JetBlue CEO says company is better positioned to serve premium travelers

By Doyinsola Oladipo and Allison Lampert

WASHINGTON, Sept 10 (Reuters) - JetBlue Airways JBLU.O CEO Joanna Geraghty said on Wednesday that 2025 has been challenging, dealing a setback to efforts to boost profitability, but that the New York-based carrier is better positioned to serve premium customers than other airlines now trying to move upmarket.

Across the industry, carriers like Frontier Group ULCC.O and others are boosting premium offerings to try to attract a more well-heeled customer, a segment of the business where JetBlue is already entrenched, Geraghty told Reuters in Washington.

"Some of the carriers that are known for much lower cost and a more reduced customer experience are struggling to try to get more premium customers on board. JetBlue always has had a great customer experience," she said.

The company was among several airlines that pulled their outlooks due to economic uncertainty early in the year, but the industry's prospects have since improved. JetBlue now expects a smaller decline in third-quarter operating revenue than previously forecast, though LSEG data show it is still expected to post a loss of $1.63 for the fiscal year ending in December, according to the Wall Street consensus.

JetBlue and United unveiled a partnership in May, dubbed "Blue Sky", that would allow travelers to book flights on both carriers' websites , while interchangeably earning and using points in their frequent flyer programs. JetBlue and United said that Blue Sky would begin introducing new customer benefits starting in fall 2025, rolling them out in phases.

Geraghty defended a partnership between JetBlue and United Airlines after the union representing the carrier’s pilots filed a grievance against the deal, warning it could reduce aviator jobs.

In August, pilots argued in the grievance that the tie-up creates job insecurity, according to an email seen by Reuters.

"We're really excited about what Blue Sky's going to do to try to keep everybody employed at JetBlue and to try to get us back on a path to profitability. Additional revenue is good for all of our crew members,” Geraghty said, adding that the partnership will generate additional revenue for the carrier.

EXPANDS FOOTPRINT IN SOUTHERN FLORIDA

JetBlue is among those expanding service in the key markets of bankrupt discount carrier Spirit Airlines. The company said it is offering nine new nonstop routes from Southern Florida across the United States, Latin America, and the Caribbean, as rivals including United Airlines UAL.O and Frontier rush to cash in on Spirit's second bankruptcy filing in less than a year.

JetBlue said it will offer 113 daily flights during peak times this winter to cement its position as the airline with the most departures from Fort Lauderdale–Hollywood International Airport. Its nine new routes, starting in November, will include, for the first time, Cali, Colombia.

The company said in July it would expand its Mint service, a premium travel option with seats that lie flat, as airlines look to capture premium spending from U.S. consumers.

Regional carrier Allegiant Air and United Airlines recently also said they would add routes in Florida.