(Bloomberg) -- JetBlue Airways Corp. plans to build its first-ever airport lounges as the airline expands premium offerings in an effort to bolster profits and support its turnaround.
The lounges will open at New York’s John F. Kennedy International Airport in late 2025 and Boston Logan International Airport soon after, the company said Thursday. They will be accessible to top-tier members of the airline’s Mosaic loyalty program, holders of premium Mint-class transatlantic tickets and JetBlue customers who buy a day or annual pass.
JetBlue joins other smaller carriers that have rolled out new products to lure the growing share of consumers willing to spend more for a better travel experience. Southwest Airlines Co. and deep discounter Frontier Group Holdings Inc. have added or disclosed plans for upscale offerings, such as seats with extra room.
“The trend toward premium leisure accelerated as we came out of Covid,” JetBlue President Marty St. George said in an interview. “This seems like a natural path for us to maintain profitability.”
The move is part of a broader operational revamp overseen by JetBlue Chief Executive Officer Joanna Geraghty to return the struggling carrier to consistent profitability. The airline has slashed routes and pulled out of several cities to curb unprofitable flying, while pushing about $3 billion worth of new aircraft purchases to 2030 and beyond.
JetBlue’s growth prospects were derailed recently by the breakup of two partnerships. Geraghty’s also facing pressure from activist investor Carl Icahn, who in February revealed a roughly 10% stake and began pushing to boost shareholder value.
St. George said that JetBlue customers have asked for lounges since the company rolled out its Mint class product a decade ago. But at the time, “we didn’t see a business model that would pay for lounges with just Mint fares,” he said. Additional premium options like transatlantic Mint tickets, TrueBlue Mosaic memberships and the airline’s upcoming premium credit card can now make the lounges viable, he said.
Construction on both lounges will start before the end of the year. The company has looked into its next busiest airports in Fort Lauderdale and Orlando, Florida, as sites for future expansion.
Although there are no firm plans for those locations yet, “never say never,” said St. George.
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