Originally Posted by
oneworldglobetrotter
People also need to realise that taxes make up such a high portion of the overall fare. For them to really move the needle they have to really undercut the other carriers on the fare as taxes are the same across the board.
It’s easier for them to do that in the premium cabin but I don’t think their pricing will ever be much better in economy.
In the specific case of London flights, there's certainly a high floor due to taxes — about $246 in economy on a round trip JFK-LHR. But economy fares from the US-Europe are highly seasonal — traditionally much higher in summer than any other time. I suspect those are the only times other carriers are making real money on economy tickets. Even if JetBlue doesn't affect average fares 9 months out of the year, they could still significantly reduce peak season fares.
Taxes and fees are also significantly less to many other European countries, where JetBlue will presumably look next. Taxes on an economy R/T to CDG are about half as much ($133) and other destinations are even less ($109 to AMS, $112 to FCO, etc). Heck, Ireland charges so little that an expensive JFK-LAX could cost more in taxes than JFK-DUB.