Earlier I wrote a post about how JetBlue is a great airline to fly with, but has a bad business model. In the post I mentioned how I think JetBlue should introduce a first class product on all of its flights, rather than just offering its Mint business class product in select premium markets.
To be clear, I’m not suggesting the airline should introduce an international first class product above business class, but rather I’m referring to a standard domestic first class product, similar to what you’ll find on American, Delta, United, etc.
I wanted to expand on that a bit in this post, and share why I think this is the right time to do so. I’m also curious to hear what OMAAT readers think.
In this post:
JetBlue was right not to have first class when it launched
Let me start by acknowledging that when JetBlue launched just over two decades ago, not offering a first class product was absolutely the right choice:
- At the time, US airlines lost money on first class; they priced it way too high, and it was full of people upgrading; airlines in general have gotten much better at getting people to shell out for the perks they value
- At the time, ultra low cost carriers didn’t exist, so it’s not like there was constantly downward pressure on JetBlue’s economy fares, so the airline saw value in differentiating itself in economy
- At the time, JetBlue was incredibly innovative by only having one class of service, while nowadays that’s common on many airlines
- At the time, JetBlue didn’t have its Mint business class on premium transcontinental and transatlantic flights
But the truth is that the airline business has evolved a lot over the years, and what worked over 20 years ago won’t necessarily work anymore today. I mean, heck, JetBlue founder David Neeleman recently launched low cost carrier Breeze, and even has first class-style seats on that. Clearly even his thoughts on this have evolved over time.
Why JetBlue should offer first class fleetwide
Let me share my argument for why JetBlue should introduce a premium cabin product on all routes, beyond the current extra legroom economy seats. Let me also state that I don’t think JetBlue should have flat beds on all routes (like in Mint business class). Rather the airline should keep Mint on premium routes, and then introduce a first class product on domestic routes that’s similar to what you’ll find on other airlines.
JetBlue has done an amazing job differentiating its Mint business class soft product, and the airline should do the same if it introduces first class on more routes (with tasty meals, cocktails, good coffee, etc.). With that out of the way, let me share the main reasons I think first class throughout the fleet makes sense for JetBlue.
JetBlue is in premium markets
I don’t think there’s another airline that has such a high percentage of routes in premium point-to-point markets. I mean, JetBlue has some of its biggest hubs in Boston and New York, and those are markets with a ton of wealth, and where there’s demand for first class.
JetBlue’s lack of first class causes some people to book away from the airline, and instead choose competitors.
JetBlue could introduce first class efficiently
In terms of aircraft footprint, JetBlue is very well positioned to introduce first class. In the long run, the airline will operate Airbus A220 and Airbus A320 family aircraft (the Embraer E190s are being retired):
- The A220 is an aircraft where first class can be introduced very efficiently, as you lose only one seat per row, since economy is in a 2-3 configuration
- On the A320 it’s the same as on most airlines, where you’d have a 2-2 configuration, compared to 3-3 configuration in economy
But the point is that in the long run, roughly half of JetBlue’s fleet without Mint business class will be A220s, and those are the single planes on which you can most efficiently introduce first class. This is why Breeze Airways even has first class style seats on its A220s, even though the airline is a low cost carrier.
It would feed into JetBlue’s long haul network
JetBlue has started operating transatlantic flights using Airbus A321LRs. While those are primarily targeted at point-to-point passengers, JetBlue would be a much more compelling airline for connecting premium passengers if there were a premium cabin on connections as well.
If someone is looking to fly business class from Tampa to London (as an example), they’d be much more likely to fly with JetBlue if they could fly in a premium cabin on both flights, rather than just one.
First class would greatly enhance JetBlue TrueBlue
Loyalty programs can be huge profit centers for airlines. This is primarily through co-brand credit card agreements. One of the things that makes people interested in accruing rewards with a program or going for status is the lure of traveling in a premium cabin.
By having a premium product throughout its fleet, JetBlue could see a huge increase in members engaged in the TrueBlue loyalty program, and also a lot more spending on co-branded credit cards. That’s not to say the airline should necessarily be giving these seats away, but there would be a huge halo effect here.
JetBlue plans to reconfigure its fleet anyway
Admittedly reconfiguring planes is costly, and is a reason that airlines are sometimes hesitant to make significant interior changes. However, if there was ever a time for JetBlue to bite the bullet and introduce first class, the near future would be the time to do so.
