jetblue

Tag Archives for jetblue.

Free Inflight Internet is Coming, And It’s Going to Spread to Most Airlines

gogo plane
Sep 30 2018

In 2012 I wrote that once bandwidth increases substantially for inflight internet, it would eventually become free (included in ticket price). I predicted that would happen within 10 years.

Now JetBlue offers it for free. Aer Lingus announced they’ll be offering it for free. Southwest, Delta, and Alaska offer free messaging. And the trend is going to spread because it is a profit maximizing strategy once bandwidth no longer needs to be rationed.

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JetBlue Increase the Price of First Checked Bag to $30, Will Other Airlines Match?

baggage claim
Aug 27 2018

Over the last year JetBlue has made several moves to squeeze more revenue from customers. The airline has been eliminating its product advantages over competitors, and diminishing its customer-friendly approach. They still offer more legroom and their inflight internet generally works, but the legroom advantage is less than it used to be and the airline no longer offers a free checked bag to everyone.

Now JetBlue has made a move that its domestic rivals hadn’t yet — increasing the cost of a first checked bag to $30. And what everyone wants to know is, will other airlines match?

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Here’s How Much Airlines Made Off Their Frequent Flyer Programs So Far This Year

graph chart
Aug 13 2018

Frequent flyer programs create tremendous value for airlines. They’re highly profitable, and have been for years. When United filed for bankruptcy it was said to have to continue flying to support the underlying credit card business. The airline’s first call after seeing the judge each time was to Jamie Dimon.

The issuer of the United co-brand credit card provided debtor-in-possession financing to United, and co-led bankruptcy exit financing. As with other airlines, United received hundreds of millions of dollars in loans backed by future mileage sales to provide liquidity during the financial crisis.

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Don’t Forget to Get Money Back When the Price of Your Airline Ticket Falls

wallet
Jul 14 2018

Years ago it was common to be able to request a credit when you bought a ticket, and the fare for the same flights dropped. Airlines used this to give you confidence buying and not waiting. You could lock in a price, protecting yourself against price increases, while not worrying that you might be overpaying.

Of course most people didn’t claim any money back. Most people buy a ticket and don’t check the price again later. Services popped up to automate this, and airlines because less customer-friendly. However several airlines are still fairly flexible giving you credits back.

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