Grim View at JetBlue

Asked whether he would seek to slow growth if the losses continue, Neeleman responded, "We will consider anything if conditions warrant," but noted that continuing delivery of the 190s will strengthen operations, providing service to markets considered too small for frequent A320 flights.

He said the airline could price more aggressively if it reduced frequencies in markets such as Kennedy-Fort Lauderdale, where it currently operates near hourly service during the day. "If we can adjust capacity, we can still keep load factors where we want and get a few more dollars for our ticket," he said.

Merrill Lynch analyst Michael Linenberg on Wednesday lowered his rating on JetBlue to sell from neutral because of "growing pains" at the company. Merrill Lynch has a banking relationship with JetBlue.

In a research report, Linenberg wrote that "the results of this quarter and the fact that management expects a loss for the March quarter and full year 2006 (albeit at a relatively high per gallon fuel assumption of $1.98) support our view that the stock will face several headwinds during the year."

Among them are rising costs related to the maturation of the company, meaning aircraft and personnel, expenses associated with the introduction of the E-190s, a limited fuel-hedge position, new competition -- Virgin America is targeting transcontinental flights -- and the narrowing of its cost advantage vs. the giant carriers that fly nationwide and worldwide routes.