The carrier, which reported first-quarter earnings on Thursday, has about 50% of its capacity in two of the airline industry's toughest markets. In trans-Continental markets between California and New York, a half dozen airlines offer about 75 daily flights each way, including nine on Virgin America.
In Dallas, Southwest (LUV) , Spirit (SAVE) and Virgin America have been rapidly adding capacity since the Wright Amendment, a law that governed traffic at Love Field in Dallas, expired in October.
Virgin America earned 24 cents a share, easily beating the 14 cents Thomson Reuters consensus estimate. Nevertheless, shares fell $1.71, or nearly 6%, to close at $28.71.
The carrier went public in November at $23 -- shares closed at $30 on the first day of trading and reached $43.25 by the end of the year. Shares are down 34% so far this year.
Asked his response to Wall Street's evaluation in an interview on Thursday, CEO David Cush responded: "We take a little bit of a longer term perspective. Our job is to run the company, to make it better, and to tell our story. It is their job to decide what our stock should be priced at."
Cush said the intense competition doesn't trouble him. The trans-con markets are the airline's most profitable, he said. Additionally, he noted, "We started out in the toughest markets -- JFK-LAX, JFK-San Francisco and LAX-San Francisco were our first three routes. We've been in this since day one, so we're used to it."