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Prudential Downgrade

Old 03-10-2006, 08:46 AM
  #1  
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Friday March 10, 9:12 am ET
JetBlue Shares Slump in Early Trading on Downgrade

NEW YORK (AP) -- A downgrade from Prudential clipped JetBlue Airways Corp.'s wings in premarket electronic trading Friday.
Shares of the low-cost airline gave up 46 cents, or 4.1 percent, to trade at $10.65 on the INET electronic exchange, from their Thursday close at $11.11 on the Nasdaq.

Prudential analyst Bob McAdoo cut his rating on the New York company to "Underweight" from "Neutral Rate," noting that the carrier reported its first quarterly loss and guided to a full-year loss when it reported for the fourth quarter last month, and suggesting that its problems are deeper than the price of fuel.

"JetBlue's earliest markets have consistently produced strong profits," McAdoo wrote in a client note. But his analyst shows 17 of the last 20 markets the airline added have not been profitable, even with reduced fuel prices. "Current losses are a function of poor route selection and higher fuel," he wrote, pointing to an oversupply of seats and an inability to generate more revenue by raising fares.




I found the part about 17 of the last 20 markets entered being unprofitable a bit disturbing. Is JetBlue running out of profitable markets already?
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Old 03-11-2006, 06:33 AM
  #2  
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Blue has lost that loving feeling, whoa oooo whoa that loving feeling...
 

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