DALLAS – At the Skift Global Forum in New York City today, JetBlue’s (B6) CEO Joanna Geraghty shared her views on the airline’s first-ever airport lounges and her vision for the carrier’s future.

The much-anticipated move is a central part of the airline's 'JetForward' strategy to elevate its premium offerings while maintaining its commitment to affordable travel. 

The lounges, set to open at New York’s JFK Terminal 5 in late 2025 and Boston Logan’s (BOS) Terminal C shortly after, mark a significant milestone in B6’s transformation.

Responding to Customer Demand for Lounges

Geraghty addressed the long-standing question of why it took so long for B6 to introduce lounges. "Lounges are probably the single most significant thing customers have asked for that we haven’t offered," she explained to Skift's Airlines Editor, Gordon Smith. Balancing the cost of operating lounges with B6’s mission to offer low fares had been a challenge, said Geraghty. 

The CEO also took aim at the state of existing airline lounges, describing them as often overcrowded and uninspired. B6’s approach will be different: smaller, more exclusive, and tailored to select travelers, particularly its Mosaic members and future premium credit card holders. 

"We want to avoid the long lines and underwhelming experience that other lounges often provide," Geraghty noted, highlighting that access will be limited to ensure quality.

The lounges are part of the airline's larger push to enhance its transatlantic service, which includes offering lie-flat Mint suites, award-winning dining, and exclusive perks like free carry-on bags, even for basic fare classes. 

"We’re still a low-cost airline," she insisted, "just with a premier segment." The new lounges will further this strategy by providing top-tier experiences without compromising JetBlue’s low-cost ethos.

Challenges in Growth, Fleet Expansion

Geraghty also spoke about the airline's challenges in growing its transatlantic service. B6 has introduced new routes to cities like Dublin and Edinburgh and flies year-round to destinations like London, Paris, and Amsterdam. "We're proud of what we've done across the Atlantic."

However, Geraghty candidly admitted that expanding further into Europe is not without hurdles, mainly due to aircraft limitations as ranges presented by aircraft manufacturers are not all what they seem.

The CEO stated, "I'm not sure that the aircraft, the XLR, would actually make it to Rome. With the level of reliability we would need. It's covered to fly back in the wintertime, and we don't want to have a technical stop along the way to get gas over the Atlantic."

"We’re exploring new routes, but we want to ensure we can fly them reliably," she added, noting that some aircraft in B6's fleet may struggle to consistently make longer flights without needing refueling stops.

She also touched on the frustrating delays caused by engine issues, particularly with the Pratt & Whitney engines on some of the airline’s new planes. 

These issues have grounded aircraft for long stretches, impacting B6’s ability to grow its fleet as planned. "It’s incredibly frustrating to spend millions on a new plane, only to have it grounded for 300 days," she said.

When asked about B6’s cutting dozens of underperforming routes to the point of pulling out from some cities completely, the CEO was clear. “In a world where we're not growing because of our Pratt-Whitney engine situation, we are focused on making sure that every route, every city makes its way to the network and generates a profit or has a path to a profit.” 

Geraghty added that the airline had also redeployed about 20% of the fleet over the last two to six months to focus heavily on the East Coast leisure network and “doubling down in the Northeast.”

The Evolution of JetBlue’s Loyalty Program

The conversation shifted to B6’s growing loyalty program, which has become crucial to its business. Geraghty highlighted that about 11% of the airline’s revenue now comes from its loyalty programs, a number that is steadily increasing. 

The airline has redesigned its TrueBlue loyalty program with more flexibility, offering customers perks they can choose from—such as free bags or preferred seating—rather than fixed rewards that may not suit everyone. 

With the introduction of the new Mosaic 4 tier, top-tier customers will enjoy perks like access to the lounges and guaranteed upgrades to Mint seats, a benefit Geraghty says sets JetBlue apart from other airlines. 

"Unlike some carriers, where you’re number 50 on the upgrade list and never get the seat, we’ve created a more reliable path to rewards," she explained.

JetBlue’s Strategic Focus: Organic Growth, Partnerships

Geraghty also discussed B6's current strategy of focusing on organic growth rather than mergers or acquisitions, especially in light of the recent blocked merger with Spirit Airlines (NK).

Despite the administration's stance on airline consolidation, she remained optimistic about B6’s standalone potential. "We have a great brand and product. Now, it’s about executing our core strategy," she said.

Partnerships will continue to play a significant role in the carrier’s expansion, with over 50 airline partners already in place, providing global reach for its customers. During the Q&A,  we asked if B6 would join an alliance, such as oneworld. 

Geraghty acknowledged the potential benefits but was cautious about the costs and commitment required. "It’s something we’ll continue to evaluate, but for now, our focus is on enhancing our current partnerships and maintaining our identity as a unique carrier."

Operational Improvements, Customer Experience

Geraghty was also candid about the challenges of operating out of New York, where B6 is the largest carrier by flights. She pointed to the city’s notoriously congested airspace and inefficiencies in air traffic control as ongoing issues. 

"New York is a tough market, but it’s our home," she said, calling for improvements in air traffic management to reduce delays and enhance the customer experience.

The CEO explained, "The DOT has got to fix our traffic control, and it's mostly an issue in New York. There are other parts in the United States where there's some pressure, but New York is by far the most significant challenge, I think, in the ATC system. And so while we support things like refunds for customers and obviously taking care of customers when there's disruptions, we really need the FAA and the DOT to continue to step up to fix the underlying issues, because none of us should have to deal with some of the challenges."

The CEO would later state in another interview that the US Department of Justice had been “a bit short-sighted” in recent years when evaluating corporate acquisitions.

Despite these hurdles, Geraghty highlighted on stage the operational improvements B6 has made over the past year. On-time performance (OTP) and flight completion rates have significantly improved, helping the airline recover from the disruptions that led the Wall Street Journal to label it "America’s worst airline" in 2022. 

"No one wants to be at the bottom of that list," she admitted, but pointed out that her airline’s performance relative to other airlines in New York is competitive.

Sustainability and the Path Forward

Looking ahead, Geraghty emphasized JetBlue’s commitment to sustainability. The airline has set a goal of achieving net-zero carbon emissions by 2040, with a focus on sustainable aviation fuel (SAF) as the key driver. 

JetBlue recently became the first airline to sign an agreement to bring SAF to New York airports, and it is expanding similar programs in California. However, Geraghty stressed that the airline industry cannot meet these goals without government support. 

"We need subsidies and serious commitment from the government to make green aviation a reality," she said.

On Women in Aviation, Geraghty’s Leadership

As the first female CEO of a major U.S. airline, Geraghty reflected on the broader issues of diversity and inclusion in the aviation industry. "We’ve made progress, but there’s a long way to go," she acknowledged, particularly in increasing the number of women in leadership roles and as pilots. 

When asked how she felt about her name linked to words like trailblazer, pioneer or role model, Geraghty said, "Uncomfortable because I don't view myself in that way. At the end of the day, I feel that I'm in this role for a period of time to help Sheepard jetBlue through a challenging period where we're coming out of."

"If you run an airline, you're always focused on operations," she stated earlier in relation to the switch from being a COO to being a CEO. B6 is actively working to address this with its foundation, which provides grants and opportunities to underrepresented students in aviation and STEM fields.

A focus on resilience has marked Geraghty's tenure at B6 amid a year of external setbacks. However, she's keen to innovate the airline, and her vision for the future is clear.

"We’re here to bring humanity back to air travel," she said, reinforcing B6’s commitment to delivering exceptional customer experiences without losing sight of its mission as a low-cost carrier with a premium twist.