JetBlue SWOT analysis – SWOT analysis of JetBlue: JetBlue is an American low-cost airline that is located within New York City. It is the 6th largest airline in the United States. The primary headquarters of the airline is located at John F. Kennedy International Airport. The airline isn’t a member of one of the three alliances but does have codeshare agreements with 21 carriers.
As of May, JetBlue serves 102 destinations across the U.S, Mexico, Central America and South America, and the Caribbean. In 2017, the airline was named the top air carrier in North American Travel by Business Traveler USA.
JetBlue fun facts: JetBlue has codeshare agreements with 21 airlines, including Oneworld, SkyTeam, Star Alliance and member airlines of unaffiliated airlines.
- 1 About JetBlue – SWOT analysis of JetBlue
- 2 JetBlue Competitors
- 3 SWOT analysis of JetBlue – JetBlue SWOT analysis
- 4 Strengths of JetBlue – JetBlue SWOT analysis
- 5 Weaknesses of JetBlue – SWOT Analysis Of JetBlue
- 6 Opportunities of JetBlue – JetBlue SWOT analysis
- 7 Threats of JetBlue – SWOT analysis of JetBlue
- 8 Overview Template of JetBlue SWOT analysis
- 9 Conclusion
About JetBlue – SWOT analysis of JetBlue
Company: JetBlue Airways Corporation
CEO: Robin Hayes
Founder: David Neeleman
Year founded: August 1998, Delaware, United States
Headquarters: Long Island City, New York, United States
Annual Revenue: USD$2.73 billion
Profit | Net income: USD$s89 million
Number of employees: 22,000
Products & Services: Air transportation services across the United States, the Caribbean, and Latin America, and between New York and London.
SWOT analysis of JetBlue – JetBlue SWOT analysis
SWOT Analysis Of JetBlue is brand-based. SWOT Analysis of JetBlue evaluates the brand’s strengths, weaknesses, opportunities, and threats. Advantages and disadvantages can be attributed to internal factors while opportunities and threats can be attributed to external factors. We will be discussing JetBlue’s SWOT Analysis. Below is the detailed SWOT Analysis of JetBlue.
Let’s talk about JetBlue’s SWOT assessment.
Strengths of JetBlue – JetBlue SWOT analysis
1.) Brand identity that is strong
Storytelling and branding identity is crucial in building a loyal consumer base. “Passion, Safety, Caring, Integrity, and Fun” are the pillars of what JetBlue does, and JetBlue ensures that this is all engraved into the narrative of its brand.
They also have an Instagram blog named “Out Of The Blue” that features stunning images and tales of their working environments locations, food, destinations, and more. and uses a style of writing that is casual and humorous to tell their stories. With this method, JetBlue creates a brand image that is casual fun and gives passengers a sense of excitement for their anxiety-free journey.
2.) Customer Satisfaction
It’s a low-cost airline but they make sure that its brand isn’t perceived as being cheap. They offer services such as free baggage, free changes, and cancellations. In addition, they provide entertainment on the flight including complimentary drinks and snacks, and claims they are devoted to pampering their passengers.
They also offer movies for free, Sirius XM radio variety of entertainment onboard. Prior to the time hurricane Irma struck, the majority of airlines increased the price to take advantage of the storm, however, JetBlue offered flights as low as $99 in order to help those evacuate from the destruction so that the satisfaction of customers is at the heart of what they do.
3) Modern and efficient aircraft
The creator of JetBlue, David Neeleman, signed a memorandum buying 60 Aircraft A220-300. This will enable JetBlue to serve routes that are thinner without sacrificing cost, especially when it comes to long-haul flights. JetBlue has introduced five new routes, including Boston-Rochester-Fort Lauderdale.
JetBlue announced that it would be adding two dozen flights on its existing routes that connect to Boston, Orlando, New York, and more. They have enough aircraft in place to boost their network performance and develop their most important marketplaces.
Weaknesses of JetBlue – SWOT Analysis Of JetBlue
1) Less international destinations
JetBlue operates in 101 cities and is located in the Caribbean and North American destinations. If JetBlue decides to travel to Europe it will be an enormous leap for the company that is only 18 years old. The airline states that more international flights would add complexity, cost, and other challenges to the existing routes of airlines.
2.) The cost is high for operating
It has established lofty cost goals and expects unit cost increases of just one percent or less in the period 2018 to 2020. The company hopes to save between $250 million and $300 million on annual savings by 2020.
There were a variety of factors that pressured the airlines to incur costs in 2017 including capacity reductions, marketing expenses as well as maintenance expenses. The repair and maintenance costs were up by 17 percent in 2015 and percent in the year. The pilots are insisting on the markets to raise their wages and the company is facing difficult times in reaching its cost goals.
Opportunities of JetBlue – JetBlue SWOT analysis
1.) New markets
In the latest advertisements, the airline appears to be pointing to Europe by using the words “New possibilities with the A321LR option”. The CEO believes there are a lot of opportunities available to JetBlue across the northern region of Latin and Central America. JetBlue will continue to expand into Fort Lauderdale with new routes to Ecuador, St. Maarten, and Phoenix. JetBlue has announced it will expand flights to over two dozen of its top-performing and sought-after destinations, with an emphasis on expanding within Fort Lauderdale and Boston
2.) Introduce new planes
The company is willing to consider expansion into the European skies and has begun developing capacity for this. The company stated that in 2019 it will be able to provide the ability to arrange flights to Europe as well as the other East Coast-focused cities if they wish to. They will have the option to transform A321 neo orders into A321-LR long-range. The company announced that it has reached an arrangement to work with Airbus for Airbus to add 30 additional A321 aircraft to its fleet over a period of seven years. Another 15 A321neo aircraft will begin arriving in 2020. A new variant with a longer range that is a part of the A321 could also be flying over the Atlantic for the first time.
Threats of JetBlue – SWOT analysis of JetBlue
1.) Rising fuel prices
JetBlue recently announced it will be increasing charges and fares to meet the growing fuel costs, which have soared to the top as well as there is a need for travel robust. In August of 2018, JetBlue became the first airline to increase baggage charges and the new fees were in line with those of its other airlines. In the words of JetBlue, the cost of fuel in the last quarter increased by 37 percent over last previous year up to $2.32 per gallon, up from $1.69.
2) Aircraft deliveries
With an expense of $6.67 billion, The company has been actively purchasing new aircraft, with 127 new aircraft and 10 engines in order until 2023. The company has an aircraft fleet of 203 in its fleet. These orders will mean that it is expected to increase the size of its fleet by 60 percent.
The order is based on the assumption JetBlue will see significant growth in the coming 8 years. If it doesn’t accomplish this, JetBlue will be left with a large number of additional aircraft that may be sold or offered for lease or placed in storage to pay fees for charges for maintenance and parking. The future delivery of these aircraft could be a risk of insolvency for JetBlue if expansion is slow.
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Overview Template of JetBlue SWOT analysis
JetBlue’s market capitalization can be estimated at around $3.12 billion (74,423,693 * $41.98) as per June 30, 2003.
The company is intending to grow heavily in the following years, and has plans to acquire 207 new aircraft for a total of $6.86 billion up to 2011,
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