Tag Archives: DAL

JetBlue Airways Continues Growing in Boston as It Targets Business Travelers

Over the past decade, JetBlue Airways (NASDAQ:JBLU) has built up a strong position in Boston. While New York remains the carrier’s largest base of operations, Boston generates the highest profit margin among its six focus cities.

This success stems from the fact that Boston is the only major metro area where JetBlue is the No. 1 airline. As a result, JetBlue has been able to break into the lucrative business travel market there, whereas it mainly carries leisure traffic in its other focus cities.

That said, JetBlue still doesn’t have as broad a route network in Boston as other airlines have in their main hubs. Delta Air Lines (NYSE:DAL) has been working to take advantage of this weakness to gain market share at JetBlue’s expense. However, JetBlue is steadily adding new routes in Boston, thereby improving its standing with Boston-based business travelers.

Building a strong franchise in Boston

At the company’s 2016 investor day meeting, JetBlue executives noted that after adding Atlanta to its route network in early 2017, the carrier would fly nonstop to 39 of the top 50 markets from Boston. Most of the missing markets were in the Midwest (where JetBlue has historically offered limited service) and Europe (which JetBlue doesn’t serve today).

A JetBlue Airways plane preparing to land

JetBlue already flies nonstop to most of the top markets from Boston. Image source: JetBlue Airways.

In total, JetBlue operates more than 160 daily departures in Boston. It plans to reach 200 daily departures within a few years and has the option to control up to 30 gates at Logan Airport, which would enable it to continue growing beyond 200 daily flights.

By contrast, Delta and its joint venture partners fly nonstop to most of these top 50 markets that are missing from JetBlue’s route network. Delta will surpass 100 daily departures in Boston this summer. Furthermore, the carrier and its partners will have 50 nonstop destinations from Boston by the fall.

To be fair, Delta’s Boston route network has even more glaring holes than that of JetBlue. Delta Air Lines doesn’t fly from Boston to most of its rivals’ top hubs — including Chicago, Dallas, Denver, Houston, Philadelphia, and Washington, D.C., among others — presumably to avoid triggering a competitive response. However, Delta can still serve all of those markets (and many more) with one-stop service via its hubs, giving it a leg up with business travelers.

One new route starts up — and more are coming

JetBlue realizes that its best weapon to counter Delta’s growth is to continue adding routes in Boston. Earlier this month, it filled in one of the biggest remaining holes in its Boston route network with the launch of nonstop flights to Minneapolis-St. Paul (a Delta hub city).

A Delta Air Lines plane parked on the tarmac

Delta has challenged JetBlue by adding lots of new routes from Boston. Image source: Delta Air Lines.

Minneapolis is JetBlue’s 65th nonstop destination from Boston and its 102nd destination overall. JetBlue will fly three times a day between the two cities, immediately giving it the No. 2 market share position on that route.

Several more flights from JetBlue’s Boston focus city will start up later this year. In late April, the carrier announced plans to add a second daily Boston-Long Beach flight and begin a daily route from Boston to Burbank, California as the carrier restructures its Long Beach focus city after Labor Day.

More recently, JetBlue announced that it will launch a nonstop route from Boston to Mexico City in October, after it was blocked from operating international flights from Long Beach. While Mexico City isn’t a top-50 destination from Boston, it is still an important business market. Today, Delta’s joint venture partner Aeromexico offers the only nonstop service on that route.

Finally, in recent weeks, JetBlue has announced two more routes from Boston that will start in late 2018: Saturday-only service to Havana and twice-weekly seasonal service to Steamboat Springs, Colorado. However, these flights will mainly carry leisure traffic.

Europe is still the key

While JetBlue is steadily improving its competitive positioning in Boston, it probably needs to start flying to Europe to defeat Delta once and for all in that market. Some business travelers may never switch their loyalty to an airline that doesn’t directly serve key markets like London and Paris. (British Airways is a JetBlue partner, but that isn’t a complete solution.)

Additionally, flights from Boston to Europe would open up new connecting itinerary options. This might be the difference-maker enabling nonstop JetBlue flights to Midwest markets like Indianapolis, St. Louis, and Kansas City.

JetBlue is in the final stages of a long-running fleet review. There’s a good chance that this process will culminate in an order for Airbus A321LR aircraft that will facilitate a growth push from Boston (and New York) into Europe.

