JetBlue resets cost structure to enable low airfares for next decade

JetBlue Airways said Thursday it had shaved US$314m off its cost base over the past 3 years, delivering on a cost-cutting drive designed to enable budget-friendly airfares over the next decade. Curbing costs is a priority for many companies, but particularly for airlines like JetBlue, where costs have been rising faster than for many peers and whose business model depends on fares that can compete with legacy airlines. Still, JetBlue expects costs to rise 1.5% to 3.5% in Q1, partly due to scheduled aircraft maintenance, before coming under control in 2020 with an estimated decline of up to 2%. JetBlue said operating expenses per available seat mile, excluding fuel were flat in Q4 thanks to the savings program. The airline is seeking to grow its capacity by between 5.5% and 7.5% this year. <br/>