Lowecur From United States of America, joined Jan 2005, 585 posts, RR: 0 Posted (8 years 3 months 3 weeks 3 days 15 hours ago) and read 3639 times:
Looks like Barger will continue to take advantage of the strong worldwide a/c market and sell his excess capacity into it. A previous projection of a 10-12% reduction, has now been revised downward to 6-9%. I believe you will see a further revision as the year goes on and the economy tanks. The question is, will China and India be able to support the worldwide economy as the US spirals into recession? Probably somewhat till the end of 2008, but inevitably the whole global economy will catch cold.
''We experienced strong demand during the holiday season,'' said Dave Barger, JetBlue's CEO. ''However, given an uncertain economic environment and record high fuel prices, we plan to grow more conservatively in 2008. Assuming market conditions remain favorable, we expect to take advantage of continued strength in the worldwide aircraft market to manage our fleet growth, and we currently plan to increase capacity between six and nine percent for the full year.''
The stock price tanked yesterday, as long time loyal investors are beginning to realize that B6 is no longer a growth company and doesn't deserve the high multiples that are reflected in the stock price. It will reach $3. at some point in the next 6 months, and could go lower without a reverse stock split.
Richierich From United States of America, joined Nov 2000, 4531 posts, RR: 6
Reply 1, posted (8 years 3 months 3 weeks 3 days 14 hours ago) and read 3471 times:
Considering that they sold aircraft in 2006 and 2007, my money is on selling aircraft in 2008 as well. I don't know if they have officially come out with any news but I'm sure that they are considering it especially because all growth seems to be effectively on-hold, at least until the new terminal is opened at JFK. And who knows what is going to happen then. But lets not forget that they are still slated to receive a bunch of new A320s, so I think their net fleet will increase this year. Not sure if they are getting too many E190s at the moment but, to my knowledge, they haven't sold any of these planes yet (or returned them to the lessor, whatever the case may be.)
The low stock price is of a general concern to all stockholders of JBLU, I would imagine. But then again, haven't all airlines generally been lower lately with the higher fuel prices? As the price of a barrel of oil flirts with $100 and beyond, everybody in this industry is suffering and -yes- the rumors abound....
B6JFKH81 From United States of America, joined Mar 2006, 2948 posts, RR: 7
Reply 2, posted (8 years 3 months 3 weeks 3 days 8 hours ago) and read 3105 times:
Ummmmmmmm...the plan has always been to sell aircraft once they get older while taking on new aircraft so I don't see what the news is here. The A320's are being sold off a few a year, while a few new ones come in. The deliveries have been more than the sell-offs to continue increasing the overall fleet size, but the past two years we have seen 3 - 5 aircraft go. This has a double effect of keeping the fleet on the younger side which reduces the amount of MX needed, and the other effect would be to manipulate expansion.
The E190's are still too young with some kinks still being worked out and route diversification taking place so I don't see any of these going any time soon. They have only been flying for a little over 2 years...they're still babies!
Just my ....
"If you do not learn from history, you are doomed to repeat it"