JetBlueAUS From United States of America, joined Apr 2006, 1145 posts, RR: 7 Posted (8 years 11 months 1 week 1 day 19 hours ago) and read 5442 times:
First off, I want to congratulate JetBlue for its excellent service throughout the country and deserves just as much respect as the rest of the carriers in the U.S. Yes, it does have its distinct problems, just like the rest of the carriers in the United States. But, they are persevering and correcting the mistakes that they have made in the past.
JetBlue has run into significant turbulence as it posted its second consecutive loss. The loss was 32 million dollars, and the company does not expect to be profitable for the rest of the year. The company has blamed it on the high fuel costs, as it is paying nearly two dollars a gallon. Its load factor was 84.4% while its completion factor was a stunning 99%! Sadly, its on-time rating was 70.6%, which still isn't great but is slightly better than its 65.4% on-time rating last quarter. How will JetBlue return to profitability with these high load factors? Will the 'Return to Profitability Plan' be enough? Or will they be another great success, quick fall airlines like PeopleExpress?
Well, I honestly think, the 'Return to Profitability Plan' will help them a lot. Sure, their oldest A320's are only 5-6 years old but that doesn't necessarily mean that their maitenance costs are low. By deferring their ordered A320's definitely slows down their expansion rate which will help them gain ground in the areas which they have so rapidly expanded in, and also cuts down on any heavy maitenance costs. While expanding east of the Mississippi is smart, I think JetBlue should focus on the markets that it already has, or will have and build a better reputation there, so it can add flights which could potentially help profitability. The E190 is beginning to show success, since its debut in November 2005, and is improving steadily.
I think B6 is on the right track, and I can see a very small loss next quarter or and by Q3 return to profitability. What do you think?
Not all of us can be heroes, some of us can only stand on the sidewalk and clap as they go by.
F9Animal From United States of America, joined Dec 2004, 5231 posts, RR: 17
Reply 1, posted (8 years 11 months 1 week 1 day 19 hours ago) and read 5421 times:
I hope B6 can pull out of the spin they are in. It is and will require slowing down the growth. The emergency brake should have been pulled 6 months ago, when the signs of trouble were becoming noticed.
They need to stop the E190 deliveries for now, and take time to look at the big picture. They need to build a team dedicated to crunch numbers and evaluate the markets they currently serve.
I think B6 made a mistake when adding another fleet type. Don't get me wrong, I love the 190, but I just don't think it was the right timing to add them.
The fuel prices are scary, and the last thing anyone should be doing is going out and getting more gas bills.
Slow down Neelman. There is no doubt he has what it takes to run a great airline. He just needs to put his dreams of rapid growth away for now.
Go B6! What a neat airline.
BTW- My name is F9Animal, and I am an armchair CEO.
WMUPilot From United States of America, joined Jan 2003, 1473 posts, RR: 11
Reply 2, posted (8 years 11 months 1 week 1 day 19 hours ago) and read 5421 times:
Quoting JetBlueAUS (Thread starter): JetBlue has run into significant turbulence as it posted its second consecutive loss. The loss was 32 million dollars, and the company does not expect to be profitable for the rest of the year
Actually, per the conference call with David, we expect to be profitable for the remaining quarters but unfortunately not enough to erase the $32 million loss for this quarter and still post a yearly loss. A vast majority of our troubles look to be behind us.