Not a lot of cash left at JetBlue
Mar 8, 2005, 6:43 pm
#1
Original Poster
Join Date: Feb 2005
Posts: 196
Not a lot of cash left at JetBlue
I realize that they have tons of stock that they can sell to drum up cash but that would be bad for their stock price.
From tonight's WSJ
"According to the amended filing with the Securities and Exchange Commission, JetBlue had $18.7 million in cash and cash equivalents at the end of 2004"
From tonight's WSJ
"According to the amended filing with the Securities and Exchange Commission, JetBlue had $18.7 million in cash and cash equivalents at the end of 2004"
Mar 8, 2005, 7:21 pm
#3
Join Date: Jul 2004
Location: New Jersey, DC
Programs: Jetblue
Posts: 538
Originally Posted by DataBaseDude
It's not all their stock that they are holding (that's confidence):
"JetBlue said it invests in auction rate securities as part of its cash management strategy."
"JetBlue said it invests in auction rate securities as part of its cash management strategy."
Mar 8, 2005, 8:11 pm
#4
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Measuring the worth or profitability of any business by only looking at their cash position is a complete waste of time. You're missing 99% of the picture.
Mar 8, 2005, 8:34 pm
#5
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Originally Posted by DataBaseDude
I realize that they have tons of stock that they can sell to drum up cash but that would be bad for their stock price.
From tonight's WSJ
"According to the amended filing with the Securities and Exchange Commission, JetBlue had $18.7 million in cash and cash equivalents at the end of 2004"
From tonight's WSJ
"According to the amended filing with the Securities and Exchange Commission, JetBlue had $18.7 million in cash and cash equivalents at the end of 2004"
$18.7 million of cash and cash equivalents plus $430 million of investment securities, probably US Treasury overnight repos.
Total effective cash was $449 million. Down substantially, which is to be expected with new aircraft deliveries plus skyrocketing maintenance (as the warranties begin to run out) plus rising fuel prices combined with dramatically plunging yield and RASM for 2004 (both down 7%).
Mar 8, 2005, 9:37 pm
#6
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Originally Posted by FWAAA
$18.7 million of cash and cash equivalents plus $430 million of investment securities, probably US Treasury overnight repos.
Total effective cash was $449 million. Down substantially, which is to be expected with new aircraft deliveries plus skyrocketing maintenance (as the warranties begin to run out) plus rising fuel prices combined with dramatically plunging yield and RASM for 2004 (both down 7%).
If I took out $1 million in loans and deposited it into my checking account, does that make me a rich man? Of course not.
Revenues and expenses is the real story, not cash flow.
Mar 16, 2005, 5:29 pm
#7
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Location: California
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Posts: 1,231
One of the better cash positions in the industry
There are several ways to look at the cash needed for a strong airline. Profitability is one factor. Cash flow is another factor (you can be profitable but have a huge negative cash flow because of capital investments, recievables buildup, etc.). On all these counts Jetblue rates way above its US peers (with the exception of SouthWest and possibly AirTran).
Airlines are capital intensive businesses. Jetblue, while a little damaged lately, still has one of the best financial positions. Its cash and cash equivalents is very strong relative to cash flow (no negative cash flow - cash flow has been positive). With rare exceptions, the airline has been profitable as well.
Airlines are capital intensive businesses. Jetblue, while a little damaged lately, still has one of the best financial positions. Its cash and cash equivalents is very strong relative to cash flow (no negative cash flow - cash flow has been positive). With rare exceptions, the airline has been profitable as well.