Jet Blue is set to implement a new three-tier fare system that is based upon the number of baggage items customers select upon purchasing their tickets, the Associated Press reports. The program was originally announced last November.
The company will also begin charging up to $25 for a checked bag, eliminating their long-time complimentary service allowing up to one free luggage item.
Jet Blue's new pricing policies are said to have been suggested by its investors.
"They don't believe, or at least the financial community doesn't believe, that they're earning the revenue premium necessary to support a more generous product," ViewFromTheWing blogger Gary Leff told the Christian Science Monitor.
"JetBlue's position is that their product is still better than what many airlines offer even with the fees."
Blue, the first fare class within the new tier system, costs $20 each way for customers who check in a bag with the airline. It does not include a free checked bag. Blue Plus, the second class, includes one free checked bag along with frequent flier points and lower fees for reservation changes.
The last class, Blue Flex, includes two free checked bags and allows reservation changes without penalty.
JetBlue was founded in 1998.
