The airline company said it will add more seats to its Airbus A321 fleet by reducing leg room to 33.1 inches, from 34.7 inches, allowing for another 15 seats.
"The revenue initiatives are expected to collectively generate more than $400 million in annual operating income on a run rate basis beginning in 2017," JetBlue said.
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The company also announced the deferral of 18 Airbus aircraft scheduled for delivery from 2016-2018 to 2022-2023, which will reduce the company's capital expenditure by over $900 million through 2017.
In an analysts call, JetBlue announced it will be introducing bag fees for some fare offerings, MarketWatch reports.
"We believe the plan laid out today benefits our three key stakeholders. It delivers improved, sustainable profitability for our investors, the best travel experience for our customers and ensures a strong, healthy company for our crewmembers," JetBlue's President Robin Hayes said in a statement.
Separately, TheStreet Ratings team rates JETBLUE AIRWAYS CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: