JetBlue charging for legroom, how about throwing in a free share too

JetBlue Airways Corporation (Public, NASDAQ:JBLU) is going to start tacking on fees for the first few rows and the emergency exit row seats. I'm hoping the next campaign is a free share of JBLU with every ticket. With rising fuel costs that will put a few of the smaller airlines out of business this year, JetBlue needs all the support they can get.

I hate airline stocks, you can do better at the blackjack tables. But there's one quirky, popular airline that is just different enough from the rest, that airline is JetBlue. The stock is down 48% in the last 6 months, now trading at $5 a share. Still, for a discount airline company, JetBlue has an impressive $1.13 billion market cap which is why I'm even talking about them.

So buy shares today?

That would be no. But making extra money by charging for legroom or paying for an extra bag is going to help airlines hedge their costs against rising jet fuel prices. The cost of jet fuel is out of control, here's the stats from IATA:

This week's price of aviation jet fuel:

Impact on this year's fuel bill of the global airline industry:

It's easy to hate the airline stocks, with the economy changing day by day but never losing the doom factor, people just aren't going to be flying as much. Tack on the 83% one year increase in jet fuel, and you've got the perfect storm for airline consolidation. The airline execs are concerned and they have good reason to do so. JetBlue's board of directors feel like these people trapped on a plane going down, just like long-term JBLU shareholders feel (you know the movie):

Maybe someone will buy JetBlue? Maybe JetBlue has a few tricks up its sleeve? Or just maybe JetBlue closes its doors for good?

The point is, if you are thinking about playing the airline sector, JBLU would be the only stock I would play. Why not take a short and long position in it, or better yet, just keep it on your watch list.

Airlines are planning on cutting costs and reducing flights, which could give them more power to raise fares and that means ROI for shareholders.

Delta Air Lines Inc. set the tone by offering buyouts to 30,000 employees -- more than half its work force -- as the likelihood of a deal with Northwest Airlines Corp. faded.

Executives at other carriers also talked about controlling costs and raising fares while planes are still very full. Can you think of the last time you were on an empty flight?

The whole airline sector is bad, it's gambling. But people and investors come back to JetBlue every time just when you think they're dead.

Disclaimer: The Author does not have a position in JBLU.