Business
JetBlue runs cheaper prices. But it's a catch
On Tuesday, the airline announced that it has introduced a new price range called Blue Basic. The canceled ticket option does not include advanced seat selection or the ability to change or cancel a flight. These use-or-lose prices will be introduced on the JetBlue website on Tuesday.
Passengers who choose Blue Basic will board last and can only select a seat during the check-in process, beginning 24 hours prior to flight departure. Flyers will still have the same access to the carrier's standard range of benefits, including free Wi-Fi, snacks, drinks and back-TV. Customers can bring transportation and, as with most other classes of tickets, Blue Basic flyers will have to pay for checked luggage.
JetBlue ( JBLU ) first announced that it would develop a basic economics price more than a year ago. In its third-quarter revenue report, the airline said it expects to generate an additional $ 150 million in revenue from Blue Basic. Availability of the new price will "vary by route, date and demand, so not all prices will be offered on all flights," it states.
Basic economics first began with ultra-low cost airlines, including Spirit ( SAVE ) before finally being adopted by major airlines, including Delta [19659006] ( DAL ) United ( UAL ) and American Airlines ( AAL ) .
"Our new low price will be anything but basic, designed to help customers save while still offering full JetBlue experience," said Joanna Geraghty, the airlines' president and COO, in a press release. "This will attract low-cost applicants to JetBlue, where we can take better care of them than other airlines do."
The airline still decides whether to extend the new fare when it launches London flights from New York and Boston in 2021. Other airlines competing on the route, including Norwegian Air, offer a similar discounted fare.