JetBlue company overview
JetBlue Airways Corporation (JBLU), incorporated in Delaware in 1998, is the fifth largest passenger carrier in the U.S. based on revenue passenger miles. With an average of 800 daily flights, it serves more than 30 million passengers and provides flights to 82 destinations in the U.S., Caribbean, and Latin America. JetBlue’s operations are concentrated in the domestic market and generates 28% revenues from international routes. Its passenger revenues accounted for 91% of its total operating revenue. During 2013, JetBlue added seven new cities to its network. It also recorded operating revenue of $5.4 billion. Plus, it reached its highest net income of $168 million by increasing its diluted earnings per share by 30%, from $0.40 to $0.52, in 2012.
JetBlue’s unique selling proposition is providing high-class services to its customers at an affordable price. It ranks first among low-cost carriers for the ninth consecutive year in J.D. Power’s customer satisfaction survey. JetBlue is also the first airline in the U.S. to offer family pooling where families and small groups can earn and share points under its frequent flyer program, True Blue. Also, JetBlue was recognized as the 2014 “Best Low Cost Airline – Americas” by airline ratings and was highly rated on safety and product offerings. We will discuss Jet Blue’s survey scores in Part 4.
According to the Bureau of Transportation Statistics, JetBlue has domestic revenue per passenger mile share of 5.1%. After the merger of American Airlines (AAL) and U.S. Airways in 2013, JetBlue stands in the fifth position following Delta Air Lines (DAL) with a share of 16.3%, Southwest Airlines (LUV) with 15.8%, American Airlines Group with 12.6%, U.S. Airways with an 8.4% share, and United Continental Holdings (UAL) with 5.6%.