not Have The Ability To Increase Earnings This Year

I've flown them like 4 or 5 times, and I've always been treated great as a customer. My flights have always been cheap, safe, on-time, and comftorable. The PTV's are awesome too! I think it's really not fair to make a judgment on Jetblue unless you have flown them before.

 

[FL270]

Re: JetBlue\'s May Not Have The Ability To Increase Earnings This Year

Whether or not people like hearing about it, the LCCs are here to stay, folks, JetBlue included. AA will eventually discover a middle ground between mutually destructive, market-flooding competition and abandoning the competitive markets. I was in DFW when AA drove Vanguard out of Wichita ... difference was, they had money back then.

American isn't going to win this fight by giving away freebie tickets to Frankfurt or Tokyo. Though it is a novel approach, it is certainly a money-losing one, because JetBlue just isn't going to fade in to the darkness.

FL270

 

[John_Jones]

Re: JetBlue\'s May Not Have The Ability To Increase Earnings This Year

I voted yes because the in-flight entertainment is hard to beat. The Crew's I've flown with are usually very helpful and nice as well.

 

[tonyw]

Re: JetBlue\'s May Not Have The Ability To Increase Earnings This Year

It isn't that they won't be around. It's just that everyone says that we don't need the network carriers, and that the low cost carriers will take over, and that's that.

Seeing how the network carriers still carry about 80 percent of the traffic, I think we DO need them.