JetBlue’s 2Q2014 financials leave investors seeking higher returns as its metamorphosis continues

JetBlue Airways recorded solid 2Q2014 financial results as it celebrated the debut of its new premium transcontinental product offering, Mint. The product remains in its infancy, but JetBlue is encouraged by the early responses to Mint, particularly among customers who have not previously travelled on the airline.

The company believes 2014 is shaping up to be one of its most profitable years, which in some ways is a testament to JetBlue's attempts to carve out a niche that offers some frills free of charge while crafting an ancillary strategy based on the premise of creating products that customers value.

But underlying JetBlue's favourable performance during the second quarter is an attempt by investors to understand the airline's specific positioning in the market place and growing curiosity over how the company determines its return on invested capital targets. JetBlue may continue to face more scrutiny as some of its peers achieve ROIC levels that are measurably higher than the respectable 7% JetBlue is targeting for 2014.