Jetblue Essay

Profitability in the airline industry can be pretty shaky, but it looks like JetBlue has found a way to make their airline more profitable than others if all goes according to plan. Susan Carey, in her article, “JetBlue to Expand Its High-End Service, Dubbed Mint, to More Routes” published in The Wall Street Journal on April 12, 2016, goes on to explain what JetBlue has planned for the near future. In order to increase profitability, JetBlue is going to expand its seasonal services, and more importantly, it is seeking to bring in Mint flights to more than one transcontinental route in the U.S. The airline industry itself is an example of an oligopoly, and making profits is not always simple, because companies, such as JetBlue, are competing

American Airlines Group Inc., Delta Air Lines Inc., and United Continental Holdings Inc., the three

The increase in the quantity of Mint flights that will soon be offered will undoubtedly stir up the market once more. This time around, not only are existing routes that have been exposed to Mint flights going to be affected, but JetBlue also wants to extend the luxury to other routes as well, where airlines, such as Alaska Air Group, Inc. and Virgin America Inc. (now merged to form one larger airline service), will experience a greater pressure from this competition. The demand for traditional first-class seating will more than likely decrease, as indicated by the fact that many Mint flights have already been sold out (Carey). As a result, prices for these traditional first-class tickets may decrease as more people turn to the more luxurious form of air travel. This decrease in the price of rival air tickets may cause the airlines to experience economic losses, forcing them to improve their services in order to attract more consumers. If this fails, airlines can look to forming mergers with other companies that are better