United Airlines CEO Scott Kirby was asked about the possibility of a merger with JetBlue, and his answer was surprisingly candid (he also had some interesting comments on American’s prospects of becoming premium)…
In this post:
United CEO seems open to JetBlue merger, or something?
It has been a fascinating time for the airline industry. While Delta and United have been doing really well overall (though they’re now seeing demand falling), other US airlines are struggling. That’s because even Delta and United aren’t making most of their profits from actually transporting passengers.
So there has been a lot of talk about what industry consolidation we could see, if any. There have been a lot of rumors about United being interested in acquiring JetBlue, especially given United’s desire to return to New York (JFK), and expand there.
So at the JP Morgan Conference earlier this week, airline analyst Jamie Baker asked United CEO Scott Kirby about his view on industry consolidation, beyond a possible deal between Frontier and Spirit. Baker prefaced the question by saying “you’re the only CEO that may give us a somewhat direct answer to this question.” Baker was right, and the answer is quite something:
I don’t know. I think it’s probably less likely than others think. JetBlue is the obvious candidate. Joanna is going to be here later today. So you can ask her what she thinks. It’s possible. But there’s a lot of challenges, like I look at it from United’s perspective. We have a great plan that is working and mergers are so hard. They’re disruptive.
Your technology team spends two years on the sideline just integrating like I bet a lot of you use the United app. I bet you all think it’s the best app in the world in airlines because it is. Like that kind of investment just gets harder to do. We got some super cool stuff coming for customers this year. That stuff just gets harder and harder to do.
And at United, well, when the business based business plan is working, like the hurdle to go do it, we don’t need a deal for sure. The hurdle to go do a deal gets a whole lot higher. That said, at least at United, I would like to have a bigger presence on the other side of the river at JFK. But man, all the headache, all the brain damage of buying a whole airline to get that, that’s a lot to do. So, yes, really, I think the ball is going to be in JetBlue’s court.
They’re working out a lot of respect for them. They’re working hard. They’re also an airline that focuses on brand loyalty. So from the customer perspective, they have a lot of those sort of core DNA things that are expected there. Also competing with another airline, JFK and Boston that has that too.
So it’s a tough position for it to be in. So it’s sort of their decision on how to sort through that. That’s the only one that I think really is potentially in play one way or another.
What should we make of Kirby’s merger answer?
I have so many thoughts here. First of all, I just love listening to Kirby. Not only is he obviously such a smart guy who has a pulse on the industry, but unlike so many other executives, he’s willing to say what he really thinks, for better or worse.
That’s such a contrast to his two biggest rivals. Delta CEO Ed Bastian typically has very carefully rehearsed remarks, and rarely says anything you wouldn’t expect, or which rocks the boat. Meanwhile American CEO Robert Isom just typically doesn’t have a whole lot useful to say, since American management doesn’t exactly have a great pulse on the industry (though Isom seems like a super nice guy).
With that in mind, Kirby’s answer is quite something. He points out that mergers are a lot of work and prevent investments and progress in other areas, which is of course true. But he acknowledges that JetBlue is the obvious candidate for any potential merger activity with United, and says that “I think the ball is going to be in JetBlue’s court.” Like, are we all processing that? That’s quite a statement to make, and one wonders what exactly he meant by that.
United’s financial performance has been improving nicely, and United doesn’t need JetBlue. However, two things are for sure.
First of all, Kirby is obsessed (not in a bad way) with returning to New York (JFK), and United can’t easily do that alone. He has been saying that for years, and thinks that leaving JFK was one of United’s worst decisions.
Second of all, Kirby is probably the most ambitious and competitive guy in US aviation. We know how badly Kirby wants United to rise to the first spot and beat Delta, and JetBlue has a huge presence in two Delta hubs. There’s nothing Kirby would love more than to be able to compete directly with Delta in those markets.
We also know that both Boston and New York have affluent populations, and have a lot of potential with credit cards, and that’s a key metric by which United measures hub profitability.
