Tag Archives: JetBlue Airways

JetBlue’s Pilots press for contract as airline announces double-digit margins

JetBlue pilots, represented by the Air Line Pilots Association, Int’l (ALPA), responded to JetBlue Airways’ third-quarter earnings statement as their pursuit for a market-rate contract continues. JetBlue reported $293 million in earnings for the third quarter, or a 16.2 percent pretax margin. This marked JetBlue’s 30th consecutive quarter of profitability. Despite this, the company has been unwilling to share these profits with the pilots, proposing pay rates that would keep the pilots among the lowest-paid in the industry.

“JetBlue pilots have played a vital role in the company’s continued success,” said Capt. Patrick Walsh, chairman of the JetBlue unit of ALPA. “Our peers at other airlines enjoy significant pay-rate increases, both at the table and through outside agreements. Though JetBlue is consistently among industry leaders in profitability, our pilots trail in pay and benefits.”

Through the first nine months of 2017, JetBlue has reported over $751 million in pretax profit (a 14.3 percent margin), bringing the total to more than $2.5 billion over the last two years since the pilots have been negotiating with the company. Meanwhile, the pilots are still without their first contract since unionizing in 2014, and without market-rate pay. In July 2017, frustrated by the lack of progress at the negotiating table, the pilots filed for mediation from the National Mediation Board in the hopes of resolving the outstanding issues.

“After almost three years of negotiations, it’s time for management to invest in the pilots,” said Capt. Walsh. “This company pays market rate for fuel, planes, maintenance, and gates. It’s time it paid market rate for its pilots.”

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JetBlue reports 3Q net income of $179 million

Special titles: JetBlue Airways' 200th Aircraft

JetBlue Airways Corporation on October 24, 2017 reported its results for the third quarter 2017:

  • Operating income of $310 million, a decrease of 12.4% from the third quarter of 2016.
  • Pre-tax income of $293 million, a decrease of 11.2% from the third quarter of 2016.
  • Third quarter net income of $179 million, or $0.55 per diluted share. This compares to JetBlue’s third quarter 2016 net income of $199 million, or $0.58 per diluted share.

Financial Performance

JetBlue reported third quarter operating revenues of $1.8 billion. Revenue passenger miles for the third quarter increased 2.3% to 12.2 billion on a capacity increase of 3.7%, resulting in a third quarter load factor of 85.1%, a 1.2 point decrease year over year.

Yield per passenger mile in the third quarter was 13.32 cents, up 1.0% compared to the third quarter of 2016. Passenger revenue per available seat mile (PRASM) for the third quarter of 2017 decreased 0.4% year over year to 11.34 cents and operating revenue per available seat mile (RASM) increased 0.9% year over year to 12.67 cents.

Compared with last year, operating expenses for the quarter increased 9.1%, or $125 million. Interest expense for the quarter declined 18.5%, or $5 million, as JetBlue continued to reduce its debt. JetBlue’s operating expense per available seat mile (CASM) for the third quarter increased 5.2% year over year to 10.50 cents. Excluding fuel, third quarter CASM1 increased 2.7% to 8.07 cents.

“Our third quarter results were impacted by two hurricanes that reduced our EPS by approximately 6 cents. We are confident that the adjustments we are making to our network will limit any ongoing financial impact in 2018. Despite the short-term challenges, we remain focused on our long-term margin commitments to our shareholders. I’d like to thank our 21,000 Crewmembers in our operation and support centers, who successfully managed the unprecedented challenge of over 30 consecutive days of irregular operations,” said Robin Hayes, JetBlue’s President and CEO.

Fuel Expense and Hedging

In the third quarter of 2017 JetBlue had hedges in place for approximately 10% of its fuel consumption. The realized fuel price in the quarter was $1.69 per gallon, a 14.6% increase versus third quarter 2016 realized fuel price of $1.48.

JetBlue has hedged approximately 10% of its fourth quarter of 2017 fuel consumption using jet fuel swaps. Based on the fuel curve as of October 13th, JetBlue expects an average price per gallon of fuel, including the impact of hedges and fuel taxes, of $1.83 in the fourth quarter of 2017.

Liquidity and Cash Flow

JetBlue ended the quarter with approximately $814 million in unrestricted cash and short term investments, or about 12% of trailing twelve month revenue. In addition, JetBlue maintains approximately $625 million in undrawn lines of credit.

During the third quarter, JetBlue repaid $53 million in regularly scheduled debt and capital lease obligations. JetBlue anticipates paying approximately $57 million in regularly scheduled debt and capital lease obligations in the fourth quarter 2017 and approximately $194 million for the full year 2017. In the third quarter, JetBlue completed a $130 million accelerated share repurchase program and has completed $380 million in share repurchases to date in 2017.

“Despite unprecedented ATC challenges, repeated hurricane events, and a competitive industry pricing environment, we’ve been able to sustain solid margins, make progress towards our long-term margin commitments and return capital to our shareholders,” said Steve Priest, JetBlue’s EVP Chief Financial Officer.

Fourth Quarter and Full Year Outlook

Capacity is expected to increase between 4.5% and 5.5% year over year in the fourth quarter 2017. For the full year 2017, JetBlue expects capacity to increase between 4.0% and 5.0%.

RASM growth is expected to range between (3.0%) and 0.0% for the fourth quarter 2017 compared to the same period in 2016.

CASM excluding fuel is expected to grow between 5.0% and 7.0% for the fourth quarter of 2017. For the full year 2017, JetBlue expects year over year CASM excluding fuel to grow between 4.0% and 5.0%.

Copyright Photo: JetBlue Airways Airbus A321-231 WL N942JB (msn 6279) (Prism – Our 200th Aircraft) JFK (Marcelo F. De Biasi). Image: 925119.

JetBlue to move to the Marine Air Terminal at LaGuardia

JetBlue Airways, New York’s Hometown Airline®, on October 20, 2017 announced it has reached an agreement with multiple parties to move its operations at New York’s LaGuardia Airport to the historic Marine Air Terminal, bringing JetBlue customers greater convenience and an improved ground experience while the Central Terminal undergoes reconstruction.

JetBlue will be the main tenant at the Marine Air Terminal, an aviation landmark, occupying four gates once the transition is completed in December – just in time for the start of the busy holiday travel season. This move will alleviate traffic and congestion as construction on the Central Terminal gets underway. JetBlue plans to move back to the Central Terminal when construction is completed.

While honoring the historic design of the Marine Air Terminal, JetBlue will add its own modern touches creating an airport experience in line with the award-winning service its customers receive onboard. With the needs of both business and leisure travelers in mind, including customers traveling on JetBlue’s popular Boston-LaGuardia route, customers can:

  • Avoid the congestion of the Central Terminal area
  • Request pick-up and drop-off points right at the Marine Air Terminal curb
  • Secure taxis with shorter lines and less congestion
  • Park conveniently next to the terminal
  • Access multiple city bus services

Once the move is completed, JetBlue customers arriving at the Marine Air Terminal, the airport’s closest terminal to Manhattan, will be welcomed by hospitality-trained crewmembers in an open concept, self-service focused lobby, designed to provide personal, helpful and simple touches.

The Art Deco Marine Air Terminal is one of aviation’s most historic landmarks. When it opened in 1940, it housed operations for seaplane service with aircraft departing from the East River. Over the years it has also served as a private jet terminal.

Map Above: LaGuardia Airport.

Below Copyright Photo: JetBlue Airways Airbus A320-232 N569JB (msn 2075) (10th Anniversary) LGA (Ken Petersen). Image: 924210.

JetBlue's special 10th Anniversary livery

 

JetBlue to serve Minneapolis/St. Paul from Boston

JetBlue Airways Airbus A320-232 N605JB (msn 2368) (Mosaic) FLL (Bruce Drum). Image: 100791.

JetBlue Airways on October 17, 2017 announced it is bringing its award-winning service and low fares to Minneapolis/St. Paul, which will become the airline’s 65th nonstop destination from Boston Logan International Airport. The addition further strengthens JetBlue as the leading airline in Boston, serving as Logan’s largest carrier in both number of flights and customers. The airline will operate three daily roundtrip flights between Minneapolis–Saint Paul International Airport (MSP) and Boston Logan starting May 3, 2018. Minneapolis is the largest domestic market not served by JetBlue and seats are on sale today starting at $89 one way (a).