Not only does JetBlue have a huge number of A220s to be delivered in the coming years, but if the Spirit merger gets approved, JetBlue will be introducing new interiors throughout the entire Spirit fleet.
First class would help JetBlue maximize revenue
Airlines maximize revenue on flights in two primary ways — by filling as many seats as possible, and by getting as much revenue as possible from each passenger. Of course airlines would love to have a 100% load factor, but that’s just not realistic.
Looking at JetBlue’s second quarter 2023 financial results, the airline had an average load factor of 85%, which is respectable. On most JetBlue flights, you have some number of open seats (prior to standbys, etc.). So instead replacing those with first class (which you can sell at a higher cost) seems like a win-win.
As much as the temptation is to install as many seats as you can, that’s only so valuable if you can’t fill all of the seats.
JetBlue could reduce flight attendant staffing on A320s
Typically the seat count on a particular aircraft isn’t a coincidence. Per the FAA, you need at least one flight attendant for every 50 passengers. Airlines make a lot of decisions based on that. For example, JetBlue’s A321s feature exactly 200 seats, and that’s intentional. Heck, JetBlue’s A320s initially featured exactly 150 seats, and that also wasn’t a coincidence.
Nowadays JetBlue’s A320s feature 162 seats, meaning that you need an extra flight attendant for those last 12 seats. If JetBlue introduced first class and reduced the seat count to 150 (with a similar layout to United’s A320s, with 12 first class seats, 42 extra legroom economy seats, and 96 economy seats), the airline could reduce staffing on these planes to three flight attendants. That would reduce operating costs.
First class would help JetBlue with partnerships
JetBlue has a smattering of random airline partnerships, though they’re all of fairly limited value. Essentially JetBlue provides feed to some long haul airlines, though revenue as part of these agreements is fairly limited. I mean, much of this traffic is connecting to Etihad and Qatar Airways, where passengers are traveling to India on fairly low fares. JetBlue’s per-segment revenue there is pretty low.
By introducing first class, JetBlue would have more revenue potential for these kinds of arrangements, for travelers connecting to first or business class. After all, long haul premium cabin tickets are among the most lucrative for airlines, and JetBlue could at least get a small slice of that.
Bottom line
Sometimes it’s fun to play armchair CEO, and this is one of those situations. In my opinion there’s huge merit to JetBlue evolving and introducing first class. It simply makes more sense given how the carriers business model and the competitive landscape has evolved over time.
JetBlue has proven that it can offer a superior business class product on some routes, so there’s no reason a competitive domestic first class product couldn’t be introduced throughout the fleet. I see huge upside to this, especially with the efficiency of installing first class on the A220.
So I figured I’d throw this out there, and I’m curious to hear what OMAAT readers think.
What’s your take — do you see merit to JetBlue introducing first class?
I agree with this! I have avoided JetBlue simply because there is no chance of sitting in a first class seat. As an EP on AA, I tried JetBlue a few times but never got the experience I was hoping for. This would be great - especially as I'm based in FLL.
I do a lot of domestic travel, normally 3-5hours and I seen a seat I dream to sit in called DUO. It looks like a B/C seat but only reclines however it looks like the recline is a really deep lazy boy position. This is all I need for a snooze on my return flights but a private seat for prepping on my way out
Wouldn't a "Big Front Seat" be enough? LOL
Add a "European version?"
God, NO!!!!
I can think of few things more of a rip-off than these glorified economy seats. It ain't business class unless it's a business class seat. I have a feeling if they tried this disastrous idea, there would be many irate pax who board expecting a true biz-class seat only to find this sham and end up taking it out on the flight crew.
Yes completely agree with you on introducing FC on all airplanes.
I am a NY flyer and a long standing Jet Blue fan. But these days we mostly fly business class and first class. Sometimes we will book 3 even more space seats on JetBlue for the 2 of us as they make it easy to do so. However, we mostly fly United and Delta in first class for domestic flights, and sometimes Mint for coast to coast. If Jet Blue had first class, we would definitely book it!
