Message Font: Serif | Sans-Serif
No. of Recommendations: 0
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.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.