Flight Schedule Between Boston (BOS) and Minneapolis (MSP)
Beginning May 3, 2018
BOS – MSP Flight #835 MSP – BOS Flight #2236
6:30 a.m. – 8:48 a.m. 6:00 a.m. – 9:50 a.m.
BOS – MSP Flight #1735 MSP – BOS Flight #836
1:02 p.m. – 3:21 p.m. 9:30 a.m. – 1:21 p.m.
BOS – MSP Flight #2235 MSP – BOS Flight #1736
7:29 p.m. – 9:50 p.m. 4:01 p.m. – 7:58 p.m.

Flights between Minneapolis/St. Paul and Boston will be operated on JetBlue’s Airbus A320 aircraft.

Copyright Photo: JetBlue Airways Airbus A320-232 N605JB (msn 2368) (Mosaic) FLL (Bruce Drum). Image: 100791.

JetBlue and Atlas Air send more than 110 tons of supplies to assist in the recovery efforts in Puerto Rico

"Fewer Delays. Faster Flights. ontimeflights.org" sub-titles

JetBlue Airways (New York), the largest airline in Puerto Rico, in partnership with Atlas Air Worldwide, has transported more than 110 tons of much needed supplies to Puerto Rico to aid in relief and recovery efforts. JetBlue previously outlined its 100x35JetBlue commitment to launch 35 initiatives over 100 days – and beyond to support the immediate needs of crewmembers, customers, and communities in Puerto Rico.

As part of this initiative, JetBlue has collected generous donations from a variety of like-minded organizations including Food Bank For New York City, American Red Cross and the Afya Foundation. Atlas Air graciously donated and operated a 747 cargo aircraft to get supplies from New York to San Juan. JetBlue is supporting with the logistics and the intake and hand off of donated supplies in Puerto Rico.

JetBlue and Atlas Air crewmembers load a 747 aircraft with more than 110 tons of supplies to assist ...

Photo Above: JetBlue. JetBlue and Atlas Air crewmembers load a Boeing 747 aircraft with more than 110 tons of supplies to assist in recovery efforts in Puerto Rico.

 

“We’ve been sending relief supplies to Puerto Rico since the first day flights were allowed onto the island following Hurricane Maria,” said Icema Gibbs, director corporate social responsibility, JetBlue. “The amount of donated supplies has far exceeded our expectations and has surpassed the capacities of our commercial Airbus A320 fleet. Atlas Air, a fellow New York airline, sharing our commitment to assist the people of Puerto Rico, immediately stepped up to support, offering the use of one of their 747 cargo aircraft. We thank them for their incredible assistance and care for these communities.”

“Atlas Air Worldwide is pleased to have partnered with JetBlue in this humanitarian effort,” said Bill Flynn, president and CEO, Atlas Air Worldwide. “By joining with JetBlue and donating our aircraft and crew, the supplies that have been gathered and donated by Governor Cuomo and the generous people and organizations in New York will be delivered to Puerto Rico in the quickest and most efficient way possible.”

More than 220,000 lbs. (110 tons) of donations were collected through several organizations that have the ability to distribute the supplies throughout Puerto Rico. JetBlue, Atlas Air and New York State Governor Andrew Cuomo rallied their networks to provide support. This 747 aircraft was loaded with:

  • A variety of supplies from the Governor’s Office including food and other crucial supplies.
  • Supplies from the Port Authority of New York and New Jersey to assist as San Juan’s Luis Munoz Marin Airport rebuilds its infrastructure, which will allow for more airlift and capacity into Puerto Rico’s capital.
  • Non-perishable food and critical supplies from the Food Bank For New York City to its sister food bank, Banco de Alimentos de Puerto Rico. Packages include bottled water, shelf stable food, and other needed supplies, like diapers and feminine hygiene products.
  • JetBlue and its crewmembers sending relief supplies to crewmembers and family in Puerto Rico.
  • Medical supplies from the Afya Foundation and American Red Cross

100X35 JetBlue – Honoring the popular reference to Puerto Rico’s 100×35 mile size, the effort will continue to roll out programs across the island providing airlift support, relief pricing, awareness and fundraising, people deployment, unmet needs, and rebuilding efforts.

