In October 2005, JetBlue's quarterly profit had plunged from US$8.1 million to $2.7 million largely due to rising fuel costs. Operational issues, fuel prices, and low fares, JetBlue's hallmark, were bringing its financial performance down. In addition, with higher costs related to the airline's numerous amenities, JetBlue was becoming less competitive.
Travelocity was created in 1995 through a joint venture between Worldview Systems Corporation and Sabre Holdings. The founding team at Worldview conceived of the idea in 1994 as an extension to their online travel database offering which had been distributed through Sabre, Bloomberg, AOL and many others. The founding team at Worldview joined with distribution partner Sabre in a 50-50 JV that resulted in the development and launch of Travelocity in 1995-1996. The founding members of the Travelocity team, responsible for the conception, development and launch at Worldview were: Steve Baloff (Founder, CEO), Sam Haugh (VP Operations), BD Goel (VP Engineering), Neil Checkoway (VP Marketing), Steve Bengston (VP Business Development), Helen Zia (Editor-in-Chief) and Katherine Chesbrough(CFO). Later in 1996, Worldview's investors (Advanced Publication and Ameritech) sold their stake in Travelocity to a subsidiary of Sabre Holdings and was run by long-time Sabre information technology executive Terry Jones. As one of the pioneers of web-based disintermediation, Travelocity.com was the first website that allowed consumers the ability to reserve, book, and purchase tickets without the help of a travel agent or broker. In addition to airfares, the site also permits consumers to book hotel rooms, rental cars, cruises and packaged vacations.
Various consumer rights organizations and activists called for the creation of a government mandated “Bill of Rights” to protect air travelers from future experiences similar to the one previously described. On February 20, 2007, jetBlue released an apologetic response to the events that had taken place less than a week before with the creation of their Customer Bill of Rights, which offers financial reciprocation if a customer's flight is delayed or cancelled.