JetBlue Airways is unveiling its new domestic first-class seats Wednesday as more of the country’s carriers bet on the premium travel boom to make them profitable again.
JetBlue announced it would offer a domestic first class — BlueFirst — in December 2024 and plans to start flying aircraft with the new seats and full on-board product next month. The carrier is showing off the new cabin at its home hub at John F. Kennedy International Airport on Wednesday. Retrofits will continue during 2027, CEO Joanna Geraghty told CNBC late last month.
The rollout comes as the New York airline tries to stabilize after last posting a profit in 2019. Last month, JetBlue executives sought to calm investors after shares in the airline hit a record low following a report that bondholders had contracted restructuring advisors.
“We have no intention, no plans to file for bankruptcy. We are not engaged with any restructuring company,” Geraghty told CNBC in an interview on Oct. 27.
Geraghty told CNBC’s Phil LeBeau on Wednesday that JetBlue has “met with a few of the creditors over the last couple of weeks as part of … normal investor engagement.” She said the company made it clear to bondholders that JetBlue doesn’t need to reorganize.
The airline’s shares are up more than 40% this month, more than other passenger carriers, as of midday Wednesday, though they are still off about 11% so far this year.
JetBlue is betting that resilient travel demand, especially for for roomier seats will help fuel its turnaround plan, which aims to get the carrier to an operating profit next year and $1 in adjusted earnings per share in 2028.
Airline executives have said they expect fares to stay elevated next year as they grapple with higher costs, including but not limited to fuel, such as labor and airport fees. Geraghty said Wednesday that even if fuel prices moderate next year, “I don’t think fares are going to fall as much as people expect.”
JetBlue’s new domestic first-class seats.
Courtesy: JetBlue Airways
Airlines large and small are racing to outfit their cabins with roomier, more expensive seating options to help cover ever-higher costs, from jet fuel to labor to airport operation fees.
For example, a ticket in the new recliner first-class seats between Kennedy Airport and Fort Lauderdale-Hollywood International Airport in Florida is going for $847 roundtrip in the first week of March while standard economy is $446.
On Tuesday, budget carrier Frontier Airlines unveiled its new first class seats, which will take up the first two rows, and said it would outfit its Airbus fleet with premium seating that have extra legroom and in-seat power through row eight. The airline will take out a row of seating on its planes to make the pricier ones fit, chief marketing officer Bobby Schroeter told CNBC in an interview Monday.
JetBlue last month reported it ended the third quarter with $2.2 billion in liquidity and that its unencumbered asset base is now $7 billion, including $2.8 billion in aircraft and engines.
JetBlue had total debt of $8.4 billion as of Sept. 30, the carrier said in its earnings filing.
Geraghty told CNBC last month there is a “fundamental disconnect between the narrative in the bond market and what our financial results actually demonstrate.”
When asked then whether JetBlue’s eye on keeping costs down includes furloughs, layoffs or buyouts, Geraghty last month said “absolutely not.”
