Jetblue Airways Corporation

Overview

JetBlue Airways Corporation (JBLU), incorporated in Delaware in August 1998, is a passenger airline that operates primarily on point-to-point routes with its fleet of 115 Airbus A320 aircraft and 45 Embraer 190 aircraft. The company has the youngest and most fuel-efficient fleet among other major U.S. airlines. It provides high-quality customer service featuring all-leather seats and live satellite television in every seatback. JetBlue's operations primarily include transporting passengers on its aircraft with domestic U.S. operations, as well as Puerto Rico, accounting for 85% of its capacity during the year ended December 31, 2010. The airports served by the company include New York's John F. Kennedy International Airport (JFK); Newark's Liberty International Airport; New York's LaGuardia Airport; Stewart International Airport, located in Newburgh, New York, and Westchester County Airport, located in White Plains, New York. (www.zacks.com)

As of June 30, 2011, JetBlue served 70 destinations in 22 states including Puerto Rico, and 11 countries in the Caribbean and Latin American. Most of the company's flights include on of its focus cities: Boston, Fort Lauderdale, Los Angele/Long Beach, New York/John F. Kennedy International Airport (JFK), or Orlando and Luis Munoz Marin International Airport, San Juan. By the end of June 2011, the company operated 650 daily flights on an average. JetBlue is the sixth largest passenger carrier in the United States based on revenue passenger miles.

Through its wholly owned subsidiary, LiveTV, LLC, the company provides in-flight entertainment systems for commercial aircraft, including live in-seat satellite television, digital satellite radio, wireless aircraft data link service and cabin surveillance systems. (www.zacks.com)

Introduction

New York based Jet Blue Airways is the sixth largest airline carrier in the United States and it's based on revenue passenger miles information. Their customers enjoy cheap air fares, brand new planes with ample legroom, television, radio, and other amenities. JetBlue's financial woes are due to rapid expansion, high debt, and airline competition. The 2008-2009 recessions' fiasco hammered JetBlue, US, and the global airline industry. This period had unusually high fuel costs, new entrants in the airline field, a shortage of pilots, mergers, bankruptcies, and labor costs increases. JetBlue operated in the red during its first decade in business and was shunned by the Wall Street market. In 2003 a share of JetBlue stock were 31 dollars and now trades below six dollars. Their shares have trailed their rivals for years. Financial Analysts predict that JetBlue's shares will increase to 33% in 2012. (www.smartmoney.com)

Investors have noticed JetBlue Airways again for several reasons. These reasons