Is JetBlue Airways Corporation (JBLU) Finally Ready for Takeoff Again?

To do this, the company is paying down debt while adding a new credit line in order to improve liquidity. JetBlue is also introducing A321 aircraft this fall, which will have 190 seats each, as opposed to 150 seats on the carrier’s largest planes today. JetBlue will add 30 A321s between now and 2016, which will allow the company to offer more seats at the slot-constrained New York airports. Moreover, since these aircraft have 27% more seats than JetBlue’s A320s, but only cost 17% more (at list prices), they should offer a higher return on invested capital.

Foolish bottom line
After struggling through several years of subpar performance, JetBlue Airways Corporation (NASDAQ:JBLU) finally looks like it’s ready for a comeback. The company still maintains a robust growth rate and is building upon its leadership positions in Boston and San Juan. Meanwhile, the new, larger A321 aircraft will allow JetBlue to expand its New York capacity again in spite of slot constraints (which prevent it from adding more flights).

JetBlue’s strong revenue performance in May demonstrates that its initiatives are working and that it is winning share from its legacy competitors (particularly United and American). As JetBlue’s return on invested capital improves over the next few years, this airline’s stock should soar well above its book value.

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

Adam Levine-Weinberg is short shares of United Continental Holdings Inc (NYSE:UAL) and is long Sep 2013 $33 Puts on United Continental Holdings. The Motley Fool has no position in any of the stocks mentioned.

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