JetBlue To Add Seats, Introduce Bag Fees As It Focuses On Returns

In a presentation to investors, JetBlue Airways indicated on Wednesday that it will reduce leg room on some flights and introduce bag fees, as it focuses on returns and controlling costs. The airline said it expects to add 15 seats to its A320 aircraft, to 165 seats, as part of its "cabin refresh" plan expected to enchance margins and add $100 million to earnings by 2019. The slide presentation also implied JetBlue will be introducing bag fees for certain fare offerings. The company said it expects increases in costs per available seat mile (CASM), excluding fuel costs, to fall to less than 2% from 2015 to 2017, from an expected range of 2.5% to 4.5% this year. The air carrier's stock slipped 0.8% in premarket trade. Through Tuesday, the stock had climbed 49% year to date, compared with an 11% rise in the S&P 500.