Category Archives: JetBlue Airways

American, Alaska Airlines and JetBlue will require their employees to be vaccinated

From NPR:

“American Airlines, Alaska Airlines and JetBlue are joining United Airlines in requiring employees to be vaccinated against COVID-19, as the Biden administration steps up pressure on major U.S. carriers to require the shots.”

Read the full article:

https://www.npr.org/sections/coronavirus-live-updates/2021/10/02/1042697933/vaccinations-american-alaska-airlines-jetblue

JetBlue arrives at London’s Gatwick Airport

JetBlue Airways today announced it has expanded its presence in the transatlantic market with new, nonstop service between New York’s John F. Kennedy International Airport (JFK) and London Gatwick Airport (LGW).

LGW joins LHR as JetBlue’s entry points into the United Kingdom.

The first customer-carrying JetBlue flight from the U.S. touched down at Gatwick just before 8 o’clock this morning, local time. The flights – which operate four times weekly in October, then daily onward from November – arrive well timed for the long-awaited easing of U.S. entry requirements for travelers from the U.K. and other European destinations.

Schedule between New York (JFK) and London Gatwick (LGW)

JFK – LGW Flight #43

LGW – JFK Flight #44

7:50 p.m. – 7:55 a.m. (+1)

12:00 p.m. – 3:33 p.m.

Gatwick is the second busiest U.K. airport and provides JetBlue with an important presence where it can attract a new base of travelers. JetBlue will operate from the North Terminal.

Airbus Aircraft

The A321LR platform – offering the range of a wide-body but with the economics of a single-aisle aircraft – allows JetBlue to effectively compete, with award-winning service and low fares on flights between the U.S. and London. JetBlue converted 13 aircraft in its existing A321 order book to the LR version in April 2019 with the ability to convert more. Additionally, JetBlue has converted another 13 aircraft in its existing order book to the Extra-Long Range – or XLR – version of the A321.

The A321LR allows JetBlue to tap into new long-haul markets, like London, that were not previously accessible with the airline’s existing fleet. The LR’s range of up to 4,000 nautical miles is made possible by three additional center fuel tanks and the aircraft delivers 30 percent fuel savings and nearly 50 percent reduction in noise footprint compared to previous generations of aircraft. JetBlue is also the global launch partner for the new Airspace by Airbus cabin, bringing long-haul style to the A321 for the first time ever.

JetBlue’s A321LR is powered by two Pratt & Whitney GTF engines. The GTF engine, with its revolutionary geared fan technology, is transforming aviation by delivering game-changing economic and environmental performance. The Pratt & Whitney GTF engine also incorporates advances in aerodynamics, lightweight materials and other major technology improvements.

JetBlue accelerates transition to Sustainable Aviation Fuel (SAF)

"Rob Dewar", 1st A220, delivered December 31, 2020, in service April 26, 2021 BOS-TPA

JetBlue Airways today announced plans to speed up its transition to sustainable aviation fuel (SAF) with an offtake agreement with SG Preston, a leading bioenergy developer. With the addition of this SG Preston agreement to its previous SAF commitments, JetBlue is well ahead of pace on its target to convert 10 percent of its total fuel usage to SAF on a blended basis by 2030. The airline will reach nearly eight percent SAF usage by the end of 2023 when delivery of SAF under this agreement is expected. JetBlue is doubling its previous SAF commitment with SG Preston, which was first announced in 2016 as one of the largest SAF purchase agreements in aviation history.

JetBlue’s agreement with SG Preston also marks a major milestone for SAF in New York’s airports. This deal is expected to bring the first large-scale volume of domestically produced SAF for a commercial airline to New York’s metropolitan airports. JetBlue will convert 30 percent of its fuel buy across John F. Kennedy International Airport (JFK), LaGuardia Airport (LGA) and Newark Liberty International Airport (EWR) from traditional Jet-A fuel to SAF (b), which is expected to reduce emissions by an estimated 80 percent per gallon of neat SAF, compared to traditional petroleum-based fuels.

Targeting a start in 2023 and continuing over a 10-year period, SG Preston will deliver at least 670 million gallons of blended SAF to JetBlue to fuel its flight operations at JFK, LGA and EWR, helping JetBlue avoid approximately 1.5 million metric tons of CO2 emissions. JetBlue expects to invest more than $1 billion in purchasing SAF over the term of this agreement, at a price competitive to traditional Jet-A fuel, with no expected material impact to the airline’s total fuel costs. This marks the largest-ever announced near-term SAF deal for delivery in the Northeast and will be become the airline’s largest single jet fuel contract.

“We are well past the point of vague climate commitments and corporate strategies. Earlier this year, we set specific, dated, and aggressive emissions targets. And now we are physically changing the fuel in our aircraft to meet these commitments,” said Robin Hayes, chief executive officer, JetBlue. “At JetBlue, we’re heavily investing in SAF because we see it as our most promising means of rapidly and directly reducing aircraft emissions in the near-term. With this expanded agreement with SG Preston, nearly eight percent of JetBlue’s total fuel use will be SAF, putting us well ahead of pace in reaching our goal of 10 percent SAF usage by 2030.”

Sustainable aviation fuel is jet fuel produced from biological resources that can be replenished rapidly and without impacting food supply. Compared to traditional petroleum-based Jet-A fuel, renewable options can significantly reduce both greenhouse gas emissions and other air pollutants such as particulate matter and sulfur oxides. Safety is JetBlue’s number one priority, and SAF is functionally equivalent to conventional Jet-A fuel, posing no discernible difference in safety or performance. The fuel is fully compatible with existing jet engine technology and fuel distribution infrastructure when blended with fossil jet fuel, and is tested and transported the same way as regular Jet-A fuel.

SG Preston has made significant progress on a new facility in the Northeast to produce SAF at a large scale. SG Preston’s HEFA- (hydro-processed esters and fatty acids) based renewable jet fuel will be sustainably produced from waste fats, oils, greases, and non-food oilseeds. The fuel is expected to receive sustainability certification from ISCC, an independent, global certification body for sustainability and carbon reduction. SG Preston’s process utilizes industry-leading refining process technology, which has been FAA-approved for commercial flying since 2011. This SAF will be blended with Jet-A fuel at an estimated 30 percent blend ratio before being transported to JFK, LGA, and EWR.

