About Jetblue Airways Corporation
Airline JetBlue Airways offers one-class service—with leather seats, satellite radio and TV, and movies—to over 42 million passengers a year, and takes them to more than 100 cities. It has 1,000 daily flights in about 30 US states, Washington DC, Puerto Rico, and 21 countries in the Caribbean and Latin America. Domestic flights represent its largest market, accounting for about 70% of total company sales. Most of its flights arrive or depart from Boston, New York, Orlando, Fort Lauderdale, Los Angeles, and San Juan, Puerto Rico. JetBlue's fleet of more than 250 aircraft consists mainly of Airbus A320s and A321s but also includes Embraer E190s. Dubbed "New York's Hometown Airline," about half of JetBlue's flights are to and from the New York metropolitan area.
JetBlue's operations are centered around the six US focus cities of New York, Boston, Orlando, Fort Lauderdale, Los Angeles, and San Juan, Puerto Rico. The company operates a fleet of nearly 65 Airbus A321 aircraft, 130 Airbus A320s, and 60 Embraer E190 aircraft. Its in-flight entertainment system includes 36 channels of free DIRECTV, 100 channels of free SiriusXM satellite radio, and premium movie channel offerings from JetBlue Features, a source of first-run films.
In New York, the carrier operates primarily out of Terminal 5 (or T5) at New York City's JFK International Airport, where it is the second-largest airline. JetBlue also serves other New York airports including LaGuardia (also in NYC), Stewart International in Newburg, and Westchester County Airport in White Plains, as well as New Jersey's Newark Liberty International Airport. It's the largest carrier at Boston's Logan Airport with close to 30 gates in operation and the largest in Fort Lauderdale (its fastest-growing focus city). It is also one of the largest carriers at Orlando International Airport and one of the largest in the Los Angeles area, primarily operating from Long Beach, Los Angeles International Airport (or LAX).
Outside the US, JetBlue flies to close to 40 cities in the Caribbean and Latin America. It's the largest airline in Puerto Rico as well as the Dominican Republic. While JetBlue aims to grow its network in the Caribbean and Latin America, it faces several challenges in the region, including working with less developed airport infrastructure, political instability, and vulnerability to corruption.
New York-based JetBlue is one of the largest domestic airlines at New York's JFK International Airport—the US's biggest travel market. The carrier flies to more than 100 cities with 1,000 daily flights in about 30 US states, Washington DC, Puerto Rico, and 21 countries in the Caribbean and Latin America. About 30% of its route network comprises transcontinental flights.
The US represents approximately 70% of total sales, while Latin America and the Caribbean account for the remaining 30%.
Sales and Marketing
JetBlue has over 42 million customers and markets its services through advertising and promotions in various formats, including social media outlets. It also engages in large, multi-market programs, local events, and sponsorships across its route network, as well as mobile marketing programs. The company sells its services across several major global distribution systems and online travel agents. It also sells vacation packages through JetBlue Vacations, a one-stop, value-priced vacation service for self-directed, packaged travel planning.
Advertising expenses increased more than 10% to $72 million in 2018 compared with the previous year.
JetBlue has experienced unprecedented revenue growth over the years. In 2018, its revenues jumped 9% to peak at a record-setting $7.7 billion. The historic growth for 2018 was due to higher passenger revenues and an increase in average fare. Ancillary revenue continues to be a source of significant revenue growth, primarily driven by customer demand for JetBlue's Even More Space product (a 14% increase in 2018), as well as changes to its fee structure.
Profits, however, have seen a general decline in the last several years primarily due to higher operating expenses such as increased fuel costs, wages, and benefits, and an increase in outside airport services—fueling, ground handling, security, etc.— and insurance and communication fees. Net income in 2018 amounted to $188 million, down from $1.1 billion in 2017 (2017 included a one-time tax benefit of more than $200 million due to the Tax Cuts and Jobs Act).
Cash at the end of fiscal 2018 was $533 million, an increase of $174 million from the prior year. Cash from operations contributed $1.2 billion to the coffers, while investing activities used $1.2 billion, mainly for capital expenditures related to purchases of new aircraft and flight equipment and the purchase of $28 million in investment securities. Financing activities provided $113 million, mainly from proceeds from loans.
The general theme of JetBlue's growth strategy is to improve margins while combating increased fuel prices and intense competition.
The company is focusing on its three largest focus cities—New York, Boston, and Fort Lauderdale—to spur growth. It is adding frequencies, new markets, and more capacity with larger aircraft. It has also reallocated capacity from underperforming markets to and from those cities, expanding transcontinental flights and routes between the Northeast and the Caribbean.
JetBlue refers to itself as "New York's Hometown Airline." At LaGuardia, the company has moved its operations to the newly renovated Marine Air Terminal and at JFK, plans are in place to redevelop Terminal 6 and 7, which will connect to its home at Terminal 5, beginning in 2020 (to be operational by 2023).
To capitalize on other travel revenue, the company formed a new team at its JetBlue Travel Products subsidiary (based in Fort Lauderdale), to drive revenue growth. Travel Products includes air+hotel packages (through JetBlue Vacations) and partnerships with insurance and car rental companies. JetBlue is also expanding codeshare relationships with other carriers around its frequent flyer program.
JetBlue is in the midst of its 3-year Structural Cost Program, aimed at improving profit margins and achieving $200 million in cost savings by 2020. Technology has played a big part in reducing costs while also improving the customer experience. The company has implemented an enhanced omni-channel tool for reservations, self-bag tagging kiosks at airports, and digital displays at gates, freeing up agents to focus on customer hospitality. At JFK, it has expanded biometrics technology for self-boarding at gates using facial recognition. In 2019, the company is in the process of upgrading the IT infrastructure needed to launch new fare options.
27-01 QUEENS PLZ N
Long Island City, NY 11101-4020
Phone: 1 (718) 286-7900
Employer Type: Publicly Owned
Stock Symbol: JBLU
Stock Exchange: , NASDAQ
President and CEO: Robin Hayes
Chairman: Joel C. Peterson
Vice Chairman: Frank V. Sica
Employees (This Location): 420
Employees (All Locations): 20,892
Long Island City, NY
Long Beach, CA
Los Angeles, CA
San Diego, CA
Windsor Locks, CT
New Windsor, NY
New York, NY
Salt Lake City, UT
Prov. Const. Del Callao, Peru