In its latest move for expansion, JetBlue Airways Corp. (JBLU) has announced that it will introduce nonstop flights (twice a day) from Baltimore to Fort Lauderdale, FL. The low-cost carrier intends to launch the new service from November this year.
The new connection to Fort Lauderdale-Hollywood International Airport is welcome news for people residing in Maryland and Washington, in particular. They will now have the option to fly nonstop to South Florida – a popular holiday destination. Moreover, the new service will help fliers connect to the carrier’s diverse network across the Caribbean, Central and South America. Through this move, JetBlue aims to enhance customer satisfaction and attract more fliers, thus boosting its top line. We note JetBlue already operates flights between Baltimore and Boston, effective 2009.
The expansion of its service from Baltimore puts JetBlue in competition with another low-cost carrier – Southwest Airlines (LUV). Southwest offers multiple flights from Baltimore and also operates on the Baltimore-Fort Lauderdale route.
We note that JetBlue is constantly looking to expand its network. Recently, the carrier announced nonstop flights (twice a week) between New York's John F. Kennedy International Airport and Grenada's Maurice Bishop International Airport from Jun 11, 2015.
Apart from its expansion initiatives, the carrier was also in the news recently when it announced changes to its top brass. We are encouraged by the expansion moves and the leadership revisions at JetBlue. These initiatives should go a long way in improving the company’s performance, which is the need of the hour, given that JetBlue’s earnings have surpassed the Zacks Consensus Estimate in only one of the last four quarters.
Zacks Rank
JetBlue carries a Zacks Rank #1 (Strong Buy). Equally well-ranked stocks in the airline space are Spirit Airlines (SAVE) and Hawaiian Holdings Inc. (HA).
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