drewfly
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Joined: Tue Jul 12, 2005 5:37 am

Jetblue Profitable In 2006

Wed Mar 01, 2006 8:46 am

Apparently talk of their loss could be a bit premature. ATW today reports that Delta's cutbacks are really helping Jetblue (no surprise there).

Quote:
JetBlue, which earlier forecast a full-year loss for 2006, instead should see a return to profit, according to JP Morgan analyst Jamie Baker, who cited the positive impact of dramatic cutbacks by primary competitor Delta Air Lines in key north-south East Coast markets that should boost JetBlue system revenue by 5%. Based on its latest schedule filings, Delta is cutting capacity significantly between the Northeast and Florida as a result of the demise of Song as an independent entity, resulting in 13 fewer daily departures across 13 markets, "a decline of one-quarter," according to JP Morgan. Actual reduction in seats is likely to come in at 32%, since Song's 757s are being replaced by smaller aircraft such as mainline MD-80s. These markets "collectively account for 34% of JetBlue system revenue," said the analyst. JP Morgan forecasts JetBlue will enjoy a revenue boost of $30 million starting with the second quarter, enough to propel it to a small profit this year.

http://www.atwonline.com/news/other.html?issueDate=2%2F28%2F2006
A-10 Thunderbolt II, ugly as hell, efficient as hell, would you like to meet my boomstick?

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