JetBlue TrueBlue - 17 of JetBlue's last 20 routes were unprofitable

http://www.newyorkbusiness.com/news.cms?id=13154

JetBlue Airways Corp. shares tumbled more than 7% Friday after a Wall Street analyst suggested selling shares of the company, citing structural problems that could lead to losses.

''This oversupply of airline seats in JetBlue's major markets seems to be a unique problem for JetBlue and would imply that there is a deeper problem beyond fuel prices and current losses,'' said Mr. McAdoo, who was previously the chief financial officer for now-defunct People Express airline before becoming an analyst.

Mr. McAdoo suggested problems at JetBlue might stem from broader issues at the carrier. He said 17 of the last 20 markets the airline added have not been profitable, even with reduced fuel prices.

Mr. McAdoo said moving toward short-haul flights might help JetBlue's bottom line. He points out the company has been accepting 156-seat Airbus A320 aircraft at a rate of 15 to 17 aircraft per year for the last few years. JetBlue has also recently begun receiving the first of a second fleet of aircraft, the 100-seat E190 built by Embraer, he said.

jetBlue is growing and expirementing at the same time. There are advantages and disadvantages of being a public company. An example of each:

good - moeny can be raised quickly
bad - Wall St. (analysts and stock holders) don't see things over the broader range...give jetBlue a few years until their growth is complete.

Last night I flew the redeye SEA-JFK and there was a 2-hour delay due to mechanical problems...something that occurs at every airline. Not one customer even cared or asked, and the ticket counter staff decided to issue a $50 voucher to each customer on the flight. That just shows that jetBlue does things differently....what would Delta give you for a 5-hour delay besides nothing?

The voucher most probably turned that particular flight from profitable to money-losing, even worse, from now on, its customers will expect to receive money for every delay they experience ...

Delta could probably have rerouted you through ATL or SLC

Have you seen Southwest handout any money for its delays? They know better about managing people's expectations.

For someone who dislikes JetBlue, you spend a great amount of time posting BS on this board...why don't you go over to another airline board?

jetBlue is growing and expirementing at the same time. There are advantages and disadvantages of being a public company. An example of each:

good - moeny can be raised quickly
bad - Wall St. (analysts and stock holders) don't see things over the broader range...give jetBlue a few years until their growth is complete.

Last night I flew the redeye SEA-JFK and there was a 2-hour delay due to mechanical problems...something that occurs at every airline. Not one customer even cared or asked, and the ticket counter staff decided to issue a $50 voucher to each customer on the flight. That just shows that jetBlue does things differently....what would Delta give you for a 5-hour delay besides nothing?

Do hope JB can turn it around, but there is no doubt the situation is serious. Last quarter's loss was quite large. I am not sure the current growth plan is a good idea. It seems it would be more sensible to slow growth, return to profitabaility, and improve the currently dismal operational performance.

I like drinking the jetBlue coolaid... all the countless times i've flown them have been good. Granted the past two times, I ran in to the same lead FA who needed some retraining on how to speak on a PA but otherwise all around it was a good experience.

Has jetBlue had a tough time financially last year? absolutely.

Have some of you here have a bad experience with jetBlue? absolutely.

Do we all have different expectations of what is "right" or "wrong" way to treat a customer, the intents behind it, and compensation? Sure.

Ciaobel, you're right jetBlue does set a different set of expectations and standards with its customers that other airlines. Yes, they are a business but they choose their strategic plan to be more customer focused than $$ focused. Before some of people start screaming their customer service is lackluster... I acknowledge the bad experience that some of you personally may have had, however if EVERYONE was having a bad time, they wouldn't exist anymore now...

Either the company turns around and continue to develop to a major carrier in the US or it continues to decline and fades in to the night. Regardless of the out come... all these doomsday posts about how the airline is going to go away serve no purpose. Maybe the 1st one opened some people's eyes... the 2nd opened a few more... but the 3rd one just isn't the charm. If this gives posters the right to say "oh look I told you so" later, you've allocated yourself more than enough posts for that.

No one here is forcing anyone else to fly jetBlue. When people are using examples of Delta, Soutwest or any other airline, they aren't saying well they're planes are crap. Rather than saying negative about one airline, why not say something positive? Is that so hard?

Fly the airline that you like, be happy about it. If you don't like jetBlue then don't fly jetBlue and stop whining about it.

Fly the airline that you like, be happy about it. If you don't like jetBlue then don't fly jetBlue and stop whining about it.

I like Jetblue and especially Neelman, met him before and really hoped him do well.

However, I believe that I am entitled to voice my opinion.

1. People do not buy airline ticket based on how much they like a particular airline. For the same itinarary, if the price difference is within $25, people might be willing to pay a premium for their preferred airline, but if it is more than $25, most people will go for the cheaper one. (even if they say otherwise, but the booking numbers would tell another story) That is why people complain about Delta, Northwest, but they still get away with almost full flights and cuts of amenities. Sorry to break the truth to you: time and time again, it proved that customers are cheap and loyalty does not pay much. That is the same reason that Walmart is the largest entreprise in the world, while everybody has something bad to say about it.


2. I really believe that JetBlue's problem is that their products are designed for people who are willing to pay for some frills, while their prices and revenue managment practice attract and maintained a customer base that actually not willing to pay for the frills. I would love for Target to have Walmart pricing, but it will not last long.