Lastly, we really have to give @xJonNYC credit for his consistent insights. Several weeks ago, he shared a rumor about United being interested in JetBlue, without suggesting that anything was imminent. As usual, he ended up being correct, because clearly United is interested. That’s not to say anything will happen, but that’s just the truth. As much as people like to doubt him, he has an amazing track record.
Oh yeah? Gee, sounds like a rumor I might have heard. "[more industry consolidation?] And does United play a role in it? Scott Kirby: I don’t know. I think it’s I probably think it’s less likely than others think. JetBlue is the obvious candidate… (more..) www.investing.com/news/transcr…
— JonNYC (@xjonnyc.bsky.social) March 13, 2025 at 11:37 AM
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Bottom line
United CEO Scott Kirby was asked if he sees potential for any further airline consolidation. He stated that if there were to be a deal, it would be with JetBlue, and he said “the ball is going to be in JetBlue’s court.”
While a merger is a huge and challenging headache, we know the strategic value that JetBlue holds. Kirby desperately wants United to return to JFK, and also wants to overtake Delta, and it seems like a JetBlue acquisition could help make that possible.
What do you make of Kirby’s comments about United possibly acquiring JetBlue?
I would be extremely disappointed if JetBlue got absorbed by United and we lost that character and competition in the market.
Why do you keep referencing/embedding Bluesky users with no likes/follows instead of nearly any aviation page on X?
The more airlines the three majors gobble up, the less competition there is.
The less competition there is, the less hard they have to try.
Think of the old Avis slogan ‘We’re #2, we try harder’, which gave birth to a fun adaptation “We’re already #1, why try harder?’
Might as well have been coined for US airlines.
concentration of the market is being seen not just in multiple industries in the US but also around the world including in Europe.
The reason is rather simple. From an economic point of view, airlines are low margin businesses and yet there is still plenty of competition. Consumers want low prices and yet even in the US, the best-run airline, Delta, does not consistently generate 10% profit margins - which is below average for US...
concentration of the market is being seen not just in multiple industries in the US but also around the world including in Europe.
The reason is rather simple. From an economic point of view, airlines are low margin businesses and yet there is still plenty of competition. Consumers want low prices and yet even in the US, the best-run airline, Delta, does not consistently generate 10% profit margins - which is below average for US corporations.
Consolidation will occur until pricing rises to match what is necessary to cover costs and generate an industry-acceptable profit.
specific to this discussion, many want to believe that the current administration will allow the big 4 US airlines - AA, DL, UA and WN - to engage in further merger/acquisition activity when it is far from clear they will be allowed to do that with other non-4 airlines, let alone w/ other big 4 airlines.
Right now, just 2 airlines are generating above average financial results - DL and UA and there is still a significant gap between DL and UA.
If B6 is allowed to be acquired between either AA or UA, there will be other mergers and acquisitions not just by the big 4 for other carriers but also of the big 4 by themselves.
AA and WN are generating below average returns. WN may or may not turn itself around; AA seems like a much longer stretch to do so.
there is alot of capacity in the US that should not be there if the industry is to generate sufficient profits.
let's see what B6 and other smaller carriers do w/ mergers but it is hard to imagine that they will generate profits in a couple years comparable to DL or even UA.
If one of the big 4 is allowed to start acquiring other carriers, there will be more activity among other big 4 carriers. It is solely whether the current DOJ is willing to allow further major consolidation of the industry involving the big 4 and not just carriers below that level such as AS and HA which just happened.
Apparently, no one paid much attention to the first part of Kirby's answer.
I seriously doubt a United JetBlue merger could pass regulatory muster, even with this administration. IMHO, what could possibly pass muster would be a jetBlue/American tie-up, along with the divestiture of enough JFK slots to bring United back to where it was, along with almost all of jetBlue's facilities in Fort Lauderdale.
And why does UAL get all of those divestitures?
Kind of comical, no?
the first parts of your statement are correct; the second are not.
