JB reports 1Q 2024 earnings

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SWAMECH

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Apr 26, 2005
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Wondering if JB/Frontier should be in talks right now. Not so sure JB will come out of this downward spiral they are in. Frontier is doing pretty well since they walked away from the original hook up, JB not no where as well, so Frontier can make all the calls and moves and remain in the most control. Might be worth a shot, as this way they are not trying to take out the largest ULCC out there.


JetBlue Announces First Quarter 2024 Results

First quarter results exceeded expectations Progress on revenue and cost initiatives supported positive performance Focused on executing on refreshed standalone strategy JetBlue Airways Corporation (NASDAQ: JBLU) today reported its financial results for the first quarter of 2024. "Thanks to our...
ir.jetblue.com ir.jetblue.com
 
They haven’t turned a thing around.

They are deferring dozens of deliveries, cutting cities and routes.
 
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Correct. They are not completely out of it as of yet, but they did turn around a loss into a profit and that's a good start. The rest will hopefully fall into place with all the planned cost savings they have planned.
Positive progress is always a good look.
 
Cutting flights, postponing aircraft and cutting flight crews hours isn’t a success, it’s shows failures.
 
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CorvetteMan said:
Cutting flights, postponing aircraft and cutting flight crews hours isn’t a success, it’s shows failures.
Click to expand...
It shows that the cities and flights they tried to make work did not work out and its time for a change. Getting rid of NON profitable routes and flights is not a failure, it's a smart biz move. Cutting flight crews hours is also a biz decision when not making money on those routes. It's al about aviation moves and you know this.
 
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Typical airline moves when they need to move assets around. Shifting momentum and opening up cash flow. All airlines do this from time to time.
 
SWAMECH said:
Far from clueless, I just spend more time pointing out the positive parts instead of dwelling into the negative like you do.
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So your smarter then all the industry experts?

Where did you get your degree in Journalism, Businees and/or your MBA?
 
SWAMECH said:
Far from clueless, I just spend more time pointing out the positive parts instead of dwelling into the negative like you do.
Click to expand...

JetBlue is not to be conflated with the historical debt servicings at Delta, American or United - all of which occurred during or shortly after their business operations (not airline operations) had merged. .

JetBlue is attempting to sell its debt in the "Junk Bond" market. Here's some questions for you:

#1: Do you know what a "Junk Bond" is?
A: "A junk bond is a corporate bond that has a high risk of the underlying company defaulting. Companies that issue junk bonds are typically struggling financially. Junk bonds carry much risk since investors are unsure whether they will be repaid their principal and earn regular interest payments. As a result, junk bonds pay a higher yield than their safer counterparts to help compensate investors for the added level of risk. Companies are willing to pay the high yield because they need to attract investors to fund their operations." In short, it is the "payday loan" of the corporate world.

#2: Do you know why JetBlue is packaging this debt on the Junk Bond market?
A: They cannot raise the capital in the traditional marketplace. Meaning: The money from traditional sources has dried up, like the Sahara. JetBlue cannot issue investment-grade bonds any longer due to their poor credit rating and limited cash flow - facts.

#3: Do you know what JetBlue is pledging as collateral to secure this Junk Bond funding?
A: Their loyalty program, which is all they have left to leverage. The remainder of the airline is already pledged as collateral to service current debt.

#4: What happens if JetBlue *cannot* raise the funding through their Junk Bond sale?
A: I'll let you formulate that answer, as it is anyone's guess.

The credit markets in 2024 have evolved. As Bloomberg, Quartz, CNBC, and SEC filings clearly demonstrate, JetBlue's debt structure, its packaging, and its holding mechanisms are fundamentally distinct from any airline operating today. Delta, American and United, as, were not in this position when they packaged their debt decades ago
 
Personally I think JetBlue will come out the other side of this. (For awhile at least) It’s Spirit that’s the one I’m looking at going bye bye. After the Biden Administration stopped both the NEA and the JetBlue/Spirit merger it almost (definitely) looks like they want the LCC’s to go down?

I have a theory on this. After all the Money the Government had to spend during Covid to keep the Airlines up they realize the US needs a strong viable Airline Industry. The LCC’s prevent that and cause instability for the mighty 4 (AA, DL, UAL and SWA)

 
CorvetteMan said:
So your smarter then all the industry experts?

Where did you get your degree in Journalism, Businees and/or your MBA?
Click to expand...

I thought swamp I mean SWAMECH was ignoring you?

Maybe he’s finally getting tired of talking to himself here?
 
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