The regional carriers are taking share from major carriers. Most of the regional airlines have increased the number of revenue passenger miles on a continuous basis. After the rapid solution from the government regarding the delay of flights due to the “Sequester”, the revenue should continue to increase. Further, the price of oil, which accounts for carriers’ major expense, has not fluctuated much. Therefore, the operating expenses should not increase significantly. Overall, the future for regional carriers seems good.
Do I invest in JetBlue?
JetBlue Airways Corporation (NASDAQ:JBLU) is another carrier that I believe will continue to grow. Not only did they report strong numbers for the first quarter of 2013, but the company has issued press releases that suggest growth is not over. Airlines show growth when they fly new routes, and JetBlue has added Philadelphia as its 78th city. The airline will operate five daily flights from Boston Logan International Airport to Philadelphia International Airport. Further, the company has inaugurated two routes from Bradley Int. Airport in Hartford, CT, to Fort Myers, FL and Tampa, FL. It also plans to fly daily from New York’s JFK to Port-au-Prince, Haiti.
Lastly, JetBlue Airways Corporation (NASDAQ:JBLU) was awarded with the highest honors in airline customer satisfaction among low-cost carriers by J.D. Power. It was the ninth time in a row that the airline was awarded this recognition. For me, this is further proof of the company’s commitment towards customer satisfaction, and it is likely that more customers utilize JetBlue Airways Corporation (NASDAQ:JBLU) as their airline of choice. For these reasons, the stock should be in any growth portfolio.
The article Is This Carrier Going to Fly Higher? originally appeared on Fool.com and is written by Robinson Roacho.
Robinson Roacho has no position in any stocks mentioned. The Motley Fool recommends Southwest Airlines. Robinson is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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