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

[tonyw]

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]

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

[JBUCREW]

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]

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]

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]

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]

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

[Doug Taylor]

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

[flyover]

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.