Jetblue (JBLU) Airways announced it will add 30 new domestic routes where leisure and visiting friends are showing strength
JetBlue is New York's Hometown Airline®, and a leading carrier in Boston, Fort Lauderdale-Hollywood, Los Angeles (Long Beach), Orlando, and San Juan. JetBlue carries more than 42 million customers a year to nearly 100 cities in the U.S"
More About JetBlue (JBLU)
JetBlue is New York's Hometown Airline®, and a leading carrier in Boston, Fort Lauderdale-Hollywood, Los Angeles (Long Beach), Orlando, and San Juan. JetBlue carries more than 42 million customers a year to nearly 100 cities in the U.S., Caribbean, and Latin America with an average of more than 1,000 daily flights
JetBlue Airways Corporation (NASDAQ: JBLU) reported its preliminary traffic results for December 2019. Traffic in December 2019 increased 5.7 percent from December 2018, on a capacity increase of 4.4 percent. Load factor for December 2019 was 82.4 percent, an increase of 1.0 points from December 2018. JetBlue’s preliminary completion factor for December 2019 was 99.3 percent and its on-time (1) performance was 66.7 percent.
December 2019 December 2018 % Change
December 2019 December 2018 % Change
- Revenue passenger miles (000): 4,603,228 4,354,643 5.7%
- Available seat miles (000): 5,587,522 5,352,847 4.4 %
- Load factor: 82.4 % 81.4 % 1.0 pts.
- Revenue passengers: 3,626,992 3,536,377 2.6 %
- Departures: 31,356 31,658 (1.0)%
- Average stage length (miles) : 1,161 1,128 2.9 %
JetBlue press release announcing 30 new domestic routes to be added
NEW YORK--(BUSINESS WIRE)-- JetBlue (NASDAQ: JBLU) today announced it is adding 30 new domestic routes to serve customers in markets where leisure and VFR (visiting friends and relatives) travel is showing some signs of strength. 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.
Each market was identified as one in which JetBlue’s award-winning service and low fares will benefit travelers as well as support the airline’s cash position. The expanded service focuses on:
“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,” said Scott Laurence, head of revenue and planning, JetBlue. “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.”
Each market was identified as one in which JetBlue’s award-winning service and low fares will benefit travelers as well as support the airline’s cash position. The expanded service focuses on:
- Growing relevance in JetBlue’s focus cities
- Launch Mint flights between Newark and LAX/SFO
- Playing to JetBlue’s strength in Florida with new point-to-point routes
“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,” said Scott Laurence, head of revenue and planning, JetBlue. “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.”
Mint Between the Garden State and the Golden State
JetBlue, New York’s Hometown Airline®, will expand its successful Mint service in the broader metro area to Newark Liberty International Airport (EWR) with daily nonstop service to both Los Angeles International Airport (LAX) and San Francisco International Airport (SFO). Mint offers a rethought design and a more personal approach to service with exceptional hospitality from specially trained crewmembers. Favorite Mint features include lie-flat seating – including individual suites with sliding privacy doors, tapas style dining, fresh espresso from the first purpose-built cappuccino machine for a U.S. airline, amenity kits by Hayward and Hopper, and dessert from local artisanal ice cream makers based in Mint cities.
All customers will benefit from JetBlue's Airbus A321 with Mint aircraft. Features of the A321 core interior include 10-inch television screens offering free entertainment, comfortable seats with the most legroom in coach (a) and power outlets accessible to all customers. JetBlue's popular marketplace – a self-serve station full of free snacks, sodas and water for customers to enjoy at their convenience – is also available throughout the flight. And all A321 aircraft offer JetBlue's free Fly-Fi high-speed broadband Internet service (b).
Filling Out Focus Cities & Florida Flying
Elsewhere in JetBlue’s focus cities and in Florida, the airline will launch new routes where there are small signs of recovery in leisure and visiting friends and relatives (VFR) travel. Adding more destinations in these key markets will help make JetBlue more relevant to more travelers and drive loyalty. Outside of JetBlue focus cities, the airline is launching several new point-to-point routes that play to JetBlue’s strength in Florida. These routes will gives customers a new option that offers low fares with great JetBlue customer service and the layers of protection offered as part of its Safety From the Ground Up program.
“We don’t believe customers should have to choose between a low fare and a great experience,” said Laurence. “These new routes are a win for customers, and we believe they will work especially well for us in this unique environment.” JetBlue will reactivate some temporarily parked aircraft to support the new routes. Like the rest of the JetBlue network, these new routes will be regularly evaluated. The airline will remain flexible, allowing market demand to determine how long a particular route continues to operate.
Summer Capacity, Some Closures Lifted & Certain Seasonal Flights Return
With the new routes and service announced today, as well as additional capacity added back into the July and August schedules, JetBlue intends to operate more than half of its typical capacity this summer to better match demand trends. Additionally, nine temporarily closed cities and several summer seasonal destinations will reopen in early July:
JetBlue, New York’s Hometown Airline®, will expand its successful Mint service in the broader metro area to Newark Liberty International Airport (EWR) with daily nonstop service to both Los Angeles International Airport (LAX) and San Francisco International Airport (SFO). Mint offers a rethought design and a more personal approach to service with exceptional hospitality from specially trained crewmembers. Favorite Mint features include lie-flat seating – including individual suites with sliding privacy doors, tapas style dining, fresh espresso from the first purpose-built cappuccino machine for a U.S. airline, amenity kits by Hayward and Hopper, and dessert from local artisanal ice cream makers based in Mint cities.
All customers will benefit from JetBlue's Airbus A321 with Mint aircraft. Features of the A321 core interior include 10-inch television screens offering free entertainment, comfortable seats with the most legroom in coach (a) and power outlets accessible to all customers. JetBlue's popular marketplace – a self-serve station full of free snacks, sodas and water for customers to enjoy at their convenience – is also available throughout the flight. And all A321 aircraft offer JetBlue's free Fly-Fi high-speed broadband Internet service (b).
Filling Out Focus Cities & Florida Flying
Elsewhere in JetBlue’s focus cities and in Florida, the airline will launch new routes where there are small signs of recovery in leisure and visiting friends and relatives (VFR) travel. Adding more destinations in these key markets will help make JetBlue more relevant to more travelers and drive loyalty. Outside of JetBlue focus cities, the airline is launching several new point-to-point routes that play to JetBlue’s strength in Florida. These routes will gives customers a new option that offers low fares with great JetBlue customer service and the layers of protection offered as part of its Safety From the Ground Up program.
“We don’t believe customers should have to choose between a low fare and a great experience,” said Laurence. “These new routes are a win for customers, and we believe they will work especially well for us in this unique environment.” JetBlue will reactivate some temporarily parked aircraft to support the new routes. Like the rest of the JetBlue network, these new routes will be regularly evaluated. The airline will remain flexible, allowing market demand to determine how long a particular route continues to operate.
Summer Capacity, Some Closures Lifted & Certain Seasonal Flights Return
With the new routes and service announced today, as well as additional capacity added back into the July and August schedules, JetBlue intends to operate more than half of its typical capacity this summer to better match demand trends. Additionally, nine temporarily closed cities and several summer seasonal destinations will reopen in early July:
- Aguadilla, Puerto Rico’s Rafael Hernández Airport (BQN)
- Chicago O'Hare International Airport (ORD)
- Dallas/Fort Worth International Airport (DFW)
- Houston Intercontinental Airport (IAH)
- Martha's Vineyard Airport (MVY)
- Minneapolis–Saint Paul International Airport (MSP)
- Nantucket Memorial Airport (ACK)
- Philadelphia International Airport (PHL)
- Ponce, Puerto Rico Mercedita International Airport (PSE)
- Portland International Airport (PDX)
- Providence T. F. Green International Airport (PVD)
JetBlue Airways (JBLU) stock price history
The image below shows the stock price history of JetBlue (JBLU) over the last 3 years. And it's not been a good time for JetBlue (JBLU) stockholders over the last 3 years. Over the last 3 years the stock of JetBlue (JBLU) declined by -50.52%. The stock of JetBlue (and all other airline stocks) have been hit particularly hard due to coronavirus pandemic and the impact its had on international travel.
Our latest stock valuation of JetBlue (10 May 2020)
So based on JetBlue 1st quarter 2020 earnings report what do we value JetBlue stock at? Based on JetBlue's earnings reported and the fact that they are loss making we have decided to value the stock of JetBlue at their stockholders equity per share which is $15.76 per stock
We therefore believe that the stock of JetBlue stock is undervalued. We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $15.76 A good entry price into JetBlue stock would therefore be at $14.20 or below.
We expect the stock of JetBlue to tick up nicely if the US economy starts opening up again and people start travelling between states again on a regular basis. While the current operating environment will burn through their cash reserves, but if things return to relatively normal any time soon the group should be able to ride out the current crises engulfing global economies and in particular the airline and tourism industry
We therefore believe that the stock of JetBlue stock is undervalued. We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $15.76 A good entry price into JetBlue stock would therefore be at $14.20 or below.
We expect the stock of JetBlue to tick up nicely if the US economy starts opening up again and people start travelling between states again on a regular basis. While the current operating environment will burn through their cash reserves, but if things return to relatively normal any time soon the group should be able to ride out the current crises engulfing global economies and in particular the airline and tourism industry