Tag Archives: 2075

JetBlue and Cape Air partner with Bridgewater State University to establish a pilot pipeline

JetBlue Airways (New York) and Cape Air (Hyannis) recently announced a new partnership with Bridgewater State University (BSU). BSU is the newest addition to JetBlue’s University Gateway Program, a pilot talent pipeline which partners with top university aviation programs and regional airlines such as Cape Air. BSU is the airline’s first school alliance in its Boston focus city.

JetBlue’s University Gateway Program is a career-planning and mentoring initiative designed to identify and recruit talented professionals into the pilot ranks. The program includes rigorous academic training and valuable regional airline experience. The University Gateway program creates a clearly defined career path for aspiring pilots, beginning early in an aviator’s college career and culminating with the possibility of a final interview at JetBlue.

In late August, Captain Rich Carter, JetBlue’s director system chief pilot, Dr. Dana Mohler-Faria, president of Bridgewater State University and Linda Markham, president of Cape Air officially signed a memorandum of understanding. JetBlue crewmembers as well as school administrators were on hand at Boston’s Logan International Airport to celebrate the announcement. BSU is the seventh university partner for JetBlue’s University Gateway Program. Other academic alliances include the University of North Dakota, Embry-Riddle Aeronautical University (Daytona and Prescott), Auburn University, Jacksonville University and Inter-American University of Puerto Rico.

The University Gateway Program is open to students at participating schools with high academic standing (GPA of 3.0 or above) and recommendations from their professors. It requires a successful series of interviews with JetBlue and a regional airline partner, as well as continued enrollment in an Aviation Accreditation Board International (AABI) program. During the Gateway Program, participants intern at Cape Air or other regional airline partners, and then serve as an instructor at their respective flight school. Following that process, candidates fly with Cape Air for at least two years and then receive an interview at JetBlue.

BSU is an AABI accredited university which offers a Bachelor of Science in Aviation Science with concentrations in aviation management or flight training. The university combines a liberal arts education with flight experience and prepares students to fly in varying weather conditions and over mountainous terrain and open waters as well as how to handle operations in both controlled and uncontrolled environments.

Education is a core pillar of JetBlue’s overall strategy and responsibility platform. The airline and its newly launched JetBlue Foundation encourage students to explore careers in science, technology, engineering and mathematics (STEM), including aviation careers from piloting an aircraft to maintaining its engines. JetBlue has a unique education pathway including relationships with elementary school students and mentoring high school and college students to the University Gateway Program, which may lead to positions as Pilot Trainees with the carrier.

Copyright Photo: Ken Petersen/AirlinersGallery.com. A dramatic “up close” runway action view of JetBlue’s special 10th Anniversary color scheme on Airbus A320-232 N569JB (msn 2075) at New York’s LaGuardia Airport.

JetBlue Airways: AG Slide Show

Cape Air: AG Slide Show

 

JetBlue Airways Corporation 1Q net income slips to $14 million due to Hurricane Sandy, will add Lima Peru

JetBlue Airways Corporation (JetBlue Airways) (New York) today reported its results for the first quarter 2013:

  • Operating income for the quarter was $59 million, resulting in a 4.5% operating margin, compared to operating income of $89 million and a 7.4% operating margin in the first quarter of 2012.
  • Pre-tax income of $23 million in the first quarter.  This compares to pre-tax income of $49 million in the first quarter of 2012.
  • Net income for the first quarter was $14 million, or $0.05 per diluted share.  This compares to JetBlue’s first quarter 2012 net income of $30 million, or $0.09 per diluted share.

“Thanks to the hard work of our dedicated crewmembers, we reported our twelfth consecutive quarter of profitability,” said Dave Barger, JetBlue’s President and Chief Executive Officer.  “First quarter results were solid but below those of a year ago, primarily due to Hurricane Sandy-related demand weakness in the Northeast during the peak Presidents’ Day travel period and higher than expected maintenance costs during the quarter.  While the first quarter was challenging, we remain focused on achieving sustainable, profitable growth and are optimistic about the rest of the year.”

Operational Performance

JetBlue reported record first quarter operating revenues of $1.3 billion despite the lingering impact of Hurricane Sandy, which reduced revenue during the Presidents’ Day travel period by an estimated $25 million.  Revenue passenger miles for the first quarter increased 7.6% to 8.51 billion on a capacity increase of 6.3%, resulting in a first quarter load factor of 83.9%, an increase of 1.0 point year over year.

