JetBlue Airways Says It Achieved ~$100M In Structural Cost Savings to-date To Deliver Run-rate Savings Of $175M-$200M By End 2024

Author: Benzinga Newsdesk | April 23, 2024 06:34am

First Quarter 2024 Key Highlights

• Continued Implementing Strategic Network Changes
  • Announced the scaling back of flying at Los Angeles International Airport, reallocating flying to more profitable opportunities in core leisure markets. Departure count will be down by roughly one-third, effective June 13th.
  • Rationalized our footprint at seven stations, making progress to exit Baltimore, Bogotá, Burlington, Kansas City, Lima, Newburgh and Quito.
  • Launched new non-stop seasonal service to Dublin, Ireland from New York's John F. Kennedy International Airport and Boston Logan International Airport ("BOS"), and launched new daily nonstop service to Paris Charles de Gaulle Airport from BOS.
• Executed on Our Cost Initiatives
  • Implemented new fixed cost savings initiatives, including offering voluntary opt-out opportunities to select work groups, and rationalizing our real estate footprint.
  • Achieved ~$100 million in structural cost savings to-date, keeping JetBlue on track to deliver run-rate savings of $175 million to $200 million by the end of 2024.
  • Realized $70 million in cumulative cost savings from our fleet modernization program, which is now expected to deliver $100 million in cost savings through 2024, vs. $75 million previously, as we continue to replace the Embraer E190s with the margin-accretive A220s.
• Provided Exceptional Service for Our Customers
  • Delivered improved operational performance versus our expectations, even with more disruptive operational events than last year, resulting in a completion factor of 98.7%.
  • Launched additional ancillary revenue initiatives, including preferred seating on select routes, giving customers more options to choose the seat that best aligns with their preferences.
  • Announced new and improved Signature Perks for Mosaics, including dedicated phone support, greater access to the Mint cabin, and the ability to gift Mosaic 1 status, further expanding the ways our most loyal customers can be rewarded.
• Advanced Our Progress as a Sustainability Leader
  • Acted as one of three airlines in the largest-ever collective purchase of sustainable aviation fuel ("SAF") certificates, equal to about 50 million gallons of high-integrity SAF, or 500,000 tons, of abated CO2e, through the Sustainable Aviation Buyers Alliance.

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