crogalski
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JetBlue Posts $22 Million Loss For Q1

Wed Apr 25, 2007 3:38 am

http://www.primenewswire.com/newsroom/news.html?d=117984

Quote:
NEW YORK, April 24, 2007 (PRIME NEWSWIRE) -- JetBlue Airways Corporation (Nasdaq:JBLU) today reported its results for the first quarter 2007:



* Operating revenues for the quarter totaled $608 million,
representing growth of 24.0% over operating revenues of
$490 million in the first quarter of 2006.

* Operating loss for the quarter was $13 million, resulting
in a negative 2.2% operating margin, compared to an operating
loss of $25 million and a negative 5.2% operating margin in
the first quarter of 2006.

* Pre-tax loss for the quarter was $45 million, resulting in
a negative 7.3% pre-tax margin, compared with a pre-tax loss
of $47 million and a negative 9.7% pre-tax margin in the
year-ago period.

* Net loss for the quarter was $22 million, representing a loss
of $0.12 per diluted share, compared with first quarter 2006
net loss of $32 million, or a loss of $0.18 per diluted share.

A319 A320 A321 A330 B717 B727 B737 B747 B757 B767 CRJ200 CRJ700 CRJ900 DC9 E145 E190 MD88 Q400 | AA AB B6 CO DL EI FL NK
 
Cory6188
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RE: JetBlue Posts $22 Million Loss For Q1

Wed Apr 25, 2007 4:44 am

Hmmmm....that's not good, especially give that AA, CO, and DL all posted operating profits for the first quarter. Also, the release states that they expect their CASM to increase 6-8% in the second quarter, independent of fuel costs. What the heck is going on there that their non-fuel costs would go up so much?

Anyone from B6 care to comment?
 
aarbee
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RE: JetBlue Posts $22 Million Loss For Q1

Wed Apr 25, 2007 4:58 am

If one believes in the company, then good time to buy the stock.
Love the AIXes
 
JetJock22
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RE: JetBlue Posts $22 Million Loss For Q1

Wed Apr 25, 2007 5:04 am

Quoting Cory6188 (Reply 1):
What the heck is going on there that their non-fuel costs would go up so much?

You can pin almost that entire loss on the Valentines Day massacre. I believe it was estimated that that single storm alone cost us in the neighborhood of $30 million.
 
AirlineFanatic
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RE: JetBlue Posts $22 Million Loss For Q1

Wed Apr 25, 2007 5:12 am

they spoke to this on the call - reduced stage length and reduced seats on the A320.
 
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EA CO AS
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RE: JetBlue Posts $22 Million Loss For Q1

Wed Apr 25, 2007 5:23 am

No loss is good, but B6 narrowed their net losses from the same quarter last year - AND, as was mentioned, a good part of the Q1 loss can be placed squarely on the Valentine's Day Massacre they experienced.

So again - no loss is good, but B6 did manage to make a substantial improvement from last year's Q1 net figures.
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan

Comments made here are my own and are not intended to represent the official position of Alaska Air Group
 
F9Animal
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RE: JetBlue Posts $22 Million Loss For Q1

Wed Apr 25, 2007 5:25 am

Oh no!!! B6 is close to shutting doors! Oh no! The sky is falling!

Oh well. This is the industry, and losses are to be expected. B6 had a rough quarter with weather and publicity issues. Next quarter will be fine. I just wish these darned fuel prices would come down! There is no doubt in my mind that B6 is here to stay, and even the non believers better start believing!  Wink
I Am A Different Animal!!
 
richierich
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RE: JetBlue Posts $22 Million Loss For Q1

Wed Apr 25, 2007 5:27 am

Quoting JetJock22 (Reply 3):
You can pin almost that entire loss on the Valentines Day massacre. I believe it was estimated that that single storm alone cost us in the neighborhood of $30 million.

Clearly the storm played a big part in the financials, but it wouldn't have been a great quarter anyway by the looks of it. AFAIK, Q1 is traditionally one of JetBlue's worst quarters.
None shall pass!!!!
 
ScottB
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RE: JetBlue Posts $22 Million Loss For Q1

Wed Apr 25, 2007 5:37 am

Quoting Richierich (Reply 7):
Q1 is traditionally one of JetBlue's worst quarters.

