JetBlue says supply chain limiting first-class installations

Low-cost carrier pitches premiumisation as path to profitability.
JetBlue Airways says the rollout of its first-class seats is limited by supply chain issues rather than pace of installations.

Speaking on the carrier’s third-quarter earnings call, president Marty St George said the carrier will not finish installing BlueFirst seats until later in 2028, with the majority of the fleet completed by the end of 2027.

“Frankly, the issue right now is supply chain,” he says. “We can absolutely go faster. In fact, I was with Collins on Friday and had this exact conversation. We would love to get these seats in faster, but unfortunately, as is a situation with so many products in the industry right now, supply chain is a critical path factor.”

Collins Aerospace, the supplier, did not immediately respond to a request for comment.

Turnaround strategy

BlueFirst is a major part of JetBlue’s turnaround plan. The first tickets went on sale in October for the initial flights with the cabin, which will launch on 8 December between Boston and Fort Lauderdale.

Routes operating with the new premium cabin will launch in phases. JetBlue lists 21 routes starting by February.

“By far our favourite fact is seeing how many of the seats being sold are being sold to our existing customers,” St George says. “I think there was a lot of speculation that this is a business model that was predicated on stealing customers from our competitors, and it’s just not what we’re seeing at all.”

JetBlue reported a net loss of $257 million, an 80% widening from a year prior, with an improved adjusted operating margin of -3.9% (from -4.1%).

On the call, executives sought to calm investor nerves, touting unit revenue improvements and a path to $1-per-share profitability by 2028.

Shares rose as much as 20% in regular trading on 27 October following the report, but remain near record lows as the airline navigates the current fuel-cost environment.

“We’re encouraged by the early response to BlueFirst, which suggests that we are tapping into pent-up demand for a domestic first-class product among existing customers, particularly on leisure routes from New York and Boston,” says St. George.

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