Major U.S. Airline Makes Pricing Change Its Passengers Will Love

As the winter months come to a close and aspiring vacationers begin to sense the approach of spring, many are looking for opportunities to travel.

Whether for spring break or for one last chance to get away to a warmer climate before summer, JetBlue is now offering some inexpensive trips to warm climates.

Destinations include Mexico, the Caribbean and Central America and involve the use of the airline's TrueBlue points.

The most basic way to earn these points is flying with JetBlue or American Airlines. Travelers earn points based on the cost of tickets and fare type.

When airfares are reduced, the points required for booking are also lower.

JetBlue vacation packages allow people to redeem points for flights, hotels and car rentals, but the points are not to be used for travel insurance or taxes and fees that are part of the packages.

You can also use cash plus points to purchase airfare on JetBlue, bringing down the total cost.

Flights are in February through May

It may be smart to move on these offers fairly quickly.

"In fact, if your weekend plans this weekend are free, you may be able to snag a last-minute ticket to somewhere warm ... and near the ocean," wrote Sean Dudahy for The Points Guy.

Many of the destinations involved in TrueBlue points offers are from the Northeast (particularly New York) to locations in Mexico, the Caribbean and Central America.

The travel dates are February through May, depending on the routes. And Dudahy suggests booking directly with JetBlue.

"In keeping with the nature of dynamic pricing, JetBlue's award pricing fluctuates from one day to the next and from one route to the next," Dudahy wrote. "However, what we found are TrueBlue prices that are generally trending in the 4,000- to 7,000-point range one-way."

"Most of the availability is for the New York City area, though if you live in New England or South Florida, you may want to plug in some destinations out of JetBlue hubs Boston Logan International Airport (BOS) or Fort Lauderdale-Hollywood International Airport (FLL) and see what you can find," he added.

These are some flights that are involved

One example is an early March flight from New York's John F. Kennedy International Airport to Cancun International Aiport, priced at 4,100 TrueBlue points each way.

"TPG values TrueBlue points at 1.4 cents per point, so the value of that 8,200-point round-trip itinerary is around $114," Dudahy wrote.

Another flies from Newark Liberty International Airport to Jamaica's Sangster International Airport for 5,800 points each way.
For 6,100 TrueBlue points, a traveler can fly nonstop from Newark to Queen Beatrix International airport in Aruba.

"Keep in mind that with JetBlue, the prices for the outbound and return trips are priced separately, so you may find the award pricing is higher on the return trip or vice versa," Dudahy wrote.

"If you're itching to plan a late winter or early spring getaway and have been waiting for the right opportunity to use some TrueBlue points, now may be your opportunity," he continued. "Hop on the airline's booking site, and run a few searches for February, March or even April and May to some destinations in Mexico, the Caribbean and Central America you've been hoping to visit."

"You may be able to find a redemption for just a few thousand points each way."

https://www.thestreet.com/author/jeffrey-quiggle

$29 Flights Are Back As Airlines Race To Fill Seats In The Off-Season

Airlines have a record 260 million seats to fill this quarter, and to do it, they’re offering fares that will run you about the same as a pair of movie tickets.

Southwest Airlines, for example, last month offered one-way fares of $29 for flights early in the morning or at night, just one example of airline discounting for off-peak periods.

“I would characterize the amount of discounting or sales that we’re doing today as a bit more than normal,” Ryan Green, Southwest’s chief commercial officer, told reporters at the Skift Aviation Forum earlier this month. He said the industry’s increased capacity in recent months means there are more seats to fill, even though the carrier’s average fare was up in the last quarter from a year ago.

Leisure travelers, meanwhile, have largely returned to more traditional booking patterns after years of pandemic swings in demand, leaving airlines looking for ways to fill planes outside of holidays or other popular travel periods.

“Typically, you see a step increase in price at each seven-day mark before a flight,” said Scott Keyes, founder of Scott’s Cheap Flights, a flight-deal company that recently rebranded as Going. But airlines are either dropping last-minute fares or not raising them as much as usual, he said.

Airlines have scheduled a record 259.8 million seats for domestic flights in the fourth quarter, up nearly 8% from last year, on 1.86 million flights, up 6% from 2022, according to aviation-data firm Cirium.

Getting the balance right in the off-season is a challenge for airlines, which make the majority of their revenue in the second and third quarters during the busy spring and summer seasons. Most major carriers reported record revenue and strong demand during those periods, with some executives reporting higher growth for international destinations over domestic ones.

Falling fares

The U.S. inflation read for September showed airfare dropped more than 13% from a year earlier, while overall consumer prices rose.

JetBlue Airways said average fares dropped more than 12% in the third quarter during the same period of 2022 to $201.73.

Budget carrier Spirit Airlines said fares dropped nearly 28% from a year earlier to $48.73, though non-ticket revenue, which includes add-ons such as seat selection fees and checked bags, rose 1% to $67.70.

