JetBlue is expected to launch transatlantic flights in the coming months, with the first routes being from Boston and New York to London. We still don’t know which airport in the London area the airline will fly to, although personally I think Gatwick will be the most likely, based on the slots that have been awarded so far.
JetBlue will operate transatlantic flights with new A321LRs, featuring the new Mint Suites and Mint Studios (Mint is the name of the JetBlue business class product).
In 2014, JetBlue initially introduced its Mint business class product on transcon flights, putting a lot of pressure on other airlines. In this post, I would like to speculate a little on how I think JetBlue will change premium prices on transatlantic flights.
The current status of transatlantic business class fares
Let’s take a look at the current status of business class transatlantic fares and use the Boston to London market as an example. This is a market dominated by two transatlantic joint ventures, as American and British Airways have a joint venture, and Delta and Virgin Atlantic have a joint venture (United also plans to launch this route now, clearly to retaliate with JetBlue ). Before the pandemic, these airlines had more than a handful of daily flights between the two cities.
Although these joint ventures compete fundamentally with each other, the reality is that these airlines do not want to rock the boat too much. They want to keep the same outdated box office rules in place and high prices. In business class, they focus mainly on the product and the schedule, instead of trying to reduce the price of the other joint venture, because this is a proposal that loses to the airlines.
Looking at round-trip business class fares between Boston and London, with a minimum stay of seven nights, here’s what I’m seeing:
- The lowest rates in most periods appear to be ~ $ 3,800
- Near departure, the lowest fares are ~ $ 6,800
- There is a brief period in the summer when rates drop to around $ 2,500
Transatlantic tariffs could certainly be innovative, right?
Overall, however, fares generally cost well over $ 3,000 round trip and, in most cases, close to $ 4,000. And that presupposes that you book in advance, because otherwise you can expect to pay twice as much.
How will JetBlue change prices for the transatlantic business class?
I believe that JetBlue will take a completely different approach to transatlantic prices than existing competitors. The big question is whether other airlines will match. This is purely speculation on my part, but let me share what I’m hoping for. I am basing this mainly on what JetBlue did in 2014, when it entered the markets from New York to Los Angeles and San Francisco with its Mint product.
One way for half the cost of round trip
Historically, former transatlantic airlines have not had attractive one-way prices. Often, a one-way ticket is more expensive than a round trip. This is so that airlines can try to better segment their customer base, having minimum stays of seven days, requiring customers to stay over the weekend to get the lowest fare, etc.
Personally, I think JetBlue is likely to simplify transatlantic prices and one-way tickets. In other words, a return ticket will cost the same as a return ticket. This is what JetBlue did in the transcon markets, where before 2014 traditional airlines did not charge that way.
New JetBlue Mint Suite
Looking at current JetBlue transcontinental Mint Suite prices
Current JetBlue Mint prices are everywhere, although I think it’s worth talking at length about JetBlue Mint prices between the back. Some things to note from the beginning:
- It is worth looking at business markets where JetBlue faces a lot of competition, as this is the closest comparison to JetBlue’s transatlantic markets, where the airline will face a lot of competition; in other words, Boston and New York to London are more comparable to New York to Los Angeles and San Francisco
- JetBlue’s transatlantic flights will generally be about 30% longer than JetBlue’s transcontinental routes; although the price rarely reflects directly the cost, this is still something to be aware of in terms of fuel consumption, aircraft usage, crew costs, etc.
- For this purpose, we do not even discuss airport taxes and fees, which will be significantly higher for these flights, especially when departing from the United Kingdom due to the Air Passenger Duty (APD); business class passengers can expect to pay around $ 300 one way from the UK
With that in mind, JetBlue’s pre-pandemic price in the New York to Los Angeles market usually started at around $ 650 and went up to $ 1,500 +. This $ 650 price was normally available throughout the year, but only on selected flights and times. Sometimes it was available well in advance, while other times it was available close to departure.
It was not consistently $ 650, however. Sometimes we saw prices starting at $ 550, sometimes $ 600 and sometimes $ 700. Looking at prices in the coming months, it looks like the JetBlue price is starting at $ 729 in those markets.
JetBlue currency prices months in advance
My best guess about JetBlue’s transatlantic currency prices
This is purely speculation on my part, but my guess is that JetBlue’s transatlantic prices will be somewhere along these lines:
- I think Mint flights will start at ~ $ 1,000 one way, excluding taxes and fees; I hope these rates will be available throughout the year, although only on certain frequencies based on demand
- When the route goes on sale, I would not be surprised to see some one-way tickets of ~ $ 800, given the complete lack of demand for transatlantic flights at the moment, and just to generate some buzz.
- While some fares may be as low as the above, most travelers will pay much more than that; I think the price will be limited to ~ $ 2,000-2,500, for bookings on almost complete flights, peak frequencies, etc.
In other words, I think JetBlue Mint fares will start around ~ $ 2,300 round trip (including taxes and fees), while they will cost ~ $ 4,000-5,000 round trip maximum. In all cases, this will significantly harm competition.
New JetBlue Mint Suite
What will be the price of Mint Studio?
JetBlue is doing something unique with its new Mint product – while the standard business class seat will be known as the Mint Suite, the first row of the plane will have two seats known as the Mint Studio, offering more space and even a double seat.
JetBlue’s new Mint studio
With the old JetBlue Mint product, a quarter of the seats had direct access to the hall and doors, although JetBlue did not charge anything for them. Instead, they were available on a first-come, first-served basis. This seemed the opposite for some, as those who booked the cheapest fares in advance got the best seats.
JetBlue stated that Mint Studio will have an extra cost, so what kind of rates should we expect? Again, purely speculation on my part, but I would say:
- Mint Studio will be a very consistent upcharge for whatever the best Mint rate available at the moment; in other words, the cost of upgrading to Mint Studio would be the same, regardless of whether you book a $ 999 or $ 1,999 rate, rather than a percentage of the rate
- My best guess is that JetBlue will charge around $ 300 one way for this update; I could see that it cost as low as $ 250 or as high as $ 400, but I can’t imagine much outside that range, especially if there are no additional services for these passengers
JetBlue’s new Mint studio
Result
JetBlue is expected to launch transatlantic flights this year. We hope that the airline will not only offer a great product on board, but bring some much-needed innovations to the outdated pricing policies of traditional airlines in this market.
Although this is purely speculation on my part, I expect JetBlue to set the price for one-way tickets. I also think the price will start around ~ $ 1,000 one way, although in many cases the price is at least double.
The other question is how much of a premium JetBlue will you charge for Mint Studio, which is the name of the seats in the first row. I’m expecting the airline to charge an extra ~ $ 300 one way, although I may also be totally wrong.
What do you expect from JetBlue’s Mint transatlantic prices? Feel free to share your guesses below, before tickets go on sale!