Category Archives: JetBlue Airways

JetBlue will add 30 new routes, launch Mint® at Newark

JetBlue Airways has announced it is adding 30 new domestic routes to serve customers in markets where leisure and VFR (visiting friends and relatives) travel is showing some signs of strength. With business travel facing a less certain recovery timeline, the new routes offer JetBlue the opportunity to generate revenue, bring aircraft back into service that would otherwise sit idle, and add more flying opportunities for JetBlue crewmembers.

Each market was identified as one in which JetBlue’s award-winning service and low fares will benefit travelers as well as support the airline’s cash position. The expanded service focuses on:

  • Growing relevance in JetBlue’s focus cities
  • Launch Mint flights between Newark and LAX/SFO
  • Playing to JetBlue’s strength in Florida with new point-to-point routes

New markets will be phased in between July and October. Seats on all new routes will be available for purchase Friday, June 19.

“Coronavirus has transformed airline route maps, and as we begin to see small signs of recovery, we continue to be flexible with our network plans to respond to demand trends and generate cash in support of our business,” said Scott Laurence, head of revenue and planning, JetBlue. “We’ve selected routes where customers are showing some interest in travel again and where our low fares and award-winning experience will be noticed.”

Mint Between the Garden State and the Golden State

JetBlue, New York’s Hometown Airline®, will expand its successful Mint service in the broader metro area to Newark Liberty International Airport (EWR) with daily nonstop service to both Los Angeles International Airport (LAX) and San Francisco International Airport (SFO). Mint offers a rethought design and a more personal approach to service with exceptional hospitality from specially trained crewmembers. Favorite Mint features include lie-flat seating – including individual suites with sliding privacy doors, tapas style dining, fresh espresso from the first purpose-built cappuccino machine for a U.S. airline, amenity kits by Hayward and Hopper, and dessert from local artisanal ice cream makers based in Mint cities.

All customers will benefit from JetBlue’s Airbus A321 with Mint aircraft. Features of the A321 core interior include 10-inch television screens offering free entertainment, comfortable seats with the most legroom in coach (a) and power outlets accessible to all customers. JetBlue’s popular marketplace – a self-serve station full of free snacks, sodas and water for customers to enjoy at their convenience – is also available throughout the flight. And all A321 aircraft offer JetBlue’s free Fly-Fi high-speed broadband Internet service (b).

Filling Out Focus Cities and Florida Flying

Elsewhere in JetBlue’s focus cities and in Florida, the airline will launch new routes where there are small signs of recovery in leisure and visiting friends and relatives (VFR) travel. Adding more destinations in these key markets will help make JetBlue more relevant to more travelers and drive loyalty.

Outside of JetBlue focus cities, the airline is launching several new point-to-point routes that play to JetBlue’s strength in Florida. These routes will gives customers a new option that offers low fares with great JetBlue customer service and the layers of protection offered as part of its Safety From the Ground Up program.

“We don’t believe customers should have to choose between a low fare and a great experience,” said Laurence. “These new routes are a win for customers, and we believe they will work especially well for us in this unique environment.”

JetBlue will reactivate some temporarily parked aircraft to support the new routes. Like the rest of the JetBlue network, these new routes will be regularly evaluated. The airline will remain flexible, allowing market demand to determine how long a particular route continues to operate.

Summer Capacity, Some Closures Lifted and Certain Seasonal Flights Return

With the new routes and service announced today, as well as additional capacity added back into the July and August schedules, JetBlue intends to operate more than half of its typical capacity this summer to better match demand trends.

Additionally, nine temporarily closed cities and several summer seasonal destinations will reopen in early July:

  • Aguadilla, Puerto Rico’s Rafael Hernández Airport (BQN)
  • Chicago O’Hare International Airport (ORD)
  • Dallas/Fort Worth International Airport (DFW)
  • Houston Intercontinental Airport (IAH)
  • Martha’s Vineyard Airport (MVY)
  • Minneapolis–Saint Paul International Airport (MSP)
  • Nantucket Memorial Airport (ACK)
  • Philadelphia International Airport (PHL)
  • Ponce, Puerto Rico Mercedita International Airport (PSE)
  • Portland International Airport (PDX)
  • Providence T. F. Green International Airport (PVD)

New Markets and Frequencies

Effective July 23, 2020

New Mint Service between Newark Liberty International Airport (EWR) and:

Los Angeles International Airport (LAX) | Up to 3x Daily

San Francisco International Airport (SFO) | Up to 2x Daily

New Service between Newark Liberty International Airport (EWR) and:

Charleston International Airport (CHS) | Up to 1x Daily

Jacksonville International Airport (JAX) | Up to 1x Daily

New Service between New York John F. Kennedy international Airport (JFK) and:

Dallas/Fort Worth International Airport (DFW) | Up to 2x Daily

Detroit Metropolitan Wayne County Airport (DTW) | Up to 2x Daily

Effective August 6, 2020

 New Service between Newark Liberty International Airport (EWR) and:

Austin–Bergstrom International Airport (AUS) | Up to 2x Daily

San Diego International Airport (SAN) | Up to 1x Daily

Las Vegas McCarran International Airport (LAS) | Up to 2x Daily

Phoenix Sky Harbor International Airport (PHX) | Up to 2x Daily

Sarasota–Bradenton International Airport (SRQ) | Up to 1x Daily

New Service between New York John F. Kennedy international Airport (JFK) and:

Minneapolis–Saint Paul International Airport (MSP) | Up to 2x Daily

New Service between New York LaGuardia Airport (LGA) and:

Fort Myers Southwest Florida International Airport (RSW) | Up to 1x Daily

Tampa International Airport (TPA) | Up to 2x Daily

New Service between Philadelphia International Airport (PHL) and:

