JetBlue is focusing on its East Coast leisure routes as it works to return to profitability.
The airline released quarterly earnings Tuesday (July 30) showing a $25 million profit, and said it plans to emphasize flights in and out of New York, Puerto Rico and New England, where it is adding new routes from Manchester, N.H.
“Our network sits in some of the most valuable geographies in the world,” said JetBlue CEO Joanna Geraghty.
“We have a leading position and three of the five largest markets on the East Coast, including New York City, which is the highest GDP producing metro area in the United States.”
She added that many of the changes JetBlue made to its network have been “driven by the stronger recovery and quicker ramp of leisure travel,” leading the airline to shift “capacity out of corporate focused routes and into leisure.”
During the question-and-answer session of the call, airline President Marty St. George clarified that shifting capacity away from business travel does not mean ignoring that market.
“When we said we’re pivoting away from corporate, you know, we will continue to carry corporate customers. There’s no walking away from the corporate market,” he said.
“I think the better way to describe it is we’re not really designing the network for corporations like we once did. If you look at some of the changes we’ve made in New York, some of the routes we’ve pulled, I think it’s very consistent with what we’ve seen as far as a slower recovery of corporate travel in New York.”
JetBlue scaled back routes earlier this year, while increasing its capacity in Latin America. The company said Tuesday it is also deferring $3 billion in aircraft spending over the next five years to improve cash flow.
The company’s focus on leisure travel comes as many budget-strapped consumers are seeking discounts on their summer trips, as PYMNTS reported earlier this month.
“Paycheck-to-paycheck consumers want to get out of Dodge,” that report said, citing data from PYMNTS Intelligence’s “Summer Travel Special Report,” showing 65% of those who live paycheck to paycheck with no issues paying their bills and 44% of paycheck-to-paycheck individuals who do have issues planned to take at least one trip this summer.
JetBlue was among the companies courting these consumers, recently offering 25% off flights for the fall — those between Sept. 7 and Nov. 20 — to keep travel spending momentum up in the slower period that after the summer spike but before the holidays.
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