“The SG Preston-JetBlue relationship is the blueprint for a balanced partnership designed to achieve both the airline’s and global aviation’s sustainability and pricing goals. The reality of achieving the US sustainability target of approximately 35 billion gallons of sustainable aviation fuel by 2050 is daunting. Engaging with, and addressing the concerns of all key stakeholders and contributors to the solution, is paramount to successfully reaching this target. JetBlue’s continued commitment to SG Preston’s development strategy illustrates continued confidence in our unique approach to this challenge. We’re honored by this demonstration of trust,” said Randy Delbert Letang, CEO of SG Preston.

JetBlue’s SAF Strategy

JetBlue’s revised deal with SG Preston is its third agreement for SAF. JetBlue recently entered into a new relationship with World Energy and World Fuel Services and began flying with SAF at Los Angeles International Airport (LAX) in July 2021. Additionally, JetBlue partnered with Neste in August 2020 to fuel its flights from San Francisco International Airport (SFO) with SAF. JetBlue’s SAF strategy was developed with support and consultancy from energy market experts at ICF.

While JetBlue views SAF as the most promising solution to rapidly and directly reduce aircraft emissions in the short and medium term, it is one piece of its larger decarbonization strategy including aircraft efficiency, fuel optimization, sustainable aviation fuel, electric ground operations, technology partnerships and carbon offsetting.

Hayes continued, “We recognize that airlines have a responsibility to decarbonize our operations and usher in an era of truly sustainable travel. We are therefore stepping up as an industry with commitments and clear actions. However, we can’t do it alone. In order for our industry to meet our ambitious targets, we are asking for collaboration and leadership from our key stakeholders – fuel suppliers, aircraft and engine manufacturers, and governments to play a critical role in helping the drive toward net zero.”

JetBlue’s Commitment to Grow Sustainably in New York

New York is JetBlue’s home and where more than 7,000 of its crewmembers live and work. The airline is experiencing significant growth in New York, and furthering plans to substantially increase flying and bring more low fares and jobs to JFK, LGA and EWR as part of its Northeast Alliance with American Airlines. As JetBlue increases its presence and brings more air service to the region’s three airports, it is more important than ever to grow sustainably.

With a focus on more sustainable operations, JetBlue was recently selected for a grant from the New Jersey Department of Environmental Protection’s transportation electrification initiative for electric ground service equipment (eGSE) at EWR. With this grant, JetBlue will convert 38 ground service vehicles to electric, and install 16 dual-port charging stations, with additional support from the Port Authority of New York and New Jersey. Following this conversion and one in process at Boston Logan International Airport, JetBlue will have converted 39 percent of these three vehicle types to electric. This is significant progress towards JetBlue’s eGSE goal to convert 40 percent of its bag tugs, belt loaders, and pushbacks network wide to electric by 2025, and 50 percent by 2030.

Additionally, JetBlue is making significant updates to T5 by upgrading the entire terminal to LED lighting solutions provided by Brightcore Energy, a premier provider of turn-key energy efficiency projects from lighting to solar, renewable heating & cooling, EV chargers, and battery storage. The T5 upgrades will reduce JetBlue’s lighting-related energy use by approximately 66 percent, based on current usage. The project will have a significant impact, saving more than 2.1 million kWh annually, while improving aesthetics, lowering energy costs and reducing the terminal’s carbon footprint.

“We applaud JetBlue’s commitment to convert 30 percent of its fuel demand from traditional jet fuel to sustainable aviation fuel across the three major New York airports. This latest initiative from JetBlue is a critical step towards accelerating the production and adoption of SAF in the northeast, and achieving the associated environmental benefits in our region,” said Rick Cotton, Executive Director of the Port Authority of NY & NJ. “This initiative advances our continued collaboration with JetBlue on important sustainability measures, including energy efficiency upgrades and electrifying ground support equipment at our airports.”

JetBlue’s Focus on the Environment

JetBlue depends on natural resources and a healthy environment to keep its business running smoothly. Natural resources are essential for the airline to fly and tourism relies on having beautiful, natural and preserved destinations for customers to visit. The airline focuses on issues that have the potential to impact its business. Customers, crewmembers and community are key to JetBlue’s sustainability strategy. Demand from these groups for responsible service is one of the motivations behind changes that help reduce the airline’s environmental impact.

Top Copyright Photo: JetBlue Airways Airbus A220-300 (CS300 BD-500-1A11) N3008J (msn 55099) (Hops) JFK (Fred Freketic). Image: 953426.

JetBlue aircraft slide show:

American’s and JetBlue’s responses to the DOJ lawsuit

American Airlines issued this statement:

American Airlines Chairman and CEO Doug Parker responded to the U.S. Department of Justice’s misguided lawsuit against American and JetBlue’s Northeast Alliance (NEA).

“Last summer, American and JetBlue announced an innovative alliance to increase competition in the Northeast. In just a few months, the Northeast Alliance has delivered on its promise to ensure growth and provide clear consumer benefits in New York and Boston.

“Since January, the alliance has brought new services to customers in New York and Boston, including 58 new routes, increased frequencies on more than 130 routes and codesharing on 175 routes, as well as new international flights to Tel Aviv, Athens and Delhi. Delivering on the promise of growth, the Northeast Alliance will offer more than 700 daily flights from New York and Boston this winter and continue investment to provide a seamless experience to customers.

“Before the alliance, Delta and United dominated the New York City market. The NEA has created a third, full-scale competitor in New York and is empowering more growth in Boston. Ironically, the Department of Justice’s lawsuit seeks to take away consumer choice and inhibit competition, not encourage it. This is not a merger: American and JetBlue are – and will remain – independent airlines. We look forward to vigorously rebutting the DOJ’s claims and proving the many benefits the Northeast Alliance brings to consumers.”