Orlando International Airport (MCO) | Up to 2x Daily

Palm Beach International Airport (PBI) | Up to 2x Daily

Fort Myers Southwest Florida International Airport (RSW) | Up to 1x Daily

San Juan Luis Muñoz Marín International Airport (SJU) | Up to 1x Daily

Tampa International Airport (TPA) | Up to 1x Daily

Effective October 1, 2020

New Service between New York John F. Kennedy international Airport (JFK) and:

St. Thomas Cyril E. King Airport (STT) | Up to 2x Weekly

New Service between Fort Lauderdale-Hollywood International Airport (FLL) and:

Pittsburgh International Airport (PIT) | Up to 1x Daily

Portland International Airport (PDX) | Up to 2x Weekly

Seattle–Tacoma International Airport (SEA) | Up to 3x Weekly

New Service between Orlando International Airport (MCO) and:

San Francisco International Airport (SFO) | Up to 1x Daily

New Service between Fort Myers Southwest Florida International Airport (RSW) and:

Cleveland Hopkins International Airport (CLE) | Up to 1x Daily

Providence T. F. Green International Airport (PVD) | Up to 1x Daily

New Service between Tampa International Airport (TPA) and:

Providence T. F. Green International Airport (PVD) | Up to 1x Daily

Washington National Airport (DCA) | Up to 1x Daily

New Service between Palm Beach International Airport (PBI) and:

Chicago O’Hare International Airport (ORD) | Up to 1x Daily

Pittsburgh International Airport (PIT) | Up to 1x Daily

JetBlue will operate all new, non-Mint routes using its Airbus A320 aircraft offering the airline’s award-winning service featuring the most legroom in coach (a); free Fly-Fi, the fastest broadband internet in the sky (b); complimentary and unlimited name-brand snacks and soft drinks; free, live DIRECTV® programming and 100+ channels of SiriusXM® radio at every seat.

JetBlue’s COVID-19 measures to reassure the flying public

A message from JetBlue’s President and COO.

We’re heartened to see communities cautiously taking steps to re-open. As we move forward, the safety and well-being of both our customers and crewmembers remains our #1 priority and we continue to take a multi-layered approach where the whole is greater than the sum of the parts—grounded in guidance from the CDC and our own infectious disease specialist. For 20 years, JetBlue has raised the bar and set new standards in the industry. You can count on us to keep doing that—so you can always count on a healthy and safe travel experience, both in the air and on the ground.

Healthy crewmembers.

Conducting temperature checks for our customer-facing crewmembers

We are checking the temperatures of our customer-facing crewmembers as an added layer of protection to help ensure our crewmembers are healthy. While crewmembers are instructed not to work if they are not feeling well, we also recommend our customers monitor their health and reschedule their travel if not feeling well.

Providing paid sick leave and additional time off programs so crewmembers do not come to work sick

JetBlue has a very clear policy in place that states you should not come to work if you are sick. We have an existing generous PTO program that includes sick time. In addition, we announced in March that we will pay up to an additional 14 days sick time for any crewmember diagnosed with the coronavirus or if a crewmember has been instructed by the airline, a health official or a medical doctor to quarantine for any reason.

Following company-wide protocols for reporting cases of the coronavirus, notifications and return to work clearance

JetBlue has instituted strict protocols that we are following when we learn of any possible exposure to the coronavirus among our crewmembers. We also follow all health privacy regulations and notification requirements to slow the spread of the virus, keeping our crewmembers and customers protected.

Providing disinfectant kits for crew use

To help ensure the health of our crewmembers, cleaning kits are provided for use on board. Kits contain sanitizer spray and disinfectant wipes.

Requiring face coverings for all crewmembers while boarding, in flight, and when physical distancing cannot be maintained

All JetBlue crewmembers are required to wear face coverings while they are at work. A face covering is any well-secured cloth (like a bandana or scarf) or mask that covers your nose and mouth. The CDC offers guidance on face coverings and we are directing our customers to their website for further details on effective face coveringslink opens in a new window operated by
            external parties and may not conform to the same
            accessibility policies as JetBlue.

Clean air and surfaces.

More frequent disinfecting of common surfaces like kiosks and counters inside our airport terminals

We have increased the frequency with which we are cleaning common surfaces in our airport terminals with a hospital-grade disinfectant, particularly those touched most often by customers and crewmembers. You can feel more comfortable in the airport knowing that our kiosks, help desks and gate counters are being disinfected often.

Providing hand sanitizer throughout terminals and disinfectant wipes to customers on board upon request

Hand sanitizer is widely available for both crewmember and customer use in our airport terminals. If requested, we also have disinfectant wipes available for customer use on board our aircraft.

Increased aircraft cleaning before every flight and overnight, including surfaces that are touched most like tray tables

We are conducting deep cleans of our aircraft each night and are applying a hospital-grade disinfectant called Sani-Cide EX3 that is effective against the coronavirus. Our tray tables and lavatories are disinfected before every flight, and we are also focused on other high touch areas such as seat covers, armrests and seatbelts during overnight cleanings.

Using electrostatic sprayers to disinfect the inside of our aircraft

For enhanced disinfecting, we are using electrostatic sprayers in our aircraft cabins during overnight deep cleanings. These devices apply an electric charge to the disinfectant, which allows it to fully coat and cling to surfaces inside our aircraft that may be otherwise hard to reach by hand with traditional aerosol or pump sprays.

Filtering cabin air through hospital-grade HEPA air filters with cabin air completely changing about every three minutes

All of our aircraft are equipped with hospital-grade HEPA air filters. All recirculated air is passed through these filters before re-entering the cabin or being mixed with fresh air. HEPA filters remove 99.97% or more of particles, bacteria and viruses. All of the air in the cabin is completely changed about every three minutes with approximately 50% fresh air and 50% HEPA filtered air.

More space, fewer touchpoints.

Requiring face coverings for all customers during check-in, boarding and in flight

All customers are now required to wear a face covering over their nose & mouth throughout their journey, including during check-in, boarding, while in flight and deplaning. CDC guidance defines a suitable face covering as an item of cloth that fits snugly against the side of the face, be secured with ties or ear loops, include multiple layers of fabric and allow for unrestricted breathing. Young children who are not able to maintain a face covering are exempt from this requirement. Learn more about face coveringslink opens in a new window operated by
            external parties and may not conform to the same
            accessibility policies as JetBlue.

