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JetBlue Reports Strong March Traffic  
User currently offlineJetBluefan1 From United States of America, joined Dec 2003, 2987 posts, RR: 14
Posted (7 years 5 months 3 weeks 15 hours ago) and read 2990 times:

http://www.primenewswire.com/newsroom/news.html?d=116910

LF is a healthy 85%. PRASM is up 16% yoy, which is amazing. Operational figures continue to be weak, but what else is new? JFK had a nice ice storm - again - so that basically put the majority of JetBlue's flights on hault for a whole day.

Considering all the bad press JetBlue got in February, it's nice to see such strong traffic numbers.

JetBluefan1


Most people on a.net hate JetBlue. Get used to it.
29 replies: All unread, showing first 25:
 
User currently offlineSteeler83 From United States of America, joined Feb 2006, 9211 posts, RR: 20
Reply 1, posted (7 years 5 months 3 weeks 11 hours ago) and read 2893 times:

That sure is nice to see indeed. I know that according to most of us on here, the bulk of the problems associated with B6 in those ice storms was due to the mechanical mishaps with the E90s during the ice/snow events. Brakes froze on a B6 flight in PIT on top of other E90 problems that arose in that 2-14 weather event. Are B6 still happy with the E90s? I still think it was wise of them to consider the aircraft. It is a good aircraft for going into smaller regional markets like CMH. PIT and CLT were good markets considering the presence US has at both airports. I don't think B6 would be able to fill an A320 at either city really. How many seats do the A320s have, 160-ish? The planes at PIT are still not quite full, roughly 60% or so... The CLT flights I think are doing better, but still that is "only" 100 seats. If they were to have an A320, then only 67% of the seats would be filled...

Good job B6, and may good things be ahead



Do not bring stranger girt into your room. The stranger girt is dangerous, it will hurt your life.
User currently offlineJetJock22 From , joined Dec 1969, posts, RR:
Reply 2, posted (7 years 5 months 3 weeks 11 hours ago) and read 2883 times:

Quoting Steeler83 (Reply 1):
How many seats do the A320s have, 160-ish

The 320's have 150 seats

Quoting Steeler83 (Reply 1):
The CLT flights I think are doing better

CLT is doing very well right now and CMH is seeing very good loads as well


User currently offlineJetBluefan1 From United States of America, joined Dec 2003, 2987 posts, RR: 14
Reply 3, posted (7 years 5 months 3 weeks 11 hours ago) and read 2862 times:

Quoting Steeler83 (Reply 1):
The planes at PIT are still not quite full, roughly 60% or so... The CLT flights I think are doing better, but still that is "only" 100 seats. If they were to have an A320, then only 67% of the seats would be filled...

Actually, things at PIT have certainly picked up for B6 - there's much improvement. You're right that CLT does very well also. CMH (as the post above mentions) has also picked up, as has RIC. HOU and JAX are also doing much better now that they have had an equipment change from an A320 to an E190.

JetBluefan1



Most people on a.net hate JetBlue. Get used to it.
User currently offlineLightsaber From United States of America, joined Jan 2005, 13138 posts, RR: 100
Reply 4, posted (7 years 5 months 3 weeks 10 hours ago) and read 2816 times:
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Quoting JetBluefan1 (Thread starter):

Considering all the bad press JetBlue got in February, it's nice to see such strong traffic numbers.

 checkmark 

Quoting JetJock22 (Reply 2):
CLT is doing very well right now and CMH is seeing very good loads as well

How is yeild?

I'll be very curious to see their profits. B6's service is great.

I'm a fan of the E190's. The concept is great. The teething problems... have been worse than expected; but it looks like the worst is in the past.  pray 

My question is can B6 keep the "media darling" free advertising they've had? I love LGB (or more precisely, I cannot stand LAX terminal 1).

Quoting JetBluefan1 (Thread starter):
PRASM is up 16% yoy, which is amazing.

I'm happy to see that. Turning on the yield optimization on the route planning software seems to have helped!  spin 

Lightsaber



Societies that achieve a critical mass of ideas achieve self sustaining growth; others stagnate.
User currently offlineJetBluefan1 From United States of America, joined Dec 2003, 2987 posts, RR: 14
Reply 5, posted (7 years 5 months 3 weeks 7 hours ago) and read 2711 times:

Quoting Lightsaber (Reply 4):
How is yeild?

