http://investor.jetblue.com/ireye/ir...item_id=846920
Slightly beating earnings expectations (-$0.18/share versus average estimate of $0.20), but recognizing some of the harsh criticims, a major shift in the growth strategy:
We are focusing on diversifying our route network with an emphasis on medium- and short-haul flights, revamping our fare structures to meet the sustained high fuel prices and right-sizing capacity in our trans-continental markets. The first action of this strategy is to adjust our fleet plan by deferring 12 aircraft previously scheduled for delivery in 2007 through 2009 to 2011 through 2012, and seeking a buyer for at least two of our Airbus A320 aircraft currently in revenue service. Taking these actions now allows us to continue to grow at a less accelerated rate, while still preserving our ability to take advantage of market opportunities now and in the future.
Pulling back from transcon is interesting. Competitors accuse them of driving transcon fares down, making the routes unprofitable. Now with high fuel prices apparently here to stay, it seems like they agree.
Again, not writing the obituary yet, but this looks very serious. I'm not sure the market will reward them for this, as it looks like a real scramble.