Dive Brief:
- JetBlue is committed to improving customer experience and its value proposition to the full-range of leisure customers, executives said on a Q2 2024 earnings call Tuesday.
- The airline unveiled its JetForward strategy, prioritizing back-to-basics CX, including “delivering reliable and caring service” and “offering products and perks that customers value,” CEO Joanna Geraghty said. Already, the airline has improved its completion factor to 98.8%, up a percentage point from a year prior, according to JetBlue’s earnings release.
- Geraghty acknowledged that JetBlue’s reliability has lagged in the past but noted the airline performed well during the busy summer travel season. “In particular, our investments to deliver reliable service are showing early indications of driving value across the airline,” she said. “Operational reliability is essential to the success of our strategy, and it's a top priority for our customers.”
Dive Insight:
JetBlue posted a surprise profit after months of cutting unprofitable routes and reducing costs. As it looks to increase revenue, the airline is aiming to meet its leisure customers’ changing preferences to bolster loyalty.
“Our strategy is more focused than ever on offering customers the products and the perks they value today,” Geraghty said. “We believe that delivering on that brand promise will also enable us to ensure our customers feel rewarded for their loyalty.”
The carrier is expanding its product offerings to ensure the “customer value proposition remains attractive to the full spectrum of leisure customers,” she said.
That includes changes the airline made to its Blue Basic fare in June, such as a complimentary carry-on baggage for travel beginning Sept. 6. Some airlines have done the opposite in recent years, charging economy travelers for carry-on luggage.
“Our changes to Blue Basic have allowed us to remain competitive, and since launching about a month ago, we've seen promising early results,” Geraghty said. “Not only is this a meaningful addition to the value proposition of our most affordable fare option, we believe it's a necessary step on our path to profitability.”
JetBlue plans to unveil additional Blue Basic initiatives in the coming months. Those changes, combined with updates to the loyalty program, are expected to add $400 million of incremental earnings before interest and taxes in 2027.
Geraghty also touted the value of the airline’s loyalty program, which makes up about half of the airline’s $11 billion unencumbered asset base.