However, I believe that I am entitled to voice my opinion.


Ciaobel, Yes you are. My Comment about whining was certainly not directed towards you. I appreciate that your opinions that are backed up with reasoning.

My original comments are directed towards others who make statements of their opinions without reasonsing.

Cheers,
D

How quick is JetBlue to cut profitless routes?

The voucher most probably turned that particular flight from profitable to money-losing, even worse, from now on, its customers will expect to receive money for every delay they experience ...

Delta could probably have rerouted you through ATL or SLC

Have you seen Southwest handout any money for its delays? They know better about managing people's expectations.
Actually, it goes by probability. The flight was full, so out of 156 seats, figure only half will fly within 12 months on jetBlue and remember to use it...50 bucks a person is a lot upfront, especially for a 2-hour delay, but it is stuff like that which keeps people coming back for more. It also encourages people to recommend jetBlue to others, which helps generate money. No vouchers for weather delays...but I just arrived FLL today, my 4th jetBlue flight in 9 days and the esperience was great as usual.

How quick is JetBlue to cut profitless routes?

What is does this mean JB to cut the profitless routes from JFK or BOS?

http://www.newyorkbusiness.com/news.cms?id=13154

JetBlue Airways Corp. shares tumbled more than 7% Friday after a Wall Street analyst suggested selling shares of the company, citing structural problems that could lead to losses.

''This oversupply of airline seats in JetBlue's major markets seems to be a unique problem for JetBlue and would imply that there is a deeper problem beyond fuel prices and current losses,'' said Mr. McAdoo, who was previously the chief financial officer for now-defunct People Express airline before becoming an analyst.

Mr. McAdoo suggested problems at JetBlue might stem from broader issues at the carrier. He said 17 of the last 20 markets the airline added have not been profitable, even with reduced fuel prices.

Mr. McAdoo said moving toward short-haul flights might help JetBlue's bottom line. He points out the company has been accepting 156-seat Airbus A320 aircraft at a rate of 15 to 17 aircraft per year for the last few years. JetBlue has also recently begun receiving the first of a second fleet of aircraft, the 100-seat E190 built by Embraer, he said.


Just give up the JetBlue hating. Please. You are outnumbered by 1,000+ to 1.

Simply put play nice - everyone is entitled to their opinion - and so long as it's stated within the TOS of FT - that's fine - when it turns personal either saying it or defending against what was said - it's out of line.... Use the report post function - and the thread will be reviewed. Sometimes with changes - sometimes without -

In any event the health of ft is based on good conversation and good information being shared. As some seem to think the honeymoon for Jet Blue may be over - tends to ignite emotions from those who have supported the airline and now feel let down - just keep the thoughts focused on Jet Blue and not each other. Please.

Any questions please feel free to ask via PM Thank you!!

I like Jetblue and especially Neelman, met him before and really hoped him do well.

However, I believe that I am entitled to voice my opinion.

1. People do not buy airline ticket based on how much they like a particular airline. For the same itinarary, if the price difference is within $25, people might be willing to pay a premium for their preferred airline, but if it is more than $25, most people will go for the cheaper one. (even if they say otherwise, but the booking numbers would tell another story) That is why people complain about Delta, Northwest, but they still get away with almost full flights and cuts of amenities. Sorry to break the truth to you: time and time again, it proved that customers are cheap and loyalty does not pay much. That is the same reason that Walmart is the largest entreprise in the world, while everybody has something bad to say about it.


2. I really believe that JetBlue's problem is that their products are designed for people who are willing to pay for some frills, while their prices and revenue managment practice attract and maintained a customer base that actually not willing to pay for the frills. I would love for Target to have Walmart pricing, but it will not last long.
You pulled that $25 figure out of where?

I've paid $75-$100 more for a Jetblue flight JFK-LGB vs. a cheaper CO flight EWR-LAX. The thought of Y in Co for 6 hrs scared me enough. I'd rather pay $400 for Jetblue vs $320 for CO in Y. I think Jetbue's Y is damn near a biz class product on US or CO/DL when all the factors are weighed. It destroys their Y product.

Not sure where you got this figure from, but frankly its BS.

And also, I'd be curious to see the percentage of flights actually makin1g a profit for some of the legacies.

I think B6 will get their act together and focus on on-time performance first and the E-190 issues (correlated Im sure) and then focus on expansion.

The int'l alliance deal is a nice option as wel..

The fact that not a single airline can maintain a price premium higher than $25 on the same routes and same conditions (no of connections, cabin of service)

You pulled that $25 figure out of where?

Not sure where you got this figure from, but frankly its BS.

And also, I'd be curious to see the percentage of flights actually makin1g a profit for some of the legacies.


No personal attack please.

You are only one data point, you are notrepresenting most people. If making a purchase is a vote, you have only one in the democratic system.

Comparing CO out of EWR and JBLU out of JFK is not fair: based on where you are, each airport carries a premium for its accesibilty. Like wise, LGA constantly commands a premium for domestic flights into NYC.

If JBlue products does command the premium as you are willing to pay, then its average ticket price will be higher than legacies. But the truth is that it is not. This data can be easily derived from the SEC filings. In that light, Jblu did not manage its inventory well enough (refer to my original point).