By Mary Schlangenstein | Bloomberg
JetBlue Airways is eliminating unprofitable routes in California and Florida and drop service to several cities in South America, a sweeping overhaul of its network as the carrier looks to cut costs after growth attempts were twice blocked by the US government.
The carrier plans to cut nearly a third of its flights out of Los Angeles International Airport in June, including routes to Las Vegas, Miami and San Francisco, the airline said in a memo Tuesday to employees. Flights between Fort Lauderdale, Florida, and cities including Atlanta, New Orleans and Salt Lake City will also be eliminated.
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“With less aircraft time available and the need to improve our financial performance, more than ever, every route has to earn its right to stay in the network,” Dave Jehn, vice president of network planning and airline partnerships, said in the letter. “It’s more important than ever that we are surgical about every route in our network.”
JetBlue is turning its focus inward after three years of failed legal battles to save an operating partnership with American Airlines Group Inc. in the US Northeast and then to preserve an acquisition of Spirit Airlines Inc. JetBlue Chief Executive Officer Joanna Geraghty has said her top priority is a return to consistent profits, which the carrier hasn’t had since 2019.
The changes are the most significant yet for JetBlue since activist investor Carl Icahn in February revealed a roughly 10% stake and began pushing to boost shareholder value. The company has since given his investment firm two board seats.
In addition to the domestic routes, JetBlue will end service in Bogota, Lima and Quito, Ecuador, on June 13.
“These markets are unprofitable and our aircraft time can be better utilized elsewhere,” Jehn said. It’s also pulling out of Kansas City, Missouri, and will cut routes in June…
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