JetBlue introduces new seat fee as it seeks to boost profitability
JetBlue Airways is looking for all the ways it can maximize revenue.
Over the past few days, the New York-based carrier rolled out a new seat-assignment fee, dubbed "Core Preferred," on all its flights.
This new fee is for aisle and window seat assignments in more favorable locations on the plane, such as those in front of the exit row.
These seats aren't different from the regular JetBlue economy experience; the only upgrade is that you are closer to the front of the plane.
There doesn't seem to be any other benefit to splurging for one of these seats aside from the preferred location and being able to deplane faster.
All JetBlue Mosaic elite members can assign these seats for free. A look at some sample routes shows that these new Core Preferred seats start from $10 for a Boston-to-Los Angeles flight, $21 for a New York-to-West Palm Beach, Florida, flight and up to $49 on a New York-to-Paris flight.
As you can see, the price doesn't seem to be correlated with distance, which is similar to JetBlue's new strategy for selling Even More Space seats based on more in-demand flights.
This new fee is separate from JetBlue's existing Even More Space offering, which includes up to seven inches of additional legroom, early boarding and priority security.
New and improved: Take a tour of JetBlue’s brand-new A321neo Mint business class
Core Preferred seats have an average 32 inches of pitch and feature seatback TVs, as well as power outlets and USB ports on most planes.
If only paid seat assignments are available on your flight, JetBlue will provide you with a complimentary seat during check-in or at the airport.
In explaining the move, a carrier spokesperson shared that "the introduction of preferred seating, in line with many other airlines, allows us to continue to offer our low fares and great service, while making progress toward returning to profitability."
This new fee isn't necessarily a revolution in the industry. American Airlines, Delta Air Lines and United Airlines have long charged extra for preferred seats in more favorable locations; even JetBlue's ultra-low-cost competitors charge higher prices for seats closer to the front of the plane.
Of course, for passengers, this new fee is no doubt a devaluation of the JetBlue experience, especially for those who usually book far in advance and have gotten used to getting their pick of the best seats.
Though this move was likely in the works for a while, it comes as JetBlue seems to be laser-focused on maximizing revenues and "closing the gap" on product offerings, as incoming CEO Joanna Geraghty said on the company's recent fourth-quarter earnings calls.
The company's takeover of Spirit Airlines was recently blocked, and the carrier continues to underperform financially relative to the broader aviation industry.
Plus, with the upcoming CEO transition, JetBlue is at a pivotal moment for defining its strategy for the upcoming years.
However, one thing is clear: This new Core Preferred seat assignment likely isn't the only change coming to JetBlue's fares and products.
"We think there are potentially additional product offerings we could introduce that tap into a broader spectrum of customers," Geraghty said.
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- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
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You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.