JetBlue Airways issued this statement:

Dear Crewmembers,

COVID-19 has thrown unimaginable challenges at us, and we’ve worked together to manage them every step of the way. We played defense to reduce spending and maintain our 21-year no furlough commitment, but we also went on the offense by investing in new routes and BlueCities that bring more of JetBlue’s competitive effect and low fares to the market. Our Northeast Alliance (NEA) with American Airlines is an example of how we played offense to not only get our fleet and Crewmembers flying again, but also set up JetBlue for long-term growth and bring more competition to the Northeast.

Given our focus on the NEA, I wanted to talk about action the U.S. Department of Justice (DOJ) is taking in federal court to unwind the NEA. Regardless of what the DOJ claims about us in court and in the media, it’s important you know that JetBlue’s commitment to competition and low fares remains as strong as ever. This is not at all like a merger with American – we have two different business models and are not working together on pricing. It’s also important that you have the full picture on benefits the NEA is already delivering, and I want to reassure you that the DOJ’s action will not affect our plans to continue implementing the NEA.

Many things set JetBlue apart, but our “secret sauce” is our 20,000 passionate and caring Crewmembers who believe a small airline like ours can continue to make a big difference. Each of you deliver a simple but extraordinary value proposition – that no one should have to choose between a low fare and a great experience. By bringing this to life for 21 years, you’ve helped us build a much-loved low-fare brand and a reputation for shaking up the status quo, challenging the competition to raise their game.

Even though our low fares and great service benefit travelers, it hasn’t always been easy to get our foot in the door at the largest and most important congested airports where the big airlines dominate. We’ve had to fight our way into airports like Los Angeles (LAX), Newark, Atlanta, Miami and others where the “JetBlue Effect” of lowering fares and stimulating new demand is badly needed.

If there is a silver lining to the pandemic’s impact on our industry, it’s that space freed up for us to introduce competition in airports like LAX and Miami, and we’re setting ourselves up for long-term success at London Heathrow, where we recently launched our transformative transatlantic service. I’m so proud of how far we’ve come, but there is still plenty of opportunity for us to shake up the market with more competition, especially in the Northeast where Customers who know and love JetBlue keep asking for us to grow.

While we have built a successful business in both New York and Boston, our runway for growth in the Northeast to challenge global legacy carriers Delta and United is limited. And I’m sad to say that our biggest obstacle to bringing more low fares and great service to the Northeast right now is the DOJ – the very government agency that should be making every effort to foster robust competition among airlines.

In New York’s airports, there has been quite literally no room for us to add flights. There are no slots available at LGA and JFK, and it remains extremely difficult to grow in Newark given gate and space constraints. Delta and United – with large international networks, ample financial resources, and significant airport gate and slot holdings – have a lock on the market and make it impossible for an airline like JetBlue to grow and introduce sorely needed low-fare competition. In Boston, Customers really love flying JetBlue, but our sales pitch is hampered by a relative lack of network breadth and depth compared to the deep-pocketed legacy airline that plans to grow even further there.

These obstacles to growth led us to an unlikely alliance with American Airlines which, even as the world’s largest carrier, also has not been able to compete with Delta and United’s dominance in the Northeast.

The backbone of the NEA is lots of JetBlue growth, bringing our much-loved experience and low fares on more routes as we tap into American’s slot portfolio and Customer base. We create a viable third competitor in the Northeast by connecting our growing network to American’s through codeshare and reciprocal loyalty benefits. American gets to codeshare and put its loyal Customers on JetBlue’s growing New York and Boston network of flights. The NEA also enables JetBlue to grow our network even faster than we otherwise would have, and these opportunities are a large part of why we delayed the retirement of our 30 owned E190 aircraft.

We hoped this plan to introduce new competition to the marketplace would receive a warm reception from both DOT and DOJ. After an exhaustive six-month review, the DOT welcomed this new, meaningful change to the competitive landscape by entering into an agreement with us. DOJ and some states, however, have not been receptive. DOJ believes that American’s influence will bring an end to the “JetBlue Effect.” Of course, the NEA is already up and running and every day we are proving DOJ’s theory wrong. We have no intention of abandoning our low-fare model – in fact, the NEA empowers us to deliver more of it.

The NEA is already delivering benefits

In court, DOJ is sure to face an uphill battle opposing the expansion of low fares in New York and Boston. There is absolutely no evidence that the NEA is harming consumers, and quite the opposite, it is already delivering on the benefits we promised:

The NEA is enabling the expansion of JetBlue’s low fares and great service:

  • JetBlue has announced nine new BlueCities and 32 new routes, fully enabled by access to American’s slot portfolio and feed from their Customer base.
  • At LGA, we’ll be up to 35 daily departures by the end of the year; by next summer we plan to boost that to 50+ daily JetBlue departures – bringing badly needed competition to this airport where we were capped at 16 daily departures before the NEA.
  • With JetBlue’s NEA growth, we need more aircraft flying and have delayed the retirement of the 30 E190s we own (we lease the other 30), leading to significant net aircraft growth.

Together with American, we are providing Customers more choices and benefits that create a true third competitor to the two dominant legacies in the Northeast.

  • JetBlue and American have added 58 new routes, including 18 international flights that will be launched by 2022, and increased frequencies on more than 130 routes giving more options and choices to Customers.
  • We are now codesharing on 175 routes. This gives us a combined schedule with the number of markets and seats that for the first time in our two-decade history allows us to stack up against the dominant carriers.
  • Since the NEA was implemented in February, JetBlue and American have collectively grown more quickly than Delta and United across New York and Boston, offering Customers more options for travel and getting our Crewmembers back to work faster.
  • Delta and United are already responding by launching new routes, introducing larger aircraft, and bringing premium seats to Boston and New York. This is exactly the type of action you would expect when there is a competitive influence in the market.
  • We’re introducing loyalty benefits that give both JetBlue and American Customers the opportunity to earn and redeem on both airlines, and reciprocal benefits – creating a new option for Customers that previously would not have considered us. American has 23 million AAdvantage members, and now JetBlue is a more attractive option for them.
  • Even with the NEA, we continue to independently price as we always have and remain tough competitors to American in markets where we are going to head-to-head. Our recent growth in LAX, Miami and London are just a few examples of where we have proven we will not back down from competing with American.

