More Trouble for JetBlue

Mike Linenberg of Merrill Lynch lowered his 2007 profit estimate to 40 cents from 50 cents, writing in a report that "the operational issues suggest that the company is still suffering from growing pains." Merrill has a financial relationship with JetBlue that includes acting as a market maker and investment banker.

For his part, Neeleman suggested storm cancellations will force the company to cut its guidance. He made his comments in an interview on CNBC, during which he also tried to contain the public-relations mess last week's foul weather has caused for the New York-based airline. He didn't offer any specific numbers.

JetBlue introduced a customer bill of rights on Tuesday, promising to compensate passengers for various delays. If a flight lands and can't get to a gate, the carrier will issue vouchers ranging from $25 for a 30-minute delay to full ticket price for a delay exceeding four hours. For ground delays of departures, vouchers for $100 will be issued at three hours and full-fare vouchers will be issued at four hours.

Vouchers will also be offered for cancellations within 12 hours of departure and for departure delays when they are caused by the airline rather than by weather or air traffic control. The financial impact of the bill of rights "is not a meaningful amount, [but] maybe people will look at this and say I want this to be my airline," Neeleman said.

In all, JetBlue canceled 1,096 flights between Feb. 14 and Feb. 19, about one-third of the total. Its Embraer 190 fleet was grounded for three days.

The airline's problems started when icy Valentine's Day conditions at its Kennedy International hub delayed or prevented departures, and then cascaded into five days of cancellations as various systems failed in the face of high demand.