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JetBlue Airways: A Great Bargain Ready For Takeoff

Summary

JetBlue aims to be a low-fare airline that gives passengers a bang for their buck.

The company has had strong and consistent growth in revenue, income, cash flow, and book value over the past number of years.

But, the stock seems to have vastly decreased in price over the course of the year for seemingly inexplicable reasons.

The combination of the company's past history and its current price make it a terrific investment opportunity.

Overview

JetBlue Airways Corporation (NASDAQ: JBLU) is one of the United States' biggest airlines. In 2015, it carried over 35 million people and averaged over 900 flights a day. It served 93 destinations in the US, the Caribbean, and Latin America. The company's mission is to use a low-cost structure to bring high-quality flights to high-value areas in the US, with a primary focus on the northeast region of the country.

The company and its product evolved in a few ways in 2015. Primarily, the company started to roll out more of its Mint-branded aircraft. Mint is a transcontinental premium brand the company rolled out in 2014 that includes 16 lie-flat beds on its aircraft. The company also continued to expand its Wi-Fi services. The company also enhanced its fleet, converting six of its existing Airbuses to Mint planes, buying out leases on six other planes, and taking delivery of twelve other Airbus aircraft, two of which are Mint planes. The company expanded to six new cities last year.

The company tries to win over customers with a fresh ethos and culture while offering them the lowest fares they possibly can. The company introduced a new pricing model that lets customers choose a unique set of amenities for their particular ticker. Furthermore, the airline also offers what is possibly the best in-flight entertainment system in any domestic US airline. Customers can watch 36 free channel of DIRECTV, 100 free channels of SiriusXM, and a host of movies featured by JetBlue. The company also believes its Fly-Fi internet connection - which is now on all of its Airbus machinery - is significantly faster than the broadband services offered by most other US airlines. Customers can also enjoy a free and unlimited amount of brand name snacks and non-alcoholic beverages, which is also rare among domestic carriers.

JetBlue is mostly a point-to-point airline, meaning that instead of having major hub cities that it directs nearly all of its passengers through, the company usually flies its passengers straight from their place of origin to their final destination. 86% of customers in 2015 had non-stop flights, although the majority of the airlines routes touched...


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