We have tried, and failed, for many years to gain additional slots so that we can add flights and competition. Without more slots and access available to us, we developed a creative way to grow into a stronger competitor to United and Delta in these very congested markets, while retaining our independence and competing with the same fierceness against American in other markets.

The irony now is that the government agency responsible for preserving competition is instead trying to take away our ability to further expand our low fares in these markets. What the DOJ says and does seem to be in conflict – it’s quite puzzling and hypocritical for DOJ to applaud DOT’s recent efforts to promote competition at Newark while standing in the way of JetBlue’s growth. Rather than use the public’s resources to stifle competition in court, DOJ should monitor the NEA’s progress over the months ahead and hold us accountable for delivering the Customer benefits we’ve promised.

Our implementation of the NEA will continue

While it’s extremely unfortunate DOJ would rather take us to court than help us compete, we’re ready to make a strong case on why more low-fare JetBlue growth is good for Customers. We fully expect the court to find that nothing about the NEA changes our business model or our role as a force for good in the industry.

We cannot let this lawsuit slow our momentum in bringing the NEA to life. Because of growth from the NEA, we are on track to hire 1,800 new Crewmembers this year. We fully intend to launch the new routes and BlueCities we have announced, as well as expand codeshare options. Our IT investments will move full speed ahead to improve our systems in support of our Crewmembers and Customers. Expect to see us deliver great new loyalty program enhancements in the coming months for both JetBlue and American Customers. We’ll continue to work with American to provide better re-accommodation options when our Customers’ travel plans don’t go as expected. And, within our airport operations, we’ll continue to find ways to offer a seamless Customer experience and connections – for example, with our new bussing operation at JFK.

As we continue forward, many others will stand behind the NEA – loyal Customers who now have more choices and low fares, thousands of Crewmembers benefitting from the additional flying, and key Congressional leaders like Senate Majority Leader Chuck Schumer who have voiced their support for the NEA. Like every challenge we’ve faced in our history, we will come out the other side stronger and prove to all the skeptics what good JetBlue can do when given the chance to make a difference.

Sincerely,

Robin Hayes

Chief Executive Officer

JetBlue arrives in London

JetBlue Airways today (August 12) arrived for the first time in London (Heathrow) with its new Airbus A321-271NX WL.

The first flight was operated with N4022J.

Video:

JetBlue issued this statement:

JetBlue Airways today announced it has officially entered the transatlantic market with new, nonstop service between New York’s John F. Kennedy International Airport (JFK) and London Heathrow Airport (LHR). The first customer-carrying JetBlue flight between the U.S. and the U.K. touched down at Heathrow just before 10 o’clock this morning, local time. The highly anticipated milestone – aimed at shaking up the transatlantic market with the airline’s award-winning service and attractive fares – marks the first time JetBlue has served a destination beyond the 100+ cities it flies to throughout the Americas. With new service in the United Kingdom, JetBlue now operates in 26 countries.

Photo: JetBlue’s inaugural flight from New York-JFK to London Heathrow Airport arrives in the U.K. on August 12, 2021, marking the first-ever transatlantic service by the U.S.-based travel company. (Photo: Business Wire)

Schedule between New York (JFK) and London Heathrow (LHR)

JFK – LHR Flight #007

LHR – JFK Flight #20

9:48 p.m. – 10:10 a.m. (+1)

2:05 p.m. – 5:28 p.m.

The Airport

JetBlue’s presence at London Heathrow Airport gives the U.S.-based travel company visibility at an iconic global hub to build a new base of travelers in the U.K. and beyond. JetBlue will operate from Heathrow’s newest terminal – Terminal 2 – which offers travelers a modern airport experience with access to dozens of shops and restaurants. Heathrow travelers benefit from a variety of convenient ground transportation options including the Heathrow Express and London Underground, which offer rail connections with Central London.

Flights between New York-JFK and Heathrow operate daily in August and four times weekly in September on JetBlue’s new Airbus A321 Long Range (LR) aircraft with 24 redesigned Mint suites, 114 core seats and the sleek and spacious Airspace cabin interior.

JetBlue to keep its headquarters in New York, JFK Terminal 6 project to be developed

JetBlue Airways today announced plans to double down on its commitment to New York by maintaining its headquarters in the city and advancing plans to expand its flagship terminal at John F. Kennedy International Airport (JFK).

These initiatives further strengthen JetBlue’s presence in New York, where it has already announced plans to substantially increase flying and bring more low fares and more jobs to JFK, LaGuardia, and Newark as part of its Northeast Alliance with American Airlines.

JetBlue Keeps Its Flag Firmly Planted in New York City

After an in-depth review and competitive bid process, JetBlue today announced its intention to keep its headquarters in New York City when its current office lease expires in 2023. The decision comes as the airline industry is recovering from the financial impact of the pandemic, which has also shifted how people will work in office environments in the future.

JetBlue plans to stay at its current home in the Brewster Building at 27-01 Queens Plaza North in Long Island City, where the company has been based since 2012 and is home to its iconic rooftop sign. JetBlue intends to negotiate and execute a lease over the next few months and then re-design its office space to be responsive to rapidly evolving workplace trends that have accelerated during the pandemic.

The Brewster Building was built in 1911 and is where the Brewster Aeronautical Company manufactured the Brewster F2A (a.k.a. The Brewster Buffalo), the first monoplane fighter airplane used by the U.S. Navy in World War II.

Orlando is home to JetBlue’s training facility and a number of corporate support functions. JetBlue subsidiary JetBlue Travel Products is based in Fort Lauderdale. JetBlue is one of the leading carriers in both markets.

