JetBlue Airways is jumping on the basic economy bandwagon.
increased ticket change fees.
“Customers who opt for this fare will agree to some limits, which might include things like boarding order, seating and change/cancellation flexibility, but we will not make them feel like second-class citizens,” Geraghty said in her note.
Geraghty said the new fares will still include free on-board Wi-Fi, snacks, soft drinks and a carry-on bag.
Basic economy fares are now offered by Delta Air Lines, United Airlines and American Airlines, as well as a host of foreign carriers. Airline executives have not been shy that they gauge their success partly on how many passengers pay the higher fare to avoid basic economy, which can be $50 cheaper than regular economy tickets on domestic routes.
“Basic economy is not a price cut,” American’s president Robert Isom said last year. Low-cost airlines including Spirit and Frontier already charge for add-ons such as cabin baggage and seat selection.
Up until earlier this month, American, like United, did not allow basic economy passengers to bring a carry-on bag for the overhead bin. It dropped that requirement, which brought its product more in line with basic economy offered by Delta, whose basic economy tickets include a full-size carry-on bag.
Source:CNBC
