JetBlue adds first-class seats to boost profits

First-class seats are coming to JetBlue.

The airline unveiled the new seats, called BlueFirst, this week. They look a lot like all the other two-by-two big chairs at the front of all the other domestic planes.

JetBlue has spent years losing money, so it’s banking on first-class passengers to put them back in the black.

Analysts are calling this move a smart one, even as inflation and fuel prices are weighing on cash-strapped consumers: sure, airfares are getting more expensive, but so is running an airline — especially since the Iran war started.

“The cost of energy at the moment is such that it's hard for airlines to make money,” said Suzanne Neufang, CEO of the Global Business Travel Association.

Neufang said those costs are why airlines are doubling down on the premium offerings.

“They're making more money on those premium seats than they are with the seats that are way in the back for that really cost-conscious traveler,” she said.

And they’re making more money on those seats because there’s a market for them. Charles Duncan, a partner at investment company AltitudeX Aviation Group gives two reasons for that.

One: “Coming out of COVID, things have changed,” Duncan said. “I mean, consumers are valuing travel and experiences more. “

So, even as life gets more expensive, people still pay to go places.

Two: “The K-shaped economy is real, and that upper that upper half of the ‘K’ are willing to pay for premium,” he said.

Even if the economy right now makes first-class tickets feel out of reach for many, the wealthy are still wealthy — and still want those seats.

For people who do fly coach, the new seats might still bring good news, according to David Slotnick, a contributing aviation editor at The Points Guy.

“If they can make the revenue up that way, then they’re not necessarily going to raise fares for the standard economy fares,” he said.

But they bring bad news too: Slotnik said making those big, roomy seats at the front of the plane likely means taking a bit of legroom from everybody else.