Yield per passenger mile in the first quarter was 13.95 cents, up 0.7% compared to the first quarter of 2012.  Passenger revenue per available seat mile (PRASM) for the first quarter 2013 increased 1.8% year over year to 11.70 cents and operating revenue per available seat mile (RASM) increased 1.5% year over year to 12.81 cents.

“Successful execution of our network plan, particularly in Boston, and our continued focus on high-margin products and services contributed to the solid revenue results we announced today,” said Robin Hayes, JetBlue’s Chief Commercial Officer.

Operating expenses for the quarter increased 11.3%, or $126 million, over the prior year period.  JetBlue’s operating expense per available seat mile (CASM) for the first quarter increased 4.6% year over year to 12.23 cents.  Excluding fuel and profit sharing, CASM increased 6.6% to 7.62 cents, driven in part by approximately $20 million of higher than expected maintenance expense related to JetBlue’s EMBRAER 190 aircraft.

Fuel Expense and Hedging

JetBlue continued to hedge fuel to manage price volatility.  During the first quarter JetBlue hedged approximately 8% of its fuel consumption and managed approximately 10% of its fuel consumption using fixed forward price agreements (FFPs), resulting in a realized fuel price of $3.29 per gallon, a 1.3% increase over first quarter 2012 realized fuel price of $3.25.

JetBlue has managed approximately 37% of its second quarter projected fuel requirements using a combination of FFPs, collars, swaps and call options.  Based on the fuel curve as of April 19th, JetBlue expects an average price per gallon of fuel, including the impact of hedges, FFPs and fuel taxes, of $3.03 in the second quarter.

Balance Sheet Update

JetBlue ended the first quarter with approximately $849 million in unrestricted cash and short term investments.  In addition, JetBlue maintains a $200 million line of credit with Morgan Stanley.

JetBlue announced today that it has obtained a new revolving credit facility for up to $350 million. “We continue to enhance and optimize our liquidity position through our growing unencumbered asset base and credit facilities, which we believe will be accretive to return on invested capital,” said Mark Powers, JetBlue’s Chief Financial Officer.

Second Quarter and Full Year Outlook

For the second quarter of 2013, CASM is expected to be between negative 1.5% and positive 0.5% compared to the year-ago period.  Excluding fuel and profit sharing, CASM in the second quarter is expected to increase between 3.0% and 5.0% year over year.  JetBlue expects nearly three quarters of this year over year increase to be driven by maintenance expense.

CASM for the full year is expected to increase between 1.5% and 3.5% over full year 2012.  Excluding fuel and profit sharing, CASM in 2013 is expected to increase between 2.0% and 4.0% year over year.

Capacity is expected to increase between 6.5% and 8.5% in the second quarter and to increase between 6.0% and 8.0% for the full year.

In other news, Jetblue announced Lima will become the 81st Blue City beginning on November 21. The capital of Peru will become the fourth destination in South America with one daily flight from Fort Lauderdale/Hollywood, subject to government approval.

Copyright Photo: Tony Storck/AirlinersGallery.com. Airbus A320-232 N569JB (msn 2075) taxies to the runway at Fort Lauderdale-Hollywood International Airport in special 10th Anniversary livery.

JetBlue Airways: AG Slide Show

JetBlue and Aer Lingus expand their code share relationship

JetBlue Airways (New York) and Aer Lingus (Dublin) have announced a codeshare agreement that expands upon the partnership that has linked the two carriers’ networks at New York’s John F. Kennedy International Airport and Boston’s Logan International Airport since 2008.

Flights operated by JetBlue and featuring the Aer Lingus “EI” flight number will soon be available for sale on the Aer Lingus website, travel agents and online travel agencies, connecting the Irish carrier’s transatlantic flights with 29 JetBlue destinations in North America including Baltimore/Washington, Buffalo, Dallas/Fort Worth, Fort Lauderdale/Hollywood, Orlando, Philadelphia, Rochester, Syracuse, Tampa, and West Palm Beach, subject to receipt of government approval.

Through the JetBlue-Aer Lingus partnership, customers can enjoy the convenience of booking a single ticket that includes flights operated by both carriers, with benefits including one-stop check-in and baggage transfer to dozens of destinations throughout the United States.

The start of the new codeshare arrangement coincides with the move of Aer Lingus’ New York flight operations from Terminal 4 at John F. Kennedy International Airport into JetBlue’s acclaimed Terminal 5. Aer Lingus customers connecting to one of JetBlue’s many destinations across the U.S. will benefit from same terminal connections, one-stop ticketing and baggage check-in for travel on both airlines, from the U.S. to Europe.

