Premium seat capacity on transcontinental U.S. flights is up 9 percent year over year for the first three months of 2015, due largely to the introduction of JetBlue's Mint product, according to a research note from Hunter Keay at Wolfe Research.
Keay reported that premium capacity on transcontinental routes is "approaching an all-time high on an absolute basis," with five airlines—American Airlines, Delta Air Lines, JetBlue, United Airlines and Virgin America—offering premium product largely with lie-flat seating. Mint has given JetBlue market share of 8 percent on transcontinental premium capacity, which likely will increase as JetBlue plans to expand the service, he said.
Even so, the growth is unlikely to have a large impact on transcontinental premium fares, he said. Transcontinental premium fares tend to run five times higher than economy fares, compared with two times higher on other routes, according to Keay, likely because premium seats since 2006 have increased only 2 percent compared with a 31 percent increase in total passenger volume.
While JetBlue's Mint "could pose a risk to what's been a highly lucrative segment for others," Keay said, "we believe JetBlue lacks the network strength to steal important customers from network carriers in this strategically important market."