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

In Boston, JetBlue was the fastest-growing carrier in 2008, adding an average of 190 passengers daily. In the current quarter, strong Florida traffic makes JetBlue Boston's No. 1 carrier. In Orlando, where it has added international flights to Bogota and San Jose, Costa Rica, JetBlue will be No. 2 this summer. At Fort Lauderdale-Hollywood International Airport, JetBlue will have seven contiguous gates this spring, up from four today, and it will add flights to Santo Domingo and Cancun in June.

Of course, many airlines have struggled to build a franchise in Florida, where someone is always willing to charge a little bit less for a flight. In JetBlue's case, that someone is Spirit Airlines.

Privately held Spirit is off the radar for many industry observers, but it is the largest carrier at Fort Lauderdale International Airport, carrying about 20% of airport passengers. In the Fort Lauderdale-La Guardia market, where Spirit has seven flights a day and JetBlue has five, Spirit cost per available seat mile is 20% lower because it packs in its passengers, says Spirit CEO Ben Baldanza.

"They're a good airline, but they sell product, while we sell price," Baldanza says. "They can't make money at the fares we charge." Baldanza says South Florida to the Caribbean may also be a tough market for JetBlue, caught between price leader Spirit and well-established American (AMR). And Orlando, he said, is a leisure market with limited traffic: "We've tried a number of things out of Orlando -- it doesn't work," he said.

Overall, Baldanza said, JetBlue is a New York airline, hurt by the financial services meltdown and " playing the same game a lot of legacy airlines play, figuring out where its planes are losing money and how can they be redeployed to places where they will make money."
3 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 $24.90 0.00%
JBLU $19.33 0.00%
LUV $41.66 0.00%
AAPL $94.19 0.00%
FB $118.06 0.00%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs