JetBlue Airways will refit about 145 aircraft over the next
several years to improve inflight entertainment options and increase seats.
In the third and fourth quarters, it will add 10 seats to
each of 15 A321s to bring them to 200. It also expects to add three new A321s
to the fleet this year.
From 2017 to 2019, JetBlue will retrofit about 130 A320s to
increase seats from 150 to 162. The design mimics JetBlue’s A321 cabins, which
were introduced in 2014, and includes new seats, larger TV screens and
gate-to-gate Wi-Fi service, executive vice president of commercial and planning
Marty St. George said during a fourth-quarter earnings call. Legroom will
decrease two inches to 32 inches, though that's more than the typical U.S.
carrier's economy offering.
The carrier also continues to increase availability of its premium-class
Mint cabin, president and CEO Robin Hayes said. After boosting service
between New York City and both Los Angeles and San Francisco late last year, it
will begin Mint service between Boston and San Francisco on March 24. JetBlue will
add service between Boston and Los Angeles later this year and ultimately aims
for three daily Mint flights between Boston and each city.
During the fourth quarter, passenger revenue increased 8.3
percent year over year to $1.4 billion, and total revenue increased 10.2
percent to $1.6 billion. St. George noted that the tiered
fare structure introduced last year drove revenue growth with “a high
upsell percentage and more paid checked bags than originally forecast.”
JetBlue’s average fare during the quarter declined 2.9
percent year over year to $161.35, and yield declined 3.6 percent. Traffic
increased 12.4 percent while capacity increased 10.4 percent, combining for a
load factor of 83.6 percent, up 1.5 percentage points from the prior year.
Net income for the quarter more than doubled
year over year to $190 million, and total 2015 net income increased 69 percent
to $677 million. Like all airlines, JetBlue has benefited from a significant
drop in fuel costs, and its interest expenses also have declined significantly
due to debt reduction.