JetBlue says 'on track' to achieve target run-rate savings by 2020
Bonny Simi, president, JetBlue Technology Ventures, says 40% of what JTV does is for the near-term, or over the next two years, while 60% is for over two to ten years. Says focuses on five areas: seamless customer journey, technology to support crew, future of maintenance and operations, innovation in distribution, revenue and loyalty, and evolving regional travel. Joanna Geraghty, president and COO, says believes fleet and costs could add 40c-55c of EPS growth through 2020. Says critical that company controls costs through Structural Cost Program and beyond 2020. Says systematically improving returns on all fleet types. Says currently restyling A320s, expects to restyle 60 more in 2019. Says will take first A321 NEO in 2019. Says will be taking first A220 in 2020. Says expects A320 restyling will improve margins and returns. Says will start seeing ASM impact in 2019. Says A321 is a margin builder in both mint and all-core. Says will have 35 mint-configured aircraft by year-end. Says anticipates seeing more all-core A321 over the next two years. Says biometrics is the future. Says has plenty of opportunity to renegotiate business partner contracts. Says on track to achieve $171M target of run rate savings by 2020.