American, Delta scramble to match JetBlue's fares

American, Delta scramble to match JetBlue's fares

NEW YORK - American Airlines and Delta Air Lines Inc have quickly followed JetBlue Airways Corp in slashing fares on busy routes signaling that the low-cost airlines are beginning to eat into their business.

American Airlines spokesman Ned Reynolds said on Wednesday that the company was reducing fares to as low as $25 on the busy northeastern U.S. route. This new pricing will come into effect from November 8, he added. "We are fully competitive with JetBlue on this route, and that includes their $25 introductory one-way fares."

The new rate is on par with what JetBlue is offering on the same route for its 100-seat Embraer jets. That service is also set to roll on November 8. Delta has also taken not of these moves and has introduced $40 tickets each way for this route.

Sponsors

Before JetBlue's dramatic entry into the market, American and Delta were charging $404 to $462 for a round trip between Boston and JFK. JetBlue is now offering the same for as low as $50 though it is a promotional offer.

JetBlue spokeswoman Jenny Dervin confirmed that they have had a record number of bookings on their promotional offer, "Other airlines' actions clearly illustrate why JetBlue chose to enter this market in the first place: It's overpriced. All customers benefit whenever JetBlue enters a market." She also said that the company was looking closely at what it could do on the New York and Washington, D.C route, "But right now we're deploying our aircraft to cities we feel are under-served and over-priced -- and there are quite a few cities in that category, including Washington, D.C," Dervin said.

JetBlue's entry into the market and its blow away pricing is bound to net it customers by the dozen while, the major carriers will naturally be hit. The next few months would be interesting in this segment especially with the holiday season coming up.