- Delta Air Lines (NYSE:DAL) last week included Boston in its list of key hubs and markets for the first time, worrying JetBlue (NASDAQ:JBLU) investors, but Wolfe Research thinks DAL’s decision could be good news for JBLU, much in the way it ultimately was for Alaska Air (NYSE:ALK).
- Wolfe believes JBLU management seeks a 7% return on investment capital this year, but it does not see it happening under the current strategy; the firm figures DAL's growth into Boston might help to force hard choices, as it did for Alaska Air.
- ALK shares fell 26% from peak to trough in May-June 2013 on fears of competitive capacity growth, which led it to take action on fees and resulting in ALK stock gains doubling over the next year.
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