How JetBlue Perfected The Hybrid Airline Model

Jun 06, 2024

The carrier has succeeded in capturing a unique market segment.

JetBlue was founded 25 years ago in 1998 by Brazilian-American businessman David Neelman, who would ultimately go on to establish four other commercial airlines. The carrier commenced operations in 2000.

Since its founding, the airline has rapidly expanded from its humble beginnings as a low-cost carrier connecting residents of the Northeast to their favorite sunny vacation destinations. JetBlue is now expanding toward being a global carrier, with flights to London Heathrow (LHR) and London Gatwick (LGW) from the airline's bases at JFK and Boston Logan International Airport (BOS).

Despite this, however, what is truly impressive about JetBlue is not that it has established transatlantic connections. Rather, JetBlue has perfected a business model that allows it to sit entirely in a class of its own. It would be inaccurate to call JetBlue, which flies transatlantic, has the largest legroom in the sky, limited baggage fees, and free WiFi, a low-cost carrier. However, it would also be inaccurate to say that JetBlue is a full-service network carrier, as it lacks the size, focus on premium travel, or market share to be such. Therefore, JetBlue sits almost alone as a true hybrid carrier, sitting in a unique space between legacy carriers and low-cost airlines.

JetBlue's fleet comprises over 280 aircraft, with various A320 family jets alongside A220s and Embraer 190s. The carrier also maintains outstanding orders for 140 aircraft, including 16 A321 XLRs, which will be used to expand the airline's transatlantic operations. The dynamic fleet allows JetBlue to serve both regional routes as well as larger long-haul flights and will enable the carrier to continue doing so in the near future.

The fleet bears some similarities to most ultra-low-cost carriers, as it contains only narrowbody aircraft. Airlines such as Spirit, Avelo, Southwest, and Frontier all maintain fleets of exclusively single-aisle jets. However, there are some differences between them, as JetBlue operates multiple aircraft families while low-cost carriers tend to stick to just one family. JetBlue, unlike most budget airlines, features a premium cabin, JetBlue Mint, a product that can compete quite strongly with the offerings of most legacy airlines.

JetBlue sits in a unique position where it can provide dynamic service on all kinds of routes. Furthermore, the airline can offer passengers different experiences, from basic economy between New York and Fort Lauderdale, competing with airlines like Spirit, to long-haul Mint business class, competing alongside established players in the transatlantic market like United Airlines and British Airways.

When sitting aboard a JetBlue flight, one is exposed to the airline's unique marketing tactics, which provide a fascinating window into how the carrier views itself. In some ways, the carrier's inflight branding and imagery are targeted at competing with ultra-low-cost carriers, while other elements position the airline in competition with legacy carriers. Additionally, some things seen and heard by passengers are entirely unique from any other airline's messaging.

In terms of competing with other budget carriers, the carrier is quick to emphasize two critical factors of great concern to passengers on budget airlines. Specifically, the cabin crew makes an announcement right after takeoff, encouraging passengers to sit back, relax and enjoy the most economy class legroom in the sky. Held in comparison to airlines like Spirit, JetBlue's legroom is surely impressive and is a significant factor for those choosing between the two carriers. Additionally, the carrier highlights its low fares, reminding passengers that despite its legroom, JetBlue's ticket prices can be a great deal compared to other airlines.

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However, some aspects of JetBlue's inflight messaging and experience are reminiscent of traditional legacy carriers, specifically its emphasis on TrueBlue, the airline's loyalty program. Like legacy carriers, JetBlue flight attendants recite sales pitches at cruising altitude, offering passengers special deals in exchange for signing up for the company's branded credit card. Also, similarly, JetBlue offers a selection of complimentary beverages and snacks. In fact, the airline provides a broader selection than many full-service network carriers, which usually only have one complimentary snack, while JetBlue offers four.

Unlike any other airline in the US (although Delta is rolling out a fleet-wide system by the end of 2024), JetBlue offers free, high-speed WiFi to all passengers on all flights and has done so since 2013. The airline is quick to brag about this, with push notifications sent to JetBlue app users and videos playing on seatback monitors. Free WiFi is an incredibly unique asset, especially in an era when so much emphasis is placed on remote work.

The airline has also announced a partnership with Comcast's Peacock and will offer a variety of the service's titles on its inflight entertainment system. While inflight experiences vary across flights, aircraft types, and routes, JetBlue's inflight messaging and passenger experience aims to place the carrier beyond low-cost carriers and legacy airlines in the passengers' minds.

While JetBlue may be the most established and well-developed carrier operating on a hybrid model, other airlines are attempting to enter the space, the most notable of which is Alaska Airlines. Despite its lack of a long-haul, Alaska touts its award-winning lounges and offers a competitive premium product, all while offering affordable economy class fares.

Despite not truly existing in the hybrid carrier space, Southwest also maintains some unique qualities. The airline has its particular policy of not having reserved seating, provides free snacks, and, unlike any other US carrier, allows each passenger to check two bags free of charge.

A relatively new entrant, Breeze Airways, also has some of JetBlue's qualities. The airline's marketing is somewhat reminiscent of JetBlue's, with the carrier referring to itself as America's "nice low-cost carrier," citing its lack of cancelation or change fees and variety of reasonably priced upgrade packages. However, Breeze's premium product, the Ascent seat, is far closer to Spirit's Big Front seat than it is to a legacy carrier's domestic first class, and the airline's loyalty program, BreezePoints, is more like that of Frontier Airlines than the massive frequent flyer programs of traditional airlines. The airline also has none of JetBlue's industry-leading inflight entertainment offerings, for example, a lack of free WiFi.

JetBlue has continued to be a unique player driving growth and innovation in the hybrid airline sector. The carrier's continued growth will surely be exciting to watch and will provide more and more opportunities for the passengers to take advantage of the airline's one-of-a-kind offerings.

Alexander (Alex) Mitchell, an Applied Mathematics and Economics student at Brown University, has maintained a lifelong passion for aviation. Mitchell aims to enter the field of strategy consulting with a specialty in commercial aviation. Based out of Providence, Rhode Island, USA.