JetBlue keeps Fort Lauderdale flights, regardless of Spirit’s fate
JetBlue Airlines Spirit Airlines, the airport’s No. 1 carrier, is making progress on flight plans at Fort Lauderdale-Hollywood International Airport, regardless of whether it receives a government bailout or not, its president said.
JetBlue, United Airlines, Border AirlinesBreeze Airways and others last year added flights to Fort Lauderdale, Spirit’s home base, as well as other major airports where Spirit has a large presence. These moves came shortly after Spirit filed for Chapter 11 bankruptcy protection for the second time in less than a year.
As a possible liquidation looms, budget carrier Spirit is in talks with the Trump administration about a potential rescue package that could include a $500 million loan that could give the government a stake of up to 90 percent. The airline’s lenders are reaching a deal this week.
Spirit has reduced capacity in recent years to save costs. While it still had the highest market share in February at about 25% in Fort Lauderdale, down from 28% the year before, JetBlue’s share rose to more than 20% from 18.5% the year before, according to the latest statistics available from the airport.
JetBlue president Marty St. “We’ve now added significant capacity here,” George said on Tuesday’s earnings call. “We have doubled the size of our next largest competitor.
“We didn’t go into this with the expectation that the Spirit would leave,” he added. “What we did was take advantage of the door availability they created with some drop-down menus.”
He added that despite the capacity increases, JetBlue is pleased with its unit revenue here. “I think it shows that the JetBlue value proposition is resonating in South Florida,” he said.
The industry is grappling with rising fuel prices, but so far JetBlue and other carriers report that customers are continuing to book flights.
The Value Airlines Association, of which JetBlue is not a member, said Monday it is asking the Trump administration for $2.5 billion to offset an increase in fuel, airlines’ second-biggest expense after labor.
JetBlue CEO Joanna Geraghty said the airline is open to “anything, assuming the terms make sense for JetBlue,” but added that the airline is focused on its JetForward strategy to return to profitability, including adding new products like domestic first-class seats.
He said the carrier was monitoring the situation and seeing “what is shaking the spirit and value carriers and whether anything is getting in their way.”
