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Strengths and Weaknesses of JetBlue: Bring Humanity Back to Air Travel

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Established in 1998 by David Neeleman, JetBlue offers a unique flying experience at a reasonably low rate. “Bring Humanity Back to Air Travel”, with a mission that holds truth, the Company is an advanced passenger airline that delivers outstanding customer service at competitive rates on point-to-point routes. Jet Blue offers its customers an efficient product with a aircraft that is fuel efficient. Leather seats, free entertainment during the flight located at every seat, assigned seating and reliable performance are all a part of what makes JetBlue a leader in its industry. Despite the recent downfall of the economy, JetBlue has managed to grow financially and spread geographically. As of December of 2009, the company began serving…show more content…
Its dependence on the geographical regions it travels to makes it vulnerable to the changes that the country faces economically and politically. Because most of JetBlue’s dependence is on the U.S market, this exposes them to the risks of the economies conditions.

Declining operating efficiency
In 2008, JetBlue reported a net loss of $84 million and an operating margin of 3.3%, compared to the net income of $12 million at a 6% margin n 2007 (Barger, 2007). The decline in the years to follow was a direct result of the increase in fuel prices. Low fares and high fuel prices affected JetBlue’s reputation and contributed to downfall of the company’s economic performance.

Opportunities
Increase the number of flights
JetBlue is a fast growing company however, it needs to increase the number of flights and take advantage of the growing market in order to make more profit. In addition to increasing the flights, by expanding its activities, the company will be able to buy fuel at lower costs and suffer less from the fuel deficiencies.

Global travel and tourism industry
Growing faster than manufacturing, retails and financial services, the Travel and Tourism industry outperformed the global economy is 2012 (World Travel and Tourism). This continuing increase in world travel and tourism is expected to help the airline business. JetBlue can take advantage of the growing
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