Category Archives: JetBlue Airways

JetBlue celebrates groundbreaking of JFK’s new Terminal 6 with Governor of New York, other leaders

JetBlue (NASDAQ: JBLU), joined by New York Governor Kathy Hochul and other partners and leaders, celebrated a key milestone in the Port Authority of New York and New Jersey’s transformation of John F. Kennedy International Airport (JFK) with the groundbreaking of a $4.2 billion project to develop a new international Terminal 6. The groundbreaking, held Thursday at JetBlue’s JFK maintenance hangar, only reinforces the airline’s commitment to JFK, Queens, and New York.

New York Governor Kathy Hochul (seventh from right) and JetBlue CEO Robin Hayes (first right) join leaders for the JFK Terminal 6 groundbreaking. (Photo courtesy: Office of the Governor of New York)

New York Governor Kathy Hochul (seventh from right) and JetBlue CEO Robin Hayes (first right) joins leaders for the JFK Terminal 6 groundbreaking. (Photo courtesy: Office of the Governor of New York)

The new Terminal 6 will connect seamlessly with JetBlue’s current home at Terminal 5, adding gates and opportunity for the airline to add flights, destinations and partner airline connections. The project is a public-private partnership between the Port Authority of New York and New Jersey and JFK Millennium Partners – a consortium that includes JetBlue, Vantage Airport Group, an industry leading investor, developer, and manager of award-winning global airport projects, including LaGuardia Terminal B; American Triple I, a certified minority-owned investor, owner, developer, and manager of infrastructure assets; and New York real estate operating company RXR.

New Terminal 6 at New York JFK

With hiring ongoing throughout the company, more than 7,000 JetBlue crewmembers are now based at JFK.

Continued Growth with Spirit Airlines

The new terminal will mark a next chapter for New York’s Hometown Airline® at the same time it prepares to expand as a result of its planned merger with Spirit Airlines. The merger will bring on additional crewmember jobs, while providing a commitment to customers to continue offering low fares and JetBlue’s award-winning customer experience.

Together, JetBlue and Spirit will create a national low-fare challenger to the Big Four airlines that dominate the industry and will bring more low fares, options and routes to more communities, including the millions of New Yorkers that rely on the airline. The merger will spark better competition with the largest carriers that control 80 percent of the market.

A Modern Terminal to Enhance the Customer Experience Starting in 2026

The start of construction of Terminal 6 follows the successful financial close of the deal in November 2022 between the Port Authority and JFK Millennium Partners to build the 1.2 million square foot, new international terminal on the airport’s north side. According to estimates, the project will create approximately 4,000 jobs, including 1,800 union construction jobs and direct wages of $1.9 billion.

The new terminal will be developed in two phases, with the first new gates opening in 2026 and construction completion in 2028. The 1.2 million-square-foot Terminal 6, will have capacity for 10 gates — including nine wide body gates. Customers will enjoy more than 100,000 square feet of world-class shopping and dining featuring locally based restaurateurs, craft beverage options and Taste of NY stores.

“Great cities need great airports. Alongside our partners at the Port Authority of New York and New Jersey, Vantage Airport Group, ATI, RXR, and JetBlue, we are ready to deliver a terminal that transforms the guest experience, drives significant economic activity, and creates extensive opportunities for local minority and women owned businesses to make their mark at JFK International Airport, starting now and for years to come,” said JFK Millennium Partners CEO and Vantage executive Helena Williams.

State-of-the-art technology will improve the customer experience with touchless technology from check-in to gates and digital systems that will streamline the customer journey throughout the terminal. Advanced security systems will include automated TSA security lanes, biometric-based access control systems and a flexible design to accommodate future technology or regulatory changes. A convenient taxi plaza as well as designated for-hire vehicle pick-up areas will be shared with Terminal 5, substantially reducing traffic congestion on the terminal road frontage and maximizing connectivity across the airport.

