AIRBUSRIDER
Topic Author
Posts: 203
Joined: Tue Nov 30, 2004 1:39 am

Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 5:22 am

Has anyone seen Jetblue's prices lately? They are just about double what they used to be. Does anybody think they will ever have fares close to the way they used to be again?
No Officer, I am not a Terrorist !
 
lowecur
Posts: 512
Joined: Wed Jan 26, 2005 1:18 pm

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 5:38 am

Quoting AIRBUSRIDER (Thread starter):

It's the bucket system and it will work to bring Jetblues yields into line. Jetblue has traditionally always carried a large numbers of seats in their low fare buckets. These seats were gobbled up, and very few seats remained for high yield short term bookings the last week before flt time. Those seats are being systematically reduced and carried forward for purchase by these short term bookers. Carriers make their money on short term purchases by business travelers, and emergency travel from the leisure group. Jetblue will get their share of this business as they still are very competitive on these short term bookings.

[Edited 2006-04-19 22:43:37]
 
worldtraveler
Posts: 3417
Joined: Tue Aug 05, 2003 6:18 am

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 5:54 am

No, it's because B6 needs desperately to return to profitability and has decided that capacity dumping and roundtrip fares across the USA for less than $200 won't get them there, esp. since they have NO FUEL HEDGES but could have bought them.

Those who say that DL dumped capacity into NYC need only look at a schedule and see that B6 has easily twice as much capacity as DL ever had - and DL has been flying many of the same JFK markets back when Neeleman was still in diapers.

The low fare party is over for NYC. B6 rethought its strategy at the same time that DL has pulled alot of capacity out its NYC markets - and there is not enough capacity on the ground or in the air for significant LFC expansion in NYC again.
 
MaverickM11
Posts: 15221
Joined: Thu Apr 06, 2000 1:59 pm

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 5:58 am

JetBlue must have realized that all that "irrational pricing" was actually just their own revenue management  Silly.
E pur si muove -Galileo
 
airwave
Posts: 1105
Joined: Tue Mar 21, 2006 3:42 am

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 6:09 am

Quoting AIRBUSRIDER (Thread starter):
Has anyone seen Jetblue's prices lately? They are just about double what they used to be.

Good! Perhaps profitablity will follow in due time.

Quoting AIRBUSRIDER (Thread starter):
Does anybody think they will ever have fares close to the way they used to be again?

Perhaps, but not likely. I think it's much more preferable to have fares that are in line with (and above) expenses than it is to have firehouse fare sales that damage the balance sheet and risk the airline going into Chapters 7 or 11. I think the flying public is aware of why ticket prices are going up, and I doubt that their thinking will change much--that it's still several factors cheaper to fly (long distances) than it is to drive. As long as they're not being gouged, people will continue to fly with their preferred airline--which for many people is now jetBlue, thanks to a half-decade of remarkable (customer) service.

Quoting Lowecur (Reply 1):

 checkmark 

Quoting MaverickM11 (Reply 3):
JetBlue must have realized that all that "irrational pricing" was actually just their own revenue management

Very well put.

Airwave  eyebrow 
When you do things right, people won't be sure you've done anything at all.
 
AIRBUSRIDER
Topic Author
Posts: 203
Joined: Tue Nov 30, 2004 1:39 am

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 6:11 am

I guess the old days of $99.00 each way to the West Coast from NY are over and that is a real shame. We have those greedy Oil people to thank for this because I think that if fuel was still reasonable, B6 would not need to jack up their prices as much. And we all know that these fuel prices are here to stay and can only get worse. Less people will be flying B6 as good as they are because they were spoiled with those great deals and pax that don't understand or know the reasons for the fare hike are going to be less loyal to B6 thinking that this was a setup all along..........The "Jetblue Experience" will now cost you $$$$$$$$$$ !!!
No Officer, I am not a Terrorist !
 