Q1 is typically one of the worst quarters in the industry in general. Q2 and Q3 are when most airlines will post consistent profits. Passenger traffic typically craters from a few days after New Year's until mid-February.
 
richierich
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RE: JetBlue Posts $22 Million Loss For Q1

Wed Apr 25, 2007 5:42 am

Quoting ScottB (Reply 8):
Q1 is typically one of the worst quarters in the industry in general. Q2 and Q3 are when most airlines will post consistent profits. Passenger traffic typically craters from a few days after New Year's until mid-February.

I believe you are correct, Sir. I am pretty sure this is the case for B6 and I know it is true for a number of other carriers, but I didn't want to generalize a statement for all carriers.
None shall pass!!!!
 
JBLUA320
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RE: JetBlue Posts $22 Million Loss For Q1

Wed Apr 25, 2007 5:45 am

Quoting JetJock22 (Reply 3):
You can pin almost that entire loss on the Valentines Day massacre. I believe it was estimated that that single storm alone cost us in the neighborhood of $30 million.

Definitely true-- I heard the damages were well over $40 million, in fact.

JBLU
 
JetJock22
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RE: JetBlue Posts $22 Million Loss For Q1

Wed Apr 25, 2007 5:45 am

Quoting Richierich (Reply 7):
Clearly the storm played a big part in the financials, but it wouldn't have been a great quarter anyway by the looks of it. AFAIK, Q1 is traditionally one of JetBlue's worst quarters.

Good point. If I remember right, they had predicted a 1st Q loss before Valentines day
 
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deltadawg
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RE: JetBlue Posts $22 Million Loss For Q1

Wed Apr 25, 2007 5:50 am

Quoting Aarbee (Reply 2):
If one believes in the company, then good time to buy the stock.

Exactly what I was thinking. At around $10.70 today it's starting to get close to it's 52 week low. Good time to buy considering. It will be back up around $16-17 I be around June/July.

Got to go over to Scottrade.
GO Dawgs, Sic' em, woof woof woof
 
Cory6188
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RE: JetBlue Posts $22 Million Loss For Q1

Wed Apr 25, 2007 6:10 am

Quoting JetJock22 (Reply 3):
You can pin almost that entire loss on the Valentines Day massacre. I believe it was estimated that that single storm alone cost us in the neighborhood of $30 million.

I'm sure that the Valentine's Day masscre was definitely a factor for this past quarter, but I'm talking about their predictions for the rest of the year. The release says that their fuel-excluded CASM is going to increase 6-8% for the upcoming quarters. That's what I was wondering about...
 
jetbluefan1
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RE: JetBlue Posts $22 Million Loss For Q1

Wed Apr 25, 2007 10:38 am

Quoting Cory6188 (Reply 13):
The release says that their fuel-excluded CASM is going to increase 6-8% for the upcoming quarters. That's what I was wondering about...

This has to do with reduced stage length and the removal of one row of seats. Fuel-neutral and stage length-adjusted CASM will be up be only 1% over last year, which is good news.

JetBluefan1
 
goingboeing
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RE: JetBlue Posts $22 Million Loss For Q1

Wed Apr 25, 2007 10:42 am

But....I thought TV sets insured profitablity.
 
SpencerII
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RE: JetBlue Posts $22 Million Loss For Q1

Wed Apr 25, 2007 10:46 am

I thought they raised their fares across the board on the last quarter to assist in returning the company to profitability.
Interesting that the legacies posted nice profits and the Bloo Darling posted a loss. Other airlines were effected by that JFK snowstorm too, but if B6 is involved I guess that doesn't count.
 
JetBlueAUS
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RE: JetBlue Posts $22 Million Loss For Q1

Wed Apr 25, 2007 10:48 am

Quoting SpencerII (Reply 16):
Other airlines were effected by that JFK snowstorm too, but if B6 is involved I guess that doesn't count.

However, most of JetBlue's operations are based at JFK. CO and DL can rely on other hubs to bring in income.
Not all of us can be heroes, some of us can only stand on the sidewalk and clap as they go by.
 
Tornado82
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RE: JetBlue Posts $22 Million Loss For Q1

Wed Apr 25, 2007 11:20 am

They didn't remove 6-8% of their seats, and the missing seats should be partially offset by the lack of a 4th crew member... they did reduce the crews to 3 FA/plane, right? If so, that excuse smells a little fishy.
 
