Basic economy matters as a way to differentiate corporate travelers (who generally pay more) from leisure customers (who are price sensitive). The old methods of Saturday night stay and 14-day advance purchase no longer hold.
But customers aren’t as stupid as airlines assume, or maybe even used to be. They compare the offerings of airlines – at the same price, nearly everyone offered better value than JetBlue. Certainly Delta – which has free wifi, too – offered better value in both New York and Boston than JetBlue’s basic fares. That hurts JetBlue, which wins only when customers go out of their way to choose them over competitors.