SouthWest CEO Interview

JetBlue Earnings Call:: Joanna Geraghty Answer Regarding Boston

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Helane Becker
Thanks very much, operator. Hi, everybody. Thank you very much for the time. I just have two questions. One with all of the demonstrations that are going on in Puerto Rico, I was just kind of wondering if you could talk about how that’s impacting if at all your business?
And the second question I had was with respect to the competitive situation in Boston. I was kind of wondering if you could just address that a little bit? It seems like there's been a big increase in competitive capacity growth, and I'm just kind of wondering how you're handling that? So those are my questions. Thank you.
Joanna Geraghty
Great. Thanks Helane. As far as San Juan concerned, we're obviously monitoring the situation very closely. As of today, we have not seen any material financial impact and we are very committed to Puerto Rico. It's a great focus City for JetBlue.

Shifting to your question on Boston, maybe I'll address it in two parts. First just what we're seeing in terms of the JetBlue experience in Boston, and I'll address the capacity point you raised. We are very profitable in Boston, solid. We are committed to winning in Boston. We've built the network in Boston based on carrying customer where they want to go. We are focused on local customers where we see a very clear first choice preference for JetBlue. We've got the best people, the best products and a point-to-point model that is just perfect for the Boston geography.

We are investing in meaningful ways in our Boston franchise. We've started with the strong leisure franchise. We continue maintain this, and have now grown a great business franchise. If you take a look at what we're doing up there, we've got 15 daily departures between Boston and DCA. We've hourly departures across our New York City area airports where we're allocating flights to important business markets that our customers have told us they want to fly to.

Transcon is performing very well. We're launching Europe in 2021 to deliver European relevance to our Boston customers. We have a strong loyal base of corporate customers. We're investing with Mass Port. They are great business partner for JetBlue. Bottom line, it’s solidly profitable with great growth potential. And we are all very energized here with regard to Boston performance.

With regard to your capacity point, I describe it as puts and takes. Some competitors are adding capacity, others are pulling capacity. You know, while the net capacity does accelerate a bit in Q4 it's still well within the range of what we have historically seen in Boston so we are quite comfortable with it.


Our Comment:
We think adding more routes in Worcester would help the Boston franchise
 

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