(FORTUNE Magazine) – When JetBlue Airways CEO David Neeleman boards one of his 23 Airbus A320s, passengers often ask if they can invest in the company. With JetBlue's April 12 IPO (JBLU, priced at $27), they can.

We'll concede, it may be easy to love JetBlue's low fares, hip style, and luxury perks (dig those leather seats!). But the stock? Isn't the airline industry, for the most part, a flightless bird--plagued by labor troubles, high costs, and worse? Yes, but the buzz on JBLU is surprisingly good--perhaps too good. The stock soared to $45 on the first day of trade. Still, the shares, if they come down to earth, look as if they might provide investors with a ride that's almost as comfy as the planes.

In many ways JetBlue resembles a younger, smaller version of investors' all-time favorite airline, Southwest. Like Southwest, JetBlue flies busy routes between secondary airports, has a low-cost structure, and emphasizes customer service. But while Southwest and others like it usually stick to a single region, JetBlue flies cross-country. And while Southwest is based at Dallas' small (i.e. cheap) Love Field, JetBlue has taken a risk with a hub at New York 's JFK.

JetBlue also differentiates itself from the big carriers. It flies many of the same routes, but uses less-frequented airports--for example, Long Beach instead of LAX. And its groovy, personalized feel has proven unexpectedly popular with business travelers, a lucrative niche that big carriers have dominated.

What really sets JetBlue apart, though, is its profitability. The company flew into the black in 2001, earning $38.5 million on revenues of $320 million. That was only its second year of operation, and arguably the worst in U.S. aviation history. (Only two other carriers made money last year: Southwest and AirTran.) Ray Neidl of ABN Amro says the company should earn another $60 million this year.

Analysts say Neeleman's leadership is JetBlue's other key asset. He created a similar airline--Salt Lake City-based Morris Air--which he sold to Southwest in 1993. He also helped found the wildly successful WestJet in Canada. "Jet Blue will face rising costs and increased competition," says CSFB's James Higgins. "But its smart management should be able to address those issues."

The biggest hiccup is price, which has been driven up by all the hype. Neidl estimates JetBlue will earn about $1.50 a share next year. That gives the stock, at $45, a 2002 P/E of 30. "It may not be the steal it was before," says Neidl, "but it still looks attractive, especially over a two-year period." Its multiple is less than that of Southwest (which sells for a 2002 P/E of 32), and yet it offers far more growth. Neidl pegs JetBlue's profit growth at 45% annually over the next two years. Worth taking a flier on? At the right price, yes.

--Julia Boorstin