As part of the agreement with JFK Millennium Partners, the Port Authority will commit $130 million in capital funding to build enabling infrastructure for the new Terminal 6, including airside improvements that will reduce congestion and delays and roadway improvements that will optimize airport traffic flow.

JetBlue and Spirit flight attendant unions are split on the merger

Spirit Airlines Airbus A320-271N WL N972NK (msn 11173) LAX (Michael B. Ing). Image: 960137.

JetBlue Airways’ flight attendants, represented by the TWU, are opposing the merger with Spirit Airlines. The union has sent a letter to the Attorney General and the Department of Transportation opposing the merger.

Meanwhile the flight attendants of Spirit Airlines, represented by the Association of Flight Attendants-CWA, are agreeing with and supporting the takeover of Spirit by JetBlue.

The Department of Justice will rule on the merger request. JetBlue has vowed to fight any refusal.

Top Copyright Photo: Spirit Airlines Airbus A320-271N WL N972NK (msn 11173) LAX (Michael B. Ing). Image: 960137.

Spirit Airlines aircraft photo gallery:

Spirit Airlines aircraft photo gallery

JetBlue sets plan for 250+ daily flights at Fort Lauderdale-Hollywood including new Tallahassee service

JetBlue Airways Airbus A320-232 N605JB (msn 2368) (Boston Red Sox) FLL (Ian Bowley). Image: 959607.

JetBlue Airways has announced new service between Fort Lauderdale-Hollywood International Airport (FLL) and Tallahassee International Airport (TLH) beginning in January 2024, as the airline lays out new plans for more low-fare, high-value flights in South Florida.

After its planned combination with Spirit, JetBlue expects to reach more than 250 flights a day at Fort Lauderdale-Hollywood by 2027.

Broward County’s master plan for further development of Fort Lauderdale-Hollywood International Airport would enable JetBlue to grow to more than 250 daily flights. JetBlue has already committed support for a new Terminal 5 and is ready to partner with the airport on further expansion to increase capacity.

More Routes, More Choices for South Florida

JetBlue plans to combine with Spirit and further grow its Fort Lauderdale schedule over the coming years, ultimately reaching more than 250 daily departures by 2027 and making Fort Lauderdale-Hollywood an even more compelling choice for South Florida customers. While both carriers have had success in Fort Lauderdale, the combination between JetBlue and Spirit will unlock long-term opportunities to add domestic and international markets and routes that would not be possible otherwise:

  • JetBlue would offer flights to approximately 30 markets not served by either JetBlue or Spirit from Fort Lauderdale today and would add more flight frequencies to approximately 30 additional markets.
  • Fort Lauderdale will become an even more attractive alternative to Miami on more routes. From Fort Lauderdale, JetBlue and Spirit currently serve 66 of the top 100 markets available from Miami International Airport today (within range of existing and planned JetBlue fleet). After completing its planned expansion, JetBlue would serve from Fort Lauderdale approximately 90 of the top 100 Miami markets.
  • With a more competitive position in South Florida, JetBlue would plan to launch service between Fort Lauderdale and Europe with its game-changing transatlantic Mint and core experiences that have brought down high fares for European travel.
  • The larger network would make a number of routes viable that aren’t today, with examples including destinations like as Antigua; Belize; Cincinnati; Liberia, Costa Rica; Minneapolis; Memphis, Tenn.; and Savannah, Ga.

Commitment to South Florida and FLL’s Master Plan

JetBlue’s expansion plan, which will be bolstered by its planned acquisition of Spirit, underscores the airline’s long-term commitment to Florida and signals support for the airport’s master plan to further grow and develop airport facilities.

JetBlue estimates its plan would add approximately 1,000 incremental new jobs at the airline’s Fort Lauderdale operations, and further support economic activity across the region that will lead to additional job growth. In addition, JetBlue’s no furlough policy ensures that current Spirit team members who wish to stay with the combined airline will have a role with JetBlue. Today, JetBlue and Spirit employ nearly 13,000 people in Florida, with service to 10 airports across the state. JetBlue has committed to insourcing many jobs that Spirit currently outsources to third-party providers. In addition, JetBlue maintains a focus city at MCO, support center, and crewmember training campus in Orlando.

