New Worries About JetBlue=0AAndrew Farrell, 04.25.07, 4:50 PM ET =0AJetBlue= Airways=0A=0ATear Sheet Chart News =0A=0A =0A=0A=0A Related Stories=0AUp= date -- Margin Pressures For JetBlue=0AMargin Pressures For JetBlue=0ALower= 2007 Guidance Sinks JetBlue=0AUpdate -- AirTran Still Pursuing Midwest=0AA= irTran Still Pursuing Midwest=0A=0A Today's Top Stories=0A=95 Dow Ends Abov= e 13,000 For First Time=0A=95 Apple Q2 Profits Rise 88%=0A=95 Euro Near All= -Time High In Europe=0A=95 Nissan's 1Q Profit Plunges 54%=0A=95 Nintendo Pr= ofits Up 77% On Wii Sales=0A=0AMost Popular Stories=0A=0A=0ATech Stocks For= Buffet And Zweig =0AVonage Dodges Guillotine =0ATen Ways To Cheat Death = =0AFinding Work Is A Job In Itself =0ADiggin' For Dividends =0A=0A=0A=0ASha= res in JetBlue slid for the second straight day on Wednesday, reflecting co= ncerns that rising costs for the airline could come as it faces tougher com= petition. =0AShares of the low-cost carrier were down 4.0%, or 43 cents, to= $10.28, after Bear Stearns analyst Frank Boroch downgraded JetBlue (nasdaq= : JBLU - news - people ) to "peer perform" from "outperform." Boroch explai= ned that tough competition waits ahead for JetBlue.=0AOn Tuesday, JetBlue g= ave 2007 profit margin guidance lower than was lower than previously stated= . The airline is being pressured by higher expenses, particularly from jet = fuel. (See: "Margin Pressures For JetBlue".) =0AJetBlue guided investors to= expect a pretax margin of 1% to 3% for 2007 on Tuesday. Based on that marg= in range and an average analyst estimate of $2.9 billion for 2007 revenues,= JetBlue would have a pretax 2007 income of $29 million to $87 million. In = 2006, JetBlue posted a pretax income of $9 million, when the margin was jus= t 0.4% and sales were $2.2 billion.=0AThe reduced margin outlook comes as J= etBlue has to fight harder to win travelers. Boroch said JetBlue will face = increased competition from existing carriers, low-cost startups like Skybus= and Virgin America, and a Delta that is emerging from bankruptcy. =0A"Whil= e the carrier maintains its overall cost discipline, continued high crude p= rices and increased competitive threats," said Boroch in a client note, "sh= ould limit margin and earnings growth." The JetBlue concerns helped depress= budget airlines stocks across the board. An index of low-cost U.S. passeng= er carriers compiled by Revere Data was down 1.1% Wednesday, despite a 1.0%= rise in the Standard & Poor's 500.=0AAlso pressuring airlines was United A= irlines, which reported a first-quarter loss of $152 million, or $1.32 per = share, narrower than its loss of $223 million, or $1.95 per share, a year a= go. Analysts polled by Thomson Financial had been expecting a loss of only = 47 cents per share. United's parent, UAL (nasdaq: UAUA - news - people ) wa= s down 88 cents, or 2.3%, to $38.28. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> If you wish to unsubscribe from the AIRLINE List, please send an E-mail to: "listserv@xxxxxxxxxxxxxxxxx". Within the body of the text, only write the following:"SIGNOFF AIRLINE".