JetBlue rolls out new fare strategy to compete for both budget and business travel

JetBlue plans to strategically cut its basic economy fares to better compete with ultra low-cost carriers in key markets while boosting the benefits of standard and premium tickets by guaranteeing overhead bin space and eliminating change fees. The move, announced on Tuesday, is the latest example of airlines’ efforts to expand ticket options and flexibility in an industry upended by the coronavirus pandemic. Ultra low-cost carriers grew nearly 90% in JetBlue’s markets in the three years before the pandemic and have continued to fly a significant amount of capacity over the past year. One competitor carrier overlapped with nearly half of JetBlue’s US and international routes, and around 80% in places like Fort Lauderdale and Orlando, Florida before the pandemic, the company said. “We recognize that we’re competing in a very fragmented marketplace,” JetBlue President Joanna Geraghty said. “When you look at certain customers who purchase almost entirely on price, we want to make sure that we are squarely in their decision set.”<br/>