Motley Fool  Jan 4  Comment 
Cowen & Co. pours cold water on hopes for airline stocks.
Motley Fool  Jan 3  Comment 
JetBlue Airways hopes to use its successful Mint premium service to drive rapid growth in the next few years.
Benzinga  Dec 30  Comment 
On CNBC's Fast Money Final Trade, Pete Najarian recommended a long position in JetBlue Airways Corporation (NASDAQ: JBLU). He noticed unusual options activity in the name. Heather Zummaraga is bullish on the consumer sector. She thinks it's...
Benzinga  Dec 29  Comment 
On CNBC's Fast Money Halftime Report, Jon Najarian spoke about options trading in Becton Dickinson and Co (NYSE: BDX). He said there was a big volume in the January 175 calls. Over 11,000 contracts were traded early in the session. He followed the...
DailyFinance  Dec 28  Comment 
Filed under: News, White House Several thousand people are calling for a Hunter College professor to be fired after his husband heckled Ivanka Trump. Urban studies and planning professor Matt Lasner and his husband, Dan Goldstein, were kicked...
DailyFinance  Dec 25  Comment 
Filed under: News, Controversy Teen Vogue writer Lauren Duca sparred with Fox News host Tucker Carlson on Friday evening. The two met on his show to discuss the JetBlue passenger who harassed Ivanka Trump. In the segment, Carlson frames the...
Clusterstock  Dec 22  Comment 
JetBlue removed a passenger and his husband from a flight on Thursday after he was said to have confronted Ivanka Trump and her children. In a statement emailed to Business Insider, the airline confirmed that the passengers were removed from...
Motley Fool  Dec 20  Comment 
JetBlue announced a modest share repurchase program at its investor day last week. But it can afford to return more cash to its shareholders.
Forbes  Dec 17  Comment 
Some little known facts about JetBlue: aircraft utilization is very high; seat pitch is relatively high even after the cutbacks demanded by Wall Street, and Boston-Pittsburgh is a very profitable route.


JetBlue Airways Co. (Nasdaq:JBLU) is the 6th largest passenger carrier in the United States based on revenue passenger miles as reported by those airlines.[1] JetBlue operates on point-to-point routes with its fleet of over 100 Airbus A320 aircraft and around 50 EMBRAER 190 aircraft — the youngest and most fuel-efficient fleet of any major U.S. airline. [1] JetBlue operates mainly in the Newark International Airport and in New York's John F. Kennedy International Airport, both of which are one of the busiest domestic airports in the nation.[1] JetBlue commands around 40% of all airport traffic in New York's John F. Kennedy International Airport[1] By scheduling and operating its aircraft efficiently, JetBlue is able to spread its fixed costs over a greater number of flights and available seat miles.[1]

Business Overview

JetBlue Airways specializes in cheap point-to-point flights with high levels of customer service. The company provides service to over 60 destinations in around 20 states, Puerto Rico, and eleven countries in the Caribbean and Latin America.[1] The company is able to maintain its industry-low CASM through aircraft efficiency and distribution costs.[2] It has the youngest aircraft fleet in the industry, which reduces maintenance expenses, and it operates its aircraft for highest number of hours in the industry.[2][1] A large majority of sales are booked through its website, which reduces operating costs.[1] Most of its flights originate from five main airports, including Boston, Fort Lauderdale, Long Beach (CA), New York City, and Washington , with New York City's JFK airport as its primary operating airport. thank you

Business Growth[3]

  • Revenue: Revenue increased from $3.292 billion in 2009 to $3.779 billion in 2010, representing a 14.8% increase in revenue. For the first half of 2011, revenues increased 19.5% from $1.81 billion in 2010 to $2.16 billion.[4]
  • Net income: Net income increased from $61 million in 2009 to $97 million in 2010, representing a 59% increase in net income. For the first half of 2011, net income decreased 6.7% from $30 million in 2010 to $28 million.[4]

Geographic Segments[5]

JetBlue operates in two geographic segments:

  • Domestic: 77% of total revenues.
  • Caribbean: 23% of total revenues.

