‘New Bad Boy’ JetBlue Adds Seats in Test of Airlines’ Resolve

JetBlue Airways Corp., Alaska Air Group Inc. and AirTran Holdings Inc. are testing the industry’s resolve to curb available seats as they add new jets and fly planes more often.

After U.S. carriers returned to profits this year by limiting seats, investors need to see whether airlines’ expansion this quarter and in 2011 will imperil the recovery, seven analysts said in reports and interviews. When the supply of seats exceeds demand, carriers cut fares to fill them.