A few months ago, JetBlue announced that it would improve the value proposition of its basic economy fares, without taking anything away. This change is live as of today, so I wanted to recap all the details, and look at this in the context of the competitive landscape.
In this post:
JetBlue improves basic economy fares
Blue Basic is the name of JetBlue’s basic economy fare product. Historically, Blue Basic fares have had the following restrictions:
- They don’t allow a full size carry-on bag, but rather only a personal item
- They offer limited points earning, as you earn 2x points per dollar spent, rather than 6x points
- They have restrictions on seat assignments, as you can only assign seats for free up to 24 hours in advance
- They restrict you to boarding with the last group
- They offer limited ticket flexibility, as there’s a $100-200 penalty for changes
Fortunately what’s arguably the biggest restriction has just been lifted. As of today (Friday, September 6, 2024), JetBlue is allowing those on Blue Basic fares to bring along a full size carry-on bag, rather than just a personal item. This applies regardless of when the ticket was booked.
JetBlue argues that this change makes Blue Basic one of the best value basic economy fares in the industry, especially given the amenities that JetBlue includes for all passengers, like the most economy legroom in the US, free Wi-Fi and entertainment, free drinks and snacks, and more.
Here’s how JetBlue President Marty St. George describes this development:
“Carry-on bags are an important part of travel to customers, and when presented with a choice between JetBlue’s award-winning service and another carrier’s basic offering, we want JetBlue to be the easy winner. We’re always looking for ways to evolve our offering in response to customer preferences. This is a win-win as we improve the customer experience and keep JetBlue competitive in our industry.”
“As flying becomes cheaper and more accessible for a spectrum of customers, a one-size-fits-all offering no longer works. Whether a customer prefers more included benefits, or they shop solely on price, our fare options coupled with our great onboard service, makes JetBlue the best choice. No matter what fare a customer prefers, we provide clear and transparent information on what that selection includes.”
Why did JetBlue make this customer friendly change?
JetBlue has been struggling financially (though the situation is getting better), and the company’s management team is currently trying to turn that around, by finding more opportunities to generate revenue. JetBlue once again allowing carry-on bags with basic economy fares is a customer friendly move, so some people may wonder why this change is being made.
I actually think it’s pretty logical, when you consider the competitive landscape. Most significantly, JetBlue is trying to focus its efforts on being a compelling leisure airline in the Northeast. The carrier’s two biggest markets there are Boston (BOS) and New York (JFK/LGA), and JetBlue’s primary competitor is Delta. Delta basic economy fares include free carry-ons, so it makes sense for JetBlue to match that.
But even beyond that, there are a lot of market dynamics that make this logical:
- Ultra low cost carriers (particularly Frontier Airlines and Spirit Airlines) have completely overhauled their business models, and their fare bundles now look much more similar to those of legacy airlines
- JetBlue had among the more punitive basic economy fares, at least when compared to legacy airlines; United basic economy is now in a league of its own when it comes to how punitive it is, as the airline still doesn’t include carry-ons
- JetBlue’s basic economy fares are much more competitive with a carry-on included, and this should help JetBlue to fill planes with these fares, which is something the airline needs help with in some markets
- JetBlue’s actual cost for allowing carry-ons is minimal, and the airline probably isn’t losing out on much revenue with this change
I think this is a sensible update. JetBlue is selectively investing in the customer experience and trying to improve the value proposition of flying with the airline, while trying to increase revenue in other areas. I think this is a smart area in which to improve the product, while maybe making cuts in other areas.
Of course this assumes that adding a carry-on to Blue Basic fares won’t cause more people to no longer instead buy up to a Blue fare, which is probably the biggest potential downside here.
Bottom line
JetBlue has just overhauled its Blue Basic fares, which are the carrier’s version of basic economy. The airline has now started allowing carry-on bags when traveling on these fares, which wasn’t previously possible. This is a positive change for customers, and I imagine it primarily reflects JetBlue’s desire to compete more directly with Delta.
I’m curious if United keeps restricting carry-on bags on basic economy, or if we could see the airline evolve as well.
What do you make of JetBlue’s Blue Basic fare changes?
Yes because of Spirit and Frontier....
Just get rid of basic economy, doesn’t make sense these days. People have caught up with airlines fooling them with all these extra add ons.
Lots of trade offs here:
- B6 would need to control the number of "Blue" tickets via an algorithm to control margins
- Should B6 adopt 1st Class (4 seats per row) which it has been exploring, that extra room is coming out of the back of the plane with few standard seats
- Other airlines could adopt the same benefit (free carry-on) with little adjustment; therefore, loosing a competitive advantage
...
Lots of trade offs here:
- B6 would need to control the number of "Blue" tickets via an algorithm to control margins
- Should B6 adopt 1st Class (4 seats per row) which it has been exploring, that extra room is coming out of the back of the plane with few standard seats
- Other airlines could adopt the same benefit (free carry-on) with little adjustment; therefore, loosing a competitive advantage
- B6 needs to improve its reliability and connects. If not, will only sell these "Blue" seats at a sharp discount just to fill empty space on the plane.
I consistently booked away from jetBlue because of this practice (and also book away from United). jetBlue is not a good or reliable airline. It's not worth paying more to fly them.
Good on B6- charging for carryon bags has crossed over into scam territory, and it's no surprise that it's costing carriers customers.
I've called out scummy airlines like Frontier for this- charging $100 at the gate is in no way transparent and in no way appropriate for the service provided, and either the DoT needs to get in on capping this to something reasonable for the service provided (aka $30) or airports need to...
Good on B6- charging for carryon bags has crossed over into scam territory, and it's no surprise that it's costing carriers customers.
I've called out scummy airlines like Frontier for this- charging $100 at the gate is in no way transparent and in no way appropriate for the service provided, and either the DoT needs to get in on capping this to something reasonable for the service provided (aka $30) or airports need to give them the boot because the fights at the gate reflect poorly on the airport.
Frontier is fairly transparent about carryons not being included in the basic fare.
That they are, but everything after that is a carnival game. Now I get among boardingarea beating the airlines at these games is part of the fun, but to normal humans it's grating.
To wit - how much will your bag cost? Go to "optional services" and then enter your proposed trip information, then pull up their baggage fee calculator. Once you've entered your details select the itinerary and flight numbers you'll be taking and...
That they are, but everything after that is a carnival game. Now I get among boardingarea beating the airlines at these games is part of the fun, but to normal humans it's grating.
To wit - how much will your bag cost? Go to "optional services" and then enter your proposed trip information, then pull up their baggage fee calculator. Once you've entered your details select the itinerary and flight numbers you'll be taking and it'll pull up a spreadsheet of fees, ranging from absurd ($50+) to absurd ($99). But don't worry, these fees are only valid for this browser session and the actual fees will be determined when you go to buy the ticket, and oh, if you decide after booking you need it the quoted fee might no longer be valid.
Oh, and surprise- Frontier uses different dimensions for 'personal items' than every other carrier, so that messenger bag you normally have under your seat and don't think about could run a cool $100.00.