Blocking middle seats on larger aircraft and aisle seats on smaller aircraft for those not traveling together (at least through July 6)

We are limiting the number of seats for sale on JetBlue flights, allowing us to provide additional space between individuals who are not traveling together. Middle seats are blocked for purchase on our larger aircraft, and most aisle seats are blocked for purchase on our smaller aircraft. Our crewmembers are proactively reviewing seat assignments to help ensure as much personal space as possible. In addition, we are creating buffer zones around all inflight crewmember jumpseats, to allow for added crewmember and customer safety.

Providing the most space between each row of seats of any U.S. airline¹

JetBlue has the most space between each row of seats of any U.S. airline.¹ This means more legroom, but also more distance between you and the customers seated in front of and behind you.

Providing touchless check-in and boarding experiences using the JetBlue mobile app and self-boarding gates for many of our flights

To reduce touchpoints at the airport, we are encouraging all customers to download the JetBlue app. Using the app, customers can check-in for a flight, add bags to a reservation and select a seat. For a touchless boarding experience, customers can also self-scan the boarding pass within the app when ready to board.

Implementing a back-to-front boarding process for most customers to minimize passing in the aisle

We have temporarily suspended our normal group boarding procedures. Most customers will now board our planes from the back to the front.

Adjusting on board service including pre-sealed snack and beverage bags in Core, and pre-packaged fresh meals in Mint

In our Core experience, complimentary food and beverage service will continue, but will be limited. We’ve replaced our snack baskets and beverage cart service with a pre-sealed snack and beverage bag. In our Mint experience, there will be pre-packaged fresh meals and single-serving beverages available. We have also removed the seatback information and menu cards, and will soon be digitizing them to further reduce touchpoints. We have also implemented the following on board service adjustments:

  • Inflight crewmembers will wear medical-grade gloves during service delivery.
  • We’ve temporarily suspended sales of buy-onboard products like beer, wine, liquor, EatUp Boxes, EatUp Café, pillows, blankets and earbuds.
  • The Pantry, our free inflight snack bar, will not be available on those flights that usually have it.
  • We will continue to serve limited food and beverage offerings as part of our Mint experience, but as an extra precaution, all glassware and mugs have been replaced with single-use cups.

Using your personal device as a remote for seatback screens on select planes

Our seatback entertainment options are still available, and personal mobile devices can be used as a seatback TV remote on certain aircraft so it is not necessary to utilize the touchscreen functionality. We also encourage customers to bring their own headphones since buy-onboard sales of earbuds has been suspended.j

JetBlue continues commitment to blocking middle seats in new ‘Safety from the Ground Up’ program

JetBlue Airways today announced it will extend through the July 4 holiday its commitment to seat distancing by blocking middle seats in rows where parties are not traveling together. The policy, part of the airline’s multi-layered “Safety from the Ground Up” program, comes as the airline is also set to roll out temperature monitoring for its flight and inflight crew members and electrostatic aircraft fogging in June.

JetBlue's JetBlue’s “Safety from the Ground Up” program layers in a series of protections for crewmembers and customers throughout the travel journey. (Graphic: Business Wire)

“As communities start to reopen and with summer travel kicking off this weekend, more people are beginning to fly and we want them to feel safe on JetBlue,” said Joanna Geraghty, president and chief operating officer, JetBlue. “Our program layers together a series of protections throughout the entire travel journey, which work together to help keep everyone safe and well.”

JetBlue’s program focused on four focus areas: healthy crewmembers; clean air and surfaces; more space, fewer touchpoints; and travel flexibility.

Seat Distancing on All Flights

As part of its “more space, fewer touchpoints” focus, JetBlue’s seat distancing policy gives customers peace of mind that they will not be seated directly next to someone they don’t know. Middle seats will be blocked on its Airbus aircraft, and on its smaller Embraer 190 aircraft, JetBlue will block aisle seats. The airline does allow customers traveling together to sit in middle and aisle seats.

“We’re known for generous legroom and space, and now more than ever, those choosing to travel want as much space as possible,” Geraghty said. “We are pleased to extend our efforts to keep seats free and help everyone onboard spread out.”

Even with blocked seats, it’s challenging to maintain six feet of distance between everyone onboard and that’s why JetBlue was the first U.S.airline to require face coverings for customers. JetBlue will keep the seat distancing program in place through at least July 6.

Layering Together a Series of Protections

JetBlue’s program puts in place safeguards across four focus areas, and the airline continues to work under the guidance of an infectious disease specialist and in accordance with CDC guidelines.

Healthy crewmembers

Steps to ensure the health and safety of JetBlue’s 23,000 crewmembers include:

  • Conducting temperature checks for our pilots and inflight crewmembers (rolling out first week in June)
  • Providing paid sick leave and additional time off programs so crewmembers do not come to work sick
  • Following company-wide protocols for reporting cases of the coronavirus, notifications and return to work clearance
  • Providing disinfectant kits for pilot use on the flight deck
  • Requiring face coverings for all crewmembers while boarding, in flight, and when physical distancing cannot be maintained

Clean air and surfaces

JetBlue is ensuring the use of disinfectant approved to kill coronavirus and maintaining healthy air onboard its aircraft. Steps include:

  • More frequent disinfecting of common surfaces like kiosks and counters inside our airport terminals
  • Providing hand sanitizer throughout terminals and disinfectant wipes to customers on board upon request
  • Increasing aircraft cleaning before every flight and overnight, including surfaces that are touched most like tray tables
  • Using electrostatic sprayers to fog the inside of our aircraft (rolling out soon)
  • Filtering cabin air through hospital-grade HEPA air filters with cabin air completely changing about every three minutes
  • (To learn about how air circulates onboard JetBlue’s fleet, view this JetBlue video

