JetBlue and Alaska Feel Pinch From New U.S. Transcontinental Fare War
Photo Credit: Alaska Airlines reduces its unit revenue guidance for the first quarter. The airline said there's a glut of capacity on transcontinental routes. Alaska Airlines
Skift Take
If you've invested in Alaska Airlines or JetBlue Airways, you'll feel squeezed by this transcontinental fare war. But if you're a traveler, you'll love it.
U.S. airlines love to brag to investors about how much money they make selling premium seats on transcontinental flights. But the economy class picture is not so rosy, executives from several airlines said this week.
"There is just too much capacity in that market right now and we're seeing some fares that are extraordinary low," Alaska Airlines Chief Financial Officer Brandon Pedersen said Tuesday at the J.P. Morgan Aviation, Transportation and Industrials Conference in New York.
For American Airlines, United Airlines, and Delta Air Lines, it's not such a problem. They have global route networks, and weakness in one region does not constitute a material problem. At the JP Morgan event, United's Scott Kirby called the transcontinental pricing skirmish a "speed bump," telling investors
