JetBlue now selling Boston-Newark, killing Continental cash cow

Posted by Seth on October 18, 2010 under News | 6 Comments to Read

What a difference a bit of competition can make in the market. As the sole operator currently on the Newark – Boston route, Continental Airlines can charge pretty much whatever they want, and they do. A one-way ticket on the route is $415; there are no advance purchase discounts and for stays shorter than 3 nights even buying a return ticket doesn’t offer a discount.

As of this morning, however, JetBlue has loaded fares into the GDSes and is selling seats on that route with service starting on May 4, 2011. Look at the difference in the fare chart:

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Indeed, things are much more reasonable suddenly from a passenger perspective. Take a look at the range of one-way fares that JetBlue has published on the route:

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Even without the introductory promo fare the high end of the range is well below today’s costs from Continental:

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Also of interest is that Continental has not yet updated their fares to acknowledge the new competition on the route. Granted, the JetBlue fares are brand new so it will take a bit of time for Continental to respond – likely later today – but for now the disparity is quite significant.

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  1. Pat Wood said,

    Wow, that’s quite the disparity. Glad to see that some healthy competition will make that route a lot more reasonable and affordable. Though with flights starting in May 2011, Continental definitely has a lot of time to respond, test, or ease into a lower pricing model for the route.

  2. Most Expensive CO Routes?? - FlyerTalk Forums said,

    [...] and Jet Blue entering the EWR-BOS market prices are expected to drop dramatically. The new pricing has already been published. Going from $415 one way to $49 one way is going to be a big cut in CO's margins on those flights. [...]

  3. Crazy high fares ewr-pit - FlyerTalk Forums said,

    [...] money in a market they show up and often charge less than the legacy on the route. Check out the change in EWR-BOS when B6 shows up in the market. The cheapest one-way fare went from $415 to $49. __________________ Wandering Aramean | [...]

  4. Southwest announces new routes from Newark - The Wandering Aramean said,

    [...] JetBlue now selling Boston-Newark, killing Continental cash cow [...]

  5. How the NY Times got it so wrong on airline pricing - The Wandering Aramean said,

    [...] to connect for such a short trip and Continental exploited that price disparity. Right up until JetBlue announced their entry into the market. The fares dropped quite quickly at that point. Hardly a surprise, really. Competition, not the [...]

  6. EWR to BOS Fare Question - FlyerTalk Forums said,

    [...] Are you talking one-way or RT? I see jetBlue pricing out aroung around that for some RTs in April, but there are some days when fares around $144 OW. For what it's worth, check out what the pricing on this route used to be: http://boardingarea.com/blogs/thewan…ntal-cash-cow/ [...]

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