H53Epilot
Posts: 151
Joined: Fri Mar 12, 2004 3:18 pm

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 6:23 am

Quoting AIRBUSRIDER (Reply 5):
I guess the old days of $99.00 each way to the West Coast from NY are over and that is a real shame. We have those greedy Oil people to thank for this because I think that if fuel was still reasonable, B6 would not need to jack up their prices as much. And we all know that these fuel prices are here to stay and can only get worse. Less people will be flying B6 as good as they are because they were spoiled with those great deals and pax that don't understand or know the reasons for the fare hike are going to be less loyal to B6 thinking that this was a setup all along..........The "Jetblue Experience" will now cost you $$$$$$$$$$ !!!

Why is it all of a sudden is it the "Greedy Oil People?" What about the greedy airplane makers, or the greedy pilots who make $150 a year or the greedy passenger who only paid 99 to the West coast? In 1998 when oil was $10 a barrel, few people called the airlines greedy. So it will cost $400 to fly from NYC to FLL. That's still a better deal than driving there in 2 days, is it not?
 
Jerseyguy
Posts: 2016
Joined: Sun Oct 30, 2005 12:05 pm

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 6:29 am

Quoting H53Epilot (Reply 6):
So it will cost $400 to fly from NYC to FLL. That's still a better deal than driving there in 2 days, is it not?

If it cost $400 to fly NYC-FLL, I'm driving and I bet you a family of 4 will be too. They can't justify $1600 in airfare for their Florida vacation when it would cost them maybe $400-500 to drive

I highly doubt that NYC-FL will rise to $400RT. Maybe $250-275 tops
Webmaster of an unoffical TTN page see profile for details
 
worldtraveler
Posts: 3417
Joined: Tue Aug 05, 2003 6:18 am

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 8:57 am

people are paying $500 and more for a roundtrip to Florida now. Not every passenger but the LOWEST nonsale fares are already over $200. Higher end fares go up from there. And, in case you haven't been in any NYC airports this spring, flights are still full.
 
H53Epilot
Posts: 151
Joined: Fri Mar 12, 2004 3:18 pm

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 9:05 am

Quoting Jerseyguy (Reply 7):
If it cost $400 to fly NYC-FLL, I'm driving and I bet you a family of 4 will be too. They can't justify $1600 in airfare for their Florida vacation when it would cost them maybe $400-500 to drive

Add 2 hotel rooms each night both ways, food, car wear and tear, the fact that you had to take 4 more days off from work, let's see, what else did I forget, and you can easily be in the neighborhood of 400 per ticket. Now, what's the cost of everyone p'oed at each other after spending 32 hours in the car during your annual vacation?
You WILL see most prices be closer to $500 than $300 NYC-FLA very soon. People better get used to it.
 
Jerseyguy
Posts: 2016
Joined: Sun Oct 30, 2005 12:05 pm

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 9:24 am

If NYC-FL is going to cost $350-450? Dare, I ask what a transcon will cost?

$800-1000? Higher?
Webmaster of an unoffical TTN page see profile for details
 
rwsea
Posts: 2422
Joined: Sun Jan 30, 2005 2:23 pm

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 9:24 am

Quoting AIRBUSRIDER (Reply 5):
Oil people to thank for this because I think that if fuel was still reasonable, B6 would not need to jack up their prices as much

Oil is a finite resource that won't be around forever. As we use more and more of it, it will continue to get more expensive. Do you honestly think $1.50/gallon for gas and $45 a barrel for oil will continue your entire your life.
 
worldtraveler
Posts: 3417
Joined: Tue Aug 05, 2003 6:18 am

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 9:44 am

Quoting JerseyGuy (Reply 10):
If NYC-FL is going to cost $350-450? Dare, I ask what a transcon will cost?

$800-1000? Higher?

