JetBlue Airways CorporationJBLU

Morningstar Rating

Stock Research and Analysis

by Michael Pierson

JetBlue benefits from a strong brand and a low-cost structure. However, the company faces decreased travel demand from strapped consumers and businesses.

The airline industry has become more commodified than ever, and it follows that airlines with Read more

Bulls Say

JetBlue's management team has had much success running low-cost airlines, and strong leadership is critical in this business.

JetBlue operates one of the youngest fleets in the business, with an average age of 3.6 years. New planes tend to be more fuel-efficient and require less downtime for maintenance.

Sixty-six percent of JetBlue's business is out of the New York metropolitan market, which is slot-constrained and has showed more resilient pricing than other parts of the market. Read more

Bears Say

JetBlue has substantial fixed operating costs and has undertaken much debt to execute its strategy. An economic downturn or serious missteps could prove fatal to the company.

JetBlue's superb amenities, once a point of differentiation, are being copied by other low-cost airlines, thus eroding a competitive advantage that helps JetBlue maintain customer loyalty.

The firm's business model depends on high utilization, making JetBlue vulnerable to congestion and adverse weather conditions. Read more

Strategy

JetBlue's stated strategy is to stimulate demand, keep operating costs as low as possible, offer point-to-point service to overpriced markets, and differentiate its product offering. To implement this Read more

Management

In 2007, founder and CEO David Neeleman received the pink slip from the board, which replaced him by promoting president and COO David Barger to the top spot. Barger ran Continental's CAL Newark hub for several years and brings a more operations-focused Read more

Profile

JetBlue is a low-cost airline that offers high-quality service, including assigned seating and in-flight entertainment. Based at New York's JFK airport, JetBlue serves short- Read more

First Name

Last Name

Email Address

Zip Code

Create Password

Verify Password

(6-15 characters; case sensitive)

What is your occupation or job title?

Select...

Your registration indicates agreement to the terms of use.

Daily Dividend Reports: PEP, ADP, L, AVP, PKY
Watch more