Trends and Forces

Airline industries are more sensitive to the economy than other industries

Typically, airline companies and aircraft manufacturers are more prone to swings in revenue and equity market prices due to the release of economic indicators.[6] Consumers tend to reduce travel if personal economic conditions are suboptimal, forcing airlines to cut capacity and production. Indicators such as unemployment indices, personal income, and even home sales affect airline industries in exaggerated fashion.

Increases in Fuel Prices Hurt Financial Performance

Like all other airlines, JetBlue is vulnerable to increases in fuel prices, as fuel represents a vast majority of airlines' operating expenses. Since JetBlue is a low-cost airline service provider, JetBlue's bottom line is primarily directed by its fuel expense. To mitigate its vulnerability to increases in fuel prices, JetBlue enters into annual hedging contracts. However, sudden increases in fuel prices significantly affect even the most immediate quarter's balance sheet.

Aging Fleet Leads to Rising Operating Expenses

One of JetBlue's main cost-saving advantages is its "young" fleet, which has the youngest fleet among its competitors. Maintenance expense is expected to increase significantly as the fleet ages, resulting in the need for additional repairs over time.


AirTran Holdings (AAI): AirTran Holdings (Nasdaq:AAI) is one of America’s largest low-fare passenger airlines. The airline has managed to achieve low operating costs despite relying on a hub-and-spoke system, in which most of its flights originate and terminate at its hub in Atlanta, Georgia. Given AirTran's continued reliance on the hub and spoke system, airline management has cited other operational factors as cause for the airline having a cost structure that is among the lowest in the industry.[7]

American Airlines (AMR): AMR is the parent company of American Airlines, the second largest airline in the world based on available seat miles and revenue passenger miles On an average day, American Airlines flies approximately 3,400 flights between around 250 countries. [8]

Delta Air Lines Inc. (DAL): Delta Air Lines is the 2nd largest passenger airline in the world by available seat miles. In recent years, the company has faced financial difficulties due to price competition from discount airlines like JetBlue and Southwest. This has limited Delta's ability to raise prices to their natural supply/demand and cost reflective levels. As a result, Delta was forced into bankruptcy in September of 2005. Since exiting bankruptcy on April 30, 2007, the company has followed a revised operating strategy calling for a network shift towards more profitable international routings. [9]

Southwest Airlines Company (LUV): Southwest Airlines is the largest domestic carrier by total passenger. Southwest thrives on maintaining low operating expenses, primarily through its extensive fuel hedging. Because of its low costs, Southwest was able to remain profitable for 35 consecutive years, a feat unmatched in commercial aviation history.[10]

United Continental Holdings (UAL): The merger between Continental Airlines and United Airlines created the second largest airline fleet in U.S history. While not directly competing against JetBlue's low cost structure, UAL is a major stronghold in aviation. [11]

US Airways Group (LCC) US Airways is a major domestic air carrier with destinations across the U.S., Canada, the Caribbean, Latin America and Europe. The company’s finances suffered considerably due to reduced air travel following September 11th, forcing the airline to declare bankruptcy in 2002. However, unlike other carriers that improved and emerged stronger following Chapter 11 protection, US Airways never fully recovered. The combination of high fuel costs and tough labor negotiations forced the company into a merger with America West in 2005. While the US Airways name was maintained for brand purposes, the merger actually left America West executives and stockholders with more control over the new company.[12]


  1. 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Wikinvest SEC Files: JBLU 2010 10-K, Item 1
  2. 2.0 2.1 Wikinvest SEC Files: JBLU 2010 10-K, Item 6
  3. Wikinvest SEC Files: JBLU 2010 10-K, Item 6, Selected Financial Data
  4. 4.0 4.1 JetBlue Announces Second Quarter Results
  5. Wikinvest SEC Files: JBLU 2010 10-K, Item 8, Note 16
  6. MarketWatch: Airline Stocks Hammered by Latest Economic Data, 08-19-2010
  7. Wikinvest Stock Summary: AirTran
  8. Wikinvest Stock Summary: AMR
  9. Wikinvest Stock Summary: DAL
  10. Wikinvest Stock Summary: LUV
  11. Wikinvest Stock Summary: UAUA
  12. Wikinvest Stock Summary: LCC
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