B6 is the only carrier that is still clinging to the $299 cap for transcons, if I am correct. WN now has transcon fares over $299 and part of DL's reason to transition out of Song was because they quickly realized the $299 cap left alot of money on the table - something AA, CO, and UA have known for years.
 
lowecur
Posts: 512
Joined: Wed Jan 26, 2005 1:18 pm

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 10:04 am

Quoting RwSEA (Reply 11):
Oil is a finite resource that won't be around forever. As we use more and more of it, it will continue to get more expensive. Do you honestly think $1.50/gallon for gas and $45 a barrel for oil will continue your entire your life.

Prices for most things are supply and demand, except the futures market controlled by commodity traders. There is no doubt in my mind the volatility and price driven demand today is controlled by Hedge Funds. Their bread and butter are markets with high speculation and fear. They do not speculate or fear it because they control the momentum going both ways with huge amounts of cash from some of the richest people and institutions in the world.

The commodity markets will eventually reach their zenith as in the end the consumer will reach the saturation point on what they will spend. It will probably accompanied by a world wide recession or depression, as greed has no conscience. Alternative creations along the way will siphon off a good percentage of demand and eventually stability in price will exist again, but unfortunately only the rich will be the ones laughing all the way to the bank.

The world needs a breather and I look for that to happen when a few Chinese Banks bite the dust. How's that for speculation?
 
panam330
Posts: 1955
Joined: Sun Mar 14, 2004 11:58 am

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 10:42 am

Well, I just paid $109+ tax (totaling $129.60) for SYR-JFK-MCO one-way on May 3rd. Not too shabby, if you ask me. There were flights available for anything from $89+ to $129+, depending on the times.
 
incitatus
Posts: 2691
Joined: Wed Feb 09, 2005 1:49 am

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 10:48 am

Quoting RwSEA (Reply 11):
Oil is a finite resource that won't be around forever.

While I agree with this statement, it has nothing to do with the current price spike. It costs a buck or two per barrel to get oil out of Saudi Arabia and there are lots and lots of places where oil can be extracted at less than $25 per barrel. If the West knew with certainty that oil is going to be above $70/barrel over the long term, there would be massive investment in much cheaper alternative sources of energy.

I think an oil crisis will occur every few decades as power sways back to producers and then consumers wake up to their oil dependency and invest in exploration and alternatives.
Stop pop up ads
 
saturn5
Posts: 308
Joined: Thu Apr 13, 2006 2:49 pm

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 11:08 am

My daughter is in college in NYC while we live in Oakland, California. Her first trip to NY in the fall of 2005 was on JetBlue - at the time it had best prices. All subsequent trips she made home for holidays were done either on American, Delta or United. They were significantly cheaper than JetBlue.
 
AIRBUSRIDER
Topic Author
Posts: 203
Joined: Tue Nov 30, 2004 1:39 am

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 11:19 am

The moral of the story: Once again and as usual, we PAY!!!!! $$$$$$
No Officer, I am not a Terrorist !
 
airwave
Posts: 1105
Joined: Tue Mar 21, 2006 3:42 am

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 11:28 am

Quoting AIRBUSRIDER (Reply 17):
The moral of the story: Once again and as usual, we PAY!!!!! $$$$$$

As well we should. Market forces much stronger than consumer opinion are driving prices of everything up and airline tickets are no different. The consumer is *supposed* to pay for things--that's how a market economy works! As long as the prices are in line with the greater trends of supply and demand, I see nothing wrong with increases in price.

I don't know about you, but if ~$40 extra for a seat on B6 is the difference between their survival and extinction, I have no problem paying it--better to give it to an airline with superior service than to a legacy with subpar service for ~$150 more.

Airwave  eyebrow 
When you do things right, people won't be sure you've done anything at all.
 
DLX737200
Posts: 1617
Joined: Tue May 29, 2001 6:42 am

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 11:28 am

I recently booked TPA-JFK-TPA for $198 roundtrip. Not too shabby. However, I remember about a year or two ago, it being as low as $130 MCO-NYC-MCO on Spirit, Jetblue, Song, and more. I'd rather pay more to keep a good airline around rather than lose them to $19 one way fares like Independence did. I really enjoyed that airline but look what those low fares did to them. I don't want to see the same thing happen to others like Jetblue.

