Posted
Jan 07 2008, 12:38 PM
by
Robert Walberg
In response to a public relations nightmare last February, JetBlue's management team enacted a customer bill of rights to help restore confidence in the airline. It was a bit gimmicky, but the effort seemed to work as the company just announced a 15% year-over-year jump in revenue passengers for 2007.
Hopefully, management has another gimmick or two up its sleeve to address the nightmarish performance of its stock. Despite the operational improvement, JetBlue's stock is now trading at about $5 per share -- down a whopping 64% over the past 52 weeks. Being trapped on a grounded plane for 10 hours seems painless by comparison.
Of course, JetBlue isn't the only airline to see its stock crash and burn over the past year. AMR Corp, Continental Airlines and Alaska Air Group have tumbled by 60%, 55% and 43%, respectively. High fuel prices, an uncertain economy and changes in regulations have contributed to a very turbulent year. Yet JetBlue was supposed to be different. With leather seats, expanded leg room and free satellite TV/radio for all passengers, this company was supposed to revolutionize the airline industry. So why has JetBlue been more revolting than revolutionary?
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