JetBlue’s upselling and bag-fee revenues have been running
higher than expected since the carrier implemented its three-tiered fare
program June
30.
The program, which allows no free checked bags at the lowest
level and offers two at the highest, generated about $40 million in revenue
during the third quarter, executive vice president of commercial and planning
Marty St. George said during the company's earnings call Tuesday. For the third
and fourth quarters, the program should generate $80 million in revenue, well
above JetBlue’s original forecast of $65 million, he said.
JetBlue reported $1.7 billion in total revenue for the
quarter, up 10.4 percent year over year. The carrier’s third-quarter net income
rose from $79 million to $198 million year over year, owing in large part to a
33.6 percent decrease in fuel costs and related taxes.
Traffic increased 9.2 percent year over year, and capacity
increased 10.4 percent, contributing to a load factor decline of 0.9 percentage
points to 85.3 percent.
JetBlue’s average fare during the quarter increased 1.9
percent year over year to $167.96, and yield increased 0.5 percent.