JetBlue Airways yesterday launched nonstop service between its New York JFK base and San Diego, the same day American Airlines capped at $299 one-way coach fares on the same route, matching JetBlue's most expensive coach fare. The simultaneous developments represented the latest skirmish in a growing transcontinental battle between American, the world's largest commercial carrier, and JetBlue, one of the fastest-growing and more profitable domestic carriers.
San Diego is the fourth California destination from New York JFK to which American has capped one-way coach fares at $299. To the other three, Long Beach, Orange County, and San Jose, American competes with JetBlue services at the same or nearby airports
(BTN, May 21). Fares for American flights from New York JFK to Los Angeles International, an airport to which JetBlue does not fly, have not been capped. JetBlue, meanwhile, on July 14 plans to add a second daily flight to San Diego, the carrier's 22nd destination.
The two airlines first engaged in transcon competition last year when American planned competing nonstop service against JetBlue on the New York JFK-Ontario route. It later ditched those plans. More recently, American in March dropped JFK-Oakland service a year after launch, conceding the nonstop route to JetBlue.