Does this mean Wall Street's Honeymoon with JetBlue is Over?

tonyw · April 18th, 2006, 10:48

http://www.atwonline.com/news/story.html?storyID=4754

JetBlue Airways may "modestly retard its growth" through retirement of its oldest aircraft or deferrals of new deliveries and could make an announcement to that effect as early as next week, JP Morgan analyst Jamie Baker speculated in a report released Monday.

JetBlue capacity rose 29% in the first quarter while traffic grew just 24%, pushing load factor down 3.5 points. The airline lost $20.3 million in 2005 and does not expect to be profitable this year. As of mid-March it operated 87 A320s and 10 Embraer 190s and had 96 A320s and 91 190s on order, according to the Airclaims CASE database.

"JetBlue requires an estimated $2 billion in incremental capital over the next two years" to pay for new aircraft, according to Baker, who added that "given the cost and yield supremacy of the Embraer 190," the carrier likely will slow the growth of the A320 fleet. He suggested it will cut planned A320 deliveries next year from 17 to 10.

I like that retire its oldest aircraft bit. What's the oldest airplane it's got, seven years old?

Does anyone remember when the Wall Street gurus were talking about how JetBlue was going to take over?

flyover · April 18th, 2006, 10:57

But that suggests that JetBlue has been paying for airplanes. We all know that they've been getting them for free from Airbus.

JBUCREW · April 18th, 2006, 12:40

Actually we are paying for our airplanes, thats one reason why we are now posting a loss. The other reason's are the cost of fuel, higher MX costs and trying to run the A320 on routes that it was not intended to fly. EX BOS-LGB/BOS-OAK/JFK-OAK/JFK-SAN just to name a few. Everytime we have to fuel-stop a flight we lose $ on it. Its gonna be a rough time for JB unless things change fast, but it looks like they are.

tonyw · April 18th, 2006, 13:08

I believe there was a very sweet deal cut with Airbus when they were going after JetBlue, and some of those provisions included virtually non-existant payments initially. Ain't nothing wrong with that, it's just good business. If someone's going to drop their shorts for you, take advantage of it!

What I do like is how we were seeing articles about how JetBlue was going to take over the world, how Southwest was doomed because JetBlue was going to beat them up, and how the legacy carriers were just toast.

Well........now the honeymoon's over.

BobDDuck · April 18th, 2006, 13:33

I have a bunch of friends over at B6 and I wish every one over there the best, but from some of the threads popping up on other forums, the blue koolaid must be pretty strong over there. (wait.. that's not koolaid... ewww!)

RABIRZA69 · April 18th, 2006, 14:13

looks like also that us air is recalling a lot of their pilots from us... there are big meetings going on with the CP's mgt and line pilots as to whats going to happen.. Looks like a pay raise might be in the future for b6 pilots.

aloft · April 18th, 2006, 19:30

Sounds like Neeleman may be reaching for his golden ripcord soon...

Doug Taylor · April 18th, 2006, 19:32

That's what happens when they hired a bunch of former Southernjets Innanashnul execs...

flyover · April 18th, 2006, 19:42

Quote:

Originally Posted by tonyw

What I do like is how we were seeing articles about how JetBlue was going to take over the world, how Southwest was doomed because JetBlue was going to beat them up, and how the legacy carriers were just toast.

Actually most of the articles I read (by anyone with any industry credentials) were somewhat skeptical of their business plan. But you're right, they sure missed that one about the legacies being in trouble. And it's common knowledge that SWA will be in serious trouble any day now. When their fuel hedges are expired, asta la vista baby.