To CLT? Amazing.

To CMH? Subpar.

JetBluefan1



Most people on a.net hate JetBlue. Get used to it.
User currently offlinePITSpeedbird From United States of America, joined Mar 2007, 60 posts, RR: 0
Reply 6, posted (7 years 5 months 2 weeks 6 days 17 hours ago) and read 2564 times:

Quoting JetBluefan1 (Reply 3):
Actually, things at PIT have certainly picked up for B6 - there's much improvement.

Thats great news!
Any word on B6's plans for a hub closer to the midwest?
I know that PIT was thrown around as a weak possibility?  optimist 

Glad to see B6 doing well. I think their addition to the PIT mix helped competition between DL, US,
AA, CO on the PIT-NYC routes. We saw fares fall precipitously within months.
It was much the same when WN started PIT-MDW.

Good job B6!

- PITSpeedbird



you leave. Arrive before
User currently offlineJetJock22 From , joined Dec 1969, posts, RR:
Reply 7, posted (7 years 5 months 2 weeks 6 days 17 hours ago) and read 2562 times:

Quoting JetBluefan1 (Reply 5):
To CMH? Subpar.

What kind of grass are you smoking? CMH loads are fantastic right now


User currently offlineJetBluefan1 From United States of America, joined Dec 2003, 2987 posts, RR: 14
Reply 8, posted (7 years 5 months 2 weeks 6 days 16 hours ago) and read 2493 times:

Quoting JetJock22 (Reply 7):
What kind of grass are you smoking? CMH loads are fantastic right now

That's true - loads are fantastic. But if you look at the question I was answering, it was referring to yield.

Yields at CMH are subpar. $39 o/w to BOS or JFK is certainly not something that's pulling in a profit. Walk-up fares for flights that aren't full are as low as $59. Fares should be at least $69 to JFK and $79 to BOS for a 7-day advance purchase, and they should be even higher for anything closer to date of departure.

JetBluefan1



Most people on a.net hate JetBlue. Get used to it.
User currently offlineSteeler83 From United States of America, joined Feb 2006, 9211 posts, RR: 20
Reply 9, posted (7 years 5 months 2 weeks 6 days 15 hours ago) and read 2485 times:

Quoting JetBluefan1 (Reply 8):
Yields at CMH are subpar. $39 o/w to BOS or JFK is certainly not something that's pulling in a profit. Walk-up fares for flights that aren't full are as low as $59. Fares should be at least $69 to JFK and $79 to BOS for a 7-day advance purchase, and they should be even higher for anything closer to date of departure.

I do agree with you on there, but B6 was offering $69 and $79 fares from PIT to JFK and BOS respectively. They couldn't even get 20 people on their planes. Granted, PIT business travelers actually prefer LGA over JFK because of proximity to Midtown Manhattan. It's not necessarily saying that PIT flyers prefer US over B6, airline vs. airline. They [US] happen to serve the airport that has the best proximity to Manhattan. It's more or less airport vs airport. US flies to the better airport of choice for PIT flyers, so they select the airline that serves the best airport, which is again, US...



Do not bring stranger girt into your room. The stranger girt is dangerous, it will hurt your life.
User currently offlineTimberwolf24 From United States of America, joined Jun 2001, 575 posts, RR: 1
Reply 10, posted (7 years 5 months 2 weeks 6 days 12 hours ago) and read 2424 times:

How is ORD preforming for B6?


Living in LA, ORD/MDW will always be home!
User currently offlineJetJock22 From , joined Dec 1969, posts, RR:
Reply 11, posted (7 years 5 months 2 weeks 6 days 10 hours ago) and read 2381 times:

Quoting JetBluefan1 (Reply 8):
Yields at CMH are subpar. $39 o/w to BOS or JFK is certainly not something that's pulling in a profit. Walk-up fares for flights that aren't full are as low as $59. Fares should be at least $69 to JFK and $79 to BOS for a 7-day advance purchase, and they should be even higher for anything closer to date of departure.

The $39 o/w was a fare sale that is over now. I can't go into specific numbers, but the availability to/from CMH has been in the single digits in terms of available seats for the entire daily schedule and this has gone on for at least 4-5 weeks now.


User currently offlineJetBluefan1 From United States of America, joined Dec 2003, 2987 posts, RR: 14
Reply 12, posted (7 years 5 months 2 weeks 6 days 6 hours ago) and read 2317 times:

Quoting JetJock22 (Reply 11):
The $39 o/w was a fare sale that is over now.

It's not over yet. A simple look at some dates in May will show plenty of those $39 fares.

It's easy to fill a plane up with $39 fares. The hard part is filling it up with fares that actually turn a profit. JetBlue has achieved the easier part of the battle by getting people on its planes; now it just needs to raise fares. However, it's a good marketing strategy to keep fares this low for a few more months in order to get people to try the JetBlue product and to therefore most likely come to enjoy it. This will build loyalty which will, in return, give JetBlue pricing power - which will allow it to get rid of those $39 fares. It's a long process, but that's what JetBlue gets for not advertising enough.

Quoting Timberwolf24 (Reply 10):
How is ORD preforming for B6?

Really, really, really well. From both JFK and LGB.

JetBluefan1



Most people on a.net hate JetBlue. Get used to it.
User currently offlineISP From United States of America, joined exactly 10 years ago today! , 101 posts, RR: 0
Reply 13, posted (7 years 5 months 2 weeks 6 days 4 hours ago) and read 2292 times:

Quoting JetBluefan1 (Reply 12):

JetBluefan1 -

Are you employed by JetBlue?

Do you have access to their revenue numbers?

If not, are you sure that by monitoring the prices the website offers, you are able to pinpoint how yield for a certain station is doing?


User currently offlineTUSaadvantage From United States of America, joined Oct 2006, 160 posts, RR: 0
Reply 14, posted (7 years 5 months 2 weeks 6 days 4 hours ago) and read 2287 times:

I was on TUS-JFK last week and the load was pretty mediocre (about 60%), but on the way back it was about 95%. Does anyone know how that flight is doing? I hope the CO redeye to EWR isn't eating into B6 too much.

User currently offlineJetJock22 From , joined Dec 1969, posts, RR:
Reply 15, posted (7 years 5 months 2 weeks 6 days 2 hours ago) and read 2267 times:

Quoting JetBluefan1 (Reply 12):
It's not over yet

Then I didn't get the memo. I haven't seen any of the $39 fares when I have been booking reservations here at the airport.


User currently offlineJetBluefan1 From United States of America, joined Dec 2003, 2987 posts, RR: 14
Reply 16, posted (7 years 5 months 2 weeks 5 days 17 hours ago) and read 2187 times:

Quoting ISP (Reply 13):
Are you employed by JetBlue?

Do you have access to their revenue numbers?

If not, are you sure that by monitoring the prices the website offers, you are able to pinpoint how yield for a certain station is doing?

I'm not employed by JetBlue, but I do have access to their revenue numbers according to certain analysts.

In any case, yes - monitoring prices that the website offers is a good indication for recognizing how a certain station is doing. I monitor JetBlue's pricing tactics daily - that's how serious (obsessive?) of an investor I am. It's common sense that a market that is performing well will have higher prices than one that isn't performing well. For example:

JFK-PIT had a $29 sale fare for nearly 2 months. At the same time, a JetBlue executive was quoted in a Pittsburgh newspaper telling the public that Pittsburgh was not where JetBlue would like it to be just yet. In addition, BOS-PIT - which was selling at $39 - has been reduced by one frequency for March-May. If the route was doing well, then there is no way that a frequency would have been dropped.

On the other hand, JFK-CUN flights sell for $149+ and you rarely see a price lower than that. The flights started off so well that a second daily frequency was added within months of inauguration. Same goes for SRQ.

Quoting JetJock22 (Reply 15):
Then I didn't get the memo. I haven't seen any of the $39 fares when I have been booking reservations here at the airport.

They aren't that popular - if you check on the website, they're mostly available on Tuesdays, Wednesdays, and Saturdays. Other days see a base price of around $54, which is an indication that things are getting better. (As for today, it seems that every single B6 flight in/out of CMH went sold out.)

JetBluefan1



Most people on a.net hate JetBlue. Get used to it.
User currently offlineDsa From , joined Dec 1969, posts, RR:
Reply 17, posted (7 years 5 months 2 weeks 5 days 15 hours ago) and read 2150 times:

JetBlue I suspect is very happy with the E190's they're efficient, comfortable and allow them to cater for markets thought not possible for the airline. It was a good choice, regional travel in the US needs some lower fares.

DSA


User currently offlineTimberwolf24 From United States of America, joined Jun 2001, 575 posts, RR: 1
Reply 18, posted (7 years 5 months 2 weeks 5 days 12 hours ago) and read 2099 times:

Quoting JetBluefan1 (Reply 12):
Quoting Timberwolf24 (Reply 10):
How is ORD preforming for B6?

Really, really, really well. From both JFK and LGB.

Good to hear! I hope that B6 at some point can get more slots at ORD to expand.



Living in LA, ORD/MDW will always be home!
User currently offlineJetBluefan1 From United States of America, joined Dec 2003, 2987 posts, RR: 14
Reply 19, posted (7 years 5 months 2 weeks 5 days 11 hours ago) and read 2075 times:

Quoting Timberwolf24 (Reply 18):
Good to hear! I hope that B6 at some point can get more slots at ORD to expand.

I'm hoping for that too. Any word on any airlines cutting ORD flights or more slot inheritance opportunities?

It's funny...when B6 announced plans for ORD, people just said that it would be a money-loser but a token presence was needed to be considered a major player in the U.S. But now it looks like B6 can potentially turn a profit there...and the airline has only been there for 3 months.

JetBluefan1



Most people on a.net hate JetBlue. Get used to it.
User currently offlineAvion346 From United States of America, joined Nov 2003, 184 posts, RR: 1
Reply 20, posted (7 years 5 months 2 weeks 5 days 11 hours ago) and read 2067 times:

Quoting JetBluefan1 (Reply 16):
It's common sense that a market that is performing well will have higher prices than one that isn't performing well.

Not really true. Pricing (which BTW is very distinct from yield management) is based mostly on remaining competitive. For example, if a cometitor is trying to stimulate flow traffic from PIT to NYC over a BWI hub by offering a low fare, competitors are extremely likely to match them either exactly or after exercising any premiums or sell-ups. This all happens independent of how well a particular market performs (in all but a few select cases). Thus, B6's pricing strategy could be designed to remain competitive as opposed to reviving a stagnating market.

[Edited 2007-04-08 02:07:00]

User currently offlineJetBluefan1 From United States of America, joined Dec 2003, 2987 posts, RR: 14
Reply 21, posted (7 years 5 months 2 weeks 5 days 11 hours ago) and read 2047 times:

Quoting Avion346 (Reply 20):
Thus, B6's pricing strategy could be designed to remain competitive as opposed to reviving a stagnating market.

It depends on the market. If you see JetBlue lowering its prices on, say, JFK-FLL, then that is most likely to remain competitive; that route is JetBlue bread-and-butter, so it's almost impossible for it to perform poorly. Same thing goes for routes like JFK-SJU and JFK-LGB; these are routes with a lot of competition and a lot of opportunity to make some money, so a lowering of fares in those markets is usually due to competitive reasons - not to stimulate additional demand than what has already been stimulated.

But if you take a look at JetBlue's pricing tactics for new markets, they are completely different. (I have been studying these tactics for years.) If a new market isn't performing well, JetBlue will keep fares low. If it's performing well, JetBlue will pull fares up to "normal levels."

When JetBlue launched AUS flights, fares were kept low until JetBlue recognized that traffic was finally picking up; that $79 sale fare went away and now the lowest you can find is $129. The same thing happened for CUN, AUA and SRQ. This did not happen for JAX and BNA, which basically stayed at the sale fares - but the fares thankfully didn't go lower, which is exactly what happened at HOU, RIC, PIT and CMH.

When JetBlue launched HOU flights, fares remained at $69-$79 until traffic picked up. Now that the E190 has been used to replace the A320 on this route, JetBlue has been able to raise prices and now a $84-$99 pattern isn't rare to see. Is it where JetBlue wants to be? No. But it's a start.

When JetBlue launched PIT flights, fares were around $49 (as a sale fare). Then they dropped to $29 because the flights were going out empty - day in and day out - even with those $49 fares. PIT travelers are notorious for remaining loyal to US despite the LCC's presence (a classic mistake), but finally the media caught on and encouraged people to support JetBlue. Fares are going back up in that market - not to the original levels that JetBlue anticipated, but least they're going higher than that ridiculously low $29 fare. The same thing happened at RIC. Something similar happened at CMH, though it seems that JetBlue is having some more success there in both a.) raising fares and b.) filling seats.

JetBluefan1



Most people on a.net hate JetBlue. Get used to it.
User currently offlineAvion346 From United States of America, joined Nov 2003, 184 posts, RR: 1
Reply 22, posted (7 years 5 months 2 weeks 5 days 11 hours ago) and read 2039 times:

Quoting JetBluefan1 (Reply 21):
If a new market isn't performing well, JetBlue will keep fares low. If it's performing well, JetBlue will pull fares up to "normal levels."

Just curious if you have access to pricing tools used in revenue management departments? Sale fares and structure fares are two different animals. The way you talk about B6's strategy is as though they controlled the market. Just because they may want to raise fares or lower fares does not mean other carriers will follow. If B6 decided to raise fares because, as you mention, a market's performance is picking-up, but a competitor is still trying to stimulate flow traffic (in that particular market), B6 would be foolish to simply raise their fares. Remeber, even B6 operates in a market with many carriers and must consider other airline's pricing strategies when making their decisions. They can't just "price away" on their own and pay no heed to others.


User currently offlineJetBluefan1 From United States of America, joined Dec 2003, 2987 posts, RR: 14
Reply 23, posted (7 years 5 months 2 weeks 5 days 10 hours ago) and read 2020 times:

Quoting Avion346 (Reply 22):
If B6 decided to raise fares because, as you mention, a market's performance is picking-up, but a competitor is still trying to stimulate flow traffic (in that particular market), B6 would be foolish to simply raise their fares.

Right. And to this I said:

Quoting JetBluefan1 (Reply 21):
Same thing goes for routes like JFK-SJU and JFK-LGB; these are routes with a lot of competition and a lot of opportunity to make some money, so a lowering of fares in those markets is usually due to competitive reasons - not to stimulate additional demand than what has already been stimulated.

If another airline is undercutting JetBlue's fares, it's fairly safe to say that JetBlue will match those fares in order to remain competitive.

In the case of sale fares, by simply taking a look at the markets I pointed out as having been weak thus far - RIC, PIT, CMH - it's obvious that the competitive threat in these markets is no where near as high as markets such as South Florida, LA, etc. Therefore, JetBlue has greater pricing power in these second- and third-tier cities. That's not to say that there is no competition to these cities, but methinks that it wasn't DL's idea to offer $29 fares to PIT on its Comair flights.

JetBluefan1

[Edited 2007-04-08 03:04:47]


Most people on a.net hate JetBlue. Get used to it.
User currently offlineAvion346 From United States of America, joined Nov 2003, 184 posts, RR: 1
Reply 24, posted (7 years 5 months 2 weeks 5 days 10 hours ago) and read 2009 times:

Quoting JetBluefan1 (Reply 23):
methinks that it wasn't DL's idea to offer $29 fares to PIT on its Comair flights.

I concur that this is a pretty safe assumption. You would be surprised just how airlines approach their considerations when it comes to assessing competition on a route. Often they will use nearby cities/markets as proxies, especially if lower fares are prevealent. For example CLTJFK might use RDUISP as a proxy when it comes to establishing a structure if WN's through service carries the lowest structure. However, as I've mentioned and you've acknowledged, sales are totally different, and those $29 fares are most definitely not structure fares. I wonder what footnote they've attatched to those?


25 JetBluefan1 : That's an interesting theory. When NK entered the PVD-Florida route Neeleman made a note on a conference call and referred to it as "more competition
26 Post contains images Avion346 : Every area/airline is obviously different, but I have noticed that this is a fairly common practice when it comes to pricing. I only deal with B6 in t
27 JetBluefan1 : Haha thanks man...JetBlue does seem to get slammed, and I try to keep a fair argument when reacting to JetBlue news. I prefer to be a realist, which
28 Post contains images Avion346 : Well I certainly appreciate the gesture. Ditto for me Back to the thread, I hope the summer season is shaping up nicely for B6. Does anybody know whe
29 Post contains images JetBlueAtJFK : Well I'm glad to see traffic is picking up and hopefully B6 is back strong for the rest of spring and into summer. I think what B6 needs to do its ove
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