Top Copyright Photo: JetBlue Airways Airbus A320-232 N605JB (msn 2368) (Boston Red Sox) FLL (Ian Bowley). Image: 959607.

JetBlue Airways aircraft photo gallery:

JetBlue Airways aircraft photo gallery

Airline News Headlines

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Biden administration moving toward blocking JetBlue-Spirit merger (Reuters)

MIAT Mongolian Airlines Moving Closer To Launching US Passenger Flights (Simple Flying)

Southwest Airlines “held together with duct tape,” pilot says (CBS)

SriLankan Airlines Witnesses Rise In Demand Across Network (Simple Flying)

Missing bags, refunds, and other takeaways from the Senate hearing on Southwest’s service meltdown (CNN)

Southwest Airlines sends reimbursements to more than 270,000 passengers (Dallas Morning News)

Southwest Airlines Relaunches Baltimore To Oakland Flights (Simple Flying)

Virgin Atlantic CEO: Tech layoffs will impact airline industry

How the pandemic killed off 64 airlines (CNN)

JetBlue’s pilots approve a two-year contract extension

ALPA made this announcement:

JetBlue Airways pilots, represented by the Air Line Pilots Association, Int’l (ALPA), have overwhelmingly approved a two-year contract extension that provides a compensation increase of 21.5 percent over 18 months, as well as other monetary improvements. With 95 percent of eligible pilots participating, 75 percent voted in favor of ratifying the tentative agreement reached in December.

In September 2022, the Company and JetBlue pilots entered expedited, short-term contract extension negotiations focused on achieving immediate economic improvements. On December 14, the two parties reached a tentative agreement that provided the pilots with three rate increases and a market rate adjustment that ensures JetBlue pilot pay remains in line with any compensation gains achieved by their peers at other airlines. JetBlue is currently in a potentially lengthy merger process. The agreement ratified today puts JetBlue pilots in a strong position for future negotiations for either a joint collective bargaining agreement with the pilots at Spirit Airlines or, should the merger fail to conclude, a comprehensive standalone collective bargaining agreement.

Top Copyright Photo: JetBlue Airways Airbus A320-232 WL N715JB (msn 3554) (Spotlight) LAX (Michael B. Ing). Image: 960005.

JetBlue Airways aircraft photo gallery:

JetBlue announces a fourth quarter net profit of $24 million

JetBlue Airways Corporation today reported its financial results for the fourth quarter of 2022.

“Thanks to the outstanding efforts of JetBlue’s crewmembers, we closed the year with strong fourth quarter performance, driving the highest full-year revenue result in our history, and solid cost execution as we hit our full-year cost target. We believe we’re well positioned to further build on that success in 2023, with a disciplined plan to continue strengthening our foundations – both operationally and financially,” said Robin Hayes, JetBlue’s Chief Executive Officer.

“We expect to gain further momentum in the business in 2023 with solid revenue performance throughout the year as we execute on our commercial initiatives and maintain a strong focus on cost control. Together, we expect these efforts to deliver margins approaching pre-pandemic levels as we move through the year, as we continue on a path to drive sustainable long-term earnings expansion and create long-term value for all stakeholders.”

