Southwest Airlines and Jetblue

A detailed Summary of Southwest Airlines and Jetblue


Many ask how can JetBlue offer great service, with low fares and still make a profit while all major carriers are losing money. Running a profitable airline may be as easy as supplying your customers with a clean airplane, arriving on time and having knowledgeable and professional employees. This simple thought process is what Chief Executive David Neeleman had in mind when he started JetBlue more than two years ago. Neelman stated, "We set out to bring humanity back to air travel and to make flying more enjoyable."

Last year JetBlue earned $14 million on $320 million in revenue and then in the first half of 2002 the carrier netted $27.6 million on $283 million in revenue (Publications Librarytm). Many ask how JetBlue did this with all the turmoil currently in the industry. Lets start with the fact that this two-and-a-half year old airline opened its doors with a blank


At a quick glance JetBlue looks like a knockoff of Southwest Airlines. However, there are some major distinctions between the two. JetBlue ultimately beats Southwest airlines at the low cost carrier game. Southwest has traditionally focused on flying business passengers on short flights, but JetBlue is flying larger aircraft, 162 seats versus 135 seats on Southwest's Boeing 737s. JetBlue also flies longer routes, which average 1,055 miles versus Southwests 528. This explains why JetBlues fares are lower then Southwests per mile. Along with having the lowest fares, JetBlues revenue per flight on average is $13,700 versus Southwests revenues of $5,100 per flight. JetBlue also takes in $8.27 for each seat flown 100 miles, while Southwest brings in $7.61. Finally, JetBlue has the industries highest payload factor. When combining these aspects one can see why JetBlue is so

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