JetBlue: Recovery
from Self-Inflicted Damage — October 2024

Through the 2010s, JetBlue was remarkably successful. It achieved average revenue growth of 10% a year, operating margins of 12% and net margins of 6%. It successfully introduced a quality “value” focused product to undermine the incumbent majors, particularly on the transcontinental routes, and grew to hold the position of the sixth largest carrier in the US (behind Alaskan).

But since the resumption of “normality” in the airline industry after the ending of the pandemic, it has lost its way: it lost a total of $411m in 2022 and 2023 on a revenue base that was some 15% higher than that in 2019. Forecasts suggest it could lose an additional $300m in the current year.