JetBlue Airways is one of only three US airlines outside the regional sector to have remained profitable in the current high fuel-cost environment (the others are Southwest and AirTran), but its profit margins have slipped significantly in the past 12 months or so. While continuing to grow rapidly with A320 operations, New York City's low-fare carrier faces the additional challenge of integrating a second aircraft type, the 100-seat ERJ-190, to its fleet this autumn, in a bid to expand into smaller markets. How will JetBlue deal with these challenges, while also taking advantage of new opportunities arising from industry consolidation? Are double-digit operating margins a thing of the past?
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