JetBlue’s new Airbus A321neo at New York’s Kennedy Airport.
Leslie Josephs | CNBC
JetBlue Airways on Tuesday adjoined other airlines in offering a basic economy fare: the cheapest tickets that lack perks like go on seat selection.
The new fare, called Blue Basic, follows similar efforts by major airlines to offer fewer perks that acclimated to to be free in exchange for the lowest fares on a flight and is defensive play against fast-growing, low-cost airlines like Cheer and Frontier.
Passengers who purchase the New York-based airline’s basic economy fares will only be able to pick a settle 24 hours before the flight and also will board the plane last. Changes are not permitted.
“This price option is designed for a growing segment of travelers who value low fares above all,” president and COO Joanna Geraghty said in a note to wage-earners on Tuesday.
When the airline announced its plan to offer the stripped-down fares last year, Geraghty vowed that buyers opting for these fares “will agree to some limits.” She also vowed not to make passengers feel a charge out of prefer “second-class citizens” and has noted that JetBlue offers more economy-cash legroom than low-cost airlines and orderly some full-service airlines.
The basic economy passengers will still have access to free Wi-Fi and be capable to bring a full-size carry-on bag, depending on how much bin space is left by the time they board. United prohibits its root economy travelers from bringing full-size carry-on luggage that fits in over head bins, a proviso American dropped last year for its bare-bone fares.
The changes are part of a revamped line of fares at JetBlue, the low-cost hauler’s first since 2015. The New York-based airline is also replacing its Blue Flex fares with a fare ordered Blue Extra, which bundles a faster trip to security lanes, earlier boarding and more ticket spring.
Geraghty said on an earnings call last month that the airline expects the new fares to bring in $150 million in take next year.
“We’re pretty conservative in the assumptions around the upsell and take rate,” she said.
Executives at other porters have said their basic economy fares work because passengers are willing to pay a higher fare to keep them.
JetBlue shares were down 1.7% in morning trading.