PPVRA
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RE: JetBlue Posts $22 Million Loss For Q1

Wed Apr 25, 2007 11:30 am

Quoting Tornado82 (Reply 18):
They didn't remove 6-8% of their seats, and the missing seats should be partially offset by the lack of a 4th crew member... they did reduce the crews to 3 FA/plane, right? If so, that excuse smells a little fishy.

That's what I was thinking.

Are they planning any significant pay raises? Pilots/FAs? Any major checks for the A320s coming online?

Of course its warmer (summer) = more fuel. . . but that shouldn't be that huge, no?
"If goods do not cross borders, soldiers will" - Frederic Bastiat
 
jetbluefan1
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RE: JetBlue Posts $22 Million Loss For Q1

Wed Apr 25, 2007 11:32 am

Quoting Tornado82 (Reply 18):
They didn't remove 6-8% of their seats, and the missing seats should be partially offset by the lack of a 4th crew member... they did reduce the crews to 3 FA/plane, right? If so, that excuse smells a little fishy.

The actual cost of the flight may be less, but CASM isn't a fair indicator of this because it relates the cost to the amount of seats that can be sold. Taking 6 seats out was a reduction of nearly 4%, which means that there are 4% seats LESS to spread those costs over. While there are savings for reduced crew and fuel burn costs, they aren't noticeable since the reduction in seats more than offsets those savings - but strictly from a CASM point of view.

Nonetheless, as I said before, stage length decreased too. CASM naturally increases with decreased stage length. And, once again - as I said before - on a fuel neutral and stage length-adjusted rate, CASM increased only 1%.

Those costs are certainly under control. Now let's see that revenue number go up...

JetBluefan1
 
Tornado82
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RE: JetBlue Posts $22 Million Loss For Q1

Wed Apr 25, 2007 11:45 am

Quoting JetBluefan1 (Reply 20):
Taking 6 seats out was a reduction of nearly 4%, which means that there are 4% seats LESS to spread those costs over. While there are savings for reduced crew and fuel burn costs, they aren't noticeable since the reduction in seats more than offsets those savings - but strictly from a CASM point of view.

I would think a 4% seating reduction is damn near offset by a 25% reduction in FA's, statistically speaking.

Irrelevant to the statistic of CASM, it's not like B6 is the LF champ of the aviation industry. The law of averages says those 6 now-missing seats were empty 90% of the time or more anyways. Therefore the loss of revenue from them is moot. and with yield management meaning if you sold 120 seats before and after the 6 seat reduction... the 120 sold AFTER the reduction SHOULD have brought in MORE revenue.

Stage lengths decreasing would indeed have added to CASM... so I'll buy that. But they're most likely going to keep decreasing for the rest of B6's existance... so if that's a problem now it's not going to get any better.

That snow/ice storm affected CLE, PIT, PHL, EWR, LGA, and the other airlines at JFK. Continental had 2 of their 3 hubs hit by that snowstorm. They're not in the red right now. US was hit up and down the coast... they didn't seem to take a bath either. Delta has heavy ops at LGA and JFK too.

So it comes down to what's an excuse vs a fact from the B6 camp?
 
jetbluefan1
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RE: JetBlue Posts $22 Million Loss For Q1

Wed Apr 25, 2007 7:51 pm

Quoting Tornado82 (Reply 21):
I would think a 4% seating reduction is damn near offset by a 25% reduction in FA's, statistically speaking.

It does - cew costs are reduced - but because CASM is dealing strictly with the amount of seats on an airplane, it's not the best way to look at this effect.

Quoting Tornado82 (Reply 21):
But they're most likely going to keep decreasing for the rest of B6's existance... so if that's a problem now it's not going to get any better.

Who knows? But I still think CASM is an unfair way to measure a company's health. What REALLY needs to be measured is PRASM compared to CASM.

Quoting Tornado82 (Reply 21):
That snow/ice storm affected CLE, PIT, PHL, EWR, LGA, and the other airlines at JFK. Continental had 2 of their 3 hubs hit by that snowstorm. They're not in the red right now. US was hit up and down the coast... they didn't seem to take a bath either. Delta has heavy ops at LGA and JFK too.

So it comes down to what's an excuse vs a fact from the B6 camp?

The fact is that the vast majority of JetBlue's flights touch JFK/LGA/EWR/SWF (and now HPN) on a daily basis. JetBlue's reliance on the New York City market is much great than any other airline in the U.S. Therefore, a major ice storm there will have a much, much greater affect on JetBlue than any other airline.

JetBluefan1
 
dsa
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RE: JetBlue Posts $22 Million Loss For Q1

Wed Apr 25, 2007 8:35 pm

This is not a particularly bad result considering the storms and other episodes that B6 has had to deal with. Yes they have posted a loss but they have become a stronger company because of this quarters events, they are putting more plans and back up plans to deal with such events. Over this year we're going to see some great advancements and changes for the airline, including new routes and attractive fares from the airline we all love.  Wink

All I can say is that JetBlue is on the right road to profitability and becoming a strong airline, if the storm hadn't have happened on Valentines Day it would have happened on another occasion.

Well Done, JetBlue! Let's see a profit for next quarter!


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lowecur
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RE: JetBlue Posts $22 Million Loss For Q1

Wed Apr 25, 2007 8:53 pm

Jetblue still trades at well over 30 times projected earnings. This is too high for a company with many question marks going into the future. Neeleman has gone from a visionist to a reactionist, and in my opinion is one step away from being booted out the door by the board.

Many think Soros was looking for a short term profit when he bought more share last week. For an insider, he sure doesn't look all that smart at this point. Me thinks he may have other things in mind.......like being part of taking the company private in the near future.
 
Logos
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RE: JetBlue Posts $22 Million Loss For Q1

Wed Apr 25, 2007 9:06 pm

Quoting Tornado82 (Reply 21):
That snow/ice storm affected CLE, PIT, PHL, EWR, LGA, and the other airlines at JFK. Continental had 2 of their 3 hubs hit by that snowstorm. They're not in the red right now. US was hit up and down the coast... they didn't seem to take a bath either. Delta has heavy ops at LGA and JFK too.

This is hardly a surprise, is it? We all saw with our own eyes how much worse jetBlue dealt with that storm than any of these players, so it stands to reason that they would be affected disproportionately financially as well. The resulting (and, to a degree, ongoing) bad publicity that resulted (and was earned) couldn't have helped financial matters either. While the other airlines were back to normal, Neeleman was on Letterman, etc. apologizing profusely. I doubt that had a positive short term affect on revenue.

I would have been more surprised if jetBlue had turned a profit given all of that. The question is what do they do going forward, both in terms of enhancing revenues when everything's running smoothly and dealing with irrops in a better fashion so they cause less of a disruption.

Cheers,
Dave in Orlando
Too many types flown to list
 
flybyguy
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RE: JetBlue Posts $22 Million Loss For Q1

Wed Apr 25, 2007 10:37 pm

Quoting Aarbee (Reply 2):
If one believes in the company, then good time to buy the stock.

This is true. However, I'm not sure if jetblue or others can gain substantial profits over the high season summer months... especially if fuel prices skyrocket beyond those of last summer. But I wouldn't be surprised if that happens considering the spiraling chaos in and around the mid east, especially among several oil producers.

I guess a safe bet if you buy jetblue or any other airline is to buy even more big oil stock.
"Are you a pretender... or a thoroughbred?!" - Professor Matt Miller
 
richierich
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RE: JetBlue Posts $22 Million Loss For Q1

Thu Apr 26, 2007 12:31 am

Quoting Lowecur (Reply 24):
Many think Soros was looking for a short term profit when he bought more share last week. For an insider, he sure doesn't look all that smart at this point. Me thinks he may have other things in mind.......like being part of taking the company private in the near future.

Interesting take on this. I was not aware that Soros had been purchasing B6 stock lately, but I really doubt it is because he wants to make JetBlue private. Who knows what his reasons are.

Quoting Lowecur (Reply 24):
Jetblue still trades at well over 30 times projected earnings. This is too high for a company with many question marks going into the future. Neeleman has gone from a visionist to a reactionist, and in my opinion is one step away from being booted out the door by the board.

Honestly, it would too easy to blame Neeleman for all of the problems that occurred back in February. He is the founder and figurehead of JetBlue, but he is not the only one in charge. And I'm not sure that the airline could have saved face any better than with Neeleman leading the way, although I thought he did resort to groveling on occasion. Makes me wonder what some of the other airline CEOs would have done....
None shall pass!!!!
 
richierich
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RE: JetBlue Posts $22 Million Loss For Q1

Thu Apr 26, 2007 12:33 am

Quoting Flybyguy (Reply 26):
However, I'm not sure if jetblue or others can gain substantial profits over the high season summer months... especially if fuel prices skyrocket beyond those of last summer.