More space, fewer touchpoints

To increase physical distancing and to decrease touchpoints, JetBlue is implementing the following steps:

  • Requiring face coverings for all customers during check-in, boarding and inflight
  • Blocking middle seats on larger aircraft and aisle seats on smaller aircraft for those not traveling together (at least through July 6)
  • Providing the most space between each row of seats in coach of any U.S. airline* and spacious seating on all aircraft
  • Providing touchless check-in and boarding experiences using the JetBlue mobile app and self-boarding gates for many of our flights
  • Implementing a back-to-front boarding process for most customers to minimize passing in the aisle
  • Adjusting on board service including pre-sealed snack and beverage bags in Core, and pre-packaged fresh meals in Mint
  • Using your personal device as a remote for seatback screens on select planes

Travel flexibility

JetBlue was the first carrier in the United States to adjust policies allowing customers to choose to travel when they are comfortable:

  • Waiving change and cancel fees for tickets purchased by May 31 to give customers confidence when booking
  • Extending Travel Bank credit expirations to a 24-month period for credits issued between Feb. 27 and May 31
  • Providing 24/7 support and award-winning customer service

*Based on the average fleet-wide economy seat pitch of U.S. airlines.

Airbus officially opens its A220 production facility in the U.S.

Airbus has made this announcement:

A new chapter in the development of Airbus’ U.S. production capabilities has begun with inauguration of the completed A220 commercial aircraft final assembly line (FAL) in Mobile, Alabama.

This 270,000-square-foot facility – which can produce both the A220-100 and A220-300 versions – houses five primary assembly stations where major airframe component assemblies come together for a completed aircraft.

An A220 first for JetBlue

Airbus’ production team in Mobile, Alabama also marked another milestone, welcoming the first component assemblies destined to become an A220 for JetBlue. This low-cost carrier will be the second airline customer receiving U.S.-built A220s when the aircraft is delivered in late 2020.

“The team is excited to start working in their new facility and to welcome a new customer,” said Paul Gaskell, president of A220 USA and Head of A220 Program in Mobile. “It’s a strong endorsement from JetBlue in this challenging time.”

An expanded U.S. industrial footprint 

Airbus announced plans in October 2017 for the addition of A220 manufacturing at Mobile – which is situated on the edge of Mobile Bay along the Gulf of Mexico.

The company began producing A220s at Mobile in August 2019 using space in an existing Final Assembly Line hangar for U.S.-built A320 Family aircraft, and in newly-constructed support hangars. With the start of operations in the dedicated A220 final assembly line, Airbus’ production site in Alabama has now officially doubled in size.

“The expansion of our commercial aircraft production in Mobile – from the A320 Family to the A220 – further solidifies Airbus’ standing as a truly global aircraft manufacturer, and confirms that Airbus remains an important part of the American manufacturing landscape,” added Gaskell.

Mobile, Alabama is the second assembly site for the A220, which is Airbus’ latest addition to its product line of single-aisle commercial aircraft. The A220’s primary production facility and program headquarters are located in Mirabel, Canada, where dedicated functions – including engineering expertise and support functions – also are situated.

JetBlue announces its first quarter 2020 results

Airline Color Scheme - Introduced 2019 (Spotlight)

JetBlue Airways Corporation today reported its results for the first quarter 2020:

  • Reported GAAP loss per share of ($0.97) in the first quarter of 2020 compared to a diluted earnings per share of $0.14 in the first quarter of 2019. Adjusted loss per share was $0.42(1) in the first quarter of 2020 versus adjusted diluted earnings per share of $0.16(1) in the first quarter of 2019. Note A to this earnings release includes the GAAP to Non-GAAP reconciliation between reported and adjusted diluted earnings per share.
  • GAAP pre-tax loss of ($354) million in the first quarter of 2020, compared to a pre-tax income of $58 million in the first quarter of 2019. Excluding the one-time items, adjusted pre-tax loss of ($152) million(1), versus adjusted pre-tax income of $70 million(1) in the first quarter of 2019.
  • GAAP pre-tax margin of (22.3%) in the first quarter of 2020, down 25.4 percentage points from a pre-tax margin of 3.1% in the first quarter of 2019 due to the impact of COVID-19. Adjusted pre-tax margin of (9.5%)(1), a decline of 13.2 percentage points year over year from adjusted pre-tax margin of 3.7%(1), exclusive of the one-time costs.

Operational Highlights from the First Quarter

  • First quarter 2020 revenue declined 15.1% year over year as a result of a 52% decline in March revenue due to the impact of COVID-19, resulting in both lower demand volumes and a very challenging fare environment following a very solid start to the year.
  • Reduced March capacity by 19% year over year and took aggressive action to reduce second quarter 2020 schedules to mitigate cash burn. Our ability to adjust March schedules was limited to close-in cancellations.
  • Operating expenses increased 7.1% year over year. Excluding special items, adjusted operating expenses(1)declined 3.6% year over year. We successfully removed ~$150 million from our planned cost base in the first quarter driven by variable cost reductions, mainly through capacity cuts in March and fixed costs reductions achieved by adjusting work schedules where possible and eliminating some discretionary spend.
  • Increased cash, cash equivalents and short-term investments from $1.3 billion at the end of 2019 to approximately $1.8 billion at end of first quarter of 2020. We further increased our liquidity to $3.1 billion as of April 30, 2020, resulting from additional financing transactions and full disbursement from the CARES Act Payroll Support Program of $936 million.

