JetBlue shares fall as airline cuts summer flight schedule -Breaking
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© Reuters. FILEPHOTO: A JetBlue Airlines worker unmasked assists a traveler who is masked after the Biden administration declared it would not continue to enforce a U.S. Coronavirus Disease (COVID-19), mask mandate on public transportation. The decision was made by a federal judge.2/2
By David Shepardson
(Reuters: JetBlue Airways’ shares plunged 11% after the airline announced it was reducing its summer schedule due to a variety of problems ahead of what could prove to be a record U.S. Travel Season as the COVID pandemic subsides.
U.S. airlines will be increasing staffing as they plan to prepare for a surge in summer travel demand. Several major U.S. airlines were forced to cancel thousands or hundreds of flights in September due to severe weather conditions, especially in Florida.
JetBlue stated that it will reduce its original summer schedule by over 10% and expects to decrease aircraft utilization between 2019-2020.
JetBlue indicated that its plans are to increase capacity by only 0-5% in 2019, down from 11-15% originally planned. JetBlue pointed out the effects of rising jet fuel costs.
Robin Hayes (JetBlue chief executive) stated to Reuters that the new plan adds more flexibility to its schedule. After acknowledging that JetBlue had failed customers and crew in April, Hayes said the company needed to “do a major reset prior the summer” so it can provide a reliable, more efficient operation.
Early this month, hundreds of flights were cancelled by the airline and hundreds more were delayed because of weather delays and air traffic control delays.
Hayes stated that “we need to prepare for worse attrition” than what we actually see. “We must be prepared for longer delays …. and we need to have buffers throughout our entire airline.”
Joanna Geraghty, President of JetBlue, told investors Tuesday that severe weather and air traffic control problems have caused disruptions in operations “particularly throughout Florida and the Northeast.” JetBlue’s flights to Florida touch down at 45%.
Federal Aviation Administration (FAA), said Tuesday it will hold a 2-day meeting with airlines, “to discuss how to increase efficiency of existing airspace structures” in congested Florida.
The FAA stated that delays to Florida flights were exacerbated by increased operations in military airspace nearby, thunderstorm activity, and higher-powered space launches.
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