Everyone on aviation social media dreams of airline mergers even though they are very hard to pull off and succeed. Neither B6 or UA has given any indication that merger activity will happen. UA slapped down jonnyc's rumor of merger negotiations a couple weeks ago.
As I have noted, consolidation involving the big 4 is far from being allowed by this administration.
...the first parts of your statement are correct; the second are not.
Everyone on aviation social media dreams of airline mergers even though they are very hard to pull off and succeed. Neither B6 or UA has given any indication that merger activity will happen. UA slapped down jonnyc's rumor of merger negotiations a couple weeks ago.
As I have noted, consolidation involving the big 4 is far from being allowed by this administration.
While AA/B6 are roughly comparable to DL's size at LGA, JFK and BOS, AA is the largest airline in S. Florida. There are regulatory issues that are just as large involving Florida w/ AA/B6 as there are for UA/B6 in NYC.
All of the big 4 become greater than 20% of the US market if they are allowed to merge w/ anyone else - and it is not at all clear that would be allowed.
And if you start allowing AA or UA to acquire anything, why not DL and WN or other combinations such as AS/WN? DL and WN have very little overlap by hub/focus cities but would create a monster of an airline in the domestic US.
let's see how the industry actually moves but there are no indications that further consolidation is anywhere near close to happening
If JBLU doesn't find a partner, they are screwed. They have too much capacity in already saturated markets and a much less loyal customer base than Alaska. Oh, and their customer service and OTP isn't exactly setting any records either.
Kirby is as cocky as Parker was
Would definitely finally get UA back to JFK. ♂️
I like a lot of things about United, but certainly their app isn’t one of these things….
Delta’s app is far superior and easier to use… (but DL has started going in the wrong direction with he last redesign)
Quite honestly they are all terrible not just in usage perspective but it's clear that the person(s) who designed them don't actually use them. United by far is the worst. A few years ago they implemented what they claim was 2 factor security. The mere fact that they called what they implemented is 2FA demonstrated that their IT team is the B team caliber. It is probably the easiest to hack. In fact united made...
Quite honestly they are all terrible not just in usage perspective but it's clear that the person(s) who designed them don't actually use them. United by far is the worst. A few years ago they implemented what they claim was 2 factor security. The mere fact that they called what they implemented is 2FA demonstrated that their IT team is the B team caliber. It is probably the easiest to hack. In fact united made it even easier to hack when they used their ludicrous 2 factor with a fixed number of security question combos. You can probably brute force attack it which is the easiest most wimpy way to hack security. That in itself is pathetic.
Delta, their cookie implementation is totally broken and they haven't done a thing about it in years. Jetblue, my favorite airline has a terrible testing team. The types of bugs that gets passed their QA is shocking.
Just say you prefer Delta because none of what you said is true. United has the best app in the entire AIRLINE INDUSTRY and its not even close. Theres a reason they win awards for it.
Delta sucks, dude.
Musta been sharing a big bag of nacho cheese Doritos with Kameltoe the night before to let a word salad like that escape his lips.
UA’s app is almost universally viewed as being the best in the industry.
What does the DL do better?
I'm glad this is being discussed as it was just one of the eyebrow raising comments that UA made at the transportation conference. The hub profitability was one and has been sufficiently beaten to death.
The other that remains to be discussed - or should be - is the spat between Kirby and Isom over whether AA is a premium carrier or not and whether the industry has room for AA to be one....
I'm glad this is being discussed as it was just one of the eyebrow raising comments that UA made at the transportation conference. The hub profitability was one and has been sufficiently beaten to death.
The other that remains to be discussed - or should be - is the spat between Kirby and Isom over whether AA is a premium carrier or not and whether the industry has room for AA to be one. There was some interesting back and forth that got way more airtime where it matters than about hub profitability.
Scott Kirby desperately wants to be seen as the smartest person in the room which is part of why he talks so much. The other part is that he is deeply insecure, having been booted from AA - explaining the incessant bad blood between AA and UA - and spends more time talking about getting UA to par with DL in financial metrics than in comparisons to any other airline.