-Justin
 
JetBlueAUS
Posts: 852
Joined: Sat Apr 01, 2006 9:15 am

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 11:49 am

Quoting Lowecur (Reply 1):
Carriers make their money on short term purchases by business travelers, and emergency travel from the leisure group. Jetblue will get their share of this business as they still are very competitive on these short term bookings.

Yes, last-minute booking definately helps a carrier out. Also, a lot of B6's planes are full, and the less seats = more money you pay for your ticket. Also, there are certain travel days when B6's fares are higher (The major travel days), this could also be a 'fare-skyrocket' reason. JetBlue's last minute purchases are helping them emerge from the red. JetBlue has had to raise fares, they have taken away the 'Save 5 dollars' when booking online, and overall risen their prices $10-20 dollars.

Quoting Airwave (Reply 4):
Good! Perhaps profitablity will follow in due time.

 checkmark 
Not all of us can be heroes, some of us can only stand on the sidewalk and clap as they go by.
 
steeler83
Posts: 7391
Joined: Sat Feb 25, 2006 2:06 pm

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 12:03 pm

I guess those anounced start up fares for PIT at $64 and $79 or whatever won't last then... I don't care, they need to do whatever to remain profitable...
Do not bring stranger girt into your room. The stranger girt is dangerous, it will hurt your life.
 
altairF28
Posts: 94
Joined: Fri Dec 30, 2005 1:41 pm

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 12:05 pm

My TPA-JFK outbound for May 17 was almost twice as much as May 2005 but I still considered it a bargain-$119 versus $69 (the return was $84). Good to see an LCC adopting a somewhat sane price structure for a change.
Speaking of which, I may try to fly standby on an earlier flight. Does B6 require an upgrade to full fare like WN does?
A detour is a choice between two tasks, each with its own pros and cons
 
fspilot747
Posts: 3455
Joined: Mon Nov 01, 1999 2:58 am

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 12:10 pm

Good. All these assholes that expect their Walmart lifestyle and bargain ticket prices are going to have to pay market price for their tickets. No airline can keep profiting and keep selling thrifty tickets.
 
n844aa
Posts: 1266
Joined: Fri Jul 18, 2003 10:38 am

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 12:30 pm

Quoting FSPilot747 (Reply 23):
All these assholes that expect their Walmart lifestyle and bargain ticket prices are going to have to pay market price for their tickets.

Wouldn't "Walmart lifestyle" be precisely the definition of "bargain ticket prices"?

In any event, I don't get your hostility.
New airplanes, new employees, low fares, all touchy-feely ... all of them are losers. -Gordon Bethune
 
jetblueatjfk
Posts: 1556
Joined: Sun Jan 02, 2005 4:42 am

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 12:31 pm

Well I think prices need to be raised to be able to still operate at B6, it is for the better and I think the extra $20 or so added on to prices which can total abotu a $300-$400 round trip to Florida is actually ok because it is that or a long drive (which I have done a lot when I was little and it was murder!!!). But I am in Florida now and my family flew Spirit down LGA-FLL for $63 each O/W so we had to do that, we were going to do $84 on B6 but this came along and we couldn't resist but coming home is where they get you- $204 each then taxes making it more just for one way on B6. But that is partly due to since it is during Spring break time. So I let that slide but hopefully the fares wont get to $200 o/w. That would be the max range before a lot of families stop heading to Florida or other places.

Quoting Altairf28 (Reply 22):
Does B6 require an upgrade to full fare like WN does?

No just a $25 change fee when you already have a ticket purchased and then just hope for open seats.

B6jfk(or FLL rite now for me!) airplane 
 
PSA727
Posts: 845
Joined: Mon Feb 06, 2006 7:49 am

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 12:40 pm

Are they really skyrocketing? Or are they now at a level which
they should be set at?

