JetBlue Will Continue Capping Seats into 2021

JetBlue Airways will continue limiting seats sold on each flight into early 2021, citing the importance of “customer perception” amid the ongoing coronavirus pandemic.

“Our view is that over the course of time the seat caps will go, but right now it’s a very important issue for customer perception,” Chief Executive Robin Hayes told Reuters.

JetBlue is currently capping its seating capacity on flights at 70% and will review the policy in the first quarter of 2021.

Hayes said he expects JetBlue’s business to be “largely recovered” by the end of next year given the low-cost carrier’s focus on domestic leisure travel, which is expected to recover before corporate and international travel.

In the short-term, Hayes told CNBC “We continue to see a fair bit of interest for travel around the Thanksgiving and holiday period… A lot of people are seeing friends and family they haven’t seen for a long time. We’ve been in a rising case count here for a couple weeks, and so far, we haven’t seen an impact on bookings.”

Hayes did caution that the policy is “incredibly expensive, especially in an industry that’s struggling.” In its third-quarter earnings report, JetBlue posted a $393 million net loss as travel demand plunged due to the coronavirus pandemic, although revenue of $492 million surpassed estimates of $466 million.

The carrier joins Alaska Airlines and Delta in extending the middle-seat blocking policy. Both airlines will continue restricting seating capacity on their planes through at least Jan. 6, with Delta CEO Ed Bastian saying the carrier would block middle seats “well into next year.”

Among other airlines, low-cost carrier Southwest Airlines said it would stop blocking middle seats on Dec. 1, after reports from “trusted medical and aviation organizations” claimed the risk of exposure to the coronavirus on flights is minimal. Southwest CEO Gary Kelly said Southwest lost $20 million in revenue during September because of the policy, with the loss seen rising to between $40 million and $60 million in November.

American Airlines and United Airlines have also ended their initial ban on the booking of middle seats, arguing that ventilation systems and air filters made planes safe without social distancing.

Since U.S. air travel plummeted 95% in April, all airlines have reported a slow rise in the number of passengers, although U.S. travel is still down 65% from a year ago.