jetBlue continues to lose

[T-Bird76]

Doesn't look like a promising year for jetBlue. They lowered their earnings forecast for 2007. They're facing some real challenges with rising fuel and mx costs I expect to see some real changes to their business plan soon.


AP
JetBlue Reports Narrower Loss
Tuesday April 24, 9:59 am ET
By John Wilen, AP Business Writer
JetBlue Beats Expectations Revised in Aftermath of Storms, but Lowers Guidance

NEW YORK (AP) -- JetBlue Airways' said Tuesday that first-quarter losses had narrowed, but the discount carrier lowered expectations for 2007.
JetBlue lost $22 million, or 12 cents per share in the quarter, compared with a loss of $32 million, or 18 cents per share, in the first quarter of 2006.

Operating revenues jumped 24 percent to $608 million, compared with $490 million in the year-ago quarter.

The earnings results bested the revised expectations of analysts polled by Thomson Financial, who had forecast losses of 19 cents per share. The company, however, lowered its guidance in February.

"I'm always suspect when they beat their own guidance," said Susan Donofrio, analyst with Cathay Financial. "It was a difficult quarter."

Forest Hills, NY-based JetBlue was roundly criticized earlier this year when it was forced to cancel more than 1,000 flights, stranding travelers in Northeast airports during the Valentine's Day snowstorm.

Trying to control the damage in the storm's aftermath, JetBlue drafted a "customer bill of rights," under which the company issued vouchers to certain customers who experienced delays.

"We are disappointed with our first quarter results, which were significantly impacted by two ice storms in the Northeast area," said David Neeleman, chairman and chief executive. "We learned a great deal following the events and consequently, we're better able to recover from irregular operations and provide the superior service our customers deserve and have grown to appreciate."

JetBlue said its pre-tax profit margin for 2007 will be between one and three percent. That translates to an "implied" earnings range of 10 to 28 cents per share, Donofrio said.

Analysts surveyed by Thomson are expecting 35 cents per share.

"They're guiding their guidance down," Donofrio said.

Shares of JetBlue fell 9 cents to 10.90 Tuesday in early trading on the Nasdaq Stock Market.

[NIKV69]

This was so expected. Not only the mx and fuel but the PR they got from their poor handling of adverse situations will go a long way too. We will see what kind of carrier they are now.

[Nonstop2AUH]

There's a reason why Bob Crandall said he'd never invest in an airline stock!!!

[T-Bird76]

There's a reason why Bob Crandall said he'd never invest in an airline stock!!!

He had a great line "if you want to become a millionaire start as a billionaire and start an airline."

[FlyingColors]

There's a reason why Bob Crandall said he'd never invest in an airline stock!!!

He had a great line "if you want to become a millionaire start as a billionaire and start an airline."

LOL, good stuff!

[FlyingColors]

This was so expected. Not only the mx and fuel but the PR they got from their poor handling of adverse situations will go a long way too. We will see what kind of carrier they are now.

Just flew on them last month, same wonderful service, kicking the living stuffing out of Continental at EWR.

Hope they can get back in the black, and I'm sure they will.

[AirtrafficController]

yea jetBlue is a great airline, I have flown them and they are one of teh best domestic airlines. The airline is still young and there will always be a bumpy road ahead.

[bonanzabucks]

I flew them and had an interview with them last year. I thought their service was outstanding and probably the best of any North American carrier I have flown. I'd definitely fly them again if I have the opportunity.

I was bitterly disappointed in their HR department who didn't even have the decency to contact me after my interview to tell me that they decided to close the position I interviewed for. I thought that was pretty unprofessional.

[stuart schechter]

I love the DirectTV in every seat for the short domestic flights that they have. I will always love them.

[ATAIndy]

I was bitterly disappointed in their HR department who didn't even have the decency to contact me after my interview to tell me that they decided to close the position I interviewed for. I thought that was pretty unprofessional.

That does sounds VERY unprofessional, and frankly it shouldn't ever happen, especially from an airline like jetBlue.

[Nonstop2AUH]

Re the interview, it's just how business is today. I had 2 rounds of interviews for a management job at one of the niche premium airlines and there was no follow up at all, not even a generic email or letter. I did later find out the 2 senior execs I met with got canned themselves, so the entire process...including having to go to an interview during the NYC transit strike because they were inflexible...was a waste of my time.

[cancidas]

Re the interview, it's just how business is today. I had 2 rounds of interviews for a management job at one of the niche premium airlines and there was no follow up at all, not even a generic email or letter. I did later find out the 2 senior execs I met with got canned themselves, so the entire process...including having to go to an interview during the NYC transit strike because they were inflexible...was a waste of my time.

though not that bad, i had a similiar experience lately. makes me want to get out of the scheduled airlines service and work part 91 or 135 somewhere!

[bonanzabucks]

I should also add that at that time I wasn't living here in NY, but in Canada. So I had to fly myself down at my own expense (hotels and everything). They should have had the decency to inform me because of the trip I made. There's absolutely no excuse for them not to say anything.