The New JetBlue is Here
The airline has made massive changes to where it flies. Executives discussed their moves on Tuesday's second quarter earnings call.
Dear readers,
A slimmed down JetBlue,1 which is now making rational decisions about its future, eked out a $25 million net profit and 2.3 percent operating margin in the second quarter.2 More importantly, during Tuesday’s earnings call, top executives shared more information about their turnaround plan, telling investors that JetBlue will take fewer aircraft than expected for the rest of the decade, while it focuses on catering to premium leisure travelers, mainly on the East Coast, where people know its brand.
I've written before that I have been impressed at how seriously JetBlue's new regime is taking this revitalization campaign, with CEO Joanna Geraghty and President Marty St. George not-so-subtly suggesting that they’re aware the airline erred in the Robin Hayes era, when management wanted an airline that could be all things to all people.
Now, Geraghty said, JetBlue is trying to regain its status “as a beloved brand,” not nationwide, but “in our core geographies.” Yes, JetBlue remains much smaller than its top competitors — and it flew less second quarter capacity than one year earlier. But at least management understands that if JetBlue retrenches to Boston, New York, Fort Lauderdale, and San Juan, it can compete from an offensive position. Someday, the Big Four again may push around JetBlue, as Hayes long feared. But some real talk: small and profitable is better than big and floundering.
It’s nice to hear reasonable talk on JetBlue’s earnings calls. I can’t say when JetBlue will record its first profitable year since 2019, though I can tell you it won’t be this year, because the turnaround is just starting, and JetBlue joined its competitors in citing a glut of domestic and Caribbean capacity that is hurting its pricing power. But there is hope in Long Island City, and executives sounded confident on Tuesday as they outlined their plan, which they call Jet Forward.
Here are some of the priorities they shared.