I remember around 1990, if you could get a roundtrip flight between
LAX/SAN/SFO and NYC/WAS/BOS for $298, that was a good bargain!

In fact, I think it was Eastern that created that promo, in their final
gasp of breath. Most of the majors matched it.
It was great, there was no advance booking rules, you just had to
stay over a saturday night.

Before then, it was around $358 and up for the lowest fare.

Now price that in today's dollar value.

Also, when the fare was $298...you paid $298 !!!
None of this $30-$40 in added fees and taxes BS.
fly high, pay low...Germanwings!
 
CRGsFuture
Posts: 513
Joined: Tue Jan 17, 2006 12:04 pm

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 12:59 pm

Again as someone said flights are still full. Passengers both leisure and business are realizing how expensive everything is and that they should be adjusting to the prices.
Flying you to your destination; your girlfriend to her dreams.
 
H53Epilot
Posts: 151
Joined: Fri Mar 12, 2004 3:18 pm

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 1:01 pm

Quoting FSPilot747 (Reply 23):
Good. All these assholes that expect their Walmart lifestyle and bargain ticket prices are going to have to pay market price for their tickets. No airline can keep profiting and keep selling thrifty tickets.

While you buy your $499 computer or $15,000 Japanese car. Have you ever bought anything that has been made in Taiwan or Japan? It's called CAPITALISM. You really shouldn't be angry at yourself, the consumer.
 butthead 
 
sccutler
Posts: 5556
Joined: Thu Jan 27, 2000 12:16 pm

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 1:21 pm

Quoting Incitatus (Reply 15):
While I agree with this statement, it has nothing to do with the current price spike. It costs a buck or two per barrel to get oil out of Saudi Arabia and there are lots and lots of places where oil can be extracted at less than $25 per barrel. If the West knew with certainty that oil is going to be above $70/barrel over the long term, there would be massive investment in much cheaper alternative sources of energy.

I think an oil crisis will occur every few decades as power sways back to producers and then consumers wake up to their oil dependency and invest in exploration and alternatives.

Well-said.
...three miles from BRONS, clear for the ILS one five approach...
 
steeler83
Posts: 7391
Joined: Sat Feb 25, 2006 2:06 pm

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 1:34 pm

Maybe "skyrocketing" would be a little bit of a strong word to use. They are considerably raising fares, nonetheless, to increase profits, but it's not like they're doubling or tripling the fares. A 20 dollar or so increase on some of these routes, IMO, is not what I'd consider skyrocketing...
Do not bring stranger girt into your room. The stranger girt is dangerous, it will hurt your life.
 
PDPsol
Posts: 1109
Joined: Fri Feb 20, 2004 5:09 am

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 1:52 pm

Quoting Incitatus (Reply 15):
While I agree with this statement, it has nothing to do with the current price spike. It costs a buck or two per barrel to get oil out of Saudi Arabia and there are lots and lots of places where oil can be extracted at less than $25 per barrel. If the West knew with certainty that oil is going to be above $70/barrel over the long term, there would be massive investment in much cheaper alternative sources of energy.

I think an oil crisis will occur every few decades as power sways back to producers and then consumers wake up to their oil dependency and invest in exploration and alternatives.

Incitatus, I echo SCCutler's comment; the current price of crude does NOT reflect the MARGINAL COST [plus, capital cost] of the commodity's production. Current crude oil pricing is largely determined by political, rather than economic, variables and is, in my opinion, completely unsustainable.

The price of crude oil will, eventually, crash. It is simply a matter of when, rather than if, it will happen.

One only needs to read the comments of wack-jobs like Chavez and Ahmadinejad regarding crude oil prices see how ridiculously politicized these energy markets are.