A World Class Terminal 6 Begins to Take Shape

 

In addition to its corporate presence, the airline continues to further plans to bring more air service to New Yorkers across the region’s three airports. Its flagship Terminal 5 at JFK has been celebrated for its customer-friendly design and facilities, and Governor Cuomo today announced that the Port Authority of New York and New Jersey (PANYNJ) will approve plans to develop a world-class terminal on the Terminals 6 and 7 sites.

The new Terminal 6 project will seamlessly integrate with Terminal 5, building on JetBlue’s award-winning customer experience while expanding the airline’s footprint farther into the north side of the airport. It helps secure JetBlue’s long-term future at JFK with opportunities for new gates starting in 2025, and offers partner airlines the ability to co-locate with JetBlue to improve connectivity for customers.

The Terminal 6 project will be developed and operated by JFK Millennium Partners (JMP), a private consortium comprised of JetBlue; Vantage Airport Group, an industry leading investor, developer and manager of award-winning global airport projects, including as a member of the consortium that built LaGuardia Airport’s new Terminal B; American Triple I (ATI), a 100% minority- and woman-owned investor, owner, developer, and manager of infrastructure assets and infrastructure focused companies that seek to spur economic growth and development in markets across the U.S.; and RXR Realty, a leading New York-based real estate operating and development company.

The $3.9 billion, 1.2 million square foot terminal is set to replace aging existing facilities, and will be designed to accommodate both wide-body gates and narrow-body gates, as well as bright and airy check-in halls and arrival spaces designed to enhance the customer experience. Customers will enjoy more than 100,000 square feet of commercial dining and retail amenities, lounges, and recreational spaces. The new terminal will also include critical infrastructure improvements to the airport’s roadways, optimizing traffic flow and transportation access at the airport, and incorporate the latest advances in both sustainability and security.

According to the Port Authority of New York and New Jersey, the development of Terminal 6 is expected to result in over 4,000 direct jobs (both on-site and off-site) and direct payroll wages of $1.9 billion. The total economic activity impact from the project amounts to nearly $2.8 billion in total wages and $6.3 billion in total economic activity.

JetBlue will also expand its footprint at LaGuardia Airport beyond its current space at the historic Marine Air Terminal and partially move into the airport’s recently opened and state-of-the-art Terminal B later this year with plans to move completely in 2022. At Newark, JetBlue will also move, relocating to the new Terminal A in 2022.

JetBlue Loves New York

JetBlue plans to add more than 1,800 jobs at New York City airports thanks to new flights and destinations it is adding as a result of its Northeast Alliance with American Airlines. JetBlue plans to nearly triple its flights at LaGuardia and substantially increase flying at JFK and Newark. With this planned growth, JetBlue will continue to work with New York state to market the airline as New York’s Hometown Airline® and bring visibility for the high-quality, low-fare air service that it offers at eight airports across the Empire State.

As part of this commitment to work together, JetBlue and the state are planning to extend their joint branding agreement of the world-recognized I LOVE NY logo, an unprecedented partnership with the State’s iconic brand, and collaborate on showcasing the Empire State experience at locations within the airline’s JFK terminal. In partnership with New York City Economic Development Corporation (EDC), JetBlue and NYC will partner to continue advancing shared priorities related to a diverse and inclusive workplace, including hiring and workforce development, and climate change.

 

JetBlue reports GAAP pre-tax earnings of $57 million in the second quarter of 2021

"O Beautiful For Spacious Skies"

JetBlue Airways Corporation today reported its results for the second quarter of 2021:

  • Reported GAAP diluted earnings per share of $0.20 in the second quarter of 2021 compared to diluted earnings per share of $0.59 in the second quarter of 2019. Adjusted loss per share was ($0.65)(1) in the second quarter of 2021 versus adjusted diluted earnings per share of $0.60(1) in the second quarter of 2019.
  • GAAP pre-tax earnings of $57 million in the second quarter of 2021, compared to a pre-tax income of $236 million in the second quarter of 2019. Excluding one-time items, adjusted pre-tax loss of ($309) million(1) in the second quarter of 2021 versus adjusted pre-tax income of $238 million(1) in the second quarter of 2019.

Operational and Financial Highlights from the Second Quarter

  • Reduced second quarter 2021 capacity by 15% year over two, which is in-line with our planning assumption.
  • Second quarter 2021 revenue declined 29% year over two. Adjusted for a 1.5 point benefit from a renewed co-branded credit card agreement, the result is at the better end of our prior expectations of a 30 to 33% decline year over two. This was driven primarily by continued momentum in leisure demand throughout the quarter
  • Operating expenses declined 27% year over two. Excluding special items, adjusted operating expenses declined 7%(1) year over two, which is in-line with our prior planning assumption. CASM ex-Fuel declined meaningfully from a 41% increase year over two in the first quarter, to a 19% increase in the second quarter.
  • JetBlue’s Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization and Special Items (Adjusted EBITDA) in the second quarter of 2021 was ($86) million(1), better than the ($115) to ($165) million range previously expected. This was mainly the result of improving underlying revenue trends, the contribution from our co-branded agreement, and our discipline in controlling costs.

Balance Sheet and Liquidity

  • During the quarter, JetBlue significantly reduced net debt(1) by $1.2 billion to $0.9 billion, which is now below pre-pandemic levels. As of June 30, 2021, JetBlue’s adjusted debt to capital was 55%(1).
  • JetBlue ended the second quarter of 2021 with approximately $3.7 billion in unrestricted cash, cash equivalents, and short-term investments, or 46% of 2019 revenue.
  • JetBlue repaid $89 million in regularly scheduled debt and finance lease obligations and fully repaid a term loan of $722 million during the second quarter of 2021.

Fuel Expense and Hedging

The realized fuel price in the second quarter 2021 was $1.91 per gallon, a 12% decline versus second quarter 2019 realized fuel price of $2.16.

As of July 27, 2021, JetBlue has not entered into forward fuel derivative contracts to hedge its fuel consumption for the third quarter of 2021. Based on the forward curve as of July 19, 2021, JetBlue expects an average all-in price per gallon of fuel of $2.09 in the third quarter of 2021.

