JetBlue Airways (JBLU: 5.24, 0, 0%) has sold out of tickets.
Well, not exactly — but the low-cost airline carrier has stopped selling its “All-You-Can-Jet” passes two days early due to heavy demand. JetBlue began selling its unlimited travel passes on Aug. 12, and had intended to offer them through Aug. 21 “or while supplies last.”
The passes, which retailed for $599 each, allowed passengers to travel as much as desired from Sept. 8 through Oct. 8. On Wednesday the airline announced that the “or while supplies last” caveat would have to be invoked, and the passes were pulled from the market.
“We limited the number of passes sold to make sure that everyone who purchased a pass would be able to take ample advantage of it,” JetBlue announced on its Web site. JetBlue would not disclose how many of the passes were sold, or how much the demand has exceeded the supply thus far.
“There could be a potential backlash if consumers feel JetBlue was not transparent about the offer,” said Vanessa Horwell, a spokesperson for Airsavings.net, a worldwide airline consultancy. “However, if they overbook and they can’t fulfill on their promises, that would cause more of a backlash than retracting this offer.”
Because JetBlue is a low-cost carrier, it gives them a bit more leeway to pull an offer like this one off the table, than say, American Airlines (AMR: 5.03, 0, 0%), Horwell said. JetBlue already marches to its own, lower-cost beat. As such, sales come and sales go.
With air travel expected to be down by 3.5% over the Labor Day holiday, Horwell said that anything to get Americans traveling again was a good offer, no matter how long it lasts.
“Given how troubled air market is, airlines need to fill their planes,” Horwell said. “I think this is indicative of the fact that people will travel at the right price. When there is value, people will fly.”
http://www.foxbusiness.com/story/markets/industries/retail/jetblue-reneges-jet-offer-days-early/