Fourth Quarter 2022 Financial Results

  • Net income for the fourth quarter of 2022 under Generally Accepted Accounting Principles (GAAP) of $24 million or $0.07 per share. Excluding one-time items, adjusted net income for the fourth quarter of 2022 of $72 million(1) or $0.22 per share.
  • Fourth quarter of 2022 capacity increased by 2.4% compared to the fourth quarter of 2019.
  • Operating revenue of $2.4 billion for the fourth quarter of 2022, the highest fourth quarter operating revenue in company history.
  • Revenue per available seat mile (RASM) increased 16.1% for the fourth quarter of 2022 compared to the fourth quarter of 2019, despite a negative impact from Hurricane Nicole.
  • Operating expenses per available seat mile (CASM) for the fourth quarter of 2022 increased 28.4% compared to the fourth quarter of 2019.
  • Operating expense per available seat mile, excluding fuel and related taxes, other non-airline operating expenses, and special items (CASM ex-Fuel)(1) for the fourth quarter of 2022 increased 9.9%(1) compared to the fourth quarter of 2019, resulting in industry leading unit cost performance.
  • Fuel price in the fourth quarter of 2022 of $3.70 per gallon, including hedges.

Balance Sheet and Liquidity

  • $1.6 billion in unrestricted cash, cash equivalents, short-term investments, and long-term marketable securities at quarter-end (excluding our $600 million undrawn revolving credit facility).
  • Maintained an adjusted debt to capital ratio of 52%(1) as of December 31, 2022.
  • Paid approximately $114 million in debt and finance lease obligations during the fourth quarter of 2022.

2022 Key Highlights

  • Returned to profitability in the second half of 2022 with revenue growth at record levels, combined with an acute focus on maintaining an optimal low-cost structure.
  • Delivered an excellent operation in the fourth quarter, including an industry-leading completion factor of 98.2% in December. This was despite the impact of Hurricane Nicole and Winter Storm Elliott.
  • Added flights in New York and Boston as the Northeast Alliance (NEA) continues to bring low fares and great service to more communities, and boost competition in the region.
  • Continued ramping up our transatlantic franchise to five daily flights between the Northeast and London, and announced new service to Paris.
  • Became the anchor tenant at Orlando International Airport’s new Terminal C, moved operations at LaGuardia Airport into the new, world-class Terminal B, and signed an agreement to become a minority investor in John F. Kennedy International Airport’s Terminal 6.
  • Introduced the new TrueBlue® loyalty program, bringing added value and new perks to a broad set of customers.
  • Continued to lead the industry in sustainability. Announced our validated science-based emissions reduction target, with a plan that would effectively reduce our per-seat emissions in half by 2035 from 2019 levels. Also announced a new agreement with Fidelis New Energy to supply 92 million gallons of sustainable aviation fuel (SAF) over a five-year term with a target start date of 2025, bringing meaningful progress toward our goal to convert 10% of our jet fuel to SAF by 2030.
  • Recognized by “The Points Guy” with an Editors’ Choice Award for Best Economy Class in the world and by “Business Traveler USA” as Best Budget Airline.

Outlook

“As we kick off 2023, we’re pleased to see the demand environment remain solid into the seasonally trough period of the year,” said Joanna Geraghty, JetBlue’s President and Chief Operating Officer.

“We’re excited to continue building on last year’s record performance as we look at another strong year of revenue growth, underpinned by multiple network and commercial initiatives, including strong earnings accretion from the NEA as our markets mature. We also continue to make progress on our multi-year path to grow our loyalty revenue stream as a percentage of our total revenue base and close the gap to best in class loyalty performance.”

First Quarter and Full-Year 2023 OutlookEstimated 1Q 2023Estimated FY 2023
Available Seat Miles (ASMs) Year-Over-Year5.5% – 8.5%5.5% – 8.5%
Revenue Year-Over-Year28% – 32%High Single Digits to Low Double Digits
CASM Ex-Fuel(2) (Non-GAAP) Year-Over-Year2% – 4%1.5% – 4.5%
Estimated Fuel Price per Gallon(3)$3.20 – $3.35(4)$2.95 – $3.15
Interest Expense$40 – $50 million$200 – $210 million
Adjusted (Loss)/Earnings per Share($0.45) – ($0.35)$0.70 – $1.00

Top Copyright Photo: JetBlue Airways Airbus A321-231 WL N947JB (msn 6448) (Ribbons) LAX (Michael B. Ing). Image: 959981.

JetBlue Airways aircraft photo gallery: