JetBlue Adds Jamaica to Expanding Caribbean Options

JetBlue Adds Jamaica to Expanding Caribbean Options
By Kyle St. Romain

JetBlue Airways continues to add routes servicing the Caribbean market. Most recently, JetBlue announced its plans to add twice-daily nonstop flights from Fort Lauderdale, FL to Kingston, Jamaica squaring the airline off against competitors like Air Jamaica, Caribbean Airlines and Miramar-based Spirit Airlines.

The small number of competitors and increasing demand for Jamaican air travel makes this an ideal niche market for JetBlue to expand into. Compared to its main competitors including Delta Airlines, American Airlines and Southwest Airlines, JetBlue’s low cost-structure, young fleet, positive customer satisfaction and strong balance sheet should keep the company well positioned for strong future growth.

In March 2010, JetBlue added four daily flights from New York’s JFK to Jamaica (Kingston and Montego Bay). In addition to its New York and Ft. Lauderdale routes, JetBlue offers daily flights from Orlando to Montego Bay as well as bi-weekly service from Boston to Montego Bay.

According to Scott Laurence, vice president of Network planning for JetBlue Airways, the expansions have come from strong support from Jamaican travelers who continue to ask for more flights. These additional routes reflect the strength of the Jamaican air passenger market.

JetBlue’s timing is almost perfect as Kingston’s Norman Manley International Airport expects a spike in tourism to Jamaica as travelers come to participate in Jamaica’s 50th Homecoming (marking 50 years of independence) in 2012.

Full seats on new routes should help boost earnings throughout the upcoming year. For long-term growth, investors should look to continued expansion into the international markets. Currently, JetBlue’s international routes amount to roughly 20 percent of JetBlue’s share price.