JetBlue updates fare structure as airlines see benefit of segmented pricing
JetBlue Airways announced a basic fare for its coming first class, but it won't extend to Mint.The strategy is similar to United and Delta's cheaper business class tickets.Some industry analysts say basic fares might not make travel cheaper long-term.The airline "basic premium" trend is spreading.JetBlue Airways announced on Monday that it is unbundling its coming first-class cabin with a new fare dubbed "BlueFirst Base" that strips perks like seat selection in exchange for a lower price.The new fare will roll out "in the coming days" as JetBlue prepares to launch its new "BlueFirst" experience later this year on all of its planes that don't have Mint business class.That means long routes currently flying in an all-economy setup, like New York to Seattle and Boston to Portland, will get a first-class section — bringing JetBlue's cabin lineup closer to that of its largest US competitors.The strategy mirrors moves from United Airlines and Delta Air Lines, which both recently announced similar discounted premium fare structures as airlines look to capture growing demand for premium travel.It's unclear how much cheaper the BlueFirst Base option will be, but fares will likely fall between JetBlue's premium-economy offering, "EvenMore," and Mint — its highest-end cabin with lie-flat beds on select long-haul international and transcontinental routes.Looking at JetBlue flights for Boston to Los Angeles in August, an economy ticket is between about $300 and $500. EvenMore with extra legroom is about $900, and Mint is about $1,700.JetBlue's new Base fare strategy will also extend to EvenMore and regular coach, the latter of which is being renamed from "Core" to "Main." JetBlue said Base won't apply to Mint.This differs from United and Delta's international "basic business class" fares, which strip perks like lounge access, seat selection, baggage allowances, and flexibility.
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JetBlue Airways announced a basic fare for its coming first class, but it won't extend to Mint.The strategy is similar to United and Delta's cheaper business class tickets.Some industry analysts say basic fares might not make travel cheaper long-term.The airline "basic premium" trend is spreading.JetBlue Airways announced on Monday that it is unbundling its coming first-class cabin with a new fare dubbed "BlueFirst Base" that strips perks like seat selection in exchange for a lower price.The new fare will roll out "in the coming days" as JetBlue prepares to launch its new "BlueFirst" experience later this year on all of its planes that don't have Mint business class.That means long routes currently flying in an all-economy setup, like New York to Seattle and Boston to Portland, will get a first-class section — bringing JetBlue's cabin lineup closer to that of its largest US competitors.The strategy mirrors moves from United Airlines and Delta Air Lines, which both recently announced similar discounted premium fare structures as airlines look to capture growing demand for premium travel.It's unclear how much cheaper the BlueFirst Base option will be, but fares will likely fall between JetBlue's premium-economy offering, "EvenMore," and Mint — its highest-end cabin with lie-flat beds on select long-haul international and transcontinental routes.Looking at JetBlue flights for Boston to Los Angeles in August, an economy ticket is between about $300 and $500. EvenMore with extra legroom is about $900, and Mint is about $1,700.JetBlue's new Base fare strategy will also extend to EvenMore and regular coach, the latter of which is being renamed from "Core" to "Main." JetBlue said Base won't apply to Mint.This differs from United and Delta's international "basic business class" fares, which strip perks like lounge access, seat selection, baggage allowances, and flexibility. JetBlue did not say why Mint is excluded from Base.Beyond Base, JetBlue said each of its four seat options will also include a "Standard" and a "Flex" fare, both of which include seat selection, but the latter offers refunds for eligible cancellations instead of a travel credit.JetBlue's president, Marty St. George, said the goal of the new fare structure is for customers to "be able to book what's right for them" — essentially giving them more choice and flexibility.In its first-quarter earnings, JetBlue said premium cabins are outperforming economy seats, with revenue growth about nine percentage points higher year over year.Some industry analysts, however, warn that basic first and business fares could eventually erode the traditional premium cabin without making travel cheaper in the long run.Henry Harteveldt, president of Atmosphere Research Group, previously told Business Insider that airlines may keep lower-tier premium fares near current levels while steadily raising prices for fully flexible tickets.Though he said corporate travelers who value the seat and rest benefits of business class over extra perks could welcome the cheaper options.Read the original article on Business Insider
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Why it matters
2 outlets are covering this world story — one to watch as reporting develops.
- What's the story?
- JetBlue Airways announced a basic fare for its coming first class, but it won't extend to Mint.The strategy is similar to United and Delta's cheaper business class tickets.Some industry analysts say basic fares might not make travel cheaper long-term.The airline "basic premium" trend is spreading.JetBlue Airways announced on Monday that it is unbundling its coming first-class cabin with a new fare dubbed "BlueFirst Base" that strips perks like seat selection in exchange for a lower price.The new fare will roll out "in the coming days" as JetBlue prepares to launch its new "BlueFirst" experience later this year on all of its planes that don't have Mint business class.That means long routes currently flying in an all-economy setup, like New York to Seattle and Boston to Portland, will get a first-class section — bringing JetBlue's cabin lineup closer to that of its largest US competitors.The strategy mirrors moves from United Airlines and Delta Air Lines, which both recently announced similar discounted premium fare structures as airlines look to capture growing demand for premium travel.It's unclear how much cheaper the BlueFirst Base option will be, but fares will likely fall between JetBlue's premium-economy offering, "EvenMore," and Mint — its highest-end cabin with lie-flat beds on select long-haul international and transcontinental routes.Looking at JetBlue flights for Boston to Los Angeles in August, an economy ticket is between about $300 and $500. EvenMore with extra legroom is about $900, and Mint is about $1,700.JetBlue's new Base fare strategy will also extend to EvenMore and regular coach, the latter of which is being renamed from "Core" to "Main." JetBlue said Base won't apply to Mint.This differs from United and Delta's international "basic business class" fares, which strip perks like lounge access, seat selection, baggage allowances, and flexibility.
- How widely is it covered?
- 2 outlets, average source rating 6.0/10.
- When was it last updated?
- 16m ago.
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JetBlue is introducing a 'basic first class' fare as airlines continue unbundling premium travel
Sources2TypeCoverageBusiness Insider
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