Oh, and BTW, USD 200 fares to the West Coast are not dead by any stretch of the imagination. Customers want USD 200 fares, carriers will gladly provide them, and [some] carriers will make very handsome profits off those very same customers.
 
saturn5
Posts: 308
Joined: Thu Apr 13, 2006 2:49 pm

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 2:42 pm

Quoting Steeler83 (Reply 30):
A 20 dollar or so increase on some of these routes, IMO, is not what I'd consider skyrocketing...

Depending what routes and what's the time frame for comparsion. On the JFK-OAK route the prices practically doubled since about 8 months ago. So it is definitely much more than $20.
 
cloudy
Posts: 1613
Joined: Sat Apr 06, 2002 3:23 pm

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 2:49 pm

Quoting Pdpsol (Reply 31):
The price of crude oil will, eventually, crash. It is simply a matter of when, rather than if, it will happen.

The long term rise in prices are caused by 2 main factors, and these factors are unlikely to change for a decade or more....

1. Heavy demand in China and other high growth eastern countries, and market anticipation of even more demand.

2. A shortage of refining capacity largely caused by NIMBYs, environmental regulation, fears of punitive taxation, etc. That is why the "spread", or difference in price between refined products and crude oil, is larger than it has been in a long time and is getting larger.

Some people think that the current high prices are a result of the Iraq war and the hurricanes and we will eventually see $1 gas again. IMHO that is wishful thinking. These factors drive the price up in the short term, but they are not the root causes of the price rise in the last few years.

If I had to bet, I'd say gas prices will go down to $1.90-$2.25 or so once Iraq quiets down and the hurricane damage to oil infrastructure is fully repaired(but if I really knew these things, I'd be rich, so take it with a grain of salt  Smile). It will probably stay at that level for a long time, perhaps more than a decade, with brief spikes caused by wars and disasters.

One thing we can take comfort in.... The price of synthetics, biodiesel, ethanol, etc. do put an upper limit on the price of oil in the long term. We are not running out of oil anytime in the foreseable future, but even if we were, there are alternatives and the market will have enough time to turn to them. This is true even without super-exotic alternatives like hydrogen. But that does not mean much for the airlines. Current prices could go down significantly and still leave the airlines in plenty of trouble.

IN SHORT....There is reason to be optomistic about our long term energy future. But there is no reason to suppose the super low prices of the 90's will ever return. The airlines will have to do with a permanently higher "baseline" price for fuel, probably for a decade or more.
 
Ih8b6
Posts: 195
Joined: Fri Apr 14, 2006 7:38 am

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 3:23 pm

Quoting MaverickM11 (Reply 3):
JetBlue must have realized that all that "irrational pricing" was actually just their own revenue management .

EXACTLY! It's about time this happened. Finally. The "irrational pricing" was JetBlue irrationally pricing fares below what they should be to cover costs.

Quoting AIRBUSRIDER (Reply 5):
I guess the old days of $99.00 each way to the West Coast from NY are over and that is a real shame. We have those greedy Oil people to thank for this because I think that if fuel was still reasonable, B6 would not need to jack up their prices as much

It's not a real shame. You cannot charge less than a Greyhound bus fare to transport someone by air in 5 hours. Take the freaking bus it'll only be 5 days and run you about $99.

You do not have greedy oil people to thank for this. You have JetBlue to thank for your surprise that fares will finally fall back into line to what they should be. They should have never been that low. Now that costs pile up, they will need to charge what it really costs to do busy and squeak a profit out.
Over-moderation sucks
 
AIRBUSRIDER
Topic Author
Posts: 203
Joined: Tue Nov 30, 2004 1:39 am

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 8:22 pm

Thank you all for all of the input. I would not want to see B6 end up like Independance and I will get used to these fares I guess. I think the reason I started this thread was that I just wanted to hear opinions on the current B6 situation. I am a big fan of this airline and I do support them doing what is necessary to stay alive...........Thanks again everyone Big grin
No Officer, I am not a Terrorist !
 