Dow Jones Today Jumps 140 Points as Trump Rolls Back Syria Threats

The Dow Jones today traded a 140 points higher in pre-market hours after U.S. President Donald Trump suggested that his recent calls for quick retaliatory strikes against Syria had been misinterpreted. This morning, the president tweeted that he “never said when an attack on Syria would take place. Could be very soon or not so soon at all!” Despite the president’s comments, global geopolitical tension remain high as escalating Middle Eastern conflicts and global trade war threats continue to plague markets.

In fact, Money Morning Capital Wave Strategist Shah Gilani thinks the market is sending investors clear warning signs that the nine-year bull market is coming to an end. Shah has identified several technical indicators that suggest it’s time for investors to insure their portfolios against increased market uncertainty – and develop strategies to help them profit. Check out Shah’s findings and his advice on how to play an increasingly dangerous market here…

Here are the numbers from Wednesday for the Dow, S&P 500, and Nasdaq:

Index Previous Close Point Change Percentage Change
Dow Jones 24,189.45 -218.55 -0.90%
Nasdaq 7,069.03 -25.27 -0.36%
S&P 500 2,642.19 -14.68 -0.55%

Now here’s a closer look at today’s most important market events and stocks to watch.

Tech Revolution: We’re on the brink of a global energy overhaul, and one tiny company has the key to it all. If you want to find out how to position yourself for the biggest, most life-changing gains, you better strike now.

Money Morning Insight of the Day

The threat of an all-out trade war with China has investors and traders alike on edge. However, while a globaltrade warinvolving the United States could hurt some investments, it’s creating a profit opportunity in others. I’ll show you exactly which stocks could benefit as new trade barriers are erected… and how you can profit.

The Top Stock Market Stories for Thursday
The ongoing rift between the United States and China could be on full display today from the top international trade group. Today, the World Trade Organization will provide its annual forecast on international trade. The group is likely to offer a pessimistic view on the possible impact of a trade spat between the United States and China, the world’s first- and second-largest economies.

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The price of Bitcoin surged more than 17% to top $8,000 in a rapid move that surprised many investors this morning. The sudden rally appears to be the result of a short squeeze, according to CNBC contributor Brian Kelly. This means that investors who had been betting on a decline in the price of the world’s largest cryptocurrency had been forced to jump back and buy the currency again. A lot of people have been betting on a decline in the price of Bitcoin heading toward the April 17 tax deadline. The expectation is that many people will need to sell their Bitcoin in order to raise cash to meet tax obligations. Here’s our latest daily insight on why the Bitcoin bear market may end very soon.
Markets gains have been capped by concerns about the latest news out of the Federal Reserve. On Wednesday, minutes from the Fed’s most recent meeting indicated that policy makers are prepared to raise interest rates several more times in the coming months in order to stave off concerns about inflation.
Four Stocks to Watch Today: BLK, FB, DAL
Shares of BlackRock Inc. (NYSE: BLK) are on the move after the company reported earnings before the bell. The firm reported earnings per share (EPS) of $6.70. Analysts projected the firm would report EPS of $6.45 on top of $3.28 billion in revenue. The firm topped revenue expectations. The firm noted that an increase in its consulting fees and the recent tax reform bill helped bolster its profitability by 27%.
The stock of Facebook Inc. (Nasdaq: FB) has climbed more than 6% since Tuesday. Investors cheered the testimony of CEO Mark Zuckerberg, who appeared before Congress for two days to discuss his company’s privacy policies. The CEO and his firm have been under intense scrutiny since news broke that 87 million user accounts had been accessed without permission by consulting firm Cambridge Analytica during the 2016 election season. The firm had ties to President Trump’s campaign.
Delta Air Lines Inc. (NYSE: DAL) reported earnings before the bell. Wall Street projected EPS of $0.73 on top of $8.92 billion in revenue. The company responded by reporting an adjusted EPS of $0.74, but fell just short of revenue. The reason for the revenue miss: It appears to be a 20% jump in oil prices.
Look for additional earnings reports from Rite Aid Corp. (NYSE: RAD), MiMedx Group Inc. (Nasdaq: MDXG), Fred’s Inc. (Nasdaq: FRED), Apogee Enterprises Inc. (Nasdaq: APOG), and Shaw Communications Inc. (NYSE: SJR).

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