Ladies & Gentlemen Please Fasten Your Seatbelts

The Stalwart has an item about Jetblue’s earnings miss yesterday.  There’s a quote from founder/CEO David Neeleman:

“What we really need is for fares to go up about $10
each.”

Why don’t they continue to break ground, as they’re known for, and defy the historical lock step pricing of the industry.  The tremendous goodwill it has fostered with its customers is no accident.  Jetblue has provided a service that clearly resonates with people, and I don’t believe it stems simply from low fares.  So if Jetblue would be in a healthier state if its fares were increased by $10, as Mr. Neeleman indicates, raise the fares.  I think this would have neglible, if any, negative impact on their business.  Is the value of Jetblue worth an additional $10 across the board fare hike?  I think the answer is yes.

Don’t let an industry seemingly detached from economic reality dictate the terms of doing business.  Do what’s in the best interest of Jetblue while providing a fair value proposition for your customers.  We don’t want to have to reach for the Jetblue comfort bags.

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