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JetBlue Airways enters new phase of hybridisation with premium seats, two-way codeshares

Analysis

JetBlue Airways has entered a new phase of growth bent on yield, not capacity, increasingly centred around further hybridising its operation, which started out as a low-cost carrier.

JetBlue will add premium seats to its forthcoming A321s as it targets the business-heavy transcontinental market, where it reckons it can pick up demand from small/medium-sized companies wanting a premium product without paying for the service on legacy carriers. Although it is easy to see JetBlue picking up some demand, the market has become increasingly competitive with Delta deploying lie-flat beds, United re-vamping its product and American to introduce a new product with its own forthcoming A321s.

Additional revenue will be gained through JetBlue switching on in 2H2013 two-way codeshares, initially with Emirates, and its continued drive to offer high-margin ancillaries that give an added benefit rather than charge for what used to be free.

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