Recently Approved Articles:

    jet blue Airlines Competition Why Airlines Need Competition .
    by: James Post
    The airline holds a virtual monopoly for intra-Caribbean flights, and it shows. Once they canceled a flight because of "technical reasons". Most people realised that the real reason was economy as the flight was poorly booked. No apology, let alone compensation. Another time I almost missed a flight because it left half an hour early. Since I only had hand luggage it was so convenient to kick me out.
    [Read More....]
    jet blue Airlines Competition
    jet blue Jetlag Stop Jetlag .
    by: Chance Buckman
    Jetlag has been a problem for air travelers ever since air flight was invented. Our bodies are creatures of habit and once we have adjusted to a specific time zone, they don't like things to change. When we do disrupt our circadian rhythms or biological clock to the layperson, we experience jetlag. Depending on how far we have traveled, in which direction and what shape our body is in ....
    [Read More....]
    jet blue Jetlag
    jet blue Cheap Flight Tickets How to Purchase Cheap Flight Tickets .
    by: A. Adler
    Where do you want to go? Are you ready to travel the world? Does the thought of taking a romantic getaway with the one you love just make you feel good inside? What about money? How much will it cost you to take a family vacation? Normal averages are around $1000 to $3,000 for three to five days for 4 people. That's not including airfare! This article is about introducing you to a better way ....
    [Read More....]
    jet blue Cheap Flight Tickets
    jet blue Discount Air Tickets Avail Discount Air Tickets and Save Money .
    by: Ashu Kaushik
    Regular travelers know the time when to call the travel agents for cheap air tickets or discount tickets. If you are not a frequent traveler and you do not know when to call the travel agents to avail discount tickets ....
    [Read More....]
    jet blue Discount Air Tickets
    jet blue Avoiding Jetlag Avoiding Jetlag .
    by: Catharine Allado
    Jet lag is a temporary disorder as a result of the change in time zone when traveling. It causes disruption to our body clock, which may affect our physical, emotional and mental condition. As our body struggles to cope with the current time, we might experience some common symptoms like: headaches, difficulty in sleeping at night, fatigue, loss of appetite, disorientation, dehydration and other discomforts ....
    [Read More....]
    jet blue Avoiding Jetlag
    jet blue Cheap Flights The Basics of Cheap Flights .
    by: Keith Driscoll
    You can currently get cheap flights to nearly anywhere in the world. Las Vegas, Orlando, Sydney, Singapore, Hong Kong, etc, all possess airlines cutting each other throats in favor of your custom. A low-cost carrier or low-cost airline (also identified as a no-frills, concession or budget carrier or airline) is an airline that gives commonly low fares in exchange for eliminating numerous traditional passenger services.
    [Read More....]
    jet blue Cheap Flights
    jet blue Book Airport Parking Always Book Airport Parking in Advance to Save Money .
    by: Reece Coleman
    How to save money on airport parking? Unless you like paying over the odds, you should never ever just turn up at an airport car park, without pre-booking your parking for the period of your travel! Travelling to destinations around the world is more accessible than ever, thanks to the quick & easy access to cheap flights and accommodation. However, when it comes to the parts of our holiday ...
    [Read More....]
    jet blue Book Airport Parking
    jet blue Airplane Tips For When You're on an Airplane .
    by: Angela Linton
    As intriguing as travelling on an aeroplane (airplane) is, it can become a bit uncomfortable. However, while flying, there are several things can be done to help in making the flight a bit safer and easier. Keep Shoes on when... It is usually tempting to take off ones footwear during the flight. While this is okay during the in-flight movie or as you are taking a nap, do not allow your socked feet to come ....
    [Read More....]
    jet blue Airplane
    jet blue Discounted Business Class Ticket Find a Great Discounted Business Class Ticket All the Time .
    by: J. Fernandez
    A discounted business class ticket is not hard to come across, but there are so many individuals who travel not knowing or caring how to find them. Did you know that 30% of all travellers are business travellers? What if you found a discount on every business flight, this would save you and your business tons of money in the long run. Let's go over a couple different strategies towards finding a good deal ...
    [Read More....]
    jet blue Discounted Business Class Ticket
    jet blue Lowest Airline Tickets Some Key Factors That Could Help You Get the Lowest Airline Tickets .
    by: Luis JJ Teixeira
    You need to understand that there is no such thing as discounted airfare and/or getting the cheapest airfare available. This is simply because there is no base price to work off. For example, a flight from New York to London should cost $600, but airline companies are offering it at $400. People really need to understand the reason for this is that there is no such thing as a fixed ticket price.
    [Read More....]
    jet blue Lowest Airline Tickets
    jet blue Business Travel How to Save Money on Business Travel .
    by: Micke Jack
    If your work involves a lot of travelling, and you are not lucky enough to have an unlimited expense account, then you will most likely want to keep your outgoings to a minimum if you are to get the most, financially, from your road bound endeavours. Here are some tips to help you save money on your travels ...
    [Read More....]
    jet blue Business Travel
    jet blue Airplane Tips For Children on an Airplane .
    by: Angela Linton
    The possibility of taking a six-year- old child to a wonderful destination via the airplane can be filled with both excitement and trepidation. Excitement speaks for itself, whereas, trepidation because you do not think that he/she will be able to handle such an enclosed area, especially when it's going to be a long flight. ...
    [Read More....]
    jet blue Airplane
    jet blue Cheap Flights How to Get Cheap Flights Today .
    by: Kim T Chambers
    When you are booking a flight, the advice, which I think is now common knowledge is book flights as early as possible. Business travellers will pay high prices and since they usual travel at short notice, airlines hike prices for last minute bookings.
    [Read More....]
    jet blue Cheap Flights
    jet blue travelling I Hate Flying .
    by: James Post
    Today I am travelling to visit my youngest son in California. We do this trip a couple of times each year to pick him up, take him home or simply to visit. Something strikes me though: is there such a thing as a good flight? I have travelled on most major airlines. But nothing ever seems to go to plan. The lines are long. They always manage to mess up your ticket or seats...or something. Besides the fact that I hate flying ...
    [Read More....]
    jet blue travelling
    jet blue white-knuckle-flyers Are You Afraid to Fly? .
    by: Al Carmickle
    Many people are concerned about flying and are often referred to as "white-knuckle-flyers." I retired after thirty six years as a pilot for a major airline. Every pilot during his or her career has experienced situations where they've thought it would be nice to be on the ground instead of in the air. However, such experiences are not reasons that would make us afraid to fly ...
    [Read More....]
    jet blue white-knuckle-flyers

In Search of Profitability, JetBlue Increases Prices


In Search of Profitability, JetBlue Increases Prices

JetBlue made its name in the airline business with low fares. But in the bruising battle for passengers and profitability, it is trying a new tack: raising prices.

A central testing ground for this approach is the heavily traveled New York-to-Florida corridor.

JetBlue Airways - at six years old too new to have built up excessive costs that can now be trimmed - is trying mightily to raise fares in a bid to restore profits after surging fuel prices caused it to lose $42.4 million during the fourth quarter. Along the East Coast, JetBlue, which is based in New York, competes head to head against traditional carriers like Delta Air Lines and Continental Airlines. JetBlue's low fares, matched by the competition, have stimulated a big increase in demand for travel in recent years.

JetBlue says it needs a $10 increase on one-way tickets, which averaged $110 last year. If the carriers can pull off a major price increase without scaring off a lot of those price-sensitive passengers, it would be an encouraging sign for the health of the industry. It would also help JetBlue continue its rapid growth. It plans to add 35 planes this year and 35 next year, and to take on billions of dollars in debt in the hope of becoming one of the country's biggest and most successful airlines.

Domestic fares on an industrywide basis are already up by about 8 percent compared with a year ago. Much of that increase, however, is because of reduced fleets at some major carriers, which has cut the supply of airline seats at a time when demand has remained strong. As Delta and Northwest Airlines move through bankruptcy proceedings, the fleet reductions will probably come to an end and the supply of seats will rise, making price increases harder to push through.

During the last six years, when traditional airlines were piling up more than $40 billion in losses, JetBlue grew to $1.7 billion in annual revenue and became increasingly popular with travelers. Its planes feature leather seats and individual television screens with lots of channels. New planes and new, nonunion workers gave it unusually low costs. But now that fuel prices have pushed up expenses for all airlines, and older carriers have sharply cut their own labor costs, the advantage JetBlue enjoyed as a start-up is greatly reduced.

"Many JetBlue investors we speak with are under the impression there's something patently different about its model, some core ├╝ber-profitability that's waiting to be tapped," Jamie Baker, an analyst at J. P. Morgan Securities said in a report last month. "We doubt it."

JetBlue's biggest obstacle has been Delta. "We've had a competitor that's been willing to lose hundreds of millions of dollars," said David G. Neeleman, founder and chief executive of JetBlue. During last year's third quarter, Delta's average ticket prices on seven heavily traveled routes were lower than JetBlue's prices, according to Back Aviation Solutions, a consulting firm. Still, on flights between South Florida and New York, JetBlue planes flew 86.6 percent full during the third quarter and Delta planes were 76.7 percent full.

"JetBlue is charging a premium to Delta and they're getting better load factors," said Michael Allen, a managing director at Back Aviation. "The indication would be they have a preferred product."

Last October, the news that Delta would close Song, the low-price airline it started to compete with JetBlue, was greeted with relief at JetBlue headquarters. Finally, Mr. Neeleman and others hoped, the costly price war up and down the East Coast would subside. But more than three months later, JetBlue is still waiting to find out how substantially Delta will scale back the number of seats it offers on those routes. "We are waiting to see what Delta does," said Tim Claydon, senior vice president of sales and marketing at JetBlue.

Delta, while saying it will substitute smaller planes on some New York-to-Florida routes beginning in May, is in no hurry to offer comfort to JetBlue by disclosing its plans. "We ain't pulling out," Chris Kelly, a Delta spokeswoman, said. "Much to their dismay, I'm sure." Delta plans to withdraw some of the Boeing 757's that were operated as Song planes, seating 199 passengers, and replace them with Boeing 737's or MD-80's, which seat about 150 and 142, respectively, said Bob Cortelyou, vice president of network planning at Delta.

Mr. Baker of J. P. Morgan estimated that Delta was reducing seats between the Northeast and Florida by about 15 percent from a year ago. He said that should be enough to allow JetBlue to raise fares and report a small profit for 2006. ***

-------------------------------------------
by Jeff Bailey
http://www.nytimes.com/2006/03/01/business/01jetblue.html
image: http://images.jupiterimages.com/common/detail/74/97/22769774.jpg

0 komentar: