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JETBLUE AIRWAYS (NASDAQ:JBLU) TAKING SOME RADICAL STEPS TO INCREASE PROFITS

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We will take a look at how Jet Blue Airways (NASDAQ:JBLU) is planning to boost up their revenues and we can see that it has become quite crucial for the aviation company to speed up their business and maintain a healthy income from all possible sources. The company has chalked out a plan through which they can make more than a billion dollars’ worth profit by 2020.

 

The company (NASDAQ:JBLU) has got two things on their minds which can help them in achieving these targets. The first one, they believe is the introduction of different fare groups. These categories will allow travelers to opt from better, to much better and best flying experience. As we can judge by looking at the market the better class will not offer any free checked baggage service, whereas the more better and best classes will give the customers a benefit of 1 and 2 free checked baggage items respectively. The slightly increased prices will allow customers to gain more Blue points and maybe some other advantages.

 

The second step would be the introduction of new, better and cost efficient A321 aircrafts. In fact, the company (NASDAQ:JBLU) has shifted it orders towards the purchase of these Airbus (OTC:EADSY) planes. JetBlue (NASDAQ:JBLU) as an initiative postponed some of the orders they had placed on other aircrafts and converted all A320 orders to A321s. In fact the company (NASDAQ:JBLU) will hold a reasonable A320 fleet by the end of 2019. Moreover, the company (NASDAQ:JBLU) was given several advices to increase the number of seats in the already present A320. So, after some thinking the company has now planned to offer 10% more seating capacity. This will allow the company to accommodate 15 more passengers in one plane, although this modification comes with a small price. First of all, the airline will have to induct a fourth flight attendant for the extra passengers plus there will be some costs for fixing in the extra seats. But, these costs will be paid off after the airplanes will become operational.

 

However, the company will start these modification in 2016 and plan to complete them by 2019, so the company (NASDAQ:JBLU) will not be getting benefit from this side anytime soon. Plus the company (NASDAQ:JBLU) has special reputation with regards to providing the largest leg room for passengers.

 

JetBlue (NASDAQ:JBLU) also told about its plans for introducing some semi premium services for the Ney York, Los Angeles and San Francisco. In fact the company (NASDAQ:JBLU) managed to achieve a gain of almost 17 points on the NY – LA route. Then the company is planning to add latest feature like high speed Wi-Fi and call services for its customers. The company is also planning to join hands with Netflix (NASDAQ:NFLX) entertainment company in order to provide its customers with online movie experience.

 

JetBlue (NASDAQ:JBLU) is currently generating revenues of $500 million per year, whereas, the company will definitely achieve the 1 billion dollar target if things turn out as they planned.

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