JetBlue is fixing its business class' biggest weakness by building its own airport lounges

• JetBlue Airways announced plans to build its first-ever airport lounges.
• The first lounge will come online at New York's JFK International next year with Boston to follow.
• The lounges will initially target transatlantic Mint business class and frequent fliers.

JetBlue Airways plans to build its first airport lounges, it announced Thursday.

The new lounges, the first of which are set for New York's JFK International and Boston Logan International, are part of the New York-based carrier's continued push to bolster its premium Mint business class experience.

"Customers have asked for a JetBlue lounge for years, and we can't wait to unveil our take in New York and Boston," Jetblue President Marty St. George said in a press release.

The first lounge is set to open in New York in late 2025. The 8,000-square-foot facility will be located in Terminal 5, JetBlue's head of marketing, Jayne O'Brien, told Business Insider.

In Boston, a larger, 11,000-square-foot facility would be located in the airport's Terminal B to C connector,

JetBlue terminal 5 at JFK. Foto: Leonard Zhukovsky/Shutterstock

Access to the new lounges will initially be limited to transatlantic Mint customers, holders of the airline's soon-to-be-announced premium credit card, and the highest tier (level 4) members of JetBlue's TrueBlue Mosaic loyalty program.

"Initially, we want to see how this goes and approach it very carefully so that we don't have overcrowded lounges and disappointed customers," O'Brien said of the decision to limit initial access to the lounge.

Lounges were a glaring hole in JetBlue's Mint experience

JetBlue was established more than a quarter century ago as a single-cabin, low-cost carrier that delivered the comforts and service of a pricier mainline carrier.

That changed in 2016 when the airline launched its first Mint premium business class cabin with lie-flat seats.

While Mint's in-flight product has been very well received by critics and the traveling public, the lack of a dedicated airport lounge dampened the cabin's overall competitiveness.

The airline has attempted to address this shortcoming by offering complimentary members to Priority Pass through its co-branded credit cards.

JetBlue customers also briefly had access to American Airlines Admirals Club lounges through the carriers' Northeast Alliance partnership, which was dissolved in July 2023 after a federal judge ruled it violated antitrust laws.

American Airlines' Admirals Club at JFK Airport. Foto: Thomas Pallini/Business Insider

According to O'Brien, the airline is taking a measured, wait-and-see approach to establishing additional lounges across the Atlantic or at its other major operational hubs in the US.

Loyalty is big business for airlines

For the airline industry, loyalty extends beyond the benefits of return business.

Selling frequent-flyer miles to credit card companies to be offered as customer rewards has become a highly lucrative source of extra income for airlines in recent years.

A major selling point for these airline credit cards, some of which can cost consumers more than $500 a year in fees, is the prospect of lounge access.

In 2023, Delta earned $6.8 billion from American Express, while American Airlines made $5.2 billion from its Citi Mastercards and other partners, for example.

JetBlue generated just $422 million in loyalty-related revenue during that same period, helping pad an otherwise rough few months of financial performance.

With the new lounges in its arsenal, the airline will be better positioned to keep loyal customers coming back. It should also bolster the revenue generated from its JetBlue Mastercards.

"Our core, most valuable customers are telling us that lounges are important to them, so that is why we're doing this now," O'Brien said.

Read the original article on Business Insider