- Global: +2.9% capacity, +1.9% scheduled services year-on-year;
Global seat capacity up 2.9% in Jan-2012: OAG
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JetBlue holds its ground as other US airlines ramp up capacity to the Caribbean
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.
JetBlue outlines strategy to appease investors, but still offer customers a differentiated product
After defending its business model from the onslaught of analysts for the better part of a year, JetBlue has outlined a clear cut plan to shore up revenue and keep its units cost growth at roughly 2% or lower beginning in CY2015.
In a nod to persistent prodding by investors to densify its aircraft, JetBlue plans to add 15 seats to to 130 Airbus A320 narrowbodies beginning in CY2016 while deferring some narrowbody deliveries to pare down its capital expenditure commitments.
JetBlue is placing itself in a sensitive position – looking for ways to appease shareholders while preserving its image as one of the more customer friendly airlines. It is turning out to be a tough, but seemingly inevitable predicament for the airline. But that is only normal for any business seeking to buck the ternd.