How the Market Saw JetBlue's Flight Delays

Robert Barry, an analyst for Goldman Sachs, predicted that JetBlue Airways' "profit margin growth will likely surpass most other airlines in 2007." This prediction came in a report released on Wednesday. Unfortunately, the report didn't predict the snow and ice delays that would strand numerous passengers on ten JetBlue flights at JFK Airport that very same day.

The company grounded these planes with passengers aboard in case the conditions cleared up enough to allow for take off. The weather didn't relent, so JetBlue released their captive customers after many hours of waiting. Some of these unlucky travelers were stuck aboard a JetBlue plane for eleven hours. I hope the Fasten Seat Belts sign wasn't on the entire time.

Stories of the fiasco made their way to the press, but the negative publicity did not harm JetBlue's stock price as Barry guessed. In fact, shares went up 4.7% that afternoon. An aviation consultant noted that the shares didn't drop because investors weren't aboard the flights. He added that consumers would soon forget the debacle, and JetBlue's low fares would eventually overshadow the event.

Filed under: Airlines