On July 24, 2007, jetBlue reported that its second-quarter revenue increased to $730 million, compared to $612 in 2006. Second quarter net income grew to $21 million for the quarter, from $14 million the previous year. CEO David Barger said the airline will take delivery of three fewer planes this year and will sell three planes from their current fleet, "slowing capacity growth ... to strengthen our balance sheet and facilitate earnings growth", but will continue to add two to four new destinations each year.
In July 2012, the U.S. Department of Transportation fined Travelocity $180,000 after discovering that Travelocity's “flexible dates tool” did not always include fuel surcharges that were part of many international airfares in violation of the Department's rules requiring all carrier-imposed surcharges and fees to be included in every advertised fare. In addition, the DOT found that the customer was informed only on the final page before purchasing the ticket that some itineraries required a paper ticket with a minimum additional delivery fee of $29.95.
Following the February 2007 incident in which the airline was forced to cancel nearly 1,700 flights due to winter storms, jetBlue's board of directors replaced founder and Chief Executive Officer David Neeleman with Dave Barger. He had politicked the board, while Neeleman was busy publicly apologizing. Barger's ascendancy caused widespread demoralization in the ranks. He became JetBlue's new Chief Executive Officer on May 10, 2007. Neeleman, the company's founder and largest individual investor, became a nonexecutive chairman as a result of the change.
In November 2012, Frontier started low-frequency service between Orlando International Airport and Trenton–Mercer Airport near Trenton, New Jersey, which, at the time, had no commercial service. Frontier later expanded service several times from Trenton, and as of June 2016 services 11 destinations. Frontier currently bases three aircraft in Trenton. Trenton Mercer Airport lies roughly equidistant between Philadelphia International Airport and Newark Liberty International Airport.
On June 22, 2009, Frontier Airlines announced that pending bankruptcy court approval, Republic Airways Holdings, the Indianapolis-based parent company of Republic Airlines, would acquire all assets of Frontier Airlines for the amount of $108 million. Thus, Frontier Airlines would become a wholly owned subsidiary of Republic. However, 5 weeks later on July 30, Dallas-based Southwest Airlines announced that it would be making a competing bid of $113.6 million for Frontier with intentions to also operate Frontier as a wholly owned subsidiary, but that it would gradually fold Frontier resources into current Southwest operating assets.
Frontier Airlines was incorporated on February 8, 1994, by a group that included executives of the original incarnation of Frontier Airlines in response to the void left by Continental Airlines' 1993 shutdown of its Denver (Stapleton) hub. Scheduled flights began five months later in July 1994 using Boeing 737-200 jetliners on routes between Denver and four destinations in North Dakota: Bismarck, Minot, Fargo and Grand Forks. By January 1995, Frontier had expanded its route network from Denver and was serving Albuquerque, New Mexico; Billings, Montana; Bismarck, N.D.; Bozeman, Montana; El Paso, Texas; Fargo, N.D.; Great Falls, Montana; Las Vegas, Nevada; Missoula, Montana; Omaha, Nebraska; and Tucson, Arizona with 737's. Like the original airline of the same name, the new Frontier operated a hub at Denver (DEN) and for the first nine years used the slogan "The Spirit of the West" which was displayed above the windows and just behind the cursive letters "Frontier" on the fuselage of their aircraft. In 1999, Frontier signed agreements to begin purchasing and leasing Airbus A318 and A319 jet aircraft and had also added Boeing 737-300 jetliners to its fleet as well. Also by September 1999, the airline was serving destinations from coast to coast in the U.S., having expanded its route network to include Atlanta (ATL); Baltimore (BWI); Bloomington/Normal, Illinois (BMI); Boston (BOS); Chicago (MDW, Midway Airport); Dallas/Fort Worth (DFW); Phoenix (PHX); Los Angeles (LAX); Minneapolis/St. Paul (MSP); New York City (LGA, LaGuardia Airport); Orlando (MCO); Portland, Oregon (PDX); Salt Lake City (SLC); San Diego (SAN); San Francisco (SFO); and Seattle (SEA), all served from its Denver hub.
September 21, 2005: Flight 292 en route from Burbank, California, to New York City performed an emergency landing at Los Angeles International Airport (pictured on the right) following a failure of the front landing gear during retraction when it turned 90 degrees. The plane landed after holding for about three hours to burn fuel and therefore lighten the aircraft. The aircraft came to a stop without incident on runway 25L, the second-longest runway at LAX. The only apparent damage to the plane upon landing was the destruction of the front wheels, which were ground down to almost semicircles, and the tires; the front landing strut held. The passengers were unable to see themselves landing despite the DirecTV service in each seat, as they were instructed to brace.
Frontier took delivery of its first Airbus aircraft (an A319) in 2001 and simultaneously launched with it DirecTV in-flight television along with a new company livery. Frontier Airlines was the launch customer of the Airbus A318 in 2003. In mid-April 2005, Frontier officially became an all-Airbus fleet, retiring its last Boeing 737.
Chautauqua Airlines operated up to 12 Embraer 135 and 145 jets out of Milwaukee. Frontier began branding these flights as Frontier Express in the spring of 2011. With the pull-down of the Milwaukee hub, the only route that continued to operate with a Frontier Express ERJ-145 jet was Milwaukee to Rhinelander. However, Frontier service to Rhinelander ended on January 3, 2013, and Chautauqua transferred the remaining aircraft to other partners.
