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March 01, 2006

JetBlue to Try to Raise Fares...and Delta's not Leaving

The NY Times takes a look at the state of JetBlue and finds that the carrier is struggling to raise fares in its highly competitive northeast-to-Florida markets.  JetBlue has blamed the low fares on irrational competition from Delta (and Continental, to an extent).  The article notes that JetBlue has been able to fill its planes to a higher capacity at a higher average fare than Delta, which is impressive.  But the fares are not high enough.

And while JetBlue had 2 days to celebrate a report that Delta was significantly reducing capacity on northeast-to-Florida routes, it turns out that report was not true.  A data error caused Delta to report schedule changes incorrectly, leading one airline analyst to assume that it was cutting back routes.  Oops.  Let the irrational competition continue.  On a plus note, consumers will continue to benefit from the ridiculously low fares from New York to Florida.

March 1, 2006 | Permalink: JetBlue to Try to Raise Fares...and Delta's not Leaving


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