JetBlue, Barclays, and Mastercard Renew Long-Term Partnership Agreement

Yesterday, JetBlue announced a multi-year extension of their co-branded credit card agreements with both Barclays and Mastercard. The partnership renewal will extend and expand JetBlue’s consumer credit card portfolio. The agreements will center on the continued delivery of innovative, digital-centric card offerings that meet consumer’s evolving needs and foster engagement and loyalty.

JetBlue currently estimates that the impact from the renewed agreement will deliver approximately an incremental one point to our annualized revenue and margin.

Our Recovery Plan and Actions Taken to Position JetBlue for Future Success

“In the second quarter, we saw strong signs that consumer confidence and travel demand is returning, with second quarter revenue doubling compared to the first quarter driven by pent-up demand,” said Robin Hayes, JetBlue’s Chief Executive Officer.

“As we turn to recovery, we continued to generate positive cash from operations in the second quarter, and we expect continued improvement in our operating performance as we progress towards a full recovery. We are creating a path to restore our earnings power to beyond 2019 levels and generate long-term value for our owners in the years ahead. Our attention is now squarely on rebuilding our margins and repairing our balance sheet.”

Revenue and Capacity

“We are pleased to see further month-on-month improvement into the peak summer months, with demand momentum across all of our geographies. We ended the quarter with load factors in the mid-80s with June capacity largely back to pre-pandemic levels, compared to an average load factor in the mid-60s in the first quarter,” said Joanna Geraghty, JetBlue’s President and Chief Operating Officer.

“For the third quarter of 2021, our planning assumption for revenue is a decline of between (4%) and (9%) year over two, another quarter of strong sequential improvement of approximately 20 points. We expect unit revenue to continue to improve on top of increasing capacity, with load factors in the mid-to-high 80s this summer. We have seen days with average load factors in the 90s.

For the third quarter of 2021, our planning assumption is for capacity to be between flat to down (3%) year over two, given the strong sequential improvement in demand. Throughout the pandemic, we have been nimble in adjusting our capacity deployment to the prevailing demand environment. We’ll maintain this approach given the continued uncertainty on the course of the pandemic caused by variants.”

Financial Performance and Outlook

“Our second quarter Adjusted EBITDA(1) came in better than the range we anticipated in early-June. This was mainly the result of improving underlying revenue trends, the benefit from our renewed co-branded agreement, and our discipline in controlling costs,” said Ursula Hurley, JetBlue’s Acting Chief Financial Officer.

“For the third quarter, we estimate our EBITDA will range between $75 and $175 million dollars, reflecting continued sequential improvement in demand partially offset by continued cost pressures from fuel prices, and airport rents and landing fees. We expect to remain in positive EBITDA territory through the end of the year, and expect to generate pre-tax profits in July and August.

We are committed to generating better than pre-pandemic earnings in the next few years by growing revenue and controlling costs, and we are confident that we are on the right path to expand margins in a sustainable way.

We are now squarely focused on repairing our balance sheet, lowering our total cost of debt, and growing our unencumbered asset base. We reduced our net debt by over 50% to under $1 billion dollars at the end of June. Both our net debt and weighted average cost of debt now sit below pre-pandemic levels.”

Notes

(1) Non-GAAP financial measure; Note A provides a reconciliation of non-GAAP financial measures used in this release and explains the reasons management believes that presentation of these non-GAAP financial measure provides useful information to investors regarding JetBlue’s financial condition and results of operations.

(2) The Company has not reconciled its Adjusted EBITDA planning assumptions to net income because net income (loss) is not accessible on a forward-looking basis. Items that impact net income (loss) are out of the Company’s control and/or cannot be reasonably predicted. Accordingly, a reconciliation to net income (loss) is not available without unreasonable effort.

Top Copyright Photo: JetBlue Airways Airbus A321-271NX WL N2086J (msn 10032) FLL (Andy Cripps). Image: 952648.

JetBlue Airways aircraft slide show:

JetBlue and American expand their relationship

JetBlue Airways and American Airlines are providing customers the most choice in the Northeast, on the best product, and with a premium experience, as travelers return to the sky. As part of their Northeast Alliance (NEA), JetBlue and American will operate more than 700 daily flights from New York and Boston this winter, giving customers more choice than any other airline can offer.

JetBlue – New York’s Hometown Airline® and leading low-fare carrier, and the largest airline in Boston – announced today that customers can purchase tickets for several new markets launching this fall, including four new destinations the airline is adding to its route map.

As a result of the partnership, so far this year customers have gained access to 57 new markets and more than 110 codeshare routes from Boston and New York, connecting the Northeast to almost 150 worldwide destinations, including 10 new international routes American previously announced. These routes, made possible by the Northeast Alliance, include new service from New York’s John F. Kennedy International Airport (JFK) to Tel Aviv, Israel (TLV), which launched in May; JFK service to Athens, Greece (ATH), which launched in June and JFK service to Delhi, India (DEL), which will launch October 31, 2021.

A Leading Premium Experience

In 2022, travel between all transcontinental markets operated by the Northeast Alliance will offer lie-flat seats with JetBlue Mint® and American’s state-of-the-art A321T fleet. This includes routes between:

  • Los Angeles International Airport (LAX) and Boston, Newark and New York- JFK
  • Orange County’s John Wayne Airport (SNA) and New York-JFK
  • San Diego International Airport (SAN) and Boston and New York-JFK
  • San Francisco International Airport (SFO) and Boston, Newark and New York-JFK
  • Seattle-Tacoma International Airport (SEA) and Boston and JFK

Terminal Transitions

On the ground, JetBlue will expand its footprint at LaGuardia Airport (LGA) beyond its current space at the historic Marine Air Terminal and partially move into the airport’s recently opened and state-of-the-art Terminal B. Details about JetBlue’s split-terminal operation, additional flying planned for next summer and a timeline for an eventual full relocation to Terminal B will be shared in the months ahead.

At JFK, the airlines recently launched a convenient connection enabling customers to remain post-security while transferring between JetBlue’s Terminal 5 and American’s Terminal 8.