The Miramar, Florida-based airline, which JetBlue is trying to buy, warned about fare discounting before Thanksgiving and said, “unfortunately, we have not seen the anticipated return to a normal demand and pricing environment for the peak holiday periods.”

Fellow ultra-discounter Frontier Airlines said fares averaged a little more than $39 in the last quarter, down 32% from a year ago.

All three carriers forecast losses for the last three months of the year.

Rethinking capacity

Declining pricing power in the off-peak periods has forced carriers to rethink where they’re deploying their planes.

Southwest plans to slow its growth next year to address the shifting demand patterns, though CEO Bob Jordan described demand on an earnings call late last month as “strong.”

“Capacity is the most precious commodity you have to produce revenue, and you got to deploy that capacity as efficiently as possible against demand,” Jordan said during the Skift Aviation Forum.

The carrier is planning to fly less on nonpeak days, like Tuesdays, compared with higher-demand periods, a measure that also prioritizes crews’ time so they are ready fly more when it’s busy, Jordan said.

Frontier Airlines CEO Barry Biffle told CNBC that one thing the airline is changing is finding less crowded markets for its flights.

“We are concentrating our growth away from the saturated markets,” he said. “We will not shrink in Orlando and Vegas, but we’re probably not going to grow it either.”

Holiday demand is still strong

With shifting demand comes those eye-catching, double-digit fares.

But they’re usually gone quickly and are nearly guaranteed to be unavailable for peak holiday periods, with demand expected to hit or break records.

Delta Air Lines said it expects to carry between 6.2 million and 6.4 million passengers from Nov. 17 to Nov. 28 during the Thanksgiving period, compared with 5.7 million last year and 6.25 million in 2019. United Airlines said it expects to fly 5.9 million passengers from Nov. 17 to Nov. 29, up 13% from last year and 5% more than 2019. American Airlines forecast a record 7.8 million travelers from Nov. 16 to Nov. 28, up from 7 million last year and beating out 2019 by around 200,000 customers.

Southwest CEO Jordan said year-end holiday bookings are running ahead of last year’s pace.

Flight tracker Hopper said “good deal” domestic fares, which it defines as the bottom 10th percentile of available fares, are averaging $248 for Thanksgiving, down from $271 last year and $276 in 2019.

Could it last?

Airlines are now poring over their schedules for 2024 to try to best use their aircraft while they face higher costs such as fuel and labor that have pinched margins.

“You’re seeing carriers put out fares that look kind of like our fares, and what you should really think about is that that’s not going to be permanent,” Frontier’s CEO Biffle said, citing costs.

Carriers have gotten more sophisticated about addressing shifting demand patterns, meaning they can cut flights or capacity during travel lulls.

Next year, fares are likely to stabilize, but it’s too early to tell what promotional fares will be, said Henry Harteveldt, founder of travel industry consulting firm Atmosphere Research Group.

Frontier Airlines CEO Barry Biffle told CNBC that one thing the airline is changing is finding less crowded markets for its flights.

“If inflation really continues at the torrid place it has been, if we see hiring soften, airlines may feel a need to invest in deeper promotion,” he said.

One advantage for full-service carriers is the variety of fares and products they can offer, from no-frills basic economy to first class, Harteveldt. That means they could increase their inventory of cheaper basic economy fares during weaker demand periods, or raise fares when demand is high for premium seats.

Airlines “have the most sophisticated cash registers of any industry,” he said.

Source: Leslie Josephs, https://www.cnbc.com/

Travelore Tips: Southwest Airlines Launches Limited-Time Companion Pass Offer

Southwest Airlines Co. today launches a special promotional Companion Pass® offer for Rapid Rewards® Members ready to take flight with a family member, friend, or loved one. Qualifying Customers can designate their Companion and travel with the Companion Pass which is valid for unlimited usage from January 8 through March 8, 2024.

To qualify, Rapid Rewards Members must:

Register for the promotion and purchase a Southwest® revenue flight (one round trip or two one-ways), starting today through August 30, 2023; Travel by September 30, 2023; and Designate a Companion to fly for free (does not include taxes and fees from $5.60 one-way) with them from January 8 through March 8, 2024

The Companion Pass allows Rapid Rewards Members to designate one person to fly with them, free of airline charges (does not include taxes and fees from $5.60 one-way) every time the Customer purchases or redeems points for a flight.

"The Companion Pass is one of the most coveted airline perks in the industry, rewarding Customers for being part of our Rapid Rewards loyalty program," said Jonathan Clarkson, Vice President Marketing at Southwest Airlines®. "As the airline with Heart, we want our Customers to feel appreciated for flying with Southwest, and what better way to do that than to offer the opportunity to travel and share experiences with a Companion."

Visit Southwest.com for the full list of terms and conditions.