JetBlue has made a minority investment in private jet
company JetSuite to boost growth of its West Coast service.
Jet Suite's service, JetSuiteX, operates 30 passenger jets
that fly among private terminals in California, Las Vegas and Bozeman, Mont. JetBlue
already partnered with JetSuiteX to allow JetBlue Mosaic loyalty members to
earn points on JetSuiteX flights, but the companies now will cooperate more deeply.
"We see a great opportunity on the West Coast in terms of
offering customers a much more convenient alternative, and the model has plenty
of potential to grow," JetBlue president and CEO Robin Hayes said during
JetBlue's earnings call. "We're very active in thinking about how [the
aviation] industry can change and be disruptive over the next few years."
Hayes said it was a small investment that was "not
material from a financial disclosure standpoint." The investment also
earns JetBlue a nominee on JetSuite's board of directors.
JetBlue's
operating revenue increased 2.6 percent year over year during the third quarter
to $1.7 billion. Traffic increased 7.6 percent, and capacity increased 6.3
percent, pushing JetBlue's load factor up a percentage point to 86.3 percent.
Its average fare declined 6 percent to $157.87. The carrier reported a net
income of $199 million for the quarter, up from $198 million in the third
quarter of 2015.