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JetBlue holds its ground as other US airlines ramp up capacity to the Caribbean

Analysis

US airlines are bolstering their service to the Caribbean as macroeconomic conditions in Latin American remain tenuous for the short term. With the current service and planned additions to the Caribbean, airlines may need to brace themselves for some pressure on yields due to oversupply.

Even with increases in industry capacity, two airlines that have recorded ample increases in their respective supply from the US to the Caribbean - JetBlue and United - feel reasonably confident however that the region will generate a performance that will make a positive contribution to each airline's respective bottom lines.

JetBlue in particular stresses that it is prepared to weather the ebb and flows of industry capacity to the Caribbean since the region remains a key element in its overall network, reflected in its plans to open between three and five destinations from the US to Latin America and the Caribbean in CY2015.

This is Part 2 of a report on JetBlue's strategy.

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