Balance Sheet and Liquidity

  • JetBlue ended the first quarter with approximately $1.8 billion in unrestricted cash, cash equivalents, and short-term investments, or 22.2% of 2019 revenue.
  • JetBlue repaid $102 million in regularly scheduled debt and finance lease obligations during the first quarter of 2020.
  • JetBlue has taken the following measures to-date to bolster liquidity:
    • Raised $1.0 billion under a secured, 364-day term loan.
    • Drew down $550 million under the existing credit revolver.
    • Negotiated with business partners to extend payment terms and reduce expenses.
    • Revised order book with Airbus, resulting in a $1.1 billion reduction in aircraft capital expenditures through 2022.
    • Deferred plans to take delivery of four leased aircraft announced in January.
    • Paused A320 cabin restyling program, having completed over half of our fleet.
    • Suspended all non-essential projects across the organization.
    • Ceased share repurchases until further notice.
  • Resulting from the actions taken, JetBlue expects to reduce its daily cash burn from an average of $18 million in the second half of March to just below $10 million in May, excluding the CARES Act support of approximately $5 million per day through the end of the third quarter.

CARES Act

  • JetBlue reached an agreement with the Department of Treasury to receive $936 million under the Payroll Support Program of the CARES Act. The payment consists of $685 million in grants and $251 million in an unsecured term loan.
  • In consideration for the payment, we issued approximately 2.6 million warrants to the Department of Treasury.
  • In late April, JetBlue applied for the Loan Program of the CARES Act, which would provide up to $1.14 billion in additional liquidity, if needed.

Fuel Expense and Hedging

The realized fuel price in the quarter was $1.86 per gallon, a 9.3% decline versus first quarter 2019 realized fuel price of $2.05.

The decline in average fuel prices reduced the Company’s first quarter 2020 fuel expense by approximately $46 million versus our January 2020 guidance. The reduction in fuel consumption driven by capacity cuts reduced the Company’s first quarter 2020 fuel expense by approximately $40 million versus our January 2020 guidance.

JetBlue has entered into forward fuel derivative contracts to hedge its fuel consumption for the second, third, and fourth quarter of 2020. Based on the forward curve as of April 24th, JetBlue expects an average all-in price per gallon of fuel of $0.76 in the second quarter of 2020.

Protecting our Stakeholders

“I could not be prouder of our JetBlue family – not just over the past two decades – but for their service to each other, our customers, and our communities as they provide an essential service during the coronavirus pandemic,” said Robin Hayes, JetBlue’s Chief Executive Officer.

“We entered this crisis with the second strongest balance sheet among U.S. airlines. In the past two months, we have moved quickly to both protect and strengthen our liquidity position. Since the beginning of March, we have made decisive changes to our growth plan to minimize cash burn, including deep capacity cuts to our schedules. We have now reduced our CAPEX plan by $1.3 billion between now and the end of 2022, and by the end of May, we anticipate we will have lowered our operating expenses by approximately 50% year over year.

As we move towards recovery, we have three priorities. The first is the immediate need to protect the safety of our Crewmembers and Customers. The second is to minimize cash burn. The third priority is to set JetBlue up for future success by restoring Customer confidence, by returning to cash generation, and by rebuilding our margins and balance sheet.

We believe that, not only will we get through this crisis, but we will ultimately emerge as a stronger JetBlue. JetBlue has been a force for good for our industry, and we have been resilient through crises for over 20 years.”

Action Plan, Revenue and Capacity

“Our first priority since the onset of the pandemic has been to ensure the safety of our customers and crewmembers. We have responded quickly to changing conditions, and overseen the rapid evolution of policies and programs designed to address the threats to crewmember and customer safety posed by this virus,” said Joanna Geraghty, JetBlue’s President and Chief Operating Officer.

“Although the overall number of bookings remained extremely limited, we believe that we reached the bottom in terms of demand around mid-April, and expect to have a better sense of third and the fourth quarter of 2020 by early summer.

Our March capacity declined 19% year over year, as a result of scheduled reductions and close-in cancellations. Our working assumption for the second quarter is for capacity to be down about 80% compared to our original plan.

While much of our team is focused on navigating the near-term challenges, we are focused on how the business will look for customers and crewmembers as we transition to recovery. We believe our inherent strengths as a trusted brand with an unparalleled culture and superior product will serve us well, as customers evaluate their air travel options. We plan to continue to be thoughtful as we adapt to changing customer needs.”

Cost Performance and Outlook

“Thanks to our continued focus in managing JetBlue to investment grade metrics, building a strong balance sheet, improving our cost structure and strengthening our margins, we believe we are in the best position of any time in our 20-year history to effectively weather this crisis and emerge even stronger,” said Steve Priest, JetBlue’s Chief Financial Officer.

“From a financial perspective, we are focusing our efforts over the coming months on three key areas: preserving our liquidity, reducing operating expenses, and managing our capital expenditures.

We started the year with $1.3 billion in cash, cash equivalents and short-term investments. By the close of April, our liquidity position reached $3.1 billion, or ~38% of our 2019 revenue, including the payroll support through the CARES act.

In addition to successfully raising liquidity in a short period, we have acted with urgency to minimize our cash burn, reducing our expenses and re-working our plan for capital expenditures. We lowered our cash burn from an average of $18 million per day during the second half of March, to just under $10 million per day by May, excluding proceeds from the Payroll Support Program. We are leaving no stone unturned to protect the financial security of JetBlue.”

Top Copyright Photo: JetBlue Airways Airbus A320-232 N794JB (msn 4904) (Spotlight) JFK (Fred Freketic). Image: 949849.

JetBlue Airways aircraft slide show:

JetBlue to honor 100,000 healthcare workers with pairs of roundtrip flight certificates, will have a New York flyover

JetBlue Airways has launched JetBlue Healthcare Hero, which will honor 100,000 healthcare workers with roundtrip flight certificates for two to anywhere JetBlue flies.

JetBlue will also bring the Clap Because We Care movement to the skies with a three aircraft, low altitude flyover salute above New York City on May 7 at 7 p.m. ET. The flyover will include the airline’s three New York-themed special liveries honoring the Fire Department of New York (FDNY), New York Police Department (NYPD) and all who live in and love New York (I LOVE NY/Empire StateDevelopment).

"Blue Bravest"

Above Copyright Photo: JetBlue Airways Airbus A320-232 N615JB (msn 2461) (FDNY – Fire Department New York) LGB (Michael B. Ing). Image: 939468.

