JetBlue Airways has emphasised that it focuses on identifying revenue streams by offering new products and services to customers like Even More Legroom (EML) seats.

Published: 26 Apr 2011

JetBlue Airways has emphasised that it focuses on identifying revenue streams by offering new products and services to customers like Even More Legroom (EML) seats.

In March, the airline implemented a $5 increase on its Even More Legroom product, which the airline says continues to exceed its expectations. In addition to the EML increase in March, the airline also implemented a $5 increase on its second bag fee, which should help drive additional ancillary revenue this year. Passengers paid an average of $21 apiece in fees to JetBlue between January and March, up 15 percent from a year ago.

In order to attract more travellers to buy the airline’ EML seats, JetBlue is to offer a fast-track security option for those who buy the roomier seats. That benefit, which will let passengers jump to the front of the security line at certain airports, will begin in a few months. The airline says it offers the most legroom in coach of any U.S. airline (based on average fleet-wide seat pitch) and super-spacious Even More Legroom seats.

While discussing JetBlue’s Q1 2011 results, its chief commercial officer and executive vice president Robin Hayes (as per the transcript of the earnings call on Seeking Alpha), said, “We’re very committed to the value proposition for the customer. I think, it's important to us that, that brand loyalty -- we have a very high customer repurchase intent. So we don't want to do anything that jeopardises that because we think that is what gives customers the reason to keep coming back to JetBlue.”

He added, “So we really focus on identifying revenue streams by offering new products and services to customers like EML.”

The airline believes it has a “simple, clean and effective product” that allows it to offer a strong value proposition to customers at a price point that is compelling, whilst allowing it to deliver that simply and consistently and at minimal incremental cost.

“And we really think that is the sweet spot. As we talk to corporate customers and as we build our corporate customer base, increasingly EML is a product that they are learning about and finding very attractive,” said Hayes.

The airline counts on the success of the offering and then takes it further in terms of pricing.

“So if you look at what we did with EML last year with the early boarding, what we’ll be rolling out in a couple of months with the this sort of onset of fast track security at selected airports and really using that to improve the product and improve the price point. I think, like our Getaways product and the growth that we're seeing there. So we've kind of taken that approach, rather than sort of nickel and diming and stripping and unbundling the product,” explained Hayes.

Net income for the first quarter was $3 million. This compares to JetBlue’s first quarter 2010 net loss of $1 million. JetBlue reported record first quarter operating revenues of $1 billion.

Reserved seating

Recently, it emerged that Ryanair is gearing up to trial a reserved seating service on its Dublin - Malaga and Dublin - Gatwick routes from 16th May next. The pre-booked service is going to cost €10 (each way) including priority boarding, and allows passengers to pre reserve seats in the front two rows, for a prompt exit on arrival, or in over wing rows (16&17) which provide greater legroom. Ryanair will continue to offer its Priority Boarding service for €4, with priority and reserved seating passengers allowed to board the aircraft first.