But Some Say The Boom Will Be Short-Lived

While many stocks are down over the past few weeks, JetBlue's stock price has seen a resurgence. But analysts and competitors remain skeptics, and say the rise in the company's valuation will be temporary.

JetBlue stock was up 44 percent last week, after a positive earnings report on January 29. For the year, the stock is up about 16 percent, compared with a 12 percent increase in overall airline stock prices.

Following its all-time high near $31, the stock was pounded in 2007 after horrendous weather-related flight delays and cancellations in February and March made the company the butt of late-night comedy shows. JetBlue closed Friday at $6.89.

JetBlue also says it's pursuing commercial opportunities with Lufthansa, growing revenue from its LiveTV service, which provides in-flight TV and Internet connectivity to eight airlines, and luring business travelers with refundable fares and a cabin upgrade.

The Street.com reports Continental CEO Larry Kellner scoffs at the recent buy-in by Lufthansa. Speaking on an investor conference call last month, Kellner said, quote, "We probably have dozens of models... I can assure you that the thought of [somebody] taking a 19% stake in JetBlue wasn't one of them."

Analysts have suggested Lufthansa made to move to take advantage of the cheap dollar, rather than for strategic reasons.

So far, Wall Street is yawning, noting that JetBlue stock is currently trading at about 57 times expected 2008 earnings.

FMI: www.jetblue.com