A few have mentioned it already, but seems like a logical "third way" would be Euro-style Business Class with the middle seat blocked. jetBlue already has a product that could be useful for this endeavor - the Even More Space seats. Block the middle in the first few rows, offer Mint-style service, and charge a premium. The extra legroom would make it more compelling than typical Euro business. And the beauty of it is they...
A few have mentioned it already, but seems like a logical "third way" would be Euro-style Business Class with the middle seat blocked. jetBlue already has a product that could be useful for this endeavor - the Even More Space seats. Block the middle in the first few rows, offer Mint-style service, and charge a premium. The extra legroom would make it more compelling than typical Euro business. And the beauty of it is they can alter the size of the cabin based on real-time demand.
If they really want to go bold, assuming the merger with NK goes through, then introduce the BFS fleetwide and market that as a true First Class.
Of course, none of this matters unless/until B6 fixes their dumpster fire of an operation...
It wouldn't be too popular with aviation folks on sites like this, but it does seem like JetBlue would be very well-placed to offer a European-style First class product with a blocked middle seat and incremental service for the first few routes. It seems a rather obvious move for them.
*incremental service for the first few rows*
Yes, I think adding FC to most of their fleet is a good idea.
I would love to see JetBlue introduce First Class on all its domestic flights!
I bet they never thought about this themselves!
I think this is a key idea, but broadly I think a comment on the other article hit the nail on the head. B6 doesn't know who their target market is. Leisure-economy? Prices too high. Leisure-premium? No premium cabin except for a handful of point-to-point markets. Business? Wifi and reliability suck. In a sense, the tie-up with AA was fantastic, because both airlines have largely the same lack of direction. Except, and I can't believe...
I think this is a key idea, but broadly I think a comment on the other article hit the nail on the head. B6 doesn't know who their target market is. Leisure-economy? Prices too high. Leisure-premium? No premium cabin except for a handful of point-to-point markets. Business? Wifi and reliability suck. In a sense, the tie-up with AA was fantastic, because both airlines have largely the same lack of direction. Except, and I can't believe I'm saying this, AA is better at offering a little something for everyone.
Any US airline should stop using "First class" on their flights. There is absolutely nothing common with the word "first". "Premier class" sounds more accurate.
Yes I'm sure their Board and CEO will follow the advice of a blogger with zero corporate aviation experience.
I 100% agree. Jetblues business model was great back in the early 2000 and 2010's but the model simply doesn't make sense today. they don't distinguish themselves much from LCC but they aren't that different from full-service carriers. I would pivot Jetblue's current model to that of Flydubai.
Ben - It would be an interesting exercise to compare your benefit (JetBlue) points to a competitor, similar to SouthWest.
The network B6 has is currently mostly based on being 'bi-coastal' with little coverage of the mid/central area of the USA. Compare that with SW and their superior network coverage of 1st and 2nd tier cities throughout the USA. According to your points, surely, SW 'could' be the beneficiary of additional revenue, based on...
Ben - It would be an interesting exercise to compare your benefit (JetBlue) points to a competitor, similar to SouthWest.
The network B6 has is currently mostly based on being 'bi-coastal' with little coverage of the mid/central area of the USA. Compare that with SW and their superior network coverage of 1st and 2nd tier cities throughout the USA. According to your points, surely, SW 'could' be the beneficiary of additional revenue, based on adding a domestic First Class cabin? And yet, they don't - because their business model is somewhat marginally different.
Part of the reason, I suspect, is that your argument rests on the premise of additional revenue that JB could generate by adding such a cabin - and by generating additional revenue slices from partner airlines. Really, as JB expands internationally, the true benefit should be adding (domestic) First to feed into their - own - B6 international services, above anything else.
You see, what is not examined in this article is the significant costs associated with adding such an additional domestic cabin class. Some of these costs would include:
- having to create a separate band of First Class cabin crew
- providing training for a First cabin crew
- having additional costs associated with First passenger benefits, such as higher per (First) food / beverage / amenities) costs
- add in the cost of adding appropriate crockery and drinkware
- possible additional costs for a separate / enhanced 1st uniforms
- higher admin and labour costs with a twin-structure domestic crew
- additional IT / back-office costs to provide scheduling of aircraft (2 cabin vs 1 cabin operation) and crew, additional reservation changes for pricing / identification of pricing and individual fare classes, provision of First seats and aircraft reconfiguration - none of this comes cheap.
