South America accounts for one-third of JetBlue's seat capacity. However, due to stiff competition from other US airlines, earnings are below forecast levels. That is why the company spreads through the network.
JetBlue reported a loss of $716 million in the 1st quarter. Despite a 2.7 percent increase in available seat capacity compared to the same period last year, turnover fell 5.1 percent to $2.2 billion. Expenses also increased by 14 percent due to increase in fuel costs.
network
The airline is reviewing the network and taking steps to eliminate unprofitable routes. For example, starting in mid-June, 33 percent of flights to Los Angeles (LAX) will be canceled and destinations like Bogotá, Lima, and Quito will disappear from the schedule entirely.
On the other hand, the focus is on ways to earn money, including going to Europe.
JetBlue also hopes to save money by replacing Embraer 190s with more economical Airbus A220s. It should make 100 million dollars this year.
Outlook
JetBlue expects disappointing figures throughout 2024, with higher costs and lower-than-expected revenue.
