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Author: SrGuapo Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 919  
Subject: Re: Why oh Why Date: 11/12/2007 8:42 AM
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I used to be long Jetblue. I figured they had lower costs and a better product, and that their better product translated into better revenues. Thus if the rest of the industry broke even they would make a tidy profit and I would make a nice gain on my investment.

I was wrong. This industry abhors a profit and every company is willing to sacrifice itself to be sure that no other company runs a profit. If your competition isn't profit motivated you just can't play the game!


But I don't see how the industry abhors a profit as companies like UAL have been very profitable despite the price of oil.

I guess the part of your argument that doesn't work is the idea that JetBlue really has a better product. It all comes back to what consumers are willing to pay for, and I don't think JetBlue is offering it on the scale they need to in order to be profitable. It will be interesting to see what they do next. Maybe give up and sell to Delta? Who knows.
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