NEW YORK — Robin Hayes, the new chief executive of JetBlue Airways Corp., is balancing between passengers and Wall Street.
As he takes control of the New York-based airline, Mr. Hayes faces a tough task: raise profits without destroying the culture that has made JetBlue stand out from other U.S. airlines.
JetBlue, after all, was the first carrier to give passengers free live TV at each seat and is still known for its friendly employees. For years, the airline has resisted charging for a first checked bag and boasted the most generous legroom in the industry. But, while the airline remained profitable, it lagged behind competitors. Wall Street demanded change.
To appease investors, Mr. Hayes recently announced that JetBlue will add a fee this spring for the first checked suitcase — a move estimated to bring in $200 million more a year by 2017. It will also add 15 seats on most of its jets. That should increase the profit per flight, but passengers will lose some personal space.
To the airline’s fans, those were jarring decisions. Mr. Hayes stayed up until 3 a.m. answering the flood of emails.
“People are so passionate about the JetBlue brand and the JetBlue story. They are very protective of it,” he said. “I see that as a good thing.”
Mr. Hayes, 48, was chosen in September to replace CEO Dave Barger. He assumed control last week.
JetBlue prides itself on doing right by workers and passengers. So, like his predecessors, Mr. Hayes flies to Orlando, Fla., every two weeks to welcome new hires at the airline’s orientation and training program. And while he’s cramming more seats into planes, the passengers sitting in them will be getting larger TV screens and almost three times as many channels.
Mr. Hayes has always had a love of travel.
Growing up in London, Mr. Hayes would create make-believe train timetables. He was fascinated with the London Underground and could tell people the fastest way from one station to another — and suggest where to stand on the platform to line up perfectly with each station’s unique exit.
But flying became his true love. Mr. Hayes wouldn’t take to the sky until he was 18 — a trip to Greece. He was hooked.
Mr. Hayes spent a summer working at Boston’s Logan International Airport, his first job out of school.
With a degree in electrical engineering, Mr. Hayes spent a year designing military cockpit avionic systems. He missed interacting with people and began working the ticket counter and gates in Glasgow for British Airways.
There were some hiccups. Still new to the company, Mr. Hayes was boarding flights at two adjacent gates when he sent a man who was supposed to fly within Scotland to Germany without a passport.
“I got into a bit of trouble for that, but they didn’t fire me,” he said.
Mr. Hayes spent 19 years at British Airways. In 2008, JetBlue offered him the job of chief commercial officer.
He became president in 2014. Two years earlier, he became an American citizen, a prerequisite to becoming a U.S. airline CEO, although he said that had nothing to do with the decision.
British Airways focuses on long-distance flights and caters to business travelers who buy pricey, last-minute tickets. JetBlue’s average flight is 1,088 miles — the distance between New York and Miami. Most passengers are escaping chilly cities to Florida, the Caribbean, and Latin America.
Those routes, however, don’t command high airfares.
For every 1,000 miles JetBlue flew last year, it collected an average of $119 for each available seat. By that same measure, Southwest Airlines took in $135, United Airlines saw $137, and American Airlines had $140. Delta Air Lines led the industry with $146.
JetBlue’s passengers flew a combined 37.8 billion miles last year. Getting the same revenue out of each seat as Southwest does would have brought in an extra $615 million, at an airline whose profit last year was $401 million.
Mr. Hayes wants to come much closer to his competitors. While JetBlue will start charging for bags this spring, Mr. Hayes points out other amenities: new TV screens with up to 100 channels of live TV, free Wi-Fi, and power outlets. Passengers will hopefully pay more — JetBlue does command a $10 to-$15 premium on leisure routes — for a better experience and to enjoy those freebies.
First Published February 22, 2015, 5:00 a.m.