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What Happens When JetBlue Enters a Market?

(Thanks to reader Tom for the heads up):

Interesting story about JetBlue entering the JFK/BOS – Pittsburgh markets.  Average fares were cut nearly in half which, you’d think, would drive people to fly JetBlue.  But in the end, US Airways, which had been ripping people off for years, lowered prices and ended up carrying 125 additional passengers each day on the routes than they had before JetBlue came along.  A really good read about how lowfare carriers actually affect the market.

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  1. Great article. Yeah I absolutely love JetBlue and Southwest and other low cost carriers. Once they get into a market the fares drop significantly. I used to fly down to Houston a lot and once JetBlue started flying down there, Southwest even lowered their prices.

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