JetBlue Airways Corporation (NASDAQ:JBLU) Q3 2023 Earnings Call Transcript

Robin Hayes: Yes, I’m going to Dave to maybe pick that up. Thank you.

Dave Clark: Sure. Thanks, Chris. This is Dave. As mentioned before, we’re increasing our mix of leisure even more heavily as we reallocate out of some of the shorter haul business, but we feel very confident in our ability to compete and win. I mean these are the markets JetBlue was founded to and designed to serve 23 years ago. These are the markets we had in mind. We built our loyalty program when we updated it earlier this year to introduce things like tiles like you have increasing customers, even more rewards and more incentive than they get through other loyalty programs. It fits right into our JetBlue travel product, which is designed provide a holistic experience and drive a lot of ancillary revenue. It goes with our point-to-point network, it goes with our customer service.

So we have our six focus cities in our leisure focus, and we’re going to compete hard and we’re going to win in those markets. And of course, there’ll be tweaks around the corner or around the edges, and we’re doing that very actively with — we had about a dozen markets we’ve closed or announced closure over the last two months. We’ve closed two cities. But for our bread and butter for Florida and the Caribbean and Transcon, we’re going to fight, and we’re going to win market.

Robin Hayes: Yes, I think the point yes, just — I mean, the point I was trying to make as well is that obviously, the industry far data we have is historic. We see short-term sort of trends. It’s also trying to kind of get ahead of that and think through what markets may be — there was lots of commentary last week about Las Vegas. And so there’s now so much capacity to get put out of Vegas, Vegas becomes a stronger pro forma gain. So — all I’m saying is we’re trying not to just respond to what’s in front of us, but be thoughtful and think through what are the things we need to do that more closely aligned with our strategy to drive margin recovery. And that’s what we’re going to be focused on and more news to follow as we get into next year.

But I think that the message for 2024 is going to be capacity constraints because of the engine issues and the delivery delays we have. And so we want to make sure we’re flying the most margin accretive markets given those constraints.

Christopher Stathoulopoulos: Okay. Thank you.

Operator: There are no further questions at this time. Please proceed.

Robin Hayes: And that concludes our third quarter 2023 conference call. Thanks for joining us, and have a great day.

Operator: And again that will conclude today’s conference. Thank you for your participation.