Incremental Airbus A321 deliveries facilitate
expansion of Mint, an innovation success story that has delivered
on all measures
JetBlue takes immediate opportunity to disrupt
the valuable coast-to-coast market with lie-flat seats, curated
food, and specially trained crewmembers
JetBlue leverages its strengths to increase
frequencies on west coast
JetBlue (NASDAQ:JBLU) today announced it intends to further
expand its highly successful Mint experience by amending its
purchase agreement with Airbus to bring additional A321 aircraft
into its fleet. JetBlue believes the additional aircraft will allow
it to capture an immediate opportunity to position itself as the
transcontinental airline of choice and build west coast frequencies
with a targeted approach that leverages its east coast
strength.
This Smart News Release features multimedia.
View the full release here:
http://www.businesswire.com/news/home/20160726005561/en/
Under the amendment, JetBlue will take delivery of incremental
aircraft over seven years. Specifically, Airbus is scheduled to
deliver 15 incremental A321ceos (current engine option) starting in
2017, with five Mint deliveries expected in 2017 and the intention
for most incremental deliveries in the following years to come in
Mint. Further, JetBlue expects to take delivery of 15 incremental
A321neos (new engine option) starting in 2020. The amendment
provides flexibility to take deliveries in Mint or all-core
configurations based on market opportunities. While it has not yet
committed to this fleet type, JetBlue will have the option to
configure the NEO aircraft in the long range version of the A321 –
the A321LR – starting in 2019.
“Mint has surpassed our expectations on every customer and
financial measure,” said Robin Hayes, president and CEO, JetBlue.
“Mint won over customers in a big way and has transformed the
performance of our transcontinental franchise. We have only
scratched the surface on what Mint can do to disrupt the valuable
coast-to-coast market.”
Since Mint launched in 2014, it has revitalized JetBlue’s
transcontinental franchise and become a driver for long-term
shareholder value. JetBlue’s daily Mint routes consistently perform
as some of the airline’s most profitable routes. Revenue per
available seat mile (RASM) on Mint routes has grown 20 percent
since 2014, and Mint has helped attract new corporate clients and
west coast point of sale.
The plan is consistent with JetBlue’s disciplined approach to
capacity growth and commitment to expanding its west coast presence
by focusing on a proven product that drives value. With the
additional aircraft, JetBlue’s available seat miles (ASM) growth
will largely remain in the high single digits, as previously
stated.
Premium Transcontinental Market: Waiting for
Disruption
Premium transcontinental travel continues to suffer from
inferior service and high prices. With Mint, JetBlue introduced its
alternative to outdated business class offerings, first from New
York to Los Angeles and San Francisco. By re-imagining the domestic
premium experience with lie-flat seating, curated food and
amenities, and hospitality-trained inflight crewmembers – offered
at an affordable price – JetBlue has made premium travel more
accessible and opened a new market untapped by other carriers.
Transcontinental markets outside of New York and Los Angeles are
prime for similar disruption. For example, only 5 percent of
transcontinental flights over 1,800 miles consistently offer
regularly scheduled lie-flat seats.
JetBlue currently flies only 12 percent share of the
transcontinental market. Mint opens a significant opportunity for
the airline to capture additional share and strengthen the
financial performance of its existing routes where JetBlue is
outperforming competitors.
Customers in the “coach” cabins of other carriers are often
underserved on long transcon routes. Unlike those carriers, JetBlue
has invested in its A321 core cabin to ensure everyone flying has
an award-winning experience. JetBlue’s A321 core experience
includes 10-inch television screens offering free entertainment,
free Fly-Fi high speed wireless internet, comfortable seats with
the most legroom in coach (a), power outlets accessible to all
customers, and JetBlue's popular marketplace – a self-serve station
full of free snacks, sodas and water for customers to enjoy at
their convenience.
West Coast Expansion: Targeted Approach Leveraging Airline’s
Strengths
As west coast travelers face reduced options and less
competition, JetBlue is quickly moving to organically strengthen
its presence on a national scale with a leading transcontinental
franchise between the west and east coasts.
JetBlue’s targeted approach will give the airline increased
frequencies in high-value west coast markets, including the Bay
Area and Los Angeles, while leveraging the strength of its east
coast point of sale. By adding even more Mint service in the
airline’s focus cities – where JetBlue is positioned as the No. 1
or No. 2 airline – JetBlue can continue to grow its customer base
and solidify its leadership in those markets, as well as consider
expansion to new markets.
In addition to JetBlue’s intention to expand Mint to grow its
west coast presence, JetBlue is strengthening its Long Beach (LGB)
focus city with new all-core service. JetBlue will add nine new
daily frequencies from Long Beach, phasing in beginning in the
fourth quarter.
Earlier this year, JetBlue announced a Mint expansion that will
bring new transcontinental competition to Fort Lauderdale, Las
Vegas, San Diego and Seattle for the first time – while also
increasing options from New York (JFK), Boston, Los Angeles (LAX)
and San Francisco. Once the previously announced tranche of new
Mint routes has launched, JetBlue will offer up to 70-plus daily
Mint flights to 13 destinations across the east coast, west coast
and Caribbean.
JetBlue plans to announce further expansion of Mint routes at a
later date. JetBlue will continue to review strategic opportunities
to expand Mint on existing and new routes where it believes it can
replicate Mint’s success.
By year end 2016, JetBlue expects to have a total of 37 A321
aircraft, including 17 in the Mint configuration. By year 2017,
JetBlue expects to have a total of 52 A321 aircraft, including 31
in the Mint configuration. By year end 2018, JetBlue expects to
have a total of 63 A321 aircraft, 6 of which will be A321neo.
About JetBlue
JetBlue is New York's Hometown Airline™, and a leading
carrier in Boston, Fort Lauderdale-Hollywood, Los
Angeles (Long Beach), Orlando, and San Juan. JetBlue carries
more than 35 million customers a year to 96 cities in the
U.S., Caribbean, and Latin America with an average
of 900 daily flights. For more information please visit
jetblue.com.
(a) Based on average length of lie-flat beds on domestic flights
operated by U.S. airlines.
(b) JetBlue offers the most legroom in coach, based on average
fleet-wide seat pitch for U.S. airlines.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160726005561/en/
JetBlue Corporate CommunicationsTel:
+1-718-709-3089corpcomm@jetblue.com
JetBlue Airways (NASDAQ:JBLU)
Historical Stock Chart
From Aug 2024 to Sep 2024
JetBlue Airways (NASDAQ:JBLU)
Historical Stock Chart
From Sep 2023 to Sep 2024