JetBlue Adds Transcon Service
JetBlue Airways this week announced a pair of new West Coast destinations that expand the low-cost carrier's growing transcontinental presence. This morning it revealed plans to begin three daily nonstop flights between New York JFK and Burbank, Calif., effective May 24. Yesterday, JetBlue said it would begin daily nonstop service from JFK to Portland, Ore., effective May 17.
Once the new flights are launched, the carrier will offer service to nine West Coast cities. JetBlue on June 17 also will add a second daily flight between JFK and Seattle and on July 15 will increase Burbank daily frequencies to four.
As previously announced, the airline on May 3 will begin nonstop service between Boston and both Las Vegas and San Jose, while adding frequencies from Boston to both Long Beach and Oakland, Calif. It also will offer new nonstop service between Washington Dulles and San Diego and will add daily flights between Dulles and both Oakland and San Diego. On the same day, JetBlue will add more daily flights from JFK to Long Beach, Ontario, San Diego and San Jose.
J.P. Morgan Securities analyst Jamie Baker last month said JetBlue's overall transcon growth in the first half of 2005 would be around 17 percent, while competitive capacity would decline roughly 5 percent. Baker's figures did not include expansion of Delta's low-fare Song unit, which will begin flying transcons later in the year.
“The legacy carriers did not stop JetBlue's growth in the transcon market and they, along with America West, have since retreated,” said a recent research report issued by analysts at Raymond James & Associates.
The report also indicated JetBlue would build a hub-and-spoke operation centered at New York JFK as the carrier later this year begins taking delivery of 100-seat Embraer 190 jets, its second fleet type. As the launch customer for that new plane, JetBlue likely will enter several smaller and midsize markets. “With low fares and a superior product, JetBlue will capture a substantial share of the legacy airlines' traffic in medium to lower density markets,” Raymond James analysts said.
JetBlue in 2004 surpassed $1 billion in passenger revenue, qualifying for major carrier status after just five years in the skies. This month, it took delivery of its 71st Airbus A320, one of 15 new Airbus aircraft expected this year.