JetBlue eyes charge for fluffier pillows

WASHINGTON (Reuters) - JetBlue Airways Corp. (JBLU.O: Quote, Profile, Research, Stock Buzz) may offer fluffier blankets and pillows for an additional charge, as it seeks to catch up to competitors in generating side revenues from its passengers, its chief executive said on Thursday.

"We're trying to figure out what's a value add to our customer," David Neeleman told the Reuters Aerospace and Defense Summit in Washington, D.C. "What's something that we don't currently charge for today that we can continue to give for free but then take a step up and give them an option."

The discount carrier, which offers free headsets to its passengers, already sells a better-quality version for $1.

JetBlue is considering offering a fleece blanket and blowup pillow for about $5 as an alternative to its free pillows and blankets. The airline plans to make announcements in the next couple of months, he said.

The six-year-old carrier lags its peers in generating revenue from sources aside from ticket sales. Neeleman told Reuters Television that he wants to double these non-flight revenues, which currently account for about 5 percent of turnover, in a few years.

JetBlue, which offers a JetBlue-branded credit card, is also looking to generate more sales of in-flight movies and alcoholic beverages through its Web site.

"Those are things we can sell on the Web prior to your departure, ... when people are in the mood and their credit card is out and ready," said Neeleman.