2017 version of "Blue Finest"

Above Copyright Photo: JetBlue Airways Airbus A320-232 N531JL (msn 1650) (Blue Finest – Honored to Support New York’s Finest) LGB (Michael B. Ing). Image: 939472.

JetBlue Airways Airbus A320-232 N586JB (msn 2160) (I Love NY) JFK (Fred Freketic). Image: 949900.

Above Copyright Photo: JetBlue Airways Airbus A320-232 N586JB (msn 2160) (I Love NY) JFK (Fred Freketic). Image: 949900.

“JetBlue’s mission of inspiring humanity is stronger now more than ever,” said Joanna Geraghty, president and chief operating officer, JetBlue. “We applaud the healthcare workers who are helping us get through this challenging time and inspiring humanity along the way. This is an opportunity for us to fly it forward and show our appreciation for the heroic efforts of medical professionals, first responders and public servants – not just here in our home of New York but around the country as well.”

Nominate Your JetBlue Healthcare Hero

To kick off the program, JetBlue is donating pairs of roundtrip flight certificates for 10,000 healthcare workers at the Mount Sinai Health System, including their Manhattan, Brooklyn, Queens and Long Island campuses, as well as at NYC Health + Hospitals, the largest public healthcare system in the United States with more than 70 locations across the city’s five boroughs.

JetBlue is now calling on customers to thank the healthcare heroes in their life – from doctors and nurses, to pharmacists, therapists, social workers, public health administrators and more – by nominating them for a chance to receive one of 90,000 pairs of roundtrip flight certificates for two to use when the time is right. Starting today through May 15, 2020, customers can submit a brief description of why they are nominating their healthcare hero (a). For more information and full terms, please visit jetblue.com/healthcarehero.

JetBlue Crewmembers Invited to Celebrate Their Own Healthcare Heroes

Over the past 20 years, first responders have been at the heart of JetBlue. Many retired police officers, firefighters, EMTs, nurses and military personnel are actively employed across the airline. With this camaraderie in mind, JetBlue is providing its almost 23,000 crewmembers with roundtrip flight certificates to gift to the healthcare heroes in their life.

JetBlue Brings Clap Because We Care Movement to the Skies Thursday, May 7 at 7 p.m. ET

Every night, New Yorkers take to the streets at 7 p.m. to applaud the efforts of healthcare and essential workers near and far.

On May 7, JetBlue will take the Clap Because We Care movement to new heights by flying its three New York-themed liveries at a low altitude over the Big Apple during the evening clap. The aircraft, I Heart Blue York, co-branded in partnership with Empire State Development with the I LOVE NY; Blue Finest, dedicated to the New YorkPolice Department; and Blue Bravest, honoring the Fire Department of New York, will make an appearance over New York City between 7-8 p.m. tomorrow evening.

The flyover is being operated at no cost to JetBlue. The airline thanks its partners at the Port Authority of New York and New Jersey, JetBlue Air Line Pilots Association, CarbonFund.org and a fuel provider. JetBlue also thanks NYC Emergency Management, as well as the Federal Aviation Administration for their incredible logistics support to make these flights happen, on top of all of their support of JetBlue during this pandemic.

Continuing to Support the Medical Community

JetBlue remains firmly committed to its mission of inspiring humanity by helping to get healthcare workers and much-needed supplies to the places where they are needed most.

To-date, JetBlue has flown more than 1,400 medical professionals to New York City and other destinations to help in relief efforts. Additionally, the airline has donated one million TrueBlue points to transport Red Cross personnel and disaster relief volunteers, along with 7,500 books and online educational resources to kids in need. Recently, JetBlue worked with Mercury Medical to fly 2,400lbs of cargo containing 2,500 disposable CPAP devices to New York State, in addition to the Ricky Martin Foundation, Project Hope and Charity Stars to fly critically needed personal protective equipment (PPE) to Puerto Rico for distribution in dozens of hospitals. to fly critically needed PPE down to Puerto Rico for distribution in dozens of hospitals. The airline has also donated cots, blankets and Mint amenity kits to Mount Sinai hospitals throughout New York to help keep their medical professionals rested in between shifts. JetBlue’s crew members are also paying it forward, coordinating donations of snacks to hospitals in Broward and Palm Beach counties and local food banks.

JetBlue Airways aircraft slide show:

JetBlue begins requiring all customers to wear face coverings during travel

JetBlue Airways has announced that starting May 4 all customers will be required to wear a face covering during travel. The policy comes after the airline began requiring all crewmembers to wear face coverings while working. JetBlue has modeled its policy on the Centers for Disease Control (CDC) guidelines that indicate all individuals should wear a face covering in public to help slow the spread of the coronavirus (COVID-19).

“Wearing a face covering isn’t about protecting yourself it’s about protecting those around you,” said Joanna Geraghty, president and chief operating officer, JetBlue. “This is the new flying etiquette. Onboard, cabin air is well circulated and cleaned through filters every few minutes but this is a shared space where we have to be considerate of others. We are also asking our customers to follow these CDC guidelines in the airport as well.”

This new policy will require customers to wear a face covering over their nose and mouth throughout their journey, including during check-in, boarding, while in flight and deplaning. Customers will be reminded of this requirement before their flight via email and at the airport by both terminal signage and announcements. Small children who are not able to maintain a face covering are exempt from this requirement.

CDC guidance defines a suitable face covering as an item of cloth that should fit snugly against the side of the face, be secured with ties or ear loops, include multiple layers of fabric and allow for unrestricted breathing. The CDC recommends surgical masks and N-95 respirators be reserved for healthcare workers and other medical first responders.

Maintaining distance onboard whenever possible

Beyond face covering requirements for crewmembers and customers, since late March, JetBlue has limited the number of seats available for sale on most flights, allowing the airline to provide additional space between individuals who are not traveling together. Before each flight, JetBlue reviews seat assignments to ensure as much personal space as possible. In addition, rows near crewmember jump seats have been blocked off to create buffer zones for added crewmember and customer safety.

