JetBlue Takes Most Cautious Approach to Recovery

With all airlines taking the hit globally and the consumer sentiment dipping greatly due to fear of coronavirus, the carriers are planning their own recovery paths. Even as they are planning for this, they are making sure that they do have sufficient cash to spend till the time. In this respect, some US airlines are taking a bullish approach while some others are far more cautious. These approaches to recovery could be summed up as V-shaped, U-shaped or L-shaped curves. While the V shaped curve reflect bullish and high optimistic scenario for recovery, U-shaped curve has a flat bottom trough for some time before a more aggressive approach is taken. The third approach, that is, the L-shaped one, is extremely cautious and far more time-buying before going ahead with the full normalcy of operations. This L-shaped approach is touted to be adopted by JetBlue airlines.

The airline is based out of New York which has been the worst hit due to pandemic. Since JetBlue has seen the horrible scenario that this pandemic has brought about, it is taking a far more cautious approach than the other carriers. Using this approach, it will take years, not months, for it to have normal functions. And, since airline is going itself this time frame, it is already tightening its wallet to reduce spending and retain cash. Even as passengers might get to perform JetBlue reservations, these will be for rather limited flight operations.

Let us outline some of the cash conserving measures which the airline has adopted. Jetblue has also delayed its plans to begin operations from London Heathrow. Though the flight was announced last year and was much cheered. It was thought to be of disruptive influence in transatlantic market. But, all that stands at hold for some time. Passengers will have to wait to book international flight tickets to or from London on Jetblue for now. The airline has grounded about 170 airplanes which is more than 50% of its entire fleet. Flight schedules have also been redrawn to fly only on routes which connect key cities. It was expected to restyle its cabin which is now suspended.