April 18th, 2006, 10:48	#1
tonyw Old Skool Join Date: May 2002 Location: Maryland Posts: 15,922	Does this mean Wall Street's Honeymoon with JetBlue is Over? http://www.atwonline.com/news/story.html?storyID=4754 JetBlue Airways may "modestly retard its growth" through retirement of its oldest aircraft or deferrals of new deliveries and could make an announcement to that effect as early as next week, JP Morgan analyst Jamie Baker speculated in a report released Monday. JetBlue capacity rose 29% in the first quarter while traffic grew just 24%, pushing load factor down 3.5 points. The airline lost $20.3 million in 2005 and does not expect to be profitable this year. As of mid-March it operated 87 A320s and 10 Embraer 190s and had 96 A320s and 91 190s on order, according to the Airclaims CASE database. "JetBlue requires an estimated $2 billion in incremental capital over the next two years" to pay for new aircraft, according to Baker, who added that "given the cost and yield supremacy of the Embraer 190," the carrier likely will slow the growth of the A320 fleet. He suggested it will cut planned A320 deliveries next year from 17 to 10. I like that retire its oldest aircraft bit. What's the oldest airplane it's got, seven years old? Does anyone remember when the Wall Street gurus were talking about how JetBlue was going to take over? __________________ http://www.photo.net/photos/tonywang for my photos

April 18th, 2006, 10:57	#2
flyover Old Skool Join Date: Mar 2004 Location: Georgia Posts: 3,389	But that suggests that JetBlue has been paying for airplanes. We all know that they've been getting them for free from Airbus. __________________ Whether you think you can or think you can't, you're right. — Henry Ford

April 18th, 2006, 13:08	#4
tonyw Old Skool Join Date: May 2002 Location: Maryland Posts: 15,922	I believe there was a very sweet deal cut with Airbus when they were going after JetBlue, and some of those provisions included virtually non-existant payments initially. Ain't nothing wrong with that, it's just good business. If someone's going to drop their shorts for you, take advantage of it! What I do like is how we were seeing articles about how JetBlue was going to take over the world, how Southwest was doomed because JetBlue was going to beat them up, and how the legacy carriers were just toast. Well........now the honeymoon's over. __________________ http://www.photo.net/photos/tonywang for my photos

April 18th, 2006, 13:33	#5
BobDDuck Old Skool Join Date: Sep 2003 Location: Left Seat Posts: 5,924	I have a bunch of friends over at B6 and I wish every one over there the best, but from some of the threads popping up on other forums, the blue koolaid must be pretty strong over there. (wait.. that's not koolaid... ewww!) __________________ TBJC08 The Gear Monkey The Gear Monkey Store

April 18th, 2006, 14:13	#6
RABIRZA69 Senior Member Join Date: Feb 2004 Location: Shaolin NY, ACK MA Posts: 592	looks like also that us air is recalling a lot of their pilots from us... there are big meetings going on with the CP's mgt and line pilots as to whats going to happen.. Looks like a pay raise might be in the future for b6 pilots. __________________ "CESSNA ONE SEVEN TWO PAPA TENGO YOU HAVE DISOBEYED NOW SUFFER THE CONSEQUENCES "

April 18th, 2006, 12:40	#3
JBUCREW Junior Member Join Date: Dec 2005 Location: DTW/DXR/JFK Posts: 217	Actually we are paying for our airplanes, thats one reason why we are now posting a loss. The other reason's are the cost of fuel, higher MX costs and trying to run the A320 on routes that it was not intended to fly. EX BOS-LGB/BOS-OAK/JFK-OAK/JFK-SAN just to name a few. Everytime we have to fuel-stop a flight we lose $ on it. Its gonna be a rough time for JB unless things change fast, but it looks like they are.

April 18th, 2006, 19:30	#7
aloft Old Skool Join Date: Sep 2001 Location: Inside your OODA loop Posts: 7,148	Sounds like Neeleman may be reaching for his golden ripcord soon... __________________ ________\|________ -------(o)- ------° ° °

April 18th, 2006, 19:32	#8
Doug Taylor Agent Smith Join Date: Dec 1969 Location: KSDL Posts: 41,926 Blog Entries: 1	That's what happens when they hired a bunch of former Southernjets Innanashnul execs... __________________ Doug Taylor http://76school.flyblog.com (old!) http://30west.flyblog.com (updated 11/28)

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