With the move to Terminal 5, scheduled for April 3, 2013, the minimum connection time from European arrivals to US departures will be reduced to just about 60 minutes. Customers travelling to Ireland will enjoy connections as fast as 40 minutes.

Copyright Photo: Dave Campbell. Airbus A320-232 N569JB (msn 2075) in the 10th Anniversary scheme taxies to the runway at Fort Lauderdale/Hollywood.

JetBlue Airways: AG Slide Show

Aer Lingus: AG Slide Show

JetBlue Airways to introduce a new advertising campaign today

JetBlue Airways (New York) today (October 15) will debut a new marketing campaign. According to the airline: “The campaign is designed to position the iconic brand as a continued leader well into its second decade of operations. The campaign features the introduction of a newly articulated JetBlue brand promise – You Above All – a restatement of JetBlue’s commitment to putting people first that was founded on the company’s original and ongoing mission to bring humanity back to air travel.”

You Above All is designed to shine a light on the airline’s key competitive differences and to celebrate its crewmembers’ long-standing efforts to provide a superior travel experience – an experience that has been lauded as JetBlue has grown, over the past ten years, from its New York roots to now serve 61 cities in 12 countries throughout the Americas.

“In so many ways, this exciting new marketing campaign speaks to the core of who we are as a brand,” said Marty St. George, senior vice president of marketing and commercial strategy at JetBlue. “You Above All is authentic. It’s transparent. It’s understandable. Quite simply, it’s very JetBlue. As we move into our second decade of service, You Above All underscores our commitment to always put people first, to bring humanity back to air travel. That’s a message we can all relate to, whether we take to the skies once a year or once a week.”

The campaign, the first that JetBlue has developed in partnership with its new advertising and media agency-of-record Mullen, features a comprehensive mix of media including online, social media, in-flight, print, and out-of-home components.

The online portion features a series of hidden camera scenarios called Ground Rules. The unscripted videos point out the shortcomings of much of the airline industry by bringing other airlines’ service policies and procedures to light on the ground. They feature real people in real situations being deprived of things they’ve come to expect, such as legroom in a taxi, a full can of soda from a street vendor and free luggage storage in the trunk of a taxi. The videos will debut in a YouTube homepage takeover on Friday.

You Above All creative uses a colorful, modern, simple illustration style to depict travelers, the airline’s key product and service offerings, and its destinations. A key element of the creative is what the airline has dubbed “I-People,” a visual representation of the brand’s focus on humanity, that are used to create a flexible, identifiable look that is significantly different from other carriers.

In a first for JetBlue, the airline will also take advantage of so-called “Monster Media” technology in Boston, Los Angeles and New York. These interactive billboards respond to the motion of consumers passing by them, to create an animated experience which literally places consumers in the airline’s advertising.

The campaign includes a series of call-outs explaining JetBlue’s superior service offering, including the following lines:

“Overpack. Underpay. First bag flies for free.”

“Mix business with legroom. The most legroom in coach.”

“Room. With a view. The most legroom in coach and free DIRECTV®.”

“Someone has to stand-up for tall people. The most legroom in coach.”

“Our standards beat their extras. Unlimited brand-name snacks and soft drinks.”

You can view and download examples of the creative on the following site:

http://work.mullen.com/clients/jetblue/

Copyright Photo: Tony Storck. Airbus A320-232 N569JB (msn 2075) in the special 10th Anniversary scheme soars high at Philadelphia.

JetBlue to add the Boston-Newark route

JetBlue Airways (New York-JFK) plans to continue growing its focus city at Boston’s Logan International Airport with new daily nonstop service to Newark, beginning in early May 2011. JetBlue will operate four daily flights to Newark’s Liberty International Airport, complementing its existing schedule of frequent daily flights between Boston and New York’s John F. Kennedy International Airport.

Copyright Photo: Dave Campbell. Airbus A320-232 N569JB (msn 2075) decorated in the special 10th Anniversary color scheme awaits its turn for takeoff from Fort Lauderdale/Hollywood.l

JetBlue Airways is forced to shut down for about one hour

JetBlue Airways (New York) said yesterday afternoon (February 26) that its flights would resume after it had earlier voluntarily issued a systemwide temporary ground halt for all operations because of an information technology (IT) problem with its computers.

Flights restarted around 3:45 p.m. (1545) Eastern time after all flights were halted about an hour earlier.

The company was already flying a reduced schedule on Friday due to a large snowstorm in the Northeast United States.

Copyright Photo: Dave Campbell. Airbus A320-232 N569JB (msn 2075) wearing the special 10th Anniversary scheme prepares for departure from Fort Lauderdale/Hollywood.