An excerpt from the article
Analysts agree that JetBlue's problems stem from an aggressive expansion plan that has run into headwinds, such as high fuel prices, fierce competition and some bad decisions when choosing new markets. Several have placed a "sell" or equivalent rating on the company's stock.
"Since we're not making money, I think there is skepticism that is out there and it is legitimate skepticism," said John Owen, JetBlue's chief financial officer.
While 2006 is expected to be an unprofitable year for six-year-old JetBlue, the discount carrier aims to minimize the red ink by flying more short-haul routes (to save on fuel), serving airports with fewer rivals and raising fares.
CEO David Neeleman said another option on the table is to scale back JetBlue's rapid growth plan, which includes orders for more than 180 new planes worth approximately $7.5 billion.
JetBlue, which recorded its first-ever quarterly loss of $42 million in the October-December period, is expected to report a loss of almost $33 million for the first quarter, according a survey of analysts by