JetBlue likes to boast of being the airline of New York’s hometown, so much so that it even registered that catchy phrase as a trademark. But is the siren touch of cheaper out-of-state real estate enough to make JetBlue renounce its roots in New York? Well, not exactly. However, the airline plans to reduce the size of its New York headquarters and relocate many of its New York-based employees.
JetBlue seeks to save and cut office costs
JetBlue is currently based in Queens. Approximately 1,300 JetBlue employees work there. According to a New York Post report by Noah Manskar, the rent on that office space expires in mid-2023. With much less money entering the JetBlue coffers now than it normally does, JetBlue is “exploring a number of paths. “
The New York hometown airline recently celebrated its 21st anniversary. Since its inception in 2000, with services to Buffalo and Fort Lauderdale, JetBlue has become one of the largest and most successful airlines in the United States. With this success, JetBlue expanded, innovated and won applause from the industry and its many passengers. But last year, JetBlue lost more than $ 1.3 billion in what CEO Robin Hayes called “a year like no other.”
JetBlue expects its revenue to fall between 61% and 64% in the first quarter of this year compared to the same quarter in 2019. The airline is experiencing some improvement in reservations, but describes current demand as “unstable”. In such an environment, it’s no surprise that JetBlue is considering its options.
In a memo distributed to JetBlue employees last week, JetBlue said;
“We are exploring a number of paths, including staying in Long Island City, moving to another space in New York City and / or changing a number of roles to be determined at Headquarters for existing support centers in Florida.
“We now have more rental options, as higher vacancy rates have changed the economy; office function and space requirements will evolve in a hybrid work environment, and our own financial condition has been affected by COVID-19. “
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Relocating employees to Florida makes sense for JetBlue
To be clear, this memo does not say that JetBlue is planning to move its headquarters outside of New York. However, you can find offices in other parts of the city.
“Regardless of how we rebalance our footprint between New York and Florida, our commitment to New York remains strong”, Said the memo.
But any potential rebalancing could reduce the number of employees at JetBlue’s New York headquarters by relocating them south to Florida.
There is some logic to this, as Florida is an important JetBlue hub. In addition to recently launching a series of flights from Miami, JetBlue has long been present in Fort Lauderdale, where it is one of the airport’s largest operators. JetBlue Travel Products is based in Fort Lauderdale and the airline has a training center near Orlando.
In addition to the 1,300 JetBlue employees currently based in Queens, the airline has thousands of other employees spread across the various airports it flies to throughout the state of New York. Over time, that number may increase, according to the New York Post. That’s because JetBlue plans to expand its services outside LaGuardia and Kennedy airports. Perhaps included in this expansion is the long-awaited and much-discussed service between JFK and Heathrow.
Simple Flying approached JetBlue regarding any potential moves from its HQ in New York. We had no answer before the publication deadline.