JetBlue is expected to launch transatlantic flights in the coming months, with the first routes expected to be from Boston and New York to London. We still do not know to which airport in the London area the airline will fly, but personally I think Gatwick will be the most likely based on the slots allocated so far.
JetBlue will operate transatlantic flights with brand new A321LRs, featuring both new Mint Suites and Mint Studios (Mint is the name of JetBlue’s business class product).
In 2014, JetBlue initially launched its Mint business class product on transcon flights, which put a lot of pressure on other airlines. In this post I wanted to speculate a bit about how I think JetBlue will change the premium prices on transatlantic flights.
The current state of tariffs for transatlantic business classes
Let’s look at the current state of the transatlantic business class tariffs, and we will use the Boston-London market as an example. It is a market dominated by two transatlantic joint ventures, as US 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 in retaliation against JetBlue). These airlines had more than a handful of daily flights between the two cities before the pandemic.
Although these joint ventures are fundamentally competing with each other, the reality is that these airlines do not really want to fluctuate too much. They want to keep the same outdated ticket rules and want to keep prices high. In the business class, they largely focus on the product and plan to suppress the price of the other joint venture because it is a loss-making offer for the airlines.
When I look at the uninterrupted return rates between Boston and London with a minimum stay of seven nights, this is what I am currently seeing:
- The lowest rates over most periods appear to be ~ $ 3,800
- The lowest rates are near the room ~ $ 6 800
- There is a short period in the summer where rates drop as low as $ 2,500
Transatlantic tariffs can certainly use some innovation, right?
In general, the rates are usually more than $ 3,000 return, and in most cases closer to $ 4,000. And it assumes that you book in advance, because if you do not, you can expect to pay about twice as much.
How will JetBlue change the business class transatlantic price?
I believe that JetBlue will follow a very different approach to transatlantic pricing than existing players. The big question is whether other airlines will match. This is pure speculation on my part, but let me share what I expect. I base it largely on what JetBlue did in 2014 when it entered the New York and Los Angeles and San Francisco markets with its Mint product.
One way for half the cost of return
Historically transatlantic airlines have historically not had attractive one-way prices at all. A one-time ticket is often more expensive than a return ticket. It is so that airlines can better try to segment their customer base by having a minimum of seven days stay periods, and that customers should stay the weekend to get the lowest rate, and so on.
Personally, I think it is likely that JetBlue will simplify transatlantic pricing and price tags once and for all. In other words, a return ticket costs the same as two one-way tickets. This is what JetBlue did in transcon markets, where the old airlines did not price that much before 2014.
JetBlue’s New Mint Suite
Check out JetBlue’s current transcontinental Mint Suite prices
Current JetBlue Mint prices are everywhere, but I think it’s worth talking a big picture about JetBlue Mint prices between the coast. A few things to note in advance:
- It is worth looking at business markets where there is a lot of competition with JetBlue, as this is the best comparison to JetBlue’s transatlantic markets, where the airline is experiencing a lot of competition; in other words, Boston and New York to London are most similar to New York and Los Angeles and San Francisco
- In general, JetBlue’s transatlantic flights will be approximately 30% farther than JetBlue’s transcontinental routes; While prices rarely reflect costs directly, it is still something to look out for in terms of fuel consumption, aircraft utilization, crew costs, and so on.
- Let us, for the purposes of this, not even discuss the airport tax and fees, which will be significantly higher for these flights, especially not if you are leaving the UK due to the Air Passenger Tax (APD); business class passengers can expect to pay around ~ $ 300 one way when leaving the UK
In view of this, the pre-pandemic’s pricing of JetBlue in the New York and Los Angeles markets usually started at around $ 650 and crept up to $ 1,500 +. The $ 650 price was usually available all year round, but only on select flights and at certain times. Sometimes it was available in advance, while again it was available near departure.
However, it was not consistently $ 650. Sometimes we have seen prices start at $ 550, sometimes at $ 600 and sometimes at $ 700. Looking at prices down the road, JetBlue prices in these markets seem to start at $ 729.
JetBlue’s Mint Rates Months Ahead
My best guess at JetBlue’s transatlantic award
This is pure speculation on my part, but I think JetBlue’s transatlantic pricing will be somewhere in line:
- I think Mint flights will start from ~ $ 1,000 one way, not including taxes and fees; I expect these rates to be available throughout the year, although only on certain frequencies based on demand
- Once the route is offered for sale, I would not be surprised to see about $ 800 one-time fares, given the lack of demand for transatlantic flights at the moment, and to create just a little buzz
- While some fares may be as low as above, most travelers will pay much more than that; I think the price will rise from $ 2,000-2,500 for bookings on almost full flights, peak frequencies, etc.
In other words, I think JetBlue’s Currency rates will start at around $ 2,300 return (including taxes and fees), while it will be at the highest $ 4,000-5,000 return. In any case, it will significantly undermine the competition.
JetBlue’s New Mint Suite
What will the prices of Mint Studio be like?
JetBlue is doing something unique with its new Mint product – although the standard business class seat will be called Mint Suite, the first row of the aircraft will have two seats known as Mint Studio, which offers more space and even a buddy .
JetBlue’s new Mint Studio
With JetBlue’s old Mint product, a quarter of the seats have direct access to doors and doors, though JetBlue did not charge extra for it. Rather, they were available on a first-time basis. This seems to be a setback for some, as the pre-cheapest rates get the best seats.
JetBlue said Mint Studio would cost extra, so what rates should we expect? Again pure speculation on my part, but I would guess:
- Mint Studio will be a fairly consistent stock of the best price currently available; in other words, the upgrade fee for Mint Studio will be the same whether you are booking a $ 999 or $ 1,999 rate, rather than a percentage of the rate
- My best guess is that JetBlue will charge about $ 300 one way for this upgrade somewhere; I can see it being as low as $ 250 or as high as $ 400, but I can not imagine it being very out of range, especially if there are no additional services for these passengers.
JetBlue’s new Mint Studio
Bottom line
JetBlue is expected to launch trans-Atlantic flights this year. The airline will hopefully not only provide an excellent product for the offering, but also provide the necessary innovation in the outdated pricing policy of the renowned airlines in this market.
While this is merely speculation on my part, I expect JetBlue to price tickets as one-way. I also think prices will start somewhere around ~ $ 1,000 one way, but in many cases prices will be at least twice as high.
The other question is how much a premium JetBlue will cost for the Mint Studio, which is the name of the seats in the first row. I expect the airline to charge an extra direction of ~ $ 300 one-time, but I can also be completely down.
What do you expect from JetBlue’s transatlantic coin price? Feel free to share your guesses below, before tickets go on sale!