This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

JetBlue Maturing as Airline

JetBlue (JBLU - Get Report) has learned discipline as it approaches its 10th anniversary.

Consider a few recent facts. Capacity shrank in the third and fourth quarters, the first shrinkage in JetBlue's history, and will fall by 5% to 7% in the current quarter. Meanwhile, in December, JetBlue's average fare was $151, the highest in its history.

In the fourth quarter, JetBlue led all carriers with 15% growth in passenger revenue per available seat mile. And this year, for the first time in its history, the carrier will have positive free cash flow, or cash from operations minus capital expenditures.

Jet Blue goes with the flow.

CEO Dave Barger summed up the airline's situation, and the industry's, during a fourth-quarter earnings call, saying: "What's most significant is just the amount of capacity (removed), the discipline, the restraint that's taking place as a result of the economy." Last year, JetBlue opened just two cities, Puerto Plata and St. Marten, a far cry from the 16 it opened in 2006.

To briefly recall its history, JetBlue spurted out of the gate in 2000, defining rapid growth, and for a time lived on the edge of the airline industry. Its share price soared -- reaching a high of $30, adjusted for splits, in 2003 -- then sputtered, trading today around $5.78.

It repeatedly shifted strategy, starting with a list of scattered cities served from New York's Kennedy Airport with a fleet of Airbus A320s, then focused on transcontinental routes, then moved to serving midsized cities with a smaller aircraft.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CAL $24.68 0.00%
JBLU $20.13 0.00%
LUV $35.54 0.00%
AAPL $94.27 0.00%
FB $101.00 0.00%


Chart of I:DJI
DOW 15,914.74 -99.64 -0.62%
S&P 500 1,851.86 -0.35 -0.02%
NASDAQ 4,283.5920 +14.8290 0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs