OAG Travel News

JetBlue Airways Corp., competing for sales as travel demand declines, is offering to refund the fares of some customers who lose their jobs after purchasing tickets.

The program is a departure for the New York-based discount carrier, which normally has only nonrefundable fares. The offer applies to people who book U.S. flights between Feb. 1 and June 1, with any travel date, and involuntarily lose their job on or after today, the airline said in a statement.

“We want customers to feel comfortable booking travel in today’s economic environment, knowing that JetBlue has them covered should they lose their jobs,” said Bryan Baldwin, a JetBlue spokesman. “By providing this assurance, our hope is sales will be strengthened, especially during trough periods.”

The U.S. recession has cut into air travel, forcing airlines to scale back. JetBlue last month said it will cut capacity this year by as much as 2 percent, after boosting available seats by 1.7 percent last year while other carriers cut back.

JetBlue’s offer follows a 14 percent gain in January U.S. sales by Hyundai Motor Co. after the South Korean automaker began a program to buy back vehicles from customers who lose jobs.

For the JetBlue offer, customers must notify the carrier and request a full refund at least 14 days before travel. Requests can cover up to nine people traveling on one reservation, and tickets purchased with gift cards, vouchers or frequent-flier miles aren’t eligible for refunds.

JetBlue will evaluate the program later to determine whether to extend it, Baldwin said.

Source: www.bloomberg.com By Mary Schlangenstein