JetBlue Courts First-Class Clientele With Pre-Flight Upgrade

Low-budget airline JetBlue is moving on up. 

The airline is set to open its first-ever premium airport lounge, dubbed the BlueHouse, to host high-income flyers in Terminal 5 at JFK, with a second location planned at Boston Logan next year. Call it an ascent to the upper bounds of the K-shaped economy. What’s next, a premium version of Taco Bell? Well, yes, actually.

K Marks The Spot

It’s no secret there’s a lot of money to be made chasing higher-income consumers with often higher-margin “premium” products. Taco Bell, home of the $1.50 Cheesy Bean and Rice Burrito, has populated major urban centers with “Cantina” locations that serve $15 burritos with premium proteins and $8 margaritas. In fashion, Levi’s launched its “Blue Tab” label this fall to sell denim items priced at a few hundred dollars, while H&M earlier this year decided to pivot its low-key line Cos toward the luxury market.

But the airline industry, in particular, appears uniquely suited to chasing the upper crust of consumers. After all, once you fly first class, it’s hard to go back to economy. We’ll let you know if that’s really true after we sell a few more ads: 

• United, Delta, and American are all in the midst of operations to drastically increase the number of premium seats on their aircraft. In its most recent earnings call in October, United said that premium seat revenue increased 6% year-over-year, lapping overall growth of 2.6%, while it has expanded the amount of business and premium economy seats by 40% since 2019.
• Southwest Airlines is also “actively pursuing” a network of airport lounges, CEO Bob Jordan told CNBC last week. And even Spirit Airlines is chasing the premium consumer, increasing its availability of higher-priced “Go Comfy” and “Big Front Seats” earlier this year (the former even comes with — get this — a free snack and beverage).

Feeling Blue: As far as the BlueHouse goes, travelers booked in JetBlue’s trans-Atlantic Mint business-class cabin will get an invite, ditto owners of JetBlue’s Premier Mastercard credit card and top-tier members of JetBlue’s frequent flier program. Customers with basic economy tickets will be completely ineligible. Oh, well. Maybe one day JFK’s public terminal will get a Taco Bell Cantina of its own (one is already arriving at Denver International Airport next year).