Winners and losers from JetBlue’s overhauled fare structure
The pandemic has caused airlines to rethink flexibility.
On Tuesday, JetBlue became the latest carrier to announce that it's eliminating change fees. However, unlike other major U.S. airlines, JetBlue's move comes with a major catch: basic economy flyers will no longer be allowed to bring a carry-on bag.
By eliminating carry-ons for basic economy, JetBlue is introducing an overhead bin space guarantee for passengers booking Blue fares or higher. You'll receive a $25 credit if you're forced to check your carry-on bag.
JetBlue’s new fare structure is good news for some and bad news for others, so let's dive into the winners and losers.
Related: Full details of JetBlue's overhauled fare structure
Winners
Regular coach and Mint flyers booking in advance
Eliminating change fees is great news for flyers booking standard coach or Mint tickets. Fee-free changes add a ton of flexibility to tickets purchased far in advance.
Note that fares are still non-refundable; you'll receive a travel credit if you voluntarily cancel your flight. Changing to a more expensive flight will incur a fare difference. Switching to a cheaper flight will generate a future travel credit for the difference.
Of course, we'll have to wait and see how JetBlue's fares change in response to the added flexibility. Assuming they don't rise too much, then the no-change-fee policy is great for most flyers.
Flyers with carry-on bags
Starting on July 20, JetBlue will offer an overhead bin guarantee for Blue fares and above. If there's no room for your carry-on bag — something the carrier says should happen "less than 1% of the time" — you'll receive a $25 travel credit as compensation.
If JetBlue can live up to its promise, then this will be a major win for reducing the pre-boarding anxiety among travelers worried about overhead bin space.
We'll have to wait to see how the guarantee plays out in practice, but it sounds good on paper. Of course, the few flyers who are forced to gate-check their bags would likely remain upset, despite the $25 compensation.
Basic economy passengers who need to make changes
Before the pandemic, basic economy tickets couldn't be changed or canceled. Starting on April 1, flyers purchasing Blue Basic fares will be able to change or cancel their reservation at the following rates:
- $100 for domestic, Caribbean, Mexico and Central America routes.
- $200 for all other routes.
Though some Blue Basic tickets will undoubtedly cost less than the change fee, the added flexibility is a nice addition for basic economy flyers.
The one caveat is that all tickets, including basic economy, have enjoyed fee-free changes and cancellations since February 2020, both on JetBlue and its main competitors. If JetBlue phases out this blanket waiver before the other major U.S. carriers, then the new Blue Basic fee structure will be more punitive than its competition.
Also note that Mosaic elite will be on the hook for the Blue Basic change fees.
Related: What basic economy means across the major airlines
Losers
Mosaic elite members
JetBlue’s no-change-fee policy is a major devaluation to the carrier’s Mosaic elite program, which counted free changes and cancellations as one of its top perks.
The carrier has added a limited-time companion pass, but that's hardly enough to compensate for the blanket elimination of change fees. Plus, the carrier quietly devalued another top Mosaic perk last year: the TrueBlue redemption rate for confirmed extra-legroom seats.
Dave Clark, vice president of sales and revenue management, reasons that “the new Mosaic benefits announced late last year have several new benefits. The free extra-legroom Even More Space at the gate is the marquee benefit that replaces flexibility.”
Unfortunately, the Even More Space benefit is available on a first-come, first-serve basis at the airport, meaning that most Mosaics will end up in an extra-legroom middle seat if they waited until the airport.
It's not all bad news for Mosaics, though. Elites flying on Blue Basic fares will enjoy free same-day switches and standby. Plus, they can bring a full-sized carry-on, though they won't enjoy the overhead bin space guarantee.
Related: JetBlue's Mosaic status updates for 2021
Basic economy flyers with bags
If you're traveling with a carry-on, you'll want to steer clear of Blue Basic.
Effective July 20 for tickets purchased on or after Feb. 25, basic economy flyers will no longer be allowed to bring a full-sized carry-on. One personal item, like a backpack or purse, will still be included.
This is perhaps the biggest devaluation from Tuesday's announcement and puts JetBlue's Blue Basic offering on par with its ultra-low-cost rivals like Frontier and Spirit, and with United, which currently offers the most punitive basic economy experience of the major U.S. airlines.
As mentioned above, note that basic economy tickets now include the ability to make changes and cancelations, as well as same-day switches and standby.
Customers who previously purchased Blue Basic
Non-elite flyers traveling with JetBlue have had little reason to avoid the carrier's Blue Basic fare.
If your plans were set, basic economy offered the best "bang for the buck" — you'd enjoy the cheapest fare, and you'd be allowed to bring a full-sized rollaboard.
But now that JetBlue's eliminating the carry-on allowance, those flyers will likely opt to buy up to a Blue fare. That's great news for JetBlue's bottom line — and bad news for your wallet.
JetBlue isn't coy about its intentions. According to Clark, "the key is to increase differentiation between Blue Basic and Blue. By further segmenting fares, we expect more customers will buy up to Blue."
The goal is to "lower the [Blue Basic] fare for the small segment of customers" willing to forgo the carry-on. But for those who value the carry-on allowance, this is undoubtedly bad news.
TPG featured card
Rewards
| 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. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro offer
Annual Fee
Recommended Credit
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.
Rewards Rate
| 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. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro Offer
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.