When asked what’s the one thing the gathered business and civic leaders should do tomorrow, JetBlue CEO Joanna Geraghty didn’t hesitate: be kinder. Be kinder to one another, especially when traveling. Be kinder to airline staff who are always trying to do the right thing. Travel is extremely stressful, she said, and “acts of grace and kindness go such a long way in this industry.”
Geraghty sat down with WBUR’s Tiziana Dearing at the WBUR Breakfast Club on May 12, and fielded questions about the industry, the macro environment in which it operates, and JetBlue itself.
Geraghty stressed that JetBlue is not going to file for bankruptcy, contrary to what its founder – now working for competitor Breeze Airways – said recently. Are there challenges? For sure. Jet fuel prices have skyrocketed – they’re 75% higher than what was expected last year. And costs overall are 40% higher since Covid, yet fares have gone up 20%. “Volatility is the new normal – that’s our new phrase,” Geraghty said, but she and her team focus on what they can control. Also: “at the end of the day, safety, safety, safety” – that’s the number one priority every day.
JetBlue has tried unsuccessfully to acquire now defunct Spirit Airlines and partner with American Airlines – but both efforts were thwarted by federal regulators. Right now, JetBlue is 5% of domestic airline seats in the US, and four airlines each have 20% of the US market. Had they been allowed to merge with Spirit, JetBlue would have been 9% of the market. JetBlue is expanding its Fort Lauderdale hub and wants it to be as big as its Boston presence. Right now, JetBlue is very northeast centered, the most expensive and challenging part of the market in terms of air traffic delays.
Geraghty gave a shout out to the current federal administration for taking on a huge issue for the airline industry: air traffic control and is pleased with its progress in securing money for that. Geraghty also praised the Massport Authority, which runs Logan Airport, for the way it ensures healthy competition, provides a balanced business community, and takes care of the airlines that operate our of Logan. She said it makes airlines like JetBlue want to be here in BOS.
