JetBlue to build VIP lounges at New York and Boston airports


JetBlue planes at Terminal 5 at New York's JFK Airport.

Leslie Josephs | CNBC

JetBlue Airlines will open its first airport lounges in its more than two decades of flying, a major shift for the low-cost carrier as it seeks big-spending travelers.

The lounges will open at the airline's New York hubs late next year, followed by those in Boston, JetBlue said Thursday.

The airline is also planning to launch a new “premium” credit card with its partner, Barclays, modeled after companies such as Delta Air Lines, united airlines and American Airlinesthat have generated billions through lucrative credit card deals.

Customers with the soon-to-be-announced premium credit card, those booked in JetBlue's Mint business class for transatlantic travel and high-tier frequent flyer status holders will be able to access the lounges, the company said.

JetBlue said its 8,000-square-foot lounge at Terminal 5 at New York's John F. Kennedy International Airport is scheduled to open late next year, with an 11,000-square-foot space at Terminal C at Boston's Logan International Airport set to open shortly after.

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JetBlue has been working hard to cut costs and return to stable profitability, even delaying the construction of dozens of new Airbus planes. The airline has cut dozens of routes this year and has been looking for ways to better utilize its planes equipped with its Mint cabin, which features lie-flat seats, upscale restaurants and other perks.

Lounge entry will not, at least immediately, include travelers on Mint's other routes, such as transcontinental flights, Jayne O'Brien, JetBlue's chief marketing and customer officer, told CNBC.

He said JetBlue doesn't want to disappoint customers if they can't get into the lounges because they're too crowded. “We want to be very thoughtful about how we approach this,” he said, adding that the lounges will feature cocktail and espresso bars, “light snacks,” as well as space to work.

Holders of the highest tier of JetBlue's loyalty program and the new premium card will receive complimentary lounge access for one guest.

O'Brien declined to comment on rumors that JetBlue is planning to offer a Mint mini cabin on some planes, a smaller format of its popular cabin.

Other airlines have been revamping their airport lounges in hopes of attracting more high-end customers and accommodating crowds. Delta, which cut access to some of its popular airport Sky Clubs after complaints about long lines, opened its first Delta One lounge at New York’s JFK airport in June, dedicated to customers in its highest-tier cabin and certain elite members of its SkyMiles program, who are accessible by invitation only.

American and United also have exclusive lounges for travelers in premium first and business class cabins.

Credit card companies like American Express, Chase and Capital One They have also opened VIP lounges in airports in cities across the country in an effort to attract consumers.

JetBlue isn't the only airline looking to expand the benefits that come with higher fares.

Southwest Airlines Southwest plans to offer seats with extra legroom to boost revenue, the biggest change in its more than five decades of flying. Southwest will provide more details about its strategy at an investor day next week. Spirit Airlines and Frontier Airlines They have also launched packages that include spacious seats and early boarding.

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