I tend to agree with this. Airline stocks are usually poor performers anyway, and I don't have any reason to believe they are going to be bleeding the green this summer. And if they do, my guess is that it will not necessarily translate into higher stock value.
None shall pass!!!!
 
jetbluefan1
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RE: JetBlue Posts $22 Million Loss For Q1

Thu Apr 26, 2007 5:05 am

Quoting Lowecur (Reply 24):
and in my opinion is one step away from being booted out the door by the board.

I think Neeleman did a great job starting the company and promoting it - he must be a PR genius - but I do agree to an extent that JetBlue is in need of another CEO.

On that note, it seems that something different is being attempted with these new SLC short-hauls. I give the guy credit for at least trying something different.

JetBluefan1
 
JetBlueAUS
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RE: JetBlue Posts $22 Million Loss For Q1

Thu Apr 26, 2007 5:13 am

Quoting JetBluefan1 (Reply 29):
On that note, it seems that something different is being attempted with these new SLC short-hauls. I give the guy credit for at least trying something different.

He sort of has to do something different. JetBlue is completely maxed out at JFK and BOS. At least, JetBlue will be getting 5 new BOS gates this summer. It will be interesting to see how these new SLC routes perform longterm. Maybe more SLC service will be announced later on this summer?

As for the loss - it was expected. The Valentines Day fiasco pretty much was a money massacre. I bet that the company will post decent profits for the remaining three quarters of the year.
Not all of us can be heroes, some of us can only stand on the sidewalk and clap as they go by.
 
tommytoyz
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RE: JetBlue Posts $22 Million Loss For Q1

Thu Apr 26, 2007 5:13 am

I have to compliment Jetblue on stating their financial figures according to GAAP and not like UA, DL and most others based on home grown accounting standards which include and exclude all sorts of things.

GAAP is there for a reason, and to date I have only seen WN and B6 report the GAAP figures clearly and prominently.
This sets B6 apart in my book.
 
BrianDromey
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RE: JetBlue Posts $22 Million Loss For Q1

Thu Apr 26, 2007 5:47 am

The interesthing thing is that revenues increased by a quarter, but jetBlue still lost a comparible amount of money 2007Vs 2006. Id like to know where that 170million or so went.

How much did B6 inrease revenue miles and capacity by?

Lastly, I do not understand why CSAM would be effected by shorter stage lenghts. Surely if the lengths are shorter then the aircrafft will be availible for more rotations? How many hours does B6 get out of its A320s and E190s?

Brian.
Next flights: MAN-ORK-LHR(EI)-MAN(BD); MAN-LHR(BD)-ORK (EI); DUB-ZRH-LAX (LX) LAX-YYZ (AC) YYZ-YHZ-LHR(AC)-DUB(BD)
 
richierich
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RE: JetBlue Posts $22 Million Loss For Q1

Thu Apr 26, 2007 5:58 am

Quoting BrianDromey (Reply 32):
Lastly, I do not understand why CSAM would be effected by shorter stage lenghts. Surely if the lengths are shorter then the aircrafft will be availible for more rotations? How many hours does B6 get out of its A320s and E190s?

JetBlue gets a lot of hours out of their A320s and E190s, especially the former. I don't know about the last year or two, but their A320s were among some of the highest-utilized Airbuses in the world for a while.

I'm not sure I follow your logic. Less time in the air means less miles flown, thus CASM would increase. If you operate shorter flights, your revenue might increase but your CASM also increases as it costs more to keep flying up and down.
None shall pass!!!!
 
DeltaGuy
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RE: JetBlue Posts $22 Million Loss For Q1

Thu Apr 26, 2007 8:05 am

Sounds like the next People Express to me!
"The cockpit, what is it?" "It's the little room in the front of the plane where the pilot sits, but that's not importan
 
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lightsaber
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RE: JetBlue Posts $22 Million Loss For Q1

Thu Apr 26, 2007 11:48 am

Quoting JetBluefan1 (Reply 20):

Those costs are certainly under control. Now let's see that revenue number go up...

