Jet Blue Key Indicators
Employment is an important economic indicator because this can be a reflection of how the economy is doing. Information like total number of employees, regional employees, training, and turnover are helpful when determining trends in a company. JetBlue's employment is essential in achieving their goals. JetBlue needs to monitor both employment and unemployment rates in order to keep a balance. "JetBlue Airways has an annual turnover rate of 4 percent, and Office Depot saw turnover drop in half when the company implemented a home-agent program" (DeMaria, 2005).
People love working here. But make no mistake: JetBlue is not a cult of eternally smiling crewmembers, as employees are known at the airline. While no unions have infiltrated the company's ranks, organizing efforts have remained a constant since the airline's inception in 1999, and past missteps in promoting employees with scant leadership knowledge to managerial posts proved temporarily damaging.
Despite those issues, the overriding message and mission of this upstart airline is to value its 7,000 employees and empower them with information (Tahmincioglu, 2004).
JetBlue makes the most money from the fares they charge to customers. Prices vary from city to city. By keeping track of fares, JetBlue can predict both financial and economic trends. Profit maximization can be achieved by knowing how well JetBlue's tickets are selling. Knowing this information allows JetBlue to determine if they need to raise or lower their current fares. Prices can be adjusted depending on this information.
Revenues & Operating Margin
Operating revenue for FY 2004 was &1.27 billion which represents a growth of 26.8% from the previous year; operating income was $112.9 million which was an operating margin of 8.9%. The operating margin is a measurement of management's efficiency; it compares the quality of JetBlue's operation to its...