JetBlue: Non-frills fares payoff to come in late 2019-2020
JetBlue does not expect to see tangible bottom-line results from its newly announced version of no-frills fares until late 2019, a top executive acknowledged. “With respect to the earnings accretion, we’ll start seeing it at the very end of 2019, but will really start rolling in, in 2020,” EVP Marty St. George said Tuesday. The timeline’s main driver is getting the IT systems modified to offer the wider range of fares and broadening ancillary-revenue options, St. George explained. “Fully unlocking the value of segmentation, in our view, is going to require changes and improvements in how we price and distribute our product,” he said. “We’re starting upstream on this process...[and] also spending a lot of time on new revenue management tools that will better match price to willingness to pay on a customer level”. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-10-03/unaligned/jetblue-non-frills-fares-payoff-to-come-in-late-2019-2020
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JetBlue: Non-frills fares payoff to come in late 2019-2020
JetBlue does not expect to see tangible bottom-line results from its newly announced version of no-frills fares until late 2019, a top executive acknowledged. “With respect to the earnings accretion, we’ll start seeing it at the very end of 2019, but will really start rolling in, in 2020,” EVP Marty St. George said Tuesday. The timeline’s main driver is getting the IT systems modified to offer the wider range of fares and broadening ancillary-revenue options, St. George explained. “Fully unlocking the value of segmentation, in our view, is going to require changes and improvements in how we price and distribute our product,” he said. “We’re starting upstream on this process...[and] also spending a lot of time on new revenue management tools that will better match price to willingness to pay on a customer level”. <br/>