- cost of providing lounge facilities at major airports and subsidising the passenger / guest costs for 'elite' flyers. Monetisation of these costs doesn't magically appear.
- add in, if the Spirit merger goes through, then that would add to the cost of refurbing the Spirit fleet to ensure consistency of product, which would add multiples to the above costs, compared to just adding First to the existing B6 operation.
- retaining an aggressive pricing policy for First (against competitors) for luggage allowances may actually reduce ancillary revenue per flight (less paying Y pax and more F pax).
- B6's entire operation is nowhere near the size of AA, DL or UA in terms of network size, number of aircraft or pricing power, so they would be starting from a less competitive position in adding a First cabin. Launching something like this would also require a huge and expensive investment in advertising and marketing to introduce.
I suspect that SW has already done this exercise many times over, during past 15 or so years .. and have the algorithms for the SW operation down pat.
There are many defined efficiencies for a carrier's operation in maintaining a LCC which are based on uniformity and cost control. Knowing your market, costs and projected revenue potential is a fine art these days.
You make excellent points. However, keep in mind JetBlue has already done a number of these things with the introduction of their Mint cabin. And it paid off for the airline. I doubt the airline isn't willing to invest in such a thing. The only potential thing I see holding B6 executives back is the scale of investment needed to do such a thing. But with the airline already in the process of refurbishing its...
You make excellent points. However, keep in mind JetBlue has already done a number of these things with the introduction of their Mint cabin. And it paid off for the airline. I doubt the airline isn't willing to invest in such a thing. The only potential thing I see holding B6 executives back is the scale of investment needed to do such a thing. But with the airline already in the process of refurbishing its jets, along with the new interiors for the Spirit jets, as Ben has pointed out, this would be the perfect time to launch the product.
- The airline already has a separate band of Mint Crews, although they are trained quite well. I think B6 could get away with having its regular crew staffing their new First Class cabin, but it sure would be nice to have the Mint crews working it.
- B6 already has the tableware, glasses, silverware from their Mint Cabin (they just need more).
- B6 already has some A321/neos that are in an all Economy configuration, and used on high density routes. I assume B6 could maintain that configuration for that subset of their fleet.
While it would require an investment from the airline, it wouldn't be as big of a cost (especially compared to what it would cost Southwest, as B6 already has a number of things in place - and SW has a much larger fleet and more fleet simplicity). The main cost I see is the retrofit and new seat cost (but B6 is already refitting many planes anyway, so this is the ideal time), and marketing/PR, which would be worth the premium revenue B6 could get with such a product! And I would be eager to fly it!
I have one big NO to jetblue having domestic 1st. Domestic first for airlines is just economy plus and feels like an after thought. Jetblue mint seats (especially at this very moment) is priced better than all other airlines domestic first. Don't believe me take a look at flights between ca and nyc for this fall and winter months. Mint seats can be had for under $550 while most others are well over $600 for...
I have one big NO to jetblue having domestic 1st. Domestic first for airlines is just economy plus and feels like an after thought. Jetblue mint seats (especially at this very moment) is priced better than all other airlines domestic first. Don't believe me take a look at flights between ca and nyc for this fall and winter months. Mint seats can be had for under $550 while most others are well over $600 for 1st. More Routes between new York /Boston and sea/san diego are rarely premium and generally 1st for other airlines. Jetblue is the only one these days to offer premium seating on those routes. The big difference additionally is that when I search for fares I KNOW the jetblue seat is premium whereas search engines cannot tell me enough until I click on each flight and look at the type of seat, lie flat or standard. Although as of today it's really just sfo and lax to nyc or Boston for everyone else if you want premium.
Actually mint is usually significantly more expensive than the others. I am seeing jfk-lax for $1800 on delta and AA and $2700 on JetBlue.
Here's a contrarian viewpoint: go completely Spirit. Adopt Spirit's business model, keep the big front seat, and go hardcore ULCC. Who has been more profitable long term? Spirit of JetBlue? Spirit. JetBlue, with few exceptions, is mostly in hardcore leisure markets. JetBlue has barely been profitable during what have been arguably some of the most profitable times for the industry. Lean hard into the Spirit/ ULCC model. What they've got now barely seems to be...
