JetBlue to open airport lounges in New York and Boston in battle for big spenders

JetBlue Airways will open its first airport lounges in its more than two decades of flying, a major shift for the low-cost airline as it chases high-spending travelers.

The lounges will open at New York’s John F. Kennedy International Airport late next year followed by Boston, JetBlue said Thursday.

The airline is also planning to launch a new “premium” credit card with its partner, Barclays, taking a page from the likes of Delta Air Lines, United Airlines and American Airlines, which have generated billions through lucrative credit card deals.

Customers who have the soon-to-be-announced premium credit card, those booked in JetBlue’s Mint business class for trans-Atlantic travel and high-level frequent flyer status holders will be able to access the lounges, the company said.

JetBlue said its 8,000-square-foot lounge in Terminal 5 of New York’s JFK Airport is slated to open late next year, and an 11,000-sqare-foot space in Boston Logan International Airport’s Terminal C will open shortly after.

JetBlue has been racing to scale back costs and return to steady profitability, including by deferring dozens of new Airbus jetliners. The airline has slashed dozens of routes this year and has been looking for ways to better deploy its aircraft that are equipped with its Mint cabin, which features lie-flat seats, higher-end dining and other perks.

Entry to the lounges will not include, at least immediately, travelers on other Mint routes such as transcontinental flights, Jayne O’Brien, JetBlue’s head of marketing and customer support, told CNBC.

She said JetBlue doesn’t want to disappoint customers if they aren’t able to get into the lounges because they are too crowded. “We want to be very thoughtful about how we step into this,” she said, adding that the lounges will feature cocktail and espresso bars, “light bites,” as well as room to work.

The highest-tier of JetBlue’s loyalty program and holders of the new premium card will get free access to the lounge for one guest.

O’Brien declined to comment on rumors that JetBlue is planning to offer a mini Mint cabin on some aircraft, a smaller format of its popular cabin.

Other airlines have been revamping their airport lounges in hopes of reeling in more big spenders and accommodate crowds. Delta, which scaled back access to some of its popular airport Sky Clubs after complaints of long lines, in June unveiled its first Delta One lounge at JFK Airport, which is dedicated for customers in its highest-level cabin and certain invite-only elite members of its SkyMiles program.

American and United also have dedicated lounges for travelers in top first- and business-class cabins.

Credit card companies such as American Express, Chase and Capital One have also opened airport lounges in cities across the country in an effort to draw consumers.

JetBlue is not the only airline looking at expanding perks that come with higher fares.

Southwest Airlines plans to offer seats with extra legroom to increase revenue, the biggest change in its more than five decades of flying. Southwest will provide more details about its strategy at an investor day next week. Spirit Airlines and Frontier Airlines have also launched bundles that include seats with more space and earlier boarding.