For those that don't think finances matter, Kirby is incredibly focused on them - and yet he hasn't closed the gap w/ DL in 7 years of trying.
as for jonnyc, let's not forget that he whipped up the rumor that UA was going to merge w/ B6 - which sent UA's stock price down so UA had to issue an SEC-filed denial. jon throws all kinds of stuff at the wall, hoping some of it sticks and he was dead wrong about UA and B6
and nothing Kirby or any other UA exec has said gives any indication that UA Is interested in a merger or that they would try to go after B6, let alone succeed.
UA already touts that it is the world's largest airline by ASMs and it carries the most local market revenue from NYC. While there are lots of reasons why UA would like to acquire B6 not just for NYC but for BOS and Florida, it is highly unlikely that a full acquisition would ever be allowed.
As much as some will inevitably tell us how great EWR is as the largest hub in NYC, EWR is at capacity – a reality that UA found in the summer of 2023 when it overscheduled its hub at EWR, leading to a weeklong meltdown across its network.
Port Authority of NY and NJ data shows that DL is virtually tied w/ UA for total passengers on a rolling 12 month basis from NYC – but DL is growing while UA is shrinking as are AA and B6. Those trends will likely continue.
UA execs in the past made bad decisions about using their slots at EWR – which led to an end of slot controls – as well as leaving JFK but UA’s sheer size might prevent it from being able to correct that decision.
The only hope that UA likely has to get back into JFK and grow its NYC presence is if AA or B6 give up enough slots and that is highly unlikely to happen.
Let’s chalk this up a rumor that probably won’t happen and nothing UA or B6 has said changes anything.
Not you talking about meltdowns at EWR, when the largest meltdown was the Delta Crowdstrike incident that happened at ALL DL hubs.
1. you do realize that UA cancelled half the number of flights due to CRWD that DL cxld and yet DL still managed to cancel a substantially lower PERCENTAGE of flights in 2024 than UA?
and UA's summer 2023 meltdown most certainly did spread throughout its system.
and DL's hubs other than ATL during the CRWD meltdown were back up as fast as UA was.
The strength and massive size of ATL is...
1. you do realize that UA cancelled half the number of flights due to CRWD that DL cxld and yet DL still managed to cancel a substantially lower PERCENTAGE of flights in 2024 than UA?
and UA's summer 2023 meltdown most certainly did spread throughout its system.
and DL's hubs other than ATL during the CRWD meltdown were back up as fast as UA was.
The strength and massive size of ATL is its weakness when everything falls apart.
2. None of that changes that the issue here is that EWR is at capacity. UA is not going to push EWR beyond what it can handle which is what happened in the summer of 2023.
And that means that UA is losing ground to DL in NYC.
THAT is why UA desperately wants to find some solution to stop its slide in NYC relative to DL and at the same time hope to slow DL's growth in the NE including at BOS.
you clearly can't accept that reality so you mock the person who actually does get it.
Tim,
facts are both AA and UA were both bottom dwellers when Scott made transition to UA. So yes, Scott was the smartest guy in the room between all of UA and AA management. You can argue about DL if you like.
UA has only gone upwards, its makes more money flying passengers than any other US airline, and the gap with labor costs will be closed with credit card deals they will...
Tim,
facts are both AA and UA were both bottom dwellers when Scott made transition to UA. So yes, Scott was the smartest guy in the room between all of UA and AA management. You can argue about DL if you like.
UA has only gone upwards, its makes more money flying passengers than any other US airline, and the gap with labor costs will be closed with credit card deals they will sign. Clearly Scott is alluding to that.
Slots at EWR will be managed with higher capacity jets removing RJs. You saw that UA is slowly breaking away from Mesa.
