Airline Portfolio and Performance Report for JetBlue Airways Research Paper

Airline Portfolio and Performance Report for JetBlue Airways - Research Paper Example It is relatively smaller than the southwest airlines but most recently it has posed a major competitive threat to southwest airlines. Like the southwest airlines, the Jetblue airways adopted the low cost strategy to ensure continuous profitability is maintained. The JetBlue Airway is based in New York, forest hills and it operates about 500 flights on daily basis in about 50 cities. Unlike the southwest airlines, the Jetblue airways operate two types of fleets which are composed of Embraer 190s and airbus A320 and it has a total of 147 jets currently. The average age of the JetBlue Airways fleet by the year 2008 was 3.4 years. By the year 2006, it had gross revenue of about $3.3 billion. Inception of this airline led to a complete change in the operations of the airlines and an increase in competition and quality of services in most of the airlines (Hoover, n. d). JetBlue Airway’s destinations which it serves are mainly located within the United States which constitutes its main market although it has flights to Bermuda, Caribbean, Mexico and the Bahamas. Following its inception in the airline industry, the company was performing profitably until the year 2006 when it reported first quarterly loss. However, this loss was offset during the subsequent years. Today, JetBlue Airways flies to about 58 destinations in over 12 countries. It is set to being its services to California and Los Angeles states in United States by June this year. Domestic markets are the main source of revenues for the airline. Like all other airlines, JetBlue Airways has encountered incidents although none of them had resulted in fatalities and/ or hull losses (Interavia Business & Technology, 2003). As mentioned above, jetblue airway has had its good and bad times in terms of profitability or financial performance. After it was introduced and officiated, jet blue airways took off in a positive note as far as