Exactly. I'm a B6 fan, but I'm not seeing RASM go up as much as it should have when they turned on the yeild optimization routine on the route planning software.

So what went wrong:
1. High downtime on the E190's for software upgrade. I believe that's done, so the E190 CASM should drop (better utilizatoin).
2. Valentine's day massacre. Bad... But also poorly managed, especially from a PR standpoint. I really like B6... but they absolutely gave the press a feeding frenzy. Rule #1 of aviation is never be the cover story of CNN.  Wink

What's good?
1. Healthy growth rate going forward.
2. E190's hitting "economy of scale" (further helps CASM). Not to mention E190's maturing.
3. Cash. Almost $700mill. They're ok.
4. Summer is almost here.  bigthumbsup 
5. Adaptable staff. If any airline can change, I think its B6.

What's looking ugly:
1. Florida's economy. As the state bird of Florida, B6 yeild will be hit.
2. Competition made money. Except UA
3. Ratio of sales, losses about the same as UA.  Sad

Quoting Tommytoyz (Reply 31):
GAAP is there for a reason, and to date I have only seen WN and B6 report the GAAP figures clearly and prominently.
This sets B6 apart in my book.

Gives much more confidence in the numbers.  Smile All companies should report GAAP.

Jetblue will be around for a while... let's see them make money as healthy companies must!

Quoting JetBluefan1 (Reply 29):
I think Neeleman did a great job starting the company and promoting it - he must be a PR genius - but I do agree to an extent that JetBlue is in need of another CEO.

CEO should be a spokemodel. What's needed is further refinement of operations. Keep Neeleman around to boost morale, but steal people from F9 to boost yeild.  Wink

Quoting JetBlueAUS (Reply 30):
At least, JetBlue will be getting 5 new BOS gates this summer.

At that point they will get in some healthy growth.

How is the new terminal going at JFK? I'd imagine those costs are hurting B6 a little bit (anyone know details of how the accounting is being done?).

Lightsaber
"They did not know it was impossible, so they did it!" - Mark Twain
 
Gnomon
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RE: JetBlue Posts $22 Million Loss For Q1

Thu Apr 26, 2007 12:57 pm

Quoting Dsa (Reply 23):
This is not a particularly bad result considering the storms and other episodes that B6 has had to deal with.

I agree that it's not particularly bad, but it's not particularly good, either, at a time when legacy carriers facing similar operational problems during the same period were profitable.

I do wonder whether B6's mediocre results -- as well as those of F9 -- during what is apparently a recovery period (if it can be called that...) confirm the analysts' well-reported opinions last year that the time is nigh for discount carriers, so to speak. I know 1Q is traditionally one of the year's weakest, the operational issues in Jan/Feb were unique and unusual, etc., etc., but the performance of discount carriers vis-a-vis the legacies in the last couple of reporting periods has been lackluster, at best. If calculations about the storms' actual impact are correct, B6's profit would've been a paltry ~$1m, and F9 still would've booked a loss.
 
NASBWI
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RE: JetBlue Posts $22 Million Loss For Q1

Thu Apr 26, 2007 2:59 pm

Quoting Goingboeing (Reply 15):
But....I thought TV sets insured profitablity.

Really? I suppose you thought wrong, didn't you?  sarcastic 
Fierce, Fabulous, and Flawless ;)
 
jetbluefan1
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RE: JetBlue Posts $22 Million Loss For Q1

Thu Apr 26, 2007 7:41 pm

Quoting Lightsaber (Reply 35):
How is the new terminal going at JFK? I'd imagine those costs are hurting B6 a little bit (anyone know details of how the accounting is being done?).

During the construction period, JetBlue pays $3M/quarter for the construction of the JFK terminal. I'm assuming that this will help keep lease costs low once the terminal is actually completed. By the way, I was there in February (a few days fter Valentine's) and that things looks ENORMOUS - it's a monster! And it looks ahead of schedule as well.

JetBluefan1
 
Halcyon
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RE: JetBlue Posts $22 Million Loss For Q1

Thu Apr 26, 2007 8:01 pm

When I talked to Robyn Killian, she mentioned that the Embraers are quite the money sinks at the moment. However, the delays and cancellations really were what murdered them. But, in all actuality, this is not that bad.

Lucas  Smile