JetBlue Airways will do this Eliminate many unprofitable methods To domestic and international destinations as they look to cut costs in the aftermath A $3.8 billion merger with budget airline Spirit Airlines failed.
The Long Island City, New York-based company will It cut nearly a third of its flights from Los Angeles International Airport in June. This includes routes to Miami, Las Vegas and San Francisco, according to Bloomberg News, which was first to report the decision. The airline will cancel flights from Fort Lauderdale, Florida, to five cities — including Nashville, New Orleans and Salt Lake City — and flights between Detroit and New York's John F. Kennedy International Airport.
Jetblue will exit completely Kansas City, Missouri; Newburgh, New York; Bogotá, Colombia; Quito, Ecuador; Lima, Peru, on June 13.
“With less aircraft time available and the need to improve our financial performance greater than ever, every route must earn its right to remain in the network,” Dave Gein, JetBlue's vice president of network planning and airline partnerships, said in a memo. Staff Tuesday. “It is more important than ever that we are surgical on every route in our network.”
In addition to saving money, the changes will help the airline deal with the grounding of some of its planes for checks on its Pratt & Whitney engines. The company will have, at most, Between 12 and 15 of its planes were grounded for almost a full yearUrsula Hurley, JetBlue's chief financial officer, said at an investor conference on February 22.
The changes come just weeks after JetBlue announced it would no longer appeal a federal judge's ruling against its proposed merger with Spirit. The deal would have merged the country's sixth and seventh largest airlines. It would also have helped JetBlue compete with its larger rivals.
JetBlue stock fell 1% in premarket trading Wednesday after falling 3% after the market closed on Tuesday.
Under the corporate agreement, JetBlue will pay Spirit $69 million and resolve all outstanding matters related to the deal, such as appeals. While the merger agreement was effective, Spirit shareholders received about $425 million in total prepayments, according to the airline.
JetBlue has been losing money and its operations have faltered in recent years. Even her problems opened the way for her Campaign Contributor Public Activist Carl Icahnwho successfully led the campaign Against Illumina's acquisition of cancer test maker Grail last year. Icahn acquired a 10% stake in the company and He held two seats on JetBlue's board of directors.
In January, JetBlue said it expects revenue For the first quarter of 2024, it will decrease by between 5% and 9%, while the carrying capacity for that period will decrease by up to 6%. The carrier also announced a net loss of $104 million for the last three months of 2023, compared to a profit of $24 million on an annual basis.
“Infuriatingly humble alcohol fanatic. Unapologetic beer practitioner. Analyst.”