As part of its JetForward strategy, JetBlue is looking to optimize its network and axe dozens of routes to focus more on specific regions in the country. The airline has laid out a plan that it hopes will lead it to profitability and turn things around in a couple of years.
Removing underperforming routes and BlueCities
JetBlue
wants to revive its fortunes and increase profit in the next couple of years. To do this, it has been examining various divisions and areas where it could tweak its strategies, one of which is its network.
The carrier has been gradually removing various routes from its network. To optimize revenue, it plans to focus more on some of its traditional locations in the Northeast and new international services.
Photo: Markus Mainka | Shutterstock
Some of the routes that have been removed from its network since the start of this year include Los Angeles-Cancun, New York LaGuardia-Jacksonville, New York JFK-Portland, Fort Lauderdale-Nashville, New York JFK-Detroit, and Los Angeles-Puerto Vallarta, among dozens of others as shown below. Overall, more than 50 routes will be axed through January 2025.
Photo: JetBlue
Through the end of this year, the carrier will also close 15 BlueCities that have not been performing as per expectations. Some have already been closed, while others continue to be removed. Below is the list of announced BlueCity closures.
|
BlueCity |
Exit date |
|---|---|
|
Burlington (BTV) |
January 4, 2024 |
|
Baltimore-Washington (BWI) |
April 30, 2024 |
|
Kansas City (MCI) |
June 12, 2024 |
|
Bogota (BOG) |
June 12, 2024 |
|
Lima (LIM) |
June 12, 2024 |
|
Quito (UIO) |
June 12, 2024 |
|
Puerto Vallarta (PVR) |
June 12, 2024 |
|
Charlotte (CLT) |
October 26, 2024 |
|
Minneapolis (MSP) |
October 26, 2024 |
|
San Antonio (SAT) |
October 26, 2024 |
|
Burbank (BUR) |
October 26, 2024 |
|
Tallahassee (TLH) |
October 27, 2024 |
|
Palm Springs (PSP) |
Already suspended |
|
Pointe-a-Pitre (PTP) |
Already suspended |
|
Stewart (SWF) |
Already suspended |
Focusing on the Northeast
JetBlue is planning to reinvest in core Northeast and Florida locations and has refocused on its LAX footprint to identify and remove several unprofitable routes. It also rightsized its New York LaGuardia operations and redeployed to some high-performing leisure and visiting-friends-and-relatives (VFR) routes.
It recently revealed that it will have its own lounges at New York’s New York John F. Kennedy International Airport (JFK) and Boston Logan International Airport (BOS) by the end of next year.
Photo: Robin Guess | Shutterstock
The East Coast leisure network is gaining more importance with JetBlue as it continues “doubling down in the Northeast,” according to its Chief Executive Officer, Joanna Geraghty.
The carrier is also focused on enhancing its transatlantic services and has introduced new routes to European destinations such as Dublin and Edinburgh. These are in addition to its year-round flights to Amsterdam, London, and Paris.
Finding solutions for profits
JetBlue is targeting $800-900M in incremental EBIT from 2025 to 2027. It has identified several areas of improvement and offered solutions for them as well. For example, it says to counter ATC understaffing, which is severely impacting highly congested airports, it is investing in on-time performance and delivering consistent customer experience.
Photo: Jack Skeens | Shutterstock
JetBlue also realizes that its revenue growth has not matched pace of inflation and is addressing product gaps and better merchandising existing offerings. It will be interesting to see how well these strategies are applied in the next two years.