How you can get involved – For a 100-day span, JetBlue will invite customers onboard every JetBlue flight to donate to JetBlue’s campaign at GlobalGiving benefitting hurricane impacted areas throughout the U.S. and Caribbean, with a $1 million goal. Additionally customers can also contribute at GlobalGiving.org/jetblue. JetBlue has committed to match donations to its GlobalGiving campaign dollar-for-dollar up to $500,000 through Nov. 15.

GlobalGiving will distribute the funds to non-profits making an impact in hurricane-affected areas. As JetBlue continues to serve these areas, the airline expects to adapt funding initiatives to ensure they are meeting the needs as are communicated from partners on the ground.

Top Copyright Photo: JetBlue has added “Fewer Delays. Faster Flights. ontimeflights.org” sub-titles to this Airbus A320.

JetBlue Airways: JetBlue Airways Airbus A320-232 N595JB (msn 2286) (Barcode) SFO (Mark Durbin). Image: 939445.

JetBlue introduces its updated New York Jets logo jet

JetBlue Airways has revealed a refreshed and updated special livery dedicated to the New York Jets. In 2009, JetBlue was named the Official Airline of the New York Jets. A year later, the airline reaffirmed that commitment with an aircraft dedicated to the team. “JetGreen” was originally revealed in 2010 and became the first sports themed aircraft to join JetBlue’s growing fleet.

The updated Airbus A320 livery on N746JB was revealed at a tailgate-themed event at JetBlue’s Hangar at New York’s JFK International Airport. To celebrate the kick-off of the Jets’ football season and this new plane, team executives were joined by Jets Cornerback Buster Skrine and Running Back Bilal Powell and former Jets player Joe Klecko. Jets Flight Crew Cheerleaders were also on-hand to meet Jets season ticket holders, JetBlue crewmembers and customers and players and coaches from a local youth football team.

 

The original “JetGreen” paint scheme interchanged JetBlue’s traditional blue for green and featured a green belly, wing tips and tail, with a football helmet towards the rear of the aircraft. Designed to represent the passion and dedication of true New York football fans and with the rallying call to Play Like a Jet, the new scheme features a full green aircraft and more prominent Jets branding. It also includes the airline’s co-branded trademark with New York State’s iconic tourism campaign and logo, I LOVE NEW YORK, solidifying JetBlue’s status as the official hometown airline of New York.

Photo: JetBlue Airways.

 

JetBlue to double the number of flights to Atlanta

Named "Blue Ribbon"

JetBlue Airways (New York) has announced the start date for service between Hartsfield–Jackson Atlanta International Airport (ATL) and three more of the airline’s focus cities. Beginning March 8, 2018, JetBlue will double the number of daily flights in Georgia’s capital city when it adds roundtrip service between Atlanta and:

  • New York’s John F. Kennedy International Airport (JFK) – twice daily
  • Fort Lauderdale-Hollywood International Airport (FLL) – twice daily
  • Orlando International Airport (MCO) – once daily

All Atlanta flights will be operated on JetBlue’s Airbus A320 aircraft.

JetBlue first announced its intent to serve these cities last year. The new flights will build on existing nonstop service to Boston Logan International Airport (BOS), which launched in March 2017 and operates five times per day.

 

Schedule Between New York (JFK) and Atlanta (ATL)

Beginning March 8, 2018

JFK – ATL Flight #519 ATL – JFK Flight #520
8:09 a.m. – 10:50 a.m. 11:30 a.m. – 1:50 p.m.
JFK – ATL Flight #719 ATL – JFK Flight #720
2:59 p.m. – 5:39 p.m. 6:20 p.m. – 8:47 p.m.

Schedule Between Fort Lauderdale (FLL) and Atlanta (ATL)

Beginning March 8, 2018

FLL – ATL Flight #468 ATL – FLL Flight #467
12:00 p.m. – 2:00 p.m. 7:00 a.m. – 8:57 a.m.
FLL – ATL Flight #568 ATL – FLL Flight #567
8:52 p.m. – 10:49 p.m. 2:45 p.m. – 4:47 p.m.

Schedule Between Orlando (MCO) and Atlanta (ATL)

Beginning March 8, 2018

MCO – ATL Flight #1150 ATL – MCO Flight #1153
10:15 a.m. – 11:56 a.m. 12:40 p.m. – 2:11 p.m.

Copyright Photo: JetBlue Airways Airbus A320-232 N779JB (msn 3811) (Mosaic) SFO (Mark Durbin). Image: 925677.