JetBlue Airways is moving forward with its flight plans at Fort Lauderdale–Hollywood International Airport, its president said, regardless of whether the airport’s No. 1 carrier, Spirit Airlines, gets a government bailout.
JetBlue, United Airlines, Frontier Airlines, Breeze Airways and others added flights last year at Fort Lauderdale, Florida, which is Spirit’s home hub as well as at other major airports where Spirit has a large presence. Those moves came shortly after Spirit filed for Chapter 11 bankruptcy protection for the second time in less than a year.
As a possible liquidation looms, budget carrier Spirit is in talks with the Trump administration for a potential bailout that could include a $500 million loan that could also give the government an up to 90% stake, people familiar with the matter have said, requesting anonymity to talk about the deal before it’s public. The airline’s lenders are assessing a deal this week.
Spirit has cut its capacity in recent years to save on costs. In February, it still had the most market share at Fort Lauderdale with nearly 25%, down from more than 28% a year earlier, while JetBlue’s share grew to more than 20%, up from 18.5% a year earlier, according to the latest available statistics from the airport.
“We have now added significant capacity” there, JetBlue’s president, Marty St. George, said on an earnings call Tuesday. “We’ve doubled the size of our next biggest competitor.
“We did not go into this with any expectation of Spirit going away,” he added. “What we have done is we’ve taken advantage of gate availability that they’ve created with some of their pulldowns.”
He added that JetBlue was happy with its unit revenue there, even with the capacity additions. “I think what it shows is that the JetBlue value proposition resonates in South Florida,” he said.
The industry is grappling with a surge in fuel prices, but JetBlue and other carriers have so far reported that customers continue to book flights.
The Association of Value Airlines, of which JetBlue isn’t a member, on Monday said it is seeking $2.5 billion from the Trump administration to help offset the jump in fuel, airlines’ second-biggest expense after labor.
JetBlue CEO Joanna Geraghty said the airline is open to “anything and everything, assuming the terms would make sense for JetBlue,” but added the airline is focused on its JetForward strategy to return to profitability, including adding new products like domestic first-class seats.
She said that the carrier is watching the situation and seeing what “shakes out with Spirit and value carriers and whether anything comes their way,” she said.