As a small but burgeoning airline, JetBlue Airways was planning its initial public stock offering and, as a first step, its executives were at a printer's office one morning last month to oversee publication of the company's prospectus.
There was just one problem: That morning was Sept. 11.
Like every airline, JetBlue suddenly had bigger things to worry about. In the aftermath of the terrorist attacks, the carrier had to endure an unprecedented two-day shutdown of the airline industry and then grapple with a plunge in the number of passengers, too nervous to fly again.
"The damage obviously is much more severe from the impact of the lingering effects of the attacks" than from the shutdown, said David Neeleman, JetBlue's founder and chief executive, adding that the airline's IPO was put on hold indefinitely.
But unlike most every other airline, 18-month-old JetBlue isn't slashing operations or cutting its work force to survive. In fact, the carrier just added some flights--including one to California--and still plans to take delivery of three more aircraft by year's end.
"We're back to within 85% of where we were" in terms of passenger traffic, Neeleman, 41, said.
JetBlue was firmly in the black before Sept. 11. For the first six months of 2001, the carrier posted a profit of $10.7 million on revenue of $142.2 million, and JetBlue's load factor was a stout 80%, according to figures compiled by the Department of Transportation and Back Aviation Solutions, a consulting firm in New Haven, Conn. Load factor is the percentage of airplane seats filled with passengers.
JetBlue, for now at least, exemplifies how a small airline--if it's capitalized enough and operates with relatively low costs--can fly through even severe turmoil. While other airlines, big and small, have come narrowly close to filing for bankruptcy protection since Sept. 11, JetBlue seems poised to be a survivor.
"They're the most impressive start-up [airline] in a long time," said Michael Allen, Back Aviation's chief operating officer. "They're well-respected by the financial community . . . and they've put together a really solid management team."
JetBlue has been an unorthodox airline since it took to the skies in February 2000. Based at John F. Kennedy International Airport in New York, the airline offers low fares and doesn't include meals to keep down costs, but it flies new Airbus 320 planes, with plush seats and satellite TV for every passenger.
