JetBlue launches new tier fare structure to better compete with budget carriers

Low-cost air carrier JetBlue has announced it is launching a new fare structure, the company said.

Previously, JetBlue has offered four fare options: Blue, Blue Plus, Blue Flex, and its business-class offering, Mint. With a standard Blue fare, no checked bags are included, with Blue Plus one checked bag is included, and with Blue Flex, two checked bags were included. There was no change fee with Blue Flex bookings, and TrueBlue members got bonus miles when they booked Blue Plus or Blue Flex fares online.

The new tier structure includes those same tiers with the exception of Blue Flex, which has been changed to Blue Extra, which does not include free checked bags.

There is also a new tier: Blue Basic, or JetBlue´s version of Basic Economy. With Blue Basic, no checked bags are included, but one carry-on and one personal item are. There are no changes allowed and a cancellation will result in a forfeited fare (meaning no refund).

The company said its success is at risk if it does not disrupt this market by lowering fares without sacrificing the experience. The move is intended to help JetBlue better compete with budget carriers like Frontier and Spirit, as well as the basic economy fares that have been rolled out by Delta, American and United.