SF Gate: JetBlue hits all-time low amid supply worries

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Wednesday, October 9, 2002 (AP)
JetBlue hits all-time low amid supply worries
SONOKO SETAISHI, Dow Jones News Service


   (10-09) 16:16 PDT (AP) --
   NEW YORK (Dow Jones/AP) -- Shares of JetBlue Airways Corp. plunged 16
percent to reach an all-time low Wednesday, as the airline sector skidded
lower and the so-called post-IPO "lockup" period for the company's stock
ended, freeing 33 million shares for potential sales.
   The shares closed down $5.62, or 16 percent, at $30.15. Earlier in the d=
ay
the shares traded as low as $30.09, below a previous all-time low of
$34.64 reached Monday.
   Trading in the stock was heavy, with more than 7.4 million shares changi=
ng
hands, far outstripping the average daily turnover of 418,800 shares. The
stock reached an all-time high of $55.15 on May 6.
   David Neeleman, chief executive of the fast-growing low-fare carrier, sa=
id
on Sept. 10 that the company had put on hold its plan for a secondary
stock offering, citing insufficient demand among its venture-capital
investors to sell their stakes.
   The Kew Gardens, N.Y., carrier Wednesday declined to comment on the
prospects for a secondary offering.
   Following its phenomenally successful initial public stock offering in
April, the JetBlue stock has declined due in part to worries that the
fresh supply of shares from an additional offering would drive down the
stock price.
   The lockup expiration gives original venture-capital supporters such as
J.P. Morgan Chase & Co. and financier George Soros the opportunity to sell
their stakes. Company insiders including Neeleman are also free to part
with their holdings.
   JetBlue is one of the few airlines to remain profitable in the industry's
worst crisis ever. The two-and-half-year-old company is expected to have
earned 39 cents a share in the quarter ended Sept. 30, according to a
survey of five analysts by Thomson First Call.

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Copyright 2002 AP

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