JetBlue has bucked the trend in the airline industry and announced the addition of 30 new routes to its domestic network, cashing in on leisure and ‘visiting friends and relatives’ (VFR) travellers.
This decision has, in turn, placed the airline in direct competition with big players United Airlines, American Airlines and Delta, a move that analysts have noted as unusual under normal circumstances.
The airline announced on Thursday that it would be phasing in the new routes between July and October, as it attempts to cash in on “markets where leisure and VFR travel is showing signs of strength”.
The company intends to “reactivate” some of its aircraft that have been standing idle since March in order to support the new routes.
JetBlue also announced that it would expand its Mint service – the airline’s premium travel option, which includes lie-flat seating, private suites, restaurant-level dining and fresh espresso – to fly daily non-stop from Newark Liberty International Airport to both Los Angeles International and San Francisco International.
“With business travel facing a less certain recovery timeline, the new routes offer JetBlue the opportunity to generate revenue, bring aircraft back into service that would otherwise sit idle, and add more flying opportunities for JetBlue crewmembers,” the airline stated.
In addition to the announcement of the new routes, JetBlue stated its intention to increase capacity throughout July and August, expecting that it will be operating at “more than half of its typical capacity” over the summer, in line with demand trends.
Scott Laurence, head of revenue and planning, stated, “Coronavirus has transformed airline route maps, and as we begin to see small signs of recovery, we continue to be flexible with our network plans to respond to demand trends and generate cash in support of our business.
“We’ve selected routes where customers are showing some interest in travel again and where our low fares and award-winning experience will be noticed.”
Laurence continued, “We don’t believe customers should have to choose between a low fare and a great experience. These new routes are a win for customers, and we believe they will work especially well for us in this unique environment.”
JetBlue takes on the big players
Analysts have noted the unusual move to encroach on the major airlines’ claimed territory, particularly amid the global aviation downturn sparked by the COVID-19 pandemic.
By expanding its presence at Newark and Philadelphia, and launching new routes to ‘competitor hubs’ such as Dallas, Minneapolis and Detroit, JetBlue is putting itself in direct competition with the bigger players.
According to analysts, mid-sized airlines like JetBlue often avoid these legacy airline hub-to-hub routes, where the larger carrier has leverage in both markets.
Under ordinary operating instances, the larger carriers would have the upper hand to lower the cost of their seats, increase schedules on routes that start to become more competitive, or go after the flagship routes of JetBlue in their own right.
However, due to COVID-19, America’s largest airlines have instead reduced capacity, making way for JetBlue to cash in on the lull.
“They are going to after United at Newark — that was really interesting,” said Skift Airline Weekly analyst Jay Shabat.
“I guess they see an opportunity to win some business now, while United is flat on its back. If you are going to take on a big Goliath, now is the time.”
Noting that Southwest Airlines recently pulled out of Newark, and Alaska Airlines’ presence is increasingly shrinking, industry analyst Brett Snyder also argued that perhaps now is the time to take on the big airlines.
Despite this, the analysts are largely insistent that the move, particularly in regard to its five new Philadelphia routes, is a short-term “cash-grabbing” strategy, instead of a long-term competitive one.
According to Snyder and Shabat, while JetBlue does not have a strong presence in Philadelphia, it has enough brand equity in Florida and Puerto Rico to make these flights profitable.
It’s “as good a place” as any to place their planes.
“It is not like they are fighting for the loyalty of the Pittsburgh market,” Snyder said. “They are just looking for someone who wants a cheap flight to Florida.”
For now, there is no telling how the larger airlines will respond if and when they have the resources to do so, and the place that JetBlue will have formed for itself on these routes in the meantime.
The complete list of JetBlue’s new routes are as follows:
From 23 July:
- Newark – Los Angeles; San Francisco; Charleston, South Carolina and Jacksonville
- New York JFK – Dallas/Fort Worth and Detroit
From 6 August:
- Newark – Austin, Las Vegas, Phoenix, San Diego and Sarasota-Bradenton
- New York JFK – Minneapolis/St. Paul
- New York LaGuardia – Fort Myers and Tampa
- Philadelphia – Fort Myers, Orlando, San Juan, Tampa and West Palm Beach
From 1 October:
- Fort Lauderdale – Pittsburgh, Portland, Oregon, and Seattle-Tacoma
- Fort Myers – Cleveland and Providence
- New York JFK – St. Thomas
- Orlando – San Francisco
- Tampa – Providence and Washington National
- West Palm Beach – Chicago O’Hare and Pittsburgh