Safety enhancements throughout the journey

All of JetBlue’s aircraft are equipped with hospital grade high-efficiency air particulate (HEPA) filters. All recirculated air is passed through these HEPA filters before re-entering the cabin and being mixed with fresh air. All of the air in the cabin is, on average, completely changed every three minutes. HEPA filters are capable of removing 99.97 percent of particles, bacteria and viruses.

Since the coronavirus began spreading in the United States, JetBlue has increased the rigor of its aircraft cleanings at night and between flights, using disinfectant approved to kill the coronavirus. Cleanings have been focused on the places customers and crewmembers touch the most, including seat covers, seatbelts, tray tables and armrests. Traditional food and beverage service have been adjusted onboard to limit touch points between crew members and customers.

JetBlue Airways aircraft photo gallery:

JetBlue provides update related to the Coronavirus aid, Relief and Economic Security (CARES) Act

JetBlue Airways has issued the following message to its 23,000 crew members:

Dear Crewmembers –

We have some very good news to share with you about payroll support under the CARES Act. After several weeks of working closely with our airline industry colleagues and our elected officials in Washington, we have reached tentative terms with the U.S. Government to accept funds that will secure jobs at JetBlue for the next few months as we weather this unprecedented crisis. I know this is the news you have been waiting for and I hope you’ll join me in thanking the Trump administration, especially Treasury Secretary Mnuchin and Transportation Secretary Chao, as well as Congress, including our hometown Senator Chuck Schumer, for making sure that our 23,000 Crewmembers are recognized for the critical work you do.

There have been many things on my mind throughout this health and economic crisis but one thing that really keeps me up at night is how we can protect our Crewmembers and preserve jobs at JetBlue. This law does not solve the long-term problems that the coronavirus pandemic is creating but it buys us some much-needed breathing room. I’m especially proud that we worked together to shape a solution where every dollar of these funds will go directly to salary, wages and benefits for our Crewmembers through September 30.

Understanding the payroll support program

The money we receive will be split into two different portions, one which needs to be paid back and one that does not.

The portion that we do not have to pay back covers about 56% of what our payroll costs were during the same six months last year. The second portion will come in the form of a low-interest loan and will have to be paid back to the government starting in October. In addition, the U.S. Government will also receive a limited number of warrants, which are the right to buy shares in JetBlue at a pre-determined price. We must also continue to provide a minimum level of domestic air service in exchange for the funds, and I am grateful to every one of you for fulfilling this obligation with great diligence.

While I am happy we are receiving this much-needed cash for payroll now, it adds to the significant debt we are taking on as we burn through our cash reserves. Thankfully, we entered this crisis with one of the stronger balance sheets in the industry but we will come out of this with significant debt to pay down.

With flights below 150 daily and our aircraft now only about 10% full, we will have far less work and fewer hours for every salaried and hourly Crewmember. I know this adds financial stress at a time when we are also worried about each other’s health and safety, but I am thankful we are in a position to provide some level of pay for everyone using the payroll support funds.

We have been working with the Values Committees, ALPA and TWU on the fairest way to allocate the CARES Act funds to you on behalf of the government. Each team at JetBlue is unique, and we will share CARES Act programs and pay models within the next day. Watch your email for details and information on virtual pocket sessions.

Continuing to Inspire Humanity

Now that we have some breathing room, we can turn our attention to how we get up and running again. What’s important to our Customers will be different after this, and we are already working to be ahead of that. Our aspiration to become a travel brand that “brightens the journey” is more important than ever. Our low-cost structure will allow us to offer low fares and help people battered by the economy to make that trip and take care of them along the way.

I’m so proud of what we have been doing throughout this crisis to serve our communities and we will be here to power the economy back to life when the time comes. While we don’t know when demand will return to 2019 levels, what I do know is our combination of inspired service, great product, more space, and low fares will be more appreciated than ever. JetBlue has been shaking up this industry for 20 years and that will continue to be key to our success.

Every time I see our Inspire Humanity livery, it reminds me of what’s important. In times like these, we need to double down on our mission. This has been an unprecedented time. We have lost some of our Crewmembers, and our thoughts are with their families and friends, and we are supporting them through this difficult time. We also have Crewmembers who are fighting coronavirus or have family members who are sick. Please keep them in your thoughts.

Thank you for everything that you are doing at work to care of each other and our Customers while you look after yourself and your loved ones. You are an inspiration to me every day.

Best wishes,

Robin Hayes
Chief Executive Officer

CARES Act Payroll Support By The Numbers:

JetBlue payroll in Q2 – Q3 2019 equated to $1.23 billion.

Every airlines gets about 76% of that payroll amount.

For JetBlue that’s $935.8 million.

  • CARES Act Allocation: $935.8 million
  • Direct Support: $685.1 million
  • Low-Interest Loan: $250.7 million

This represents our agreement in principle which is subject to negotiation and execution of final documents between JetBlue and the U.S. Department of Treasury.

JetBlue consolidates operations in five metro areas

JetBlue Airways today announced it will temporarily consolidate operations in five major metropolitan areas in the U.S between April 15 and June 10. The revised schedules are aimed at reducing excess flying during a time of unprecedented low demand for air travel while maintaining a critical level of service across the airline’s network for those who absolutely must fly.

“We face new challenges every day and can’t hesitate to take the steps necessary to reduce our costs amidst dramatically falling demand so we can emerge from this unprecedented time as a strong company for our customers and crewmembers,” said Scott Laurence, head of revenue and planning, JetBlue.

Effective April 15 through June 10, JetBlue will consolidate its operations in Boston, Los Angeles, New York City, San Francisco and Washington D.C. with flights operating at one or two airports in each metro area.

