JetBlue has expanded its TrueBlue mileage partnerships but it demonstrates the poor value JetBlue offers on their own flights.
JetBlue’s Partner Redemptions
JetBlue has added some incredible partners including Qatar, Japan Airlines, Condor, Etihad, and soon United. Both Hawaiian (now part of Alaska Airlines) and TAP go away at the end of this month. Cape Air is helpful for connections to very small markets, and Iceland Air has limited premium utility.
Some of those partner redemptions offer great opportunities with long haul flights in excellent premium cabins, like 90,000 points from Chicago to Abu Dhabi. Some travelers online have reported snagging even better deals in Japan Airlines’ business class to Tokyo from New York.
Condor, for the moment, is the only remaining partner from October 1st that will offer non-stop competing flights from the United States to continental Europe but their product, while nice, is not on the level of Mint.
Redemptions, at one point, were as low as 60,000 one-way on JAL to Tokyo in business class though these have seem to disappeared in recent weeks.
JetBlue’s Own Metal Redemptions
Some of the flights featured on partner airlines are as much as double the distance and flight time of those that JetBlue flies on its own metal. Flights from New York to London can be as low as 56,500 one-way on my recent searches for a very low period (anecdotal as it may be) but the majority range from 129,600-148,000. Compare that to United at 80,000, Air Canada Aeroplan at 70,000, Avianca Lifemiles at 63,000, or American at 57,000 – JetBlue is competitive on just one of four options. Other dates I searched ranged higher, from 90,000 or more.
The marginal cost of offering a business class award seat to an airline is less than $100. The cost of one more meal in business class, payment to a lounge partner (in the case of JetBlue), an amenity kit, and the extra fuel needed to transport the weight of the passenger and their luggage. The fixed costs do not factor in, because the flight will take place whether the seat flies empty or filled.
Even the amount the airline charges to partners is likely about $300-350 based on Star Alliance reimbursements as provided by OMAAT.
Comparing the cash prices for the exact same flights and dates, the value of TrueBlue points are 2.05¢/point, 1.22¢/point, and 1.12¢/point respectively.
On the lowest rate, as exemplified by competing programs, TrueBlue is right in the mix. But for a fare that’s just 25% more expensive ($300 in this case) results in a 229% surcharge in miles. A $645 difference (55% more than the lowest fare), incurs a 261% increase in TrueBlue points. What’s stranger still, is that a $300 difference doubles more than doubles the base rate, but a $345 increase from that rate only adds 18,400 TrueBlue points.
Sources at JetBlue have shared that C-suite management believe their program offers tremendous value and that the 80,000 point credit card offer (which in most cases would not equate to a one-way in Mint on a trans-Atlantic route) is among the best in the industry. It’s clearly not close.
TrueBlue Has To Decide Who It’s Going To Be
JetBlue has been transitioning for some time from an LCC carrier to a high value carrier, to an international carrier with a great business class product, branded lounges, and premium partners. But with that change, the program has to evolve as well. Consider the linked examples from Star Alliance carrier co-payments included before, it costs JetBlue at least three times as much to put TrueBlue travelers on partner airlines instead of in their own vacant seat.
If the carrier wants to compete with the likes of major carriers, not just for travelers but also for credit card customers, it will need to make its offering more competitive. And as the carrier struggles with profitability, it will also need to consider how it prices flights on its own metal with its own cost structure. Right now, they seem confused and erratic and rarely a good value for premium flights across the Atlantic.
What do you think?
No one in their right mind would fly JetBlow. Only mentally deficient Noo Yawk Yankers and Massholes who don’t even know that they’re getting shafted by TrueScrew and its near-Delta levels of confiscatory crime. And Mint is Shint, overrated domestic F. Fly a real airline to LHR if you have to.
I like your round up of how much it costs to provide an award seat. Mind you it’s only one metric of “cost” (opportunity cost being another). I find the cost relevant though for mistake fares. Eg the Cathay first mistake fare. Even at $600 or whatever how do the airlines have the right to cancel these? Hardly costing them a ton of cash as most of the travelers wouldn’t have booked these fares otherwise.
@Mick – I thought of including opportunity cost, but there is so little logic that’s going into their award pricing for Mint that it’s not a serious consideration. For example, in the date I included in the post, based on award prices, one of those flights is wide open (56,500) and one of them is near sold out (148,000) but then the cash pricing dispels that rumor. If it’s sold out five months in advance during a very low period (two weeks into January is usually dead everywhere) then the cash price should be far higher than $1800 for the 148,000 point redemption. Granted, it’s 60% higher than the clearly much more open flight, but to be nearly 3x the wide open flight would (on any other carrier) suggest a sold out or oversold flight and that should sell for enough to bump a lower paying passenger which this rate would not.
There’s a balance with opportunity cost and leaving enough meat on the bone to lure in travelers, show value, and opportunity. But by this logic, almost every flight that’s listed 330 days out should have at least one or two Mint awards available at saver level and this is also not the case.
But I think we completely agree.
This article really highlights the need for JetBlue to rethink its TrueBlue program. The huge discrepancies in costs and rewards are confusing and dont offer good value, making it hard for them to compete effectively.
Jet Blue will be bankrupt in 18 months so none if this really matters.
Bankruptcy was already discussed once and unless CEO and President (Dumb & Dumber) take a hike JetBlue will likely not succeed. (Sorry shareholders, you made a bad investment) Once they hike, don’t replace with in-house knuckleheads, go outside and get fresh professional minds. JetBlue does a lot of hiring and upgrading within, that’s how Johanna (Dumb) got to the top, not based on skills but based on tenure.
Nice job Dumb and Dumber!
https://www.investing.com/analysis/jetblues-winter-breakdown-resets-nearterm-riskbut-creates-longterm-optionality-200676106
It appears dumb and dumber (Johanna & Marty) are living up to their AKA names. Do your investors a favor and step down. Try something like janitorial services or something of that nature where you might have better results. Management is not your forte whatsoever. You had your chance and you failed miserably, now please walk away. After 20+ years, JetBlue is again a penny stock. It was never a penny stock before dumb and dumber stepped stepped up to the plate. Hint Hint
I firmly believe this. See Bruce’s link below.
A nice write up and thoughtful comments. Doesn’t take long for the clown – Chicago Erik to make an appearance. Dude is as obsessed with JetBlue as Tim Dunn is with Delta.
Glad B6 lives rent free in his head… if he has one.
To make itself relevant, B6 needs to join Star Alliance to justify all these redemption programs.
This is the next logical step in its dance with UA.
Now is the time while the Republicans are in office; all bets are off if the Democrats regain the White House.