The question is who gets their new aircraft, DL for longhaul to compete with US internationally, OR UA for domestic to compete with DL, AA, WN. And yes it looks like DL is getting more widebodies for now but likely short term win for DL
first, thank you for an honest discussion... we all have biases but you clearly can talk intelligently.
Kirby and those he took might well have been held back at AA and UA provided the opportunity for them to become "unchained" That doesn't make Kirby the smartest guy in the room even if we are talking about just AA and UA. It just means he got the opportunity to do what he knew needed to do.
first, thank you for an honest discussion... we all have biases but you clearly can talk intelligently.
Kirby and those he took might well have been held back at AA and UA provided the opportunity for them to become "unchained" That doesn't make Kirby the smartest guy in the room even if we are talking about just AA and UA. It just means he got the opportunity to do what he knew needed to do.
and let's not forget that DL had at least a few somebodies that were smarter than Kirby - or had the opportunity to do at DL what Kirby is now trying to do at UA.
the difference is that DL like just about every other company does not need to tout how great they are by tearing down competitors. UA does that CONSTANTLY. If Kirby is as smart as he thinks he is, then the world will know.
UA flies more ASMs than any airline. They should be generating more revenue carrying passengers.
Other airlines will renegotiate their credit card agreements.
and DL has enormous revenue potential w/ engine repairs under its MRO agreements. they said it is worth $5 billion in revenue and $1 billion in profits in the next 5 years.
other airlines can and are upgauging in NYC and elsewhere. UA is still operating just 87% of the flights over the past year from NYC's airports that DL is operating. DL has a structural advantage. UA's advantage is its greater international reach -but there is nothing that is stopping DL from growing there IF there is money to be made. UA has proven that it flies things that DL won't because they aren't as profitable.
If UA can make good money flying international routes including from NYC, DL will too.
DL is getting more new widebodies and also is getting more capable and larger and more fuel efficient aircraft in the 350-1000s which start next year. They will be a game changer in the international competitive race between DL and UA. They simply will.
and you are correct that UA has to win domestic share from far more carriers than DL has to win international share from.
UA hasn’t closed the financial gap at all with DL over the last seven years?
In the last reported quarter they were extremely close, much closer than they were in 2018.
no, Mark, UA has narrowed but not closed the gap.
and remember that UA has yet to settle with its FAs and other ground employees which gives UA a $1B cost advantage.
Get back w us after UA employees are being paid at industry comparable levels
JonNYC actually has credibility and a positive reputation I would say.
By way of contrast…TD, not so much.
He answered the reporter's question like his wife had just asked him if he thinks the waitress is hot. "Oh, yeah, sure, I can see why some guys would find her attractive, but her voice is so high pitched I just couldn't see how having a conversation with her would work."
If I had to read the tea leaves on this, I'd take it as a message from Scott Kirby to JetBlue's Board of Directors. The message is "I'd buy your airline, but I won't overpay for it". He's clearly not shooting down a merger, but he's letting everyone know that he doesn't have blinders on about the impact and it would have to be financially worthwhile for United to fool with it. I think he...
If I had to read the tea leaves on this, I'd take it as a message from Scott Kirby to JetBlue's Board of Directors. The message is "I'd buy your airline, but I won't overpay for it". He's clearly not shooting down a merger, but he's letting everyone know that he doesn't have blinders on about the impact and it would have to be financially worthwhile for United to fool with it. I think he wants JFK, but he doesn't want JetBlue thinking they can gouge him for it when they're already in financial trouble.
Exactly… that’s how I read it too.
Oh Yeah !
Most interesting commentary for me is his acknowledgement of the pitfalls of mergers and acquisitions. Far too many CEO's paint a rosy picture of M&A and the opportunity it creates for the business because they know ultimately it's an easy (relative) opportunity to try to boost share price in the short to medium term and to expand their compensation and pool of comparable companies that they use to justify pay increases.
They don't typically...