MAH4546
Posts: 24522
Joined: Wed Jan 24, 2001 1:44 pm

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 8:32 pm

Quoting Jerseyguy (Reply 7):

I highly doubt that NYC-FL will rise to $400RT. Maybe $250-275 tops

To fly MIA/FLL/PBI-JFK during peak periods can often cost as much as $500-$600 round-trip, especially to MIA and PBI. Not the money drainer everyone thinks it is, especially lately as airlines are tightning capacity.
a.
 
goingboeing
Posts: 4727
Joined: Sat Dec 04, 1999 1:58 am

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 8:37 pm

Quoting IH8B6 (Reply 34):
EXACTLY! It's about time this happened. Finally. The "irrational pricing" was JetBlue irrationally pricing fares below what they should be to cover costs.

No, the "irrational pricing" was the bankrupt carriers pricing below the "irrational price" of JetBlue. Note one of the above posts about OAK-JFK...two of the three airlines that were priced below Jetblue are in or have been in bankruptcy.
 
User avatar
par13del
Posts: 6670
Joined: Sun Dec 18, 2005 9:14 pm

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 8:58 pm

Is there a "formula" at work here for B6. Yes they have recently changed their "yield management", but as their supporters on this site will testify, they were / are a well run airline with an excellent strategy. This strategy made them the darling of NYC, Airbus and many others.
Now the trend by their supporters seem to be that their strategy is flawed and not workable. Unlike legacies, all things being equal, B6 has no cost to trim. They started as a LCC, no Union, high payed flight crew, major hubs, all the other problems which the legacies have, the only increase is fuel, and yes it is pretty steep. So unless they were hurt more than they let on by all the fuel stops in the last couple months, how is it that no one in management knew that there was a fuel "cost" over which their financial plan 'COULD NOT WORK"? For the financial experts, is it not the same as your financing plan, where you note the level of interest rates at which you cannot sustain your business.
I now read any thread on B6, because we now have a discussion on the airline business, market trends and management principles, and none of the union this, wages that etc., just professional discussion, I hope.
Thanks
 
BNinMSY
Posts: 217
Joined: Wed Nov 23, 2005 12:19 pm

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 9:05 pm

Fuel at an all-time high .. the airlines have to cover or I should say cover the cost of business - they cannot subsidize the flying public's irrational thurst for a $ 39 fare - to everywhere - when it clearly does not make good business sense. Companies are in the business to make money.

B6 and ALL airlines are entitled to that - and if they are smart they will raise fares to the level where it covers their cost.

Eventually the oil companies will 'bust' because SOMEONE will find an alternative fuel choice - I may not live to see this - but it WILL happen.

OH .. and not everyone is seeking at $ 39 fare or $199 transcon or $99 to Florida .. some people don't care what it cost - they are traveling --- at whatever the cost.
 
User avatar
par13del
Posts: 6670
Joined: Sun Dec 18, 2005 9:14 pm

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 9:22 pm

To BNinMsy reply 39, are you saying that it was the public who forced B6 into those low fares, or that their business was not making money when they were charging those $39.00 fares?
I did not see it mentioned anywhere prior to the fuel stop and pirce raise's that B6 was loosing money, nor was it ever mentioned that they were subsidizing people travel needs / wants.
It begs the question, were they not covering their cost of doing business before, or was all their filing's at the SEC and other financial house all BS?
If they were covering their cost - which I believe - then it means that the steep cost in the rise of fuel makes their plan non-workable.
What about their a/c decision, airbus a/c are generally heavier than their Boeing counterparts with a higher fuel burn, does it now mean that they are at a cost disadvantage with other LCC's who use boeing a/c?
 
B742
Posts: 3559
Joined: Mon Mar 14, 2005 12:48 am

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 9:36 pm

Jetblue seems to be so expensive compared to European and Asian LCC's fares!

I tried to book a flight from London to the US, then to connect onto JetBlue, the Jetblue fare was more than the transatlantic return fare!

