JetBlue updates fare structure as airlines see benefit of segmented pricing

JetBlue Airways said on Monday it is overhauling its fare options, giving customers more flexibility to choose seats, as well as change and refundability options, as airlines rely increasingly on segmented pricing to boost revenue and offset higher costs.

The New York-based carrier, which is set to report second-quarter earnings before the bell on Tuesday, said the update will roll out in the coming days. Customer choice and fare segmentation have grown crucial to revenue performance even as fuel-price volatility is expected to remain a major risk.

Consumer choice and flexibility are levers that airlines are pulling to drive stronger revenue performance.

Southwest Airlines noted that expanding its basic economy product led to more base-fare sales and a higher rate of customers trading up when they have the option. Delta said last month that it will offer basic fares across all premium cabins to allow travelers to access premium products at a lower cost.