This Week’s Featured Link:
JetBlue Airways (JBLU) Robin Hayes on Q4 2015 Results – Earnings Call Transcript – Seeking Alpha
JetBlue had been lagging the industry from a profit perspective, but things are changing. Last quarter was a great one for JetBlue, but why? One thing that stood out was the huge benefit of “Fare Options.” You remember, this is the bundled fare product that introduced the lowest fare without a checked bag. That means people either had to opt for a higher fare to have a bag included or pay for the bag outright. How did these fare options perform?
“Specifically we exceeded our 80 million operating income target and believe we’ll achieve a $200 million run rate in 2016, one year ahead of our original plan.”
JetBlue’s net profit in Q4 was $190 million. JetBlue resisted charging bag fees for years, but when it gave in, it did it thoughtfully. Now the airline has significantly increased profits, above expectations, and hasn’t tarnished its image in the process.
You listening Southwest?
Two for the Road:
BA boss Willie Walsh reveals ‘We could still rescue Bombardier CSeries’ – Irish Times
Former British Airways and current IAG (BA’s parent) CEO Willie Walsh is at it again. He never minces words, and this interview shows just that. My favorite part? This is what Willie says about Richard Branson.
“I don’t like him. I don’t admire him. I don’t buy his bullshit”.
SeaPort Airlines files for bankruptcy protection, ends Oregon Coast service – Portland Business Journal
Another little guy runs into a brick wall. SeaPort is still flying, but it dropped a bunch of routes and is just trying to keep itself afloat. It said that the pilot shortage led to the cutbacks, but presumably there’s more to it when bankruptcy is involved.