JetBlue Cancels All Flights To Mexico City

Mexico City is a market that on the surface you’d think airlines would do well in. Mexico City has a massive population, it’s becoming an increasingly popular tourist destination, and it has a fair amount of business demand.

Unfortunately for some US airlines, Mexico City seems to be a huge money-loser. For example:

Now a third airline is following their lead.

JetBlue Ending Flights To Mexico City

JetBlue will be discontinuing all flights to Mexico City as of January 9, 2020. The airline currently operates daily flights to Mexico City with A320s out of Boston, Fort Lauderdale, New York JFK, and Orlando.

JetBlue started flying to Mexico City in 2015, though initially the airline had very unfavorable slots. Then in 2017 the airline got better slots because of the joint venture between Aeromexico and Delta, where the airline had to give up some favorable slots.

As far as these four markets go:

  • JetBlue is the only airline to fly from Boston to Mexico City
  • JetBlue is the only airline to fly from Fort Lauderdale to Mexico City
  • Between Orlando and Mexico City, JetBlue competes with Aeromexico, Interjet, and Volaris
  • Between New York and Mexico City, JetBlue competes with Aeromexico, Delta, Interjet, and VivaAerobus

Why Couldn’t JetBlue Make Mexico City Work?

So, why couldn’t JetBlue make this route work, in spite of them having markets like Boston to Mexico City to themselves?

First of all, nowadays the US to Mexico market is fiercely competitive:

  • Aeromexico and Delta have a strong joint venture
  • There has been huge growth among Mexican low cost carriers

Aeromexico and Delta have a strong joint venture

Beyond that, one of the biggest issues seems to come down to a majority of the demand for travel between the US and Mexico City being on the Mexico side. Consumers in Mexico City are much more likely to choose a “local” airline, not just due to preference, but also due to their sales methods.

For example, Aeromexico has quite a few traditional travel agencies in Mexico City where you can book tickets, while JetBlue doesn’t.

Lastly, perhaps the other issue here is that much of the lucrative demand from the US to Mexico City is business travel, and JetBlue has flown these routes without Mint-configured planes. Without a business class cabin they probably missed out on a lot of premium demand.

JetBlue never flew Mint-configured planes to Mexico City

Then again, from JetBlue’s perspective I’m sure there are more lucrative places they could have deployed those planes.

Bottom Line

We’ve now seen Alaska, Southwest, and JetBlue, end operations to Mexico City. It’s interesting to see how these airlines aren’t able to make Mexico City work, especially when you consider that JetBlue had two markets all to themselves.

It seems that the demand simply isn’t there on the US-side, and I suspect the strength of the Aeromexico and Delta joint venture, as well as the growth of low cost carriers in Mexico, most definitely didn’t help.

What do you make of JetBlue pulling out of Mexico City?

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SMR Guest

None of the reasons you mentioned had anything to do with JetBlue leaving. It was PURELY an integrity issue. JetBlue being new to Mexico at the time outside of Cancun didnt partake in the bribery required to get hold onto slots. MEX was a huge money maker. Why do you think they pulled all flights just like that !?

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patricia p lizotte Guest

Does anyone know when Jet Blue stopped all flights from Orlando to Cancun? I am having trouble in getting a refund for a flight that was scheduled for 4/27/2020, and they will only issue a Jet Blue Credit Card. Any thoughts?

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Jesse Guest

It's all moot now. Aviation will crater everywhere.

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Howard Miller Member

Oh, and toss in the lower labor costs for Mexico’s LCCs, who then can leverage the impact of that absolutely ridiculous $147 of taxes and fees, and well, is it any wonder Alaska, Southwest and JetBlue are unable to make Mexico City work for them? Yeah, I didn’t think so.

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Howard Miller Member

Yes, there’s market specific dynamics including distribution models (for example, earlier this month I saw that United still has a city ticket office in Mexico City when I was there) that must be considered as reasons why USA-based airlines such Alaska, Southwest, JetBlue (or others) have all failed in their attempts to make a go of their Mexico City routes. Not to mention the $147 (or so) in taxes, security screening and customs/inspection fees for USA-Mexico City roundtrip itineraries, regardless of fare class that one must pay. But, yet again, one cannot overlook the folly that are these competition killing, anti-trust immunized joint-venture price fixing, capacity/inventory controlling/fixing, “alliances”. Examples abound around the world, be they in Seoul, where Asiana has been in a deep financial crisis (and is at risk of failure if that government’s efforts to prop up that ailing carrier until finding investors willing to recapitalize it don’t work out) after implementation of rival Korean Airlines’ J-V with Delta within the past 2-years. Or how about London’s Heathrow Airport, where just TWO anti-trust immunized joint venture entities, BA/AA + Delta/Virgin Atlantic have an absolute, impenetrable lock on the world’s sole $1billion, and incredibly lucrative route to/from NYC’s JFK Airport (with United becoming an high-end “boutique” airline between LHR & EWR, knowing that as long as it doesn’t step on the duopoly’s toes that its fellow members of the airline industry’s 3-way cartel over at JFK, it along with token (and faux) “competition” from BA’s 2 frequencies that aren’t even operated with larger capacity Boeing 747s anymore, but rather 787s or maybe 777s? Or Tokyo, where now just two anti-trust immunized, price fixing, capacity controlling, joint venture alliances led by United/ANA + American/JAL replaced the robust competition of FOUR (or more) airlines that used to operate between the USA and Tokyo. Heck, the degree to which these price fixing (more like price gouging) anti-trust immunized “alliances” is so great that even an airline as big as Delta, which inherited the massive hub Northwest had in Tokyo for decades, has thrown in the towel and soon will operate just a handful of flights per day with Tokyo reduced to no more than a spoke that can’t even support nonstops to one of Delta’s biggest cities, NYC. Maybe someday the utter folly and preposterousness of ever thinking that allowing former competitors to come together and offering them an opportunity to conspire on setting fares, capacity & schedules would somehow defy the laws of capitalism and be beneficial to consumers. But until then, I guess there’s enough idiots out there that still believe offering companies in any industry an opportunity to lawfully engage in price fixing and to collude on capacity/inventory and scheduling is a “good thing” - when something like that never has been, and never will be, a “good thing” for anyone but the oligopolists, duopolists and monopolists who belong to the industry’s cartel club. “Oligopolies are GREAT!” - said by no one except oligopolists and oligarchs. And here again, with JetBlue’s exit from Mexico City where it faces behemoths based on both sides of the border who can collude on pricing, capacity and schedules - and not unexpectedly, couldn’t defy the odds and succeed against such overwhelming market controlling powerhouses. I mean, who could? Now three “big name” airlines, including the USA’s biggest domestic carrier, Southwest, have proven that.

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