Most interesting commentary for me is his acknowledgement of the pitfalls of mergers and acquisitions. Far too many CEO's paint a rosy picture of M&A and the opportunity it creates for the business because they know ultimately it's an easy (relative) opportunity to try to boost share price in the short to medium term and to expand their compensation and pool of comparable companies that they use to justify pay increases.
They don't typically like acknowledging the very real issues that acquisitions cause and those examples (IT roadmap, business performance, etc.) are very real examples and at least for the IT piece, very much can impact customer experience.
@ jetset -- Agreed that it's cool to see him acknowledge that, and it's one of the many reasons I enjoy listening to just about any interview with Kirby. He doesn't hold back.
While you're right about boosting short term share price and expanding compensation, I do think the need for industry consolidation goes beyond that. With airlines struggling to even break even on flying passengers, the reality is that consolidation is needed to keep...
@ jetset -- Agreed that it's cool to see him acknowledge that, and it's one of the many reasons I enjoy listening to just about any interview with Kirby. He doesn't hold back.
While you're right about boosting short term share price and expanding compensation, I do think the need for industry consolidation goes beyond that. With airlines struggling to even break even on flying passengers, the reality is that consolidation is needed to keep the industry moving, due in part to the power of larger frequent flyer programs.
I have read many times how the FF programs are the money makers for U.S. carriers. However, I wonder if it will be a correct assumption that that will be the case in the future. You (and others) reported constant devaluations of miles for award travel. Heck, not to long ago you made the statement that (at best that I recall) most people were better off with a cash back credit card!
The fact of...
I have read many times how the FF programs are the money makers for U.S. carriers. However, I wonder if it will be a correct assumption that that will be the case in the future. You (and others) reported constant devaluations of miles for award travel. Heck, not to long ago you made the statement that (at best that I recall) most people were better off with a cash back credit card!
The fact of the matter is that, for most people, the “return” on their loyalty will produce negligible benefits.
I, for one, taking your advice. I am emptying my FF accounts in order to close them…and getting a cash back credit cards.
BOS is a plug-and-pay hub for United too, with a large partner presence already. 2x FRA, MUC, VIE, 2x ZRH, YYZ, YUL, YHZ, PTY, BOG, SAL, 2x LIS, IST, 9K in addition to multiple frequencies to every lower-48 hub.
@ PW -- Yeah, there are obviously complexities to a merger, but the upside for United in both BOS and JFK would be almost immediate in so many ways, and the synergies are huge.
Can’t forget FLL would create a strong presence for a potential southeast hub
don't forget, Ben, that a merger between B6 and UA would mean that costs would all rise to UA's cost levels - assuming that UA raises its employee wages to levels that DL and WN pay.
B6' network simply doesn't work at UA costs. It doesn't even work now at B6 labor rates.
Seems to me he is simply just trying to get AA to overpay. They are the only ones really in play for JetBlue.
With where United and Jetblue are currently, I think they actually align quite well for a merger. Wouldn't have said that 5 years ago.
Out of curiosity why would Kirby think that United/B6 merger would be approved? Wouldn't the federal government object to the same thing as they did with the AA/B6 NA?
Granted, this is all speculation at this point, IMO.
Even though Trump might style himself as a populist (and his supporters seem to believe that), he's ultimately pro big business, pro private industry. I don't foresee this administration attempting to block any consolidation should it come to pass.
@Taylor,
Trump is absolutely not pro business. Just ask Jack Daniels, Ford, GM and Stellantis.
What Trump does, is he likes to put his finger on the scale for those that support him and give money to his PAC. He plays favourites.
It's called "pay for play." It's unprecedented and going to destroy our entrepreneurial system where the big guys will crush any new entrants.
this is absolutely true.
let's also not forget that he is a grand vision for America and airlines, in all reality, simply don't come close to being important enough to matter.
let's also not forget that DL and UA/execs - maybe more of the industry - gave $1 million to Trump's inauguration campaign.
just between DL and UA, there are clearly different objectives in terms of consolidation
How many domestic airlines can the customer reasonably sustain? Their dollars ultimately answer the question.
