A key overview of JetBlue Airways PART 3 OF 12
Must-know: JetBlue’s position in key target markets
JetBlue’s key target markets
JetBlue Airways’ (JBLU) operations are concentrated in the northeast region of the U.S., including New York and Boston. Of its customers, 90% use non-stop routes. As of December 2013, it served 82 cities in 25 states, including the District of Columbia and the Virgin Islands, and 15 countries in the Caribbean and Latin America, such as Puerto Rico.
JetBlue has almost equal share in Florida, Latin America, and the transcontinental region which together accounted for about 87% of JetBlue’s total capacity.
- New York and Boston: JetBlue is the largest airline by domestic capacity—the total number of flights or available seat miles for destinations within the U.S.—at New York’s John F. Kennedy International Airport, with 31% of domestic passengers. It currently operates from Terminal 5 (or T5) and plans to construct an international arrival facility, T5i, in 2014. With more than 30% of passengers in Boston, JetBlue is the largest carrier by capacity at Boston’s Logan International Airport as well. JetBlue plans to open new routes to Liberia, Puerto Plata, and Saint Lucia in 2014.
- Caribbean and Latin America: JetBlue has focused on growing its operations in this region by adding 20 cities since 2008. This region comprises 28% of JetBlue’s total capacity. JetBlue is the leading carrier in terms of capacity in San Juan and the Dominican Republic.
- Fort Lauderdale–Hollywood, Florida: JetBlue is the largest carrier by capacity at this airport, with 20% of passengers. It plans to expand in this airport, as the cost per enplanement is lower and terminals should be upgraded and expanded by 2018. JetBlue plans to create new routes to Colombia’s Cartagena, Jacksonville, Las Vegas, and Pittsburg in 2014.
- Orlando: JetBlue is the second largest carrier at Orlando International Airport. It operates more than 15% of all flights in this airport.
- Los Angeles: JetBlue is the seventh largest carrier in this region and the largest carrier at Long Beach Airport. It operates 68% of all flights at this airport. The company plans to launch its premium service, “Mint,” from Los Angeles in 2014.
While JetBlue and Southwest Airlines (LUV) operate predominantly in the domestic market, Delta Air Lines (DAL), United Continental Holdings (UAL), and American Airlines Group (AAL) derive 30% to 40% of revenue from international markets.