A JetBlue Airways aircraft prepares to take off from Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Florida, Jan. 31, 2024.

Joe Raedle | Getty Images

JetBlue Airways told employees on Tuesday that it was the airline’s latest move to cut a variety of routes after a failed takeover attempt Spirit Airlines and a Pratt & Whitney Engine problem that has led to the grounding of some of its Airbus aircraft.

According to a memo to employees seen by CNBC, the airline will reduce its departures from Los Angeles International Airport from about 34 to 24 per day, focusing on profitable transcontinental routes, which include the Mint business class cabin heard. The cuts include service from Los Angeles to San Francisco; Seattle; Miami; Las Vegas; Reno, Nevada; and Puerto Vallarta, Mexico.

JetBlue is also suspending flights to Bogota, Colombia; Quito, Ecuador; Lima, Peru; and Kansas City, Missouri, in June, as well as flights between Fort Lauderdale, Florida, and Austin, Atlanta, Nashville and Salt Lake City, and between New York and Detroit.

“With less flight time available and the need to improve our financial performance, more than ever every route must earn its right to remain on the network,” Dave Jehn, vice president of network planning and airline partnerships, said in the memo.

In addition to transcontinental flights, JetBlue says it will focus on “bread-and-butter” routes along the East Coast as well as routes to vacation destinations in the Caribbean.

CEO Joanna Geraghty has been at the helm for a month and is under increasing pressure to cut spending and return the airline to profitability after activist investor Carl Icahn announced last month that he had taken a nearly 10% stake in of the airline and has won two seats on the board.

JetBlue had already begun a cost-cutting program before Icahn’s involvement and said in January that it was on track to cut spending by $200 million by year’s end. The airline cut some other routes earlier this year, CNBC reported.

The changes announced Tuesday will not impact JetBlue’s planned capacity for the year, which is expected to decline in the low single digits beginning in 2023, the memo said.

JetBlue is planning to become a standalone airline after a judge blocked its purchase plan Spirit Airlines in January. JetBlue abandoned that deal entirely earlier this month. Last year, a separate judge terminated its partnership with the company American Airlines in the Northeast.

Don’t miss these stories from CNBC PRO:

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *