JetBlue Revamping Latin America and Caribbean Strategy

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JetBlue is looking to improve margins and profitability by revamping its strategy for flights to the Caribbean and Latin America. The changes are based on trends and “a series of unique headwinds” according to executives on their most recent earnings call.

The airline is getting out of Mexico City this coming January after just three years. They also are rolling back operations out of New York and Boston because the company hasn’t had much success in those prime northeast cities. 

To improve profitability in Latin America and the Caribbean, company President Joanna Geraghty said, [JetBlue will make] “ongoing capacity adjustments.” But she said the airline is “bullish long-term,” telling investors that over time the region has produced strong margins. “We’ve had a long history operating in this region and it’s a region where there are normal puts and takes….This year, we’ve obviously seen a bit more pressure, but based on our experience, this is temporary in nature and it will move.”

Other changes come in light of the troublesome reports coming out of the Dominican Republic over the last few months. JetBlue has rolled back on Punta Cana and deployed assets to other areas of the Caribbean.

The company will continue to push routes to South America like Colombia and Ecuador and plan on expanding in the area once they receive more resources, notably a new Airbus A321neo fleet. More resources mean more flights at peak times. The company expects to see delivery of the new assets within the next 6-12 months. 


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