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JetBlue Posts Loss, Will Sell Aircraft

After posting an expected loss for the quarter, JetBlue announced that it will defer delivery of 12 airplanes and sell between 2 and 5 of their current aircraft.  This is a huge change for the once-high-flying company that took the bold step of ordering a large number of planes just a couple of years ago.  I do have to admire them for making changes quickly.  Larger carriers have tended to spiral downward for quite a while before bothering to make drastic changes.  In addition to these capacity reductions, JetBlue is raising fares and cutting costs to stem the tide of red ink.  The fare increases have been siginficant — something you’ve probably noticed if you’ve tried to book a flight with them from the east coast to Florida or California.  Those $59 fares to Fort Lauderdale are gone, as are the $99 fares to LA.  Good for them, bad for us.

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  1. They better do something fast. The breakeven load factor is over 97%! With an average fare of a little over $100 then there is very little room to make profit.

  2. JetBlue is no longer a low-fare carrier. Their fares on the route I travel most (SEA-NYC) are now always at least $30 above the majors and frequently much more. On top of that, their on-time performance is godawful on this route. (Never on time for a single segment in the 7 times I’ve flown this round trip.)

    I do like the experience in the air, mind – blue chips, live TV, good seat pitch in the back – but I’m a ruthless consumer that cares about price and on-time performance over those amenities.

    Thus, I haven’t flown JetBlue in almost a year. Good luck to them – they need it.

  3. Jetblue is still a low cost carrier. Their stock continues to rise, and they hire at a rate of 6 crewmembers a day. The reason people say they are not low cost is the fact that they try to book last nimute hoping for $69 each way. Doesn’t work that way people.

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