American Airlines Group Inc

JetBlue Airways’ (JBLU) operating revenue has increased at a four-year compounded annual growth rate (or CAGR) of 13.4%, driven primarily by the growth in passenger revenue.

JetBlue has almost equal share in Florida, Latin America, and the transcontinental region which together accounted for about 87% of JetBlue’s total capacity.

JetBlue (JBLU) operates a hybrid business model that caters to the niche market comprising customers that it defines as “underserved customers.”

JetBlue Airways Corporation is the fifth largest passenger carrier in the U.S. based on revenue passenger miles.

Over the last decade, with increasing mergers and consolidation in the U.S. airline industry and reduced competition, air fares were expected to increase dramatically.

LCCs don’t offer all services provided by a legacy carriers like free meals and drinks.

Southwest was instrumental in revolutionizing the industry with a differentiated business model.

As of December, 2013, the passenger segment comprised 94.5% of its revenues, cargo segment 0.9%, and ancillary revenues comprised 4.6%.

Network synergies accounted for almost 50%–85% of the total synergy benefits in the past airline mergers.

American’s number one position, in terms of revenue share as shown in the following chart, was replaced by United.

United has partnered with Aviation Partners Boeing (APB) to launch the Split Scimitar winglet. The new winglet is expected to save more than 45,000 gallons of fuel per aircraft per year.

Under United’s MileagePlus program, members earn mileage credits for flights on United, United Express, airlines in Star Alliance, and other airlines that participate in the program.

Frequent-flyer programs are incentives given to customers by airlines to increase customer loyalty by awarding free miles on tickets purchased.

A comparison of the fleet sizes of Delta Air Lines with its competitors reveals that American Airlines group (AAL) has overtaken Delta (DAL) and United (UAL).

Delta (DAL) has outperformed its peers in terms of margins continuously for the past four years, followed by Southwest Airlines (LUV), American Airlines (AAL), and United Continental (UAL).

Delta’s Operating revenue grew at a five-year CAGR (compound annual growth rate) of 6.1% from 2009 to 2013, mainly driven by a 6% growth in passenger mile yield, a 0.6% growth in RPM, and a load factor of more than 80%.

Delta leads in many corporate surveys for customer satisfaction. These surveys help companies track their performance and take corrective steps when required.

Delta manages its fuel costs (about 33% of the company’s total operating expense) through purchase agreements, fuel hedging, and operating a refinery.

Paulson took a new position in Verizon Communications (VZ) last quarter. The position accounts for 2.04% of Paulson’s $20 billion portfolio.