JetBlue Airways’ hybrid model remains enigmatic as cost creep outpaces revenue production

JetBlue finds itself at a crossroads during 2014 as it rolls out its highly touted Ka-band supported Wi-Fi connectivity, debuts a new business class product dubbed Mint and resolves itself to the fact that its pilots have voted in favour of unionisation - which, judging by the pilots' celebrations, almost certainly points to higher crew costs, without necessarily the corresponding productivity gains.

The new product developments underpin JetBlue's strategy of creating a carrier that targets the mid-market passenger segment looking for medium-frills at a reasonable price. In some ways it is a model that is previously unknown, and JetBlue faces obstacles in executing its strategy effectively.

In the short term the carrier continues to battle cost creep and some revenue pressure in 2Q2014 from fallout over the winter storms that wreaked havoc in much of the US in 1Q2014. In some ways JetBlue is in the unenviable position of having to outline its long-term vision to investors and sceptics who are only seeking short-term rewards.