JetBlue Airways Corp (JBLU)

[Morpheous2000]

I think that you are absolutely right. I also think that JetBlue rightfully belongs in any trader's mid-term portfolio, as annual gains of 30% to 50% can now be achieved.

The most important disclosure about JetBlue's near-future were contains in the October 2013 press release, which noted the following:

"While the E190 is critical to our continued success in Boston and San Juan, we are now at the point where our network growth calls for larger gauge aircraft," Mr. Barger said. "In addition to allowing us to more cost-effectively serve certain high density markets, we believe our fleet restructuring plan will allow us to accelerate attractive growth opportunities at Fort Lauderdale/Hollywood International Airport."

JetBlue has converted 18 A320s to A321s. The A321 is expected to have unit costs 10 to 15 percent lower than those of the A320 aircraft it will replace, driven in part by a 10 to 15 percent improvement in fuel consumption per seat. "With significant savings from increased fuel efficiency and better utilization of our airport slot portfolio in key markets, we believe these A321 aircraft will improve our company's profitability," Mr. Barger said.

The fleet changes announced today will enable JetBlue to add 15 incremental A321ceo aircraft to its fleet by 2017, while deferring 24 E190 aircraft. "With today's announcement, we are reducing our capital commitments through the next three years, which is consistent with our free cash flow and return on invested capital goals," said JetBlue Chief Financial Officer Mark Powers.

Clearly, JetBlue is presently re-structuring its fleet with a distinct eye on the future. That alone will cause its PPS to rise ... both consistently and dramatically.