More Rewarding Loyalty

Starting this fall, AAdvantage® elite and TrueBlue Mosaic members will also begin to enjoy benefits across both carriers. This next phase of benefits will include priority check-in, security and boarding, plus up to two complimentary checked bags. Members of both loyalty programs are already able to earn miles or points when traveling on American or JetBlue-marketed and operated flights. When booking flights on aa.com or jetblue.com, customers can choose where to accrue their miles or points. Even more benefits for Advantage and TrueBlue members will be coming in the future.

Providing customers with more choice

Bolstered by the strength of the Northeast Alliance, JetBlue will begin selling seats today for flights in four, never-before-served cities throughout the U.S. and in Mexico. Together the new destinations diversify JetBlue’s route map and grow the airline’s relevance in both New York and Boston.

San Antonio, Texas

JetBlue will serve San Antonio International Airport (SAT) from both New York-JFK and Boston starting October 31, 2021. Roundtrip flights will initially operate once daily with the intention to introduce additional daily frequencies in the future.

Schedule between New York (JFK) and San Antonio (SAT)
Daily starting October 31, 2021

JFK – SAT Flight #725

SAT – JFK Flight #726

9:30 a.m. – 1:03 p.m.

1:45 p.m. – 6:11 p.m.

Schedule between Boston (BOS) and San Antonio (SAT)
Daily starting October 31, 2021

BOS – SAT Flight #2209

SAT – BOS Flight #22010

10:20 a.m. – 2:13 p.m.

3:00 p.m. – 7:45 p.m.

Puerto Vallarta, Mexico

JetBlue will serve Puerto Vallarta, Mexico’s Gustavo Díaz Ordaz International Airport (PVR) from New York-JFK starting February 19, 2022. Roundtrip flights will operate once daily.

Schedule between New York (JFK) and Puerto Vallarta (PVR)
Daily starting February 19, 2022

JFK – PVR Flight #2097

PVR – JFK Flight #2098

8:30 a.m. – 1:39 p.m.

2:39 p.m. – 8:22 p.m.

Kansas City, Mo.

JetBlue will serve Kansas City International Airport (MCI) from both New York-JFK and Boston starting March 27, 2022. Roundtrip flights will initially operate once daily. Missouri will become the 32nd state JetBlue serves.

Schedule between New York (JFK) and Kansas City (MCI)
Daily starting March 27, 2022

JFK – MCI Flight #2221

MCI – JFK Flight #2222

3:25 p.m. – 5:55 p.m.

10:20 a.m. – 2:25 p.m.

Schedule between Boston (BOS) and Kansas City (MCI)
Daily starting March 27, 2022

BOS – MCI Flight #2363

MCI – BOS Flight #2364

7:00 a.m. – 9:34 a.m.

6:40 p.m. – 10:31 p.m.

Milwaukee, Wis.

JetBlue will serve Milwaukee Mitchell International Airport (MKE) from both New York-JFK and Boston starting March 27, 2022. Roundtrip flights will initially operate once daily. Wisconsin will become the 33rd state JetBlue serves.

Schedule between New York (JFK) and Milwaukee (MKE)
Daily starting March 27, 2022

JFK – MKE Flight #679

MKE – JFK Flight #680

3:05 p.m. – 4:45 p.m.

10:35 a.m. – 2:03 p.m.

Schedule between Boston (BOS) and Milwaukee (MKE)
Daily starting March 27, 2022

BOS – MKE Flight #2229

MKE – BOS Flight #2230

8:00 a.m. – 9:50 a.m.

5:30 p.m. – 8:53 p.m.

Puerto Vallarta service will operate using JetBlue’s Airbus A320 aircraft; Kansas City and Milwaukee service will operate on the airline’s new A220 aircraft with an all-new interior and state-of-the-art features; and San Antonio service will operate with a mix of both the A320 and A220. All JetBlue 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; and free, live DIRECTV® programming at every seat.

More Growth at LaGuardia

Made possible by the Northeast Alliance with American, JetBlue’s five new markets at LaGuardia Airport are now on sale. The new routes, first announced this spring, will introduce more JetBlue flying at one of the nation’s most congested airports where JetBlue intends to lower fares, improve service and deliver more competition to travelers. Daily frequencies on select new routes are expected to increase in the future.

Starting October 31, 2021, JetBlue will add service between LaGuardia and:

  • Jacksonville International Airport (JAX) | Twice daily
  • Sarasota Bradenton International Airport (SRQ) | Once daily, winter seasonal
  • Savannah/Hilton Head International Airport (SAV) | Once daily

Starting March 27, 2022, JetBlue will add service between LaGuardia and:

  • Louis Armstrong New Orleans International Airport (MSY) | Once daily
  • Nashville International Airport (BNA) | Twice daily

JetBlue schedules for other previously announced new cities including San Pedro Sula, Honduras (SAP); Vancouver, Canada (YVR); and Asheville, N.C. (AVL) – as well as summer 2022 service between LaGuardia and Portland, Maine (PWM) – will be announced at a later date.

By the end of this year, JetBlue plans to offer 35 daily departures at LaGuardia and intends to grow to more than 50 daily departures by summer 2022.

JetBlue brings iPad Pro on board for pilots starting this summer

JetBlue Airways today announced it has begun introducing the new iPad Pro powered by Apple’s M1 chip to the airline’s pilots.

JetBlue was one of the first domestic airlines to use digital documentation in the cockpit, and continues to be a leader in the industry bringing innovative tools into operation. The new iPad Pro keeps JetBlue pilots on the cutting edge of technology and provides safety-critical functions for all JetBlue crew members. iPad has become an essential tool on board – from loading operational tracking apps, hosting system maintenance checks, checking real-time weather patterns to avoid turbulence, and accessing procedures and manuals.

JetBlue first received Federal Aviation Administration approval to give iPads to all pilots in 2013, which enabled more real-time capabilities in the cockpit. Since then, the airline continues to trust iPad to provide everything pilots need at the touch of their fingertips, even at 35,000 feet in the air.

iPad Pro is the right fit for the cockpit, with its thin, light design and large, bright Liquid Retina display. The new iPad Pro features the industry-leading M1 chip, which offers next-level performance when pilots are running more than a dozen apps throughout the duration of the flight. iPad Pro’s fast 5G capabilities delivers better performance and access to next-generation download and upload speeds.