Consolidated Service

Temporary Suspension

Typical daily departures

Planned average daily departures for April

 Boston

Boston Logan International Airport (BOS)

T. F. Green International Airport (PVD)

180

28

 Los Angeles

Los Angeles International Airport (LAX), Long Beach Airport (LGB)

Hollywood Burbank Airport (BUR), Ontario International Airport (ONT)

44

5

 New York

John F. Kennedy International Airport (JFK), Newark Liberty International Airport (EWR)

LaGuardia Airport (LGA), Westchester County Airport (HPN), Stewart International Airport (SWF)

215

30

 San Francisco

San Francisco International Airport (SFO)

San Jose International Airport (SJC)

19

2

 Washington

Washington National Airport (DCA)

Baltimore/Washington International Thurgood Marshall Airport (BWI)

34

5

JetBlue also intends to file an exemption request with the U.S. Department of Transportation (DOT) to temporarily suspend flying at other airports where the airline typically operates only a handful of daily flights and where current demand does not support JetBlue service.

As previously announced, JetBlue has reduced flying network-wide by 80% per day in April. Customers whose flights have been canceled will be notified via email by the airline’s Customer Support team for rebooking options on other JetBlue flights or the choice of a refund or JetBlue credit for future travel.

JetBlue aircraft photo gallery:

JetBlue advises its employees on the impact of coronavirus

JetBlue Airways has issued the following message to its 23,000 crew members:

Dear Crewmembers –

As the coronavirus crisis deepens, so too does its impact on our business. If anyone tells you that they’ve seen anything like this before – don’t believe them. We’ve shared with you in the past weeks the unprecedented decline in demand for travel, and the situation continues to deteriorate. The numbers are staggering:

  • Just 7,000 Customers are likely to fly us each day in April and possibly May, compared to the 120,000 we would typically expect.
  • Last year on a typical day in April, we took in about $22 million from bookings and ancillary fees. This is now just $1 million per day (and another $2 million per day is being issued in cash refunds, pushing us into negative territory). Additionally, we are still issuing $11 million per day of travel bank credits for canceled bookings.
  • We are spending far more on running the airline than we are making in revenue and, as a result, we are burning through over $10 million of our savings each day. Despite our position of financial strength, this is simply not sustainable. We are leaving no stone unturned, cutting pay for officers (VPs and above), introducing voluntary time off programs, reducing capacity, re-negotiating Business Partners agreements, and stopping or pausing 75% of our major infrastructure, technology and real estate projects.

We are by no means alone in the pressures we are facing; it is clear that without government assistance, or mass furloughing and restructuring, that many of the world’s airlines could fail.

Taking action by reducing our network, parking our fleet

Preserving cash is our top priority and we’ve had to make decisions we never dreamed we’d make. We must continue to make sacrifices where needed so that we can emerge from this unprecedented challenge.

  • 70% April schedule reduction: We’ve reduced our April schedule by at least 70%.
  • Parking over 100 aircraft: Just a few weeks ago, we couldn’t get new aircraft fast enough to hit our growth plans. Now, we are taking steps to sit down the aircraft we have. This month, we will park over 100 in the Arizonadesert and at BlueCities around the country.

Payroll support for Crewmembers

Last Friday I shared some very good news about the CARES Act, which sets aside $25 billion in payroll support for airline employees through Sept. 30, 2020. In the week since the law was signed, our nation’s leaders have moved with incredible speed to start the process of getting that money into the hands of Crewmembers. I want to again thank President Trump, his administration, and Congress – especially our very own Senator Schumer – for their bipartisan support.

Today we submitted our application for payroll support funds to the Treasury department and we now enter negotiations with the U.S. Government. I hope things can move quickly, and we are available this weekend so we can conclude an agreement next week, as time is of the essence. For reasons I am sure you understand we won’t be commenting while we are in these discussions. We may not get enough to cover pay and benefits at the level you see when we are flying at full capacity. Also, as a growth carrier, we have a disadvantage as the funds are based on last year’s payroll costs. With fewer hours for everyone to work and far fewer flights, total pay is likely to go down for both salary and hourly Crewmembers. The good news is this law keeps paychecks coming and it buys us time. Securing jobs, even at reduced total pay, is my priority right now.

Every dollar of the payroll assistance funds will be passed to Crewmembers, with the exception of JetBlue Officers who will not be funded by the Government and the leadership team have all taken significant pay cuts. We are in this together. The government is providing these funds as recognition to us to make sure we are in position to serve the flying public, support the country, and kickstart the economy again when the crisis is over.

Even if we get the payroll support, we still need to raise additional money to pay our other operating expenses. We will be talking to the government and other lenders in the coming weeks. We have thoughtfully managed our finances over the past 10 years, and thankfully we now own many aircraft and other assets we can borrow money against.

One requirement of accepting payroll support is that we continue to provide a reasonable level of service across our domestic network. With dramatically fewer Customers, we have to take a hard look at our schedule to meet those requirements while also pulling down further flying. We expect more clarity on this from the Department of Transportation soon.

Inspiring Humanity and looking ahead

I take great pride in knowing that we can help others even when we need a little help ourselves. Customers choosing to fly during this difficult time are, for the most part, doing so because they need to, not because they want to. With our mission to Inspire Humanity in mind, we are transporting medical professionals and supplies to the places where they are needed, and helping get students home.

While every day right now feels endless, this will not last forever. We are already thinking about what the world will look like when we come out of this. Just like after 9/11, some things will go back to normal and others will change for good and we need to prepare for that. With our incredible team, disruptive brand, low fares, and low-cost structure, I think JetBlue can do some great things in this new reality.

I’d like to end this update on a personal note. So many of you have reached out to me and I feel terrible I have not been able to personally get back to everyone like I normally do. I want you to know that I’ve read your comments and suggestions and have shared the themes with the right leaders. I know it is a scary time. The multiple stresses of work, finances, and personal health can take a toll. Take care of each other, and don’t hesitate to reach out to your leader if you need support. Thanks for all you’re doing. We will get through this.

Best wishes,

Robin Hayes
Chief Executive Officer