Southwest Example Shows Wall Street May Be All Wrong on JetBlue

NEW YORK ( TheStreet) -- Wall Street got what it wanted Thursday when JetBlue ( JBLU)  CEO Dave Barger threw in the towel and JetBlue shares rose early Friday -- though not as much as expected -- primarily because analysts believe the carrier will move quickly to add bag fees, which they estimate will add as much as $200 million in annual revenue.

An hour after Friday's opening bell, JetBlue shares were up 20 cents to $11.53. The shares gave up some of the gains they had achieved in premarket trading, when they were up 50 cents.

Read More: Why JetBlue CEO Dave Barger Was Chased Out by Wall Street

It's worth noting that during the industry-wide gain in airline shares this year, in which each of the seven major carriers is showing gains north of 30% while the S&P 500 is up 9%, the biggest gainer among airlines has no first bag fees. Rather, Southwest (LUV) shares are up 87% year to date and Southwest CEO Gary Kelly has for years been resisting Wall Street's recommendation that he add bag fees.

Read More: 5 Worst U.S. Airlines of All Time

While Wall Street analysts have been united in their hopes for Barger and JetBlue, travel writer Joe Brancatelli sees it all differently.

"These analysts don't seem to understand that JetBlue may not be a profitable operation without being different," Brancatelli said. "JetBlue is Apple (APPL)  and all the others are Android.

"The analysts act like the legacy carriers know how to do everything," Brancatelli added. "Not long ago, the legacy carriers were all in bankruptcy court. JetBlue continues to make money and they continue to make a nice return and they do that because people like the product."

In a prepared statement released Thursday, Barger said he has "been looking for the right time to take the next step in my life." On Thursday he gave a few interviews, but he disclosed little. He told The Wall Street Journal  that "I have to figure out what I will do next."

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