In 2008, jetBlue partnered with Irish flagship carrier Aer Lingus to allow passengers to switch between airlines on a single ticket for flights with connections in New York–JFK or Boston Logan. Unlike traditional codeshare agreements, the companies cannot sell seats on each other's flights, so customers initiate the purchase on one airline's website and then are transferred to the other site to complete the transaction.
On March 22, 2010, jetBlue announced it would remain in the New York City area, in Long Island City, because of the airline's historical links to the city, the cost of staff relocations, the airline's desire to retain access to financial markets, and because Aer Lingus and Lufthansa, jetBlue's marketing partners, fly into JFK Airport. jetBlue planned to combine its Forest Hills and Darien, Connecticut offices, together about 1,000 employees, into about 200,000 square feet (19,000 m2) in the Brewster Building by mid-2012.
Animal concepts used in the livery extend into Frontier's marketing as well. Each animal has a specific name. Animal aircraft used in their radio and television commercials include Jack the rabbit, Grizwald the bear, Foxy the fox (for whom Jack has a crush), Flip the dolphin (who always gets stuck going to Chicago rather than the warmer climates the others are going to), Larry the lynx, Hector the sea otter, and Sal the cougar. New additions are Penguins Jim, Joe, Jay, and Gary, a barbershop-style quartet, singing the praises of EarlyReturns to an audience of Frontier's well-known characters from the "a whole different animal" campaign, Hector the otter, advertising Frontier's expanding service to Mexico, and Polly the Parrot, who won the new animal audition in 2012.
Frontier has a three-tier frequent flyer status program. The tiers are Elite 20K (earned by flying 20,000 Status Qualifying Miles [SQM] or 25 segments in a calendar year), Elite 50K (50,000 SQM or 50 segments), and Elite 100K (100,000 SQM or 100 segments). Elite benefits include free carry-on and checked bags, advance seat assignment and family seating, priority boarding, redemption fee waiver, stretch seating, Discount Den membership, and mileage multipliers.
Also in 2010, JetBlue entered into interline booking agreements with South African Airways and American Airlines to facilitate luggage transfers between airlines for passengers with connecting flights on a different carrier. The agreement with American included JetBlue's 18 destinations not served by American and American's 12 international flights out of New York–JFK and Boston Logan. In addition, American gave JetBlue 8 round trips slots out of Washington National in D.C. and 2 out of Westchester, New York. In return, JetBlue gave American 6 round trips out of New York–JFK. The agreement with American Airlines has since ended according to JetBlue's website.
On April 10, 2008, Frontier filed for Chapter 11 bankruptcy in reaction to the intent of its credit card processor, First Data, to withhold significant proceeds from ticket sales.[better source needed] First Data decided that it would withhold 100% of the carrier's proceeds from ticket sales beginning May 1. According to Frontier's press release, "This change in practice would have represented a material change to our cash forecasts and business plan. Unchecked, it would have put severe restraints on Frontier's liquidity..." Its operation continued uninterrupted, though, as Chapter 11 bankruptcy protected the corporation's assets and allowed restructuring to ensure long-term viability. After months of losses, Frontier Airlines reported that they made their first profit during the month of November 2008, reporting US$2.9 million in net income for the month.
In July 2007, the airline partnered with 20th Century Fox's film The Simpsons Movie to become the "Official Airline of Springfield". In addition a contest was held in which the grand prize would be a trip on JetBlue to Los Angeles to attend the premiere of the film. The airline's website was also redecorated with characters and their favorite jetBlue destinations and the company was taken over by the show/film's businessman villain Montgomery Burns.
The TWA Hotel is the TWA Flight Center structure currently being rebuilt as 505-room hotel, preserving the Eero Saarinen headhouse while replacing the structures on either side of the headhouse. Situated in front of JetBlue's JFK terminal, JetBlue has stated that it estimates the ownership of the hotel would be between 5–10% of the final total investment. The hotel will be an effective replacement for the Ramada Plaza JFK Hotel on the north end of the airport grounds in Building 144, which closed in 2009.
jetBlue experienced its first-ever quarterly loss during the fourth quarter of 2005 when the airline lost $42.4 million, enough to make them unprofitable for the entire year of 2005. The loss was the airline's first since going public in 2002. JetBlue also reported a loss in the first quarter of 2006. In addition to that, jetBlue forecasted a loss for 2006, citing high fuel prices, operating inefficiency, and fleet costs. During the first quarter report, CEO David Neeleman, President Dave Barger, and then-CFO John Owen released JetBlue's "Return to Profitability" ("RTP") plan, stating in detail how they would curtail costs and improve revenue to regain profitability. The plan called for $50 million in annual cost cuts and a push to boost revenue by $30 million. jetBlue Airways moved out of the red during the second quarter of 2006, beating Wall Street expectations by announcing a net profit of $14 million. That result was flat when compared to jetBlue's results from the same quarter a year before ($13 million), but it was double Wall Street forecasts of a $7 million profit, Reuters reports. The carrier said cost-cutting and stronger revenue helped it offset higher jet fuel costs. In October 2006, jetBlue announced a net loss of $500,000 for Quarter 3, and a plan to regain that loss by deferring some of their E190 deliveries and by selling 5 of their A320s.