Financial Efficiency Analysis ofJet Blue Airways - Essay Example

The stock price increased by nearly 85% during the year 2014. One of the main and major competitors of jet blue airlines is southwest airlines. This is a low-cost airline services organization. Compared to jet blue, southwest experienced a total of $1.

4 billion net income. The operating income also increased by 74.1% to a total of $2.2 billion. Return on invested capital increased to a percentage of 21.2%. This shows an increase of 8.1 points. Among the strengths of jet blue is the customer service it provides. The services are exceptional. The company is also endowed with attractive amenities. It caters to customers who have been underserved by other airlines. Among the weaknesses, jet blue has high debt levels. The earnings are also correlated with fuel prices.

Jet Blue has diverse opportunities. The company has the potential of expanding into new and existing markets and the higher margin services have typically attracted travelers. Competition from other airlines and the risk of the geographic situation are among the main threats that jet blue faces. While the risks and high prices of fuel are present, the positives seem to outweigh the negatives in the context of jet blue airlines. Given a bright outlook, price appreciation could be seen by investors. Due to the success of the expansion plan of the company, an appeal for long-term investors could also be made