Rob!  wave 
 
b777a340fan
Posts: 651
Joined: Thu Oct 27, 2005 12:42 am

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 10:18 pm

Hahaha....I commented the exact same thing the other day  Smile I was booking a flight from IAD to So. CA for my dad and after taxes and fees, it quoted $430 something.  Confused So I ended up purchasing tix with UAL, which was like 30% less. It's crazy because most passengers would opt for "big" airlines because they can accrue miles and benefit from a larger network. Is there something that WN is doing that all the other LCCs don't get? I read on another forum that they just posted Q1 earnings.
 
leothedog
Posts: 113
Joined: Sat Dec 17, 2005 2:45 am

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 10:50 pm

Perhaps Jetblue finally figured out that "Selling below cost and making it up on volume" doesn't work.
I've got things to see and people to do.
 
goingboeing
Posts: 4727
Joined: Sat Dec 04, 1999 1:58 am

RE: Jetblue's Prices Are Skyrocketing

Thu Apr 20, 2006 11:08 pm

Quoting Leothedog (Reply 43):
Perhaps Jetblue finally figured out that "Selling below cost and making it up on volume" doesn't work.

So when do you think the legacies will catch on?

The post just above yours indicated that they found a fare on United for $301. Now...according to United's annual report, their CASM was 10.59 cents. But I'll assume that this flight was from IAD-LGB. A 5200 mile round trip. That means that United charged 5.7 cents per mile. From Jetblue's annual report, their CASM was 6.98 cents and they are charging 8.2 cents per mile for the flight. Somebody is on the path to insuring a profit here. It ain't the legacy.
 
WN57787
Posts: 109
Joined: Sun Mar 26, 2006 7:47 am

RE: Jetblue's Prices Are Skyrocketing

Fri Apr 21, 2006 12:46 am

Quoting WorldTraveler (Reply 12):
WN now has transcon fares over $299

before 9/11 WN Cap of Transcon fairs was 399 plus tax each way. after 9/11 droped it to 299 plus tax each way. just recently thay added 10 each was for Fule cost.. now the cap is 309 plus tax each way. still not bad. that is the Walk up Fair for cost to cost. wn operated flts only.
 
DAYflyer
Posts: 3546
Joined: Wed Sep 08, 2004 9:35 pm

RE: Jetblue's Prices Are Skyrocketing

Fri Apr 21, 2006 12:50 am

Its pretty obvious that a lack of fuel hedges are hurting all the airlines that are without them.
One Nation Under God
 
warren747sp
Posts: 979
Joined: Sat Feb 21, 2004 7:51 am

RE: Jetblue's Prices Are Skyrocketing

Fri Apr 21, 2006 1:18 am

Did they have a deal that they can defer payment to Airbus for the first couple of years?
747SP
 
panam330
Posts: 1955
Joined: Sun Mar 14, 2004 11:58 am

RE: Jetblue's Prices Are Skyrocketing

Fri Apr 21, 2006 5:14 am

Quoting JetBlueAtJFK (Reply 25):
No just a $25 change fee when you already have a ticket purchased and then just hope for open seats.

It's actually $30 now. Looks like the fares aren't the only items being raised.
 
pmg1704
Posts: 145
Joined: Fri Sep 24, 2004 1:36 am

RE: Jetblue's Prices Are Skyrocketing

Fri Apr 21, 2006 6:03 am

Quoting H53Epilot (Reply 6):
Why is it all of a sudden is it the "Greedy Oil People?"

Oh, I don't know, maybe it's the $10 billion in profits that Exxon earned in a single quarter last year?

"...it's not just ExxonMobil that's raking it in. Royal Dutch Shell reported net income up 68% to $9 billion Thursday. Earlier this week, BP (BP) reported a $6.5 billion third-quarter profit and ConocoPhillips (COP) a $3.8 billion profit. Today, ChevronTexaco (CVX) is expected to post 53% higher earnings of $3.9 billion, says Reuters Estimates."