JetBlue could have some flexibility in trading loads for yields on transcon markets
An obvious challenge JetBlue faces as its premium cabin strategy unfolds is ensuring that its sacrifice of valuable cabin space for a business class product produces the expected revenue results. On a pure numbers basis, its load factors from JFK to Los Angeles and San Francisco during the last couple of years indicate available flexibility exist in its aircraft configuration.
Based on data from the US Bureau of Transportation Statistics, during 2011 and 2012 JetBlue’s load factor from JFK to San Francisco dipped below 75% only once and peaked at roughly 94% in Oct-2012.
During that same time frame its loads between JFK and Los Angeles never fell below 80% and peaked at nearly 91% also in Oct-2012. Perhaps JetBlue has done internal analysis that shows some benefits of trading loads for yields in those markets if it can net enough revenue to offset the load factor dilution.