Heh this is not gonna help the night sweats in Atlanta...
The industry is going to head into another round of consolidation because ultimately having 3-4 major airlines with a 2-3 niche players will be required for profitability. The sharks are in the water and they smell blood.
Now this entire they will take us back to 1970 level fares is bullsh.... The industry has a flood of seats that need to be filled and BE fares aren't made to be profitable but to generate incremental...
The industry is going to head into another round of consolidation because ultimately having 3-4 major airlines with a 2-3 niche players will be required for profitability. The sharks are in the water and they smell blood.
Now this entire they will take us back to 1970 level fares is bullsh.... The industry has a flood of seats that need to be filled and BE fares aren't made to be profitable but to generate incremental revenue. You won't fly for $39 to see Mickey but you won't be forced to spend $1000.
To be honest people would be fine with the economy fares if they didn't make it so horrible and pack us all in like sardines and treat you like garbage.
All of my domestic flights are in economy and I’m not treated like garbage.
Not sure what being treated “like garbage” even means. I can travel across the country in a few hours for decent prices. WiFi, personal tv screens, most flights close to on time.
That seems to be what it’s like for most people.
When I think about how much I’d spend on gas just to drive the same distance and how long it would take me….
AA's "More room throughout coach" was unfortunately a failure because people didn't want to spend a few more dollars for it.
Waiting for another Tim Dunn meltdown. #itsallaboutgeneratingclicks
Not enough trigger words......yet.
Y'all are obsessed with him.
He's not even here, but you're here salivating for him to crash out. Don't act like you hate it, when you're literally waiting for it to happen.
Honestly. It’s actually disgusting. But Ben loves when Tim and the others go back and forth. Clicks =
Honestly. It’s actually disgusting. But Ben loves when Tim and the others go back and forth. Clicks =
More airline consolidation is the worst idea of the last two decades.
Passengers do not want it and it is highly unlikely the government would allow it.
@ Mike Smith -- Of course consumers don't want consolidation, but what's actually the solution? Most US airlines are losing money, and even Delta and United are barely making money transporting passengers, but are instead making most of their money through loyalty programs. Profitable loyalty programs require scale.
How do you propose we create a sustainable industry, with airlines that aren't constantly in and out of Chapter 11?
Spirit expanded too quickly under poor management, ergo bankruptcy. JetBlue no longer has a compelling product and similarly needs to revamp. Don’t confuse mismanagement with economics, e.g., Avelo, Breeze, Southwest, Allegiant.
@ Gva -- I'm curious, how do you think JetBlue could offer a more compelling product? I'm happy to see the airline introducing first class, but beyond that, part of JetBlue's problem is that the airline offers a superior product that passengers aren't willing to pay for. Real innovation isn't really rewarded in this industry, and it's why we see a constant race to the bottom.
The likes of Brett Snyder at Cranky Flier know better than me but product includes network and schedule. Avelo in particular proves you can innovate on those two fronts very profitably as a startup no less.
If passengers were willing to put in the legwork and money to prevent industry consolidation we wouldn't be hearing about all these airlines with mountains of debt and terrible margins. The interests of passengers isn't diverse enough to support such a diverse set of choices and we see that even without industry consolidation. Southwest is basically introducing basic economy and Spirit is incorporating elements of 'regular' economy with higher priced tickets. To passengers the only...
If passengers were willing to put in the legwork and money to prevent industry consolidation we wouldn't be hearing about all these airlines with mountains of debt and terrible margins. The interests of passengers isn't diverse enough to support such a diverse set of choices and we see that even without industry consolidation. Southwest is basically introducing basic economy and Spirit is incorporating elements of 'regular' economy with higher priced tickets. To passengers the only real difference an airline can have is their route network and reliability
JetBlue should become the Zipair of the US.
They offer the most diverse set of layflat transcon seats domestically to places that wouldn't get them normally like LAS, PHX, SJC, etc. That has a very great niche for premium-lite customers that just want a better seat.