JetBlue Airways, which two weeks ago began offering a one-month unlimited travel pass, ended the sale early as the passes sold out before the promotion was set to expire.

The low-cost airline was offering $599 passes that allow holders to travel to any of JetBlue's 56 domestic and international destinations via 600 daily flights. The passes are valid for one month, beginning Sept. 8. the day after Labor Day. It is no coincidence that that day marks the end of the peak summer travel season (at least in past years) and the beginning of the air travel doldrums, which lasts through the Thanksgiving and Christmas/New Years holiday periods.

"We wanted to ensure that those who bought the passes could get the flights they want, so we capped the number of passes we would sell," said a JetBlue spokesman.

U.S. airlines, battered this year by an economic recession that has eroded both leisure and business travel demand, have attempted to bolster bookings in the fall with sales and creative marketing. For example, a month ago, Southwest conducted a short duration sale for travel this fall, which ran much earlier than normal. The fare discounting was quickly matched by rival air carriers.

And the move by Jetblue came in advance of the Air Transport Association’s (ATA) prediction that the number of passengers on U.S. airlines during the Labor Day holiday would fall 3.5 percent year-over-year.

ATA forecast that 16 million passengers will travel globally on U.S. airlines during the eight-day 2009 Labor Day holiday period, a decline of approximately 3.5 percent from the 17 million passengers estimated to have traveled on U.S. airlines during the same period last year.

The projected decline consists of a 3.5 percent drop in domestic travel and a three percent decline in international ticketing despite system-wide year-over-year average-fare reductions in each of the first six months of this year.

“Passengers should expect airports to be less crowded, but planes will be at or near capacity during the Labor Day holiday period,” said ATA President and CEO James C. May. “Economic uncertainty and persistently high energy prices for consumers and businesses continue to impact demand for air travel. Now is a great time to fly. Low fares are making travel to all corners of the world very affordable.”

Looking ahead through the end of 2009, the economic climate’s toll on air service is evident in the schedule, added the U.S. air carrier trade association. The most current schedule filings for October through December, for example, show 22 percent fewer domestic departures than in the same period of 2000 – a reduction of approximately 6,660 flights per day. Also, over the past two years, all 67 airports defined by the FAA as large or medium hubs show a reduction in the number of scheduled flights.

ATA’s somber passenger predictions follow a summer with poor ticket sales. Passenger revenue based on a sample group of U.S. carriers fell 21 percent in July 2009 versus the same month in 2008 – the ninth consecutive month in which passenger revenue has fallen from the prior year.

Four percent fewer passengers traveled on U.S. airlines in July while the average price to fly one mile fell 18 percent, a modest improvement over the 21 percent year-over-year yield decline observed in June. Revenue declines extended beyond the mainland United States to the trans-Atlantic, trans-Pacific and Latin markets.

In a scheme to boost passenger loads, JetBlue debuted its $599 “All-You-Can-Jet” promotion on Aug. 12, a deal that garnered nationwide attention.
Here’s how it works: Pass holders have access to every available seat on every flight with no blackout dates, and they can book travel up to three days prior to departure through October 5. To sweeten the deal, thirty-five TrueBlue customer loyalty points were awarded with the purchase of an All-You-Can-Jet pass.

Customers who purchased the unlimited-flight pass can book new travel or make changes or cancellations to previous reservations without penalty up to three days before departure. All travel using the All-You-Can-Jet pass must be booked between Aug. 12 and Oct. 5. Changes or cancellations made less than three days before departure are subject to JetBlue's $100 change/cancel fee. Customers had to be TrueBlue members to take advantage of the pass.

The pass is inclusive of taxes and fees for all domestic flights. Additional taxes and fees for Puerto Rico and international flights are not included. Customers can upgrade to ‘Even More Legroom’ seats on each flight for an additional $10, $25 or $40, depending on the flight length.

JetBlue is no stranger to creative marketing. Early this year, JetBlue said it would give full ticket refunds to eligible passengers who booked and paid for flights and then were involuntarily laid off from their full-time jobs.

And in early August, JetBlue said it was “bringing a bit of sanity back” to the business of frequent flier programs with a complete revamp of the TrueBlue customer loyalty program.

