Word: passing
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...Though the occasional nut job is taking JetBlue for a joyride, the airline's promotion will probably pay off. The company isn't disclosing the financial performance of the pass, except to say that demand has exceeded expectations, to the point that JetBlue shortened the deadline that flyers could purchase the pass by from Aug. 21 to Aug. 19. Industry analysts expect healthy results. "It should generate a fair amount of revenue," says airline consultant Robert Mann, "and lots of goodwill for JetBlue." (See 50 essential travel tips...
...economics depend on what kinds of consumers bought the JetBlue pass. Historically, the period between Labor Day and Thanksgiving is slow for JetBlue and many other airlines. In this economy, business will probably be even slower. If the deal spurs new travel, and revenue, during a time when seats would otherwise remain empty, JetBlue will make out just fine. Airlines incur some extra service costs if more people pile onto a plane: about a third of the fuel costs, says Mann, depend on the number of passengers and pieces of luggage on board. But most of the major costs...
...JetBlue, however, insists it's looking long-term. The airline acknowledges that the pass could cut into profits. "That's a possibility," says company spokesman Bryan Baldwin. "But I think we've already seen the upside. The buzz and excitement we've created have far exceeded our expectations. We look at it as just more than dollars and cents." For example, customers are flocking to the JetBlue route map: hits jumped 700% after the promotion was announced, on Aug. 12. Even flyers who ultimately passed on the offer became more familiar with JetBlue. "People are on the website, sitting around...
...pass isn't the perfect deal. You still have to pay taxes on international flights - $134 round-trip for New York to the Dominican Republic - and book all travel three days in advance. JetBlue does not offer as many exotic destinations as other airlines. Outside of the Caribbean, JetBlue's only other international stop is Bogotá, not exactly a tourist haven. Domestic options like Las Vegas, New Orleans and the Los Angeles area are attractive, but it's difficult to truly city-hop since JetBlue connections are a pain. Notice how often the aerophile Miller has to fly back...
...least JetBlue got the timing right. The viral effect of the promotion will surely help it fare better than a similar American Airlines deal in the 1980s and a $1,650-per-month Air Canada pass that came out in 2007. JetBlue has more than a million Twitter followers, more than any other brand besides Whole Foods, the NBA and Zappos, according to trackingtwitter.com. News of the deal spread across the Twitter-sphere, and about a dozen websites and blogs, like wherewejet.com, have popped up to chronicle JetBlue adventures, share itinerary ideas and find cheap places to sleep. Traveler Jennifer...