JetBlue (JBLU) in a filing with the SEC, said that its operating margins in Q2 would be 9% to 11%, which was higher than previously forecast. But, the stock managed to go nowhere, up about 1% to $10.98 against a 52-week high/low of $17.02/$9.15.
Granted, most airline stocks are down due to rising fuel costs and discounting, especially on US routes. JetBlue has not recovered from its customer services disaster during snow storms in February, but some good news should help the shares.
Wall St. may be coming to the conclusion that JetBlue is just too small. Revived airlines like Delta (DAL) and long-time operators like American (AMR) have the advantage of scale and and the ability to offer service to hundreds of cities. JetBlue’s claim to fame was that it was a nice company to fly with.
Now that its reputation is gone, an improvement in operating margin just fails to impress.
Douglas A. McIntyre
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