Is JetBlue Airways Corporation (JBLU) Finally Ready for a Breakout Year?

Looking ahead, JetBlue has plans in place to keep costs down. Later this year, JetBlue will introduce the Airbus A321, a larger variant of its current workhorse, the A320. While the A320 seats 150, the A321 will seat up to 190 passengers, allowing JetBlue to increase capacity on high-density routes from slot-constrained JFK Airport in New York. This larger aircraft will allow JetBlue to spread its costs over more seats, improving profitability. The company will also equip its Airbus planes with “Sharklets,” which are winglets that improve fuel efficiency by 3%.

Conclusion
JetBlue has finally made the transition from richly valued growth company to (potentially) cheap value stock. With the company establishing strong market positions in New York, Boston, and San Juan, and keeping costs in check, JetBlue’s stock may finally be ready for takeoff.

The article Is JetBlue Finally Ready for a Breakout Year? originally appeared on Fool.com and is written by Adam Levine-Weinberg.

Fool contributor Adam Levine-Weinberg owns shares of Delta Air Lines and is short Mar 2013 $14 Calls on Delta Air Lines and short shares of United Continental Holdings. The Motley Fool owns shares of Spirit Airlines.

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