JetBlue is banning carry-ons for its cheapest tickets and will pay other passengers $25 if they can't find overhead bin space

• JetBlue Airways is overhauling its basic economy fare to make it more restrictive.
• Passengers with "blue basic" fares will no longer be allowed to bring a carry-on.
• Those with carry-on baggage allowance, however, are guaranteed overhead bin space to the tune of $25.

JetBlue Airways on Wednesday announced sweeping changes to its fare and fee structures, with its most cost-oriented flyers buying the airline's cheapest tickets slated to be the most affected.

The New York-based carrier introduced its version of basic economy, known as "blue basic," in 2019 and while it was among the best value buys for air travel for most of 2020, the airline is now limiting the freedoms given to each passenger.

Starting July 20, the most restrictive ticket will no longer include a carry-on bag allowance, meaning flyers will either have to pay extra to check their bag, book the next highest fare, or buy an "even more space" seat to bring a carry-on. Flyers will still be allowed one personal item, such as a purse or backpack, but it must fit under the seat and not be stored in the overhead bin.

Passengers who book tickets starting February 25 for July 20 or later will fall under the new guidelines. Those with existing bookings before February 25 will be grandfathered in and allowed a carry-on bag and personal item.

JetBlue joins United Airlines as the only two full-service carriers to ban carry-on bags with basic economy fares. American Airlines, Delta Air Lines, and Alaska Airlines, alternatively, allow flyers with the most restrictive tickets to still bring a carry-on and personal item.

The restriction joins blue basic's existing caveats including being last to board the aircraft and being charged a fee for an advanced seat assignment.

JetBlue is holding itself accountable for the new policy by paying non-basic passengers that can't find overhead bin space. A travel credit of $25, which can be used for up to one year after issuance, will be offered to those left holding a bag once the overhead bins are full.

The policy likely aims to reduce scofflaws trying to sneak extra bags onboard and forces gate agents to be proactive in policing the policy.

No more change fees (for most flyers)

JetBlue initially held off on eliminating change fees alongside other major carriers, opting instead to extend a travel waiver through March 31, 2021. But the carrier is now doing away with change fees for all tickets except blue basic, offering travelers the ability to make as many changes as often as they desire or even cancel their ticket for no charge.

There are two exceptions, however, as fares will be subject to a fare difference if the price of the new ticket is higher and free changes can only be made before the day of departure. Those wanting to make a change to a different flight on the same day can do so for $75 and no fare difference, as long as the change is made on the day of their departure starting at midnight.

Blue basic ticket holders will not enjoy free changes or cancellations but will be allowed to make changes for a fee. For flights within the US, Caribbean, Mexico, and Central America, the fee is $100 before the fare difference while flights to other regions will incur a $200 change fee.

Basic economy flyers wanting to save on the change fee to switch to another flight on the same day can still make a same-day change for $75 and no fare difference.

Exceptions to the rules

JetBlue elite status holders in the Mosaic program will be allowed a carry-on bag even and make free same-day changes even if holding a blue basic ticket.

Active duty military travelers and unaccompanied minors traveling on any ticket will be allowed a carry-on bag but they won't be given a $25 credit if they can't find space for their bag if traveling on a blue basic ticket. And even if flying with a blue basic ticket, travelers can bring a carry-on bag if they pay extra for an even more space extra legroom seat and will be guaranteed overhead bin space.