The new program scheduled to launch Sept. 28 makes TrueBlue “more rewarding, more flexible, and more valuable for the airline's jetters - whether they're road warriors or occasional travelers. It also turns the traditional frequent flier model on its tail by changing the way points are earned and redeemed,” the air carrier stated.

Points in the redesigned TrueBlue program will be based on dollars spent with JetBlue, instead of flight length.

Meanwhile, a "Go Long Bonus" offer customers who jet on ten one-way long-haul flights (2,000 miles in distance or longer, the equivalent of only 5 transcontinental roundtrips) within a year 10,000 bonus points -- enough for a roundtrip award flight.

"Frequent flier memberships are commonplace these days, but they're frequently a point of frustration," said Dave Canty, JetBlue's director of loyalty marketing. "Airlines have made miles easy to earn but not always easy to use. At JetBlue, we knew there had to be a better way to reward loyalty. That's why we're thrilled to launch a completely redesigned TrueBlue that makes points just as easy to redeem as they are to accrue.”
Last October, JetBlue opened a new terminal at Kennedy International and it continues to offer a compelling coach travel experience, with free food, free entertainment and plenty of leg room.

More News
Gulf Air cuts costs in fight to keep flying

Luton, Stanstead Airport staff in strike warning

From the CEO - Travel Agents are making a comeback!

British Airways unveils cheap flights tool

What has Boeing Learned Regarding Outsourcing?

Airlines changing baggage fees again

Small airlines want EU cash, slam Ryanair

Credit Suisse cuts easyJet, cites yield pressure

India: Hidden airline charges 'unfair on passengers'

EasyJet flight makes emergency landing in France

Lauda hits out at rival SkyEurope

SkyEurope Employees Accept Pay Deferal, Prevent Bankruptcy

Flights to Los Angeles and London are loss-making flights for Qantas

Lockerbie bomber plans tell-all book

U.S. families of Lockerbie victims plan next move

Lockerbie, the Unanswered Questions

Republic Airways jumps again as market rises on strong tide. Continental up and Expressjet soars on

The bulls are running, but US airline yields and revenues are lame

ANALYSIS: Air China stake in Cathay leaves some murmuring

Marketing a key focus for Qantas

Top WestJet executive to step down

Cheap air fares on new Melbourne-Sydney route : JETSTAR’S website crashed

Air Berlin gains on improved equity move, Southwest and Volaris commence ticket-selling agreement

Embraer up on competition’s woes – Supplier Share Wrap

Korean Air upgrades service, image

Airport Check-in: New taxiway construction starts in Phoenix

Alaska Airlines picks up routes abandoned by other carriers

Video: Sukhoi targets Boeing and Airbus

Technology can make traveling a little easier

Vietnam Airlines to get first A350-900 in 2016

Air NZ deny link to cartel case

Video: Cutbacks ground jets in ‘graveyard’

Jetstar prepares to expand Asia routes

Frequent fliers stand to benefit as BWI-Boston competition heats up

British Airways extends loyalty scheme to passengers on cheapest fares

Teterboro air traffic controller tells News: I don't deserve to be punished

United, other carriers cut deep to fill fall seats

LAX makes birds unwelcome

Southwest Airlines' airfare sale tactics don't fly well with all

Turnaround time – why can’t airlines be more realistic?

EasyJet in deadlock with Luton airport

'Air India should be sold, but I've been asked to keep it going'

Airport expansion approved

Long leg room of the law: UK police fly 1st class

Airline mechanic pleads guilty to use of fake credentials

Southwest’s chances for Atlanta came close

Jet Airways faces strike on pilots' dismissal

Singapore's ties with Tibet to grow with improved connectivity

FAA Revises CFR Parts 61, 91, And 141

Noose Incident at NTSB Sparks Investigation Of Two Top Managers

1-Star Stocks Poised to Plunge: Delta Air Lines?

India: Fuel surcharge to be part of base air fare

Tourist plane skids off runway at Philippine airport

India: States not to lower sales tax on ATF

FAA cites faults at Venice Airport

Time introduced to NextGen test flights

No need yet for new PDX runway

Judge approves $40 million Eclipse purchase

Seat 2B A Secret Society – Airport Lounges

As Anticipated, Southwest Plans Fleet-Wide Rollout of Wi-Fi With Row44