Here's a contrarian viewpoint: go completely Spirit. Adopt Spirit's business model, keep the big front seat, and go hardcore ULCC. Who has been more profitable long term? Spirit of JetBlue? Spirit. JetBlue, with few exceptions, is mostly in hardcore leisure markets. JetBlue has barely been profitable during what have been arguably some of the most profitable times for the industry. Lean hard into the Spirit/ ULCC model. What they've got now barely seems to be working.
They should offer lounges! Weren't they hiring someone for that?
They'd better invest more on reliability. Time is money, and those who afford first class wouldn't wanna waste their time for delays and cancellations.
Even with first class seats, Jetblue wouldn't be very appealing to the target customers unless they improve their reliability.
Fully agree with this, they need a lounge operation as well and could kill it! I switched to flying mostly delta because of this but I prefer Mint over delta domestic first any day of the week. They could start offering European biz/first class tomorrow just by blocking the middle seats out in the first few rows and integrating mint catering.
? the current planes aren’t configured to hold mint catering
Not a good idea. If JetBlue adds Mint on all their planes, that would turn them into Virgin America, which did not have a sustainable business model. JetBlue operates plenty of leisure heavy routes for which a first class cabin wouldn’t make sense.
Ben is not suggesting adding Mint to all their planes - did you read the post? He is saying leave Mint for the premium routes on which it is currently featured, but add a “standard” first class akin to what the big 3 offer domestically - i.e. recliners, not flat beds.
Spot on.
Agreed. At the very least I'd like to see them maintain NK's Big Front Seats and expand that seat offering without the service to existing B6 aircraft. NK has been the last carrier (I'm excluding Breeze due to being so small) to offer a budget "first class" style seat. F9 got rid of Midwest's premium style cabins and WN got rid of AirTran's first class despite the catchy SOS (Save our Seats) campaign that was launched by some folks.
My feelings exactly. I flew jetBlue when it was new and innovative, at the time in the late 1990's. I do not choose Blue because it doesnt offer a first class product. I travel from TPA to the NYC area and find B9's sked appealing, but I prefer F Class (paid).
I agree, Ben
seriously, calling it "domestic fiest class", at best it's premium economy.
So if First Class prices, don't forget that folks will want lounges.
Agree. Even if they block out a middle seat and make it the European version (don't personally want this but it's better than nothing). Having such a great Mint product but no domestic firstclass on non-transcons makes little sense.
Now probably isn't the time considering they're trying to convince the justice department that they will continue to offer an LCC/ULCC product which is pretty dependent on higher capacity planes.
Spirit at least already has the Big Front Seats. I wonder if there is room for a product between Spirit's seat with no benefits and Jet Blue's full service Mint.
Yes, first class. But JetBlue's network is a huge achille's heel for them. I know the Noo Yawkers or Bawstonians will disagree with this, but sadly the USA is FAR bigger than those 2 markets. And, the non-JetBlue areas are the ones that are growing. Recently, I took my first flight with them (MKE-BOS) and they were great! But, living between MKE and ORD, I have tons of easy choices. JetBlue doesn't even make the...
Yes, first class. But JetBlue's network is a huge achille's heel for them. I know the Noo Yawkers or Bawstonians will disagree with this, but sadly the USA is FAR bigger than those 2 markets. And, the non-JetBlue areas are the ones that are growing. Recently, I took my first flight with them (MKE-BOS) and they were great! But, living between MKE and ORD, I have tons of easy choices. JetBlue doesn't even make the list unless I need to get to BOS or JFK at a specific time (normally I'd use UA from ORD who can get me to 200+ airports nonstop). None of my colleagues here give JetBlue a thought or seem to know it exists. They don't advertize in the Midwest. And why would they? 95% of the pax on my flight seemed to be from Boston.
Frankly, superserving 2 1/2 markets (I give FLL the 1/2) is a lousy business model. Nor does buying Spirit help much. A little, but only very little as far as network is concerned. Yes, their product is great, but this does no good if 75% of the domestic market isn't adequately served by them. And those are people you'll need to make the trans-Atlantic network grow. New York and Boston aren't enough.
How are their prospects in Texas? From what I can tell, non existent right now. North Carolina? Basically the same. These are 2 of the fastest growing states. Of the others, they only have a decent prescience in Florida. Fine, keep up the service in the northeast where you're known and loved. But you've got to get relevant in other large markets and growth areas. Nudge into D/FW, Houston, Austin, Nashville, Raleigh, etc. Yes the first two are fortress hubs, but they each also have higher fares and 2 airports. There's room to at least gain a footprint. The others are more open. Thats what they need to do, IMO.
All good points. I think JetBlue’s primary motivation for the Spirit acquisition is to quickly and aggressively fill gaps in route network and strengthen their presence is Florida.
Of course, acquiring the pilots helps too.
"Feeding JetBlue's long haul network" - spit my water out reading that one. What long haul 'network'???
That said you're right first class should be a consideration for them. I have a feeling it may be something more like Spirit's big seat with few amenities as their way of differentiating Mint, which would be disappointing.
The more good premium seat supply out there the better for us consumers of that product.
@ Greg -- Admittedly the feeding the long haul network is only one of the many points, and it's one of the less important ones. But the airline does now fly to AMS, CDG, LHR, and LGW. Frankly the airline might have more luck filling these flights with people NOT originating in NYC, given that so many businesses in New York have corporate contracts with existing carriers.
JetBlue fills mint on routes from
Jfk and Boston to lax and sfo with local people in New York and Boston. If your logic were true, they couldn’t- the corporate customers would all go on other legacy carriers. JetBlue fills lax and sfo mint with smaller business customers and premium leisure. There’s plenty of that for lax and sfo, why do you not think this market is there for London/ Europe? Doesn’t make sense....
JetBlue fills mint on routes from
Jfk and Boston to lax and sfo with local people in New York and Boston. If your logic were true, they couldn’t- the corporate customers would all go on other legacy carriers. JetBlue fills lax and sfo mint with smaller business customers and premium leisure. There’s plenty of that for lax and sfo, why do you not think this market is there for London/ Europe? Doesn’t make sense. Anytime you take a connecting customer rather than a local customer you’re diluting your revenue. JetBlue should be able to fill up their relatively small mint cabins to Europe with local point to point traffic. The minute they have to rely on lower yielding connecting traffic the viability, financially, of the whole thing comes into question
It’s the dog days of summer at OMAAT when the “I know better than the management” takes migrates from the comments to the main post.
He probably does know better than management. Airline managers are historically very low performers.
@ Never In Doubt -- By all means disagree with any of my points, but let's not pretend that airline management is somehow always right, or that there isn't room for improvement. Like, want to defend Doug Parker claiming the airline would never lose money again, or saying that AAL stock is absurdly undervalued, and should be worth $60 per share?
Ben, love the site, and by all means you do as you wish.
Not sure why you’d take my comment as excusing poor performance by airline management.
“This airline is terrible at X” seems a perfectly valid take for someone with your experience.
“I think I’d do better” is what’s a reach.
JetBlue is NOT mostly in premium markets.
Yes their base is NYC/BOS. But out of there, they're mostly in NON-premium markets with HEAVY low fare competition where fares are LOW and getting LOWER- think Florida, Puerto Rico, Dominican Republic.
Yes they're in some markets where there is "premium" demand, such as LAX and SFO, but overall, they're not flying to markets that are very premium from NYC and BOS. In NYC the most premium...
JetBlue is NOT mostly in premium markets.
Yes their base is NYC/BOS. But out of there, they're mostly in NON-premium markets with HEAVY low fare competition where fares are LOW and getting LOWER- think Florida, Puerto Rico, Dominican Republic.
Yes they're in some markets where there is "premium" demand, such as LAX and SFO, but overall, they're not flying to markets that are very premium from NYC and BOS. In NYC the most premium traffic goes to LGA, NOT JFK. They are NOT in big premium heavy business markets. They're in leisure markets, and I'm not sure that First class domestically would change this much.
@ Matthew -- I'm not saying all their markets are premium, but they do everything from New York to Boston, to New York to Miami. Arguably JetBlue's much bigger issue is in non-premium markets.
The airline can't compete with ultra low cost carriers on unit costs or on the ability to generate ancillaries. So how is JetBlue supposed to make money in those markets simply competing in economy?
Go completely Spirit. Strip out all the fancy bells and whistles and go ULCC. That’s the markets they’re in.
Lucky, your points are compelling. IMHO you should be paid to consult to these airlines, instead of offering up your solid advice no charge!