Hudson Securities Reports jetBlue 1Q In Line

According to Hudson Securities, jetBlue JBLU 1Q is in line. Hudson Securities said that JetBlue is executing well on market share gains made mainly at AMR's expense in Boston and San Juan. “The carrier's PRASM commentary for April and May was strong (up 12-13% and 15-17% respectively). And it is worth noting that the revenue outlook is despite yet more competitive capacity coming from Delta and AMR (up 10% and 6% respectively where direct and indirect overlap exists); see Figures 1-2 below. And we would argue that JetBlue should finally “grow into” its costs later this year (with underutilized assets beginning to be utilized more efficiently) setting the carrier up for a better 2012. Note, mgmt tightened its 2011 nonfuel cost outlook to flat-2%.” jetBlue closed yesterday at $5.39.