“Not only will the new iPad Pro with M1 take our pilots to the next level of advanced technology, but also future-proof JetBlue with top-of-the-line hardware for years to come,” said Captain Chuck Cook, director communications, navigation, surveillance and technical programs.

In the coming months, JetBlue will provide iPad Pro to new incoming pilots, and will replace older models in use over time.

JetBlue expands use of sustainable aviation fuel as part of its strategy to achieve net-zero carbon emissions by 2040

JetBlue Airways has entered into a new relationship with World Energy and World Fuel Services for sustainable aviation fuel (SAF) at Los Angeles International Airport (LAX). JetBlue’s LAX flights using SAF started this month. This increase in the airline’s usage of SAF includes 1.5 million gallons of blended SAF a year for at least three years, accounting for approximately five percent of JetBlue’s LAX fuel.

Renewable fuel options will play a critical role in the aviation industry’s transition to lower-carbon operations. This is the latest step for JetBlue as the airline works to achieve its ambitious and comprehensive environmental social governance (ESG) targets, including a goal of net-zero carbon emissions by 2040. Last year, JetBlue became the first major U.S. airline to achieve carbon neutrality on all domestic flying, today primarily through carbon offsets while the SAF industry continues to grow, and lower-carbon technologies to reduce direct emissions.

“JetBlue is facing climate change head on and preparing our business for a new climate reality,” said Sara Bogdan, director of sustainability and environmental social governance. “Sustainable aviation fuel is one of the most promising ways to rapidly reduce air travel emissions and help our industry move toward our net-zero goals. We are focused on growing our use of sustainable aviation fuel to replace conventional fossil-based jet fuel in our focus cities as it becomes available. It has not historically had the same policy support as other low carbon fuels and comes at a premium today. We’re excited by the prospect of additional policy support to help grow and scale sustainable aviation fuel, helping to usher in a lower-carbon future for aviation.”

This follows JetBlue’s move to fuel flights from San Francisco International Airport (SFO) with SAF with another fuel provider. World Energy, a zero-now solutions provider for transport and the industry’s first commercial-scale producer of SAF, is supplying JetBlue fuel at LAX from its facility in Paramount, Calif. JetBlue is World Energy’s second U.S. commercial airline partner to incorporate SAF into its regular operations. Made from inedible agricultural waste, World Energy’s SAF is certified by the Roundtable on Sustainable Biomaterials to reduce emissions by up to 80 percent per gallon before being blended with petroleum jet fuel. Delivery of the fuel into LAX will be managed by World Fuel Services, JetBlue’s fuel management company.

“JetBlue is taking aggressive action utilizing tools available today to deliver on their net-zero carbon emissions goals,” said Bryan Sherbacow, chief commercial officer, World Energy. “Expanding commercial use of sustainable aviation fuel is critical in changing the industry’s carbon outcomes. World Energy is excited to partner with JetBlue in fueling their success in transitioning to a zero-carbon aviation industry.”

“We are honored to support JetBlue’s comprehensive sustainability strategy through our steady supply of sustainable aviation fuel,” said Brad Hurwitz, senior vice president – supply and trading, World Fuel Services. “Since 2014, World Fuel Services has delivered more than 22.1 million gallons of cleaner-burning, low-carbon sustainable aviation fuel. With World Energy, we continue to focus on increasing sustainable aviation fuel availability and supply chain efficiency for aviation.”

JetBlue views robust oversight of key ESG issues as good for business and for generating long-term value, and recognizes that customers expect clean, efficient, and affordable travel. That’s why JetBlue is helping lead the path in sustainable aviation.

LAX is one of JetBlue’s most successful and busiest markets, climbing to 40 flights per day to 23 markets this summer, allowing significant growth opportunities for the airline’s network. With support from Los Angeles World Airports (LAWA), JetBlue plans to embark on meaningful expansion at LAX over the next five years – both domestically and internationally into multiple markets with plans to reach about 70 flights per day by 2025.

“Los Angeles World Airports (LAWA) is committed to achieving ambitious sustainability goals, including net-zero carbon emissions and 100% renewable energy for LAX facilities by 2045,” said Justin Erbacci, chief executive officer, LAWA. “We are thrilled that JetBlue is supporting this bold agenda to help combat climate change through the use of sustainable aviation fuel.”

JetBlue’s Decarbonization Strategy

Carbon neutrality on its domestic flights is just one way JetBlue is preparing for a changing climate and ensuring a more sustainable business for its crewmembers, customers, shareholders and communities. JetBlue’s carbon reduction efforts focus on decreasing emissions through fuel-efficient operations and aircraft, growing usage of SAF, and supporting the next generation of low-emissions aircraft technologies.

Earlier this year the airline announced emission reduction targets, including efforts to:

Reduce direct emissions:

  • Decrease aircraft emissions 25 percent per available seat mile (ASM) by 2030 from 2015 levels, excluding offsets

Increase usage of sustainable energy:

  • Convert 10 percent of total jet fuel to be from blended sustainable aviation fuel (SAF) by 2030
  • Convert 40 percent of three main ground service equipment vehicle types to electric by 2025 and 50 percent by 2030

JetBlue’s focus on climate leadership – JetBlue’s environmental social governance (ESG) strategy focuses on issues that have the potential to impact its business and the industry in the long-term. Customers, crewmembers and community, as well as stakeholders, are key to JetBlue’s climate and sustainability strategy. Demand from these groups for responsible service is one of the motivations to further reduce the airline’s environmental impact. Shareholders, including many crewmembers, have demanded that JetBlue’s ESG strategy benefit stakeholders and the airline’s financial position. Tying ESG to its treasury function, including cash investments and a sustainability-linked loan with some terms dependent on the airline’s ESG scores, further demonstrates JetBlue’s commitment to combat climate change.

Photos: JetBlue.