Shares of Jet Blue closed lower on Thursday despite results that showed it was one of only a few airlines to make a profit last quarter. Buy the dip?
In what traditionally has been a strong season for the airlines — the critical summer vacation months — JetBlue was one of just three airlines to end the quarter in the black, with most large airlines posting losses.
(The other two winners were AirTran and Alaska Airlines.)
Much cheaper fuel helped JetBlue's earnings, and heavily discounted seats got more passengers on board.
CEO Dave Barger said the airline's All-You-Can-Jet Pass, which allowed customers to fly as much as they wanted from Sept. 8 to Oct. 8 for $599, was an unexpected success that helped offset weak passenger demand. He called it, "by far the most successful promotion in our company's history."
JetBlue earned $15 million, or 5 cents per share, in the third quarter, compared with a loss of $8 million, or 3 cents per share a year ago.
Sounds like a success story. So should you buy the dip?
Don’t make a move until you see our interview with CEO Dave Barger and hear how the traders game it. Watch the video now!