JetBlue Implements Network Realignment, Cuts Routes to Improve Profitability
ICARO Media Group
In an effort to return to profitability, JetBlue announced on Tuesday that it will be making significant changes to its network structure. The airline plans to withdraw from several unprofitable or thinner routes and markets, marking its second round of route and market exits this year.
Effective June 13, JetBlue will completely withdraw from Kansas City International Airport (MCI), El Dorado International Airport (BOG) in Bogota, Mariscal Sucre Quito International Airport (UIO) in Quito, and Jorge Chavez International Airport (LIM) in Lima. JetBlue's vice president of network planning, Dave Jehn, stated in an internal memo that these markets are unprofitable and the airline's aircraft time can be better utilized elsewhere.
Additionally, JetBlue will officially discontinue service from New York Stewart International Airport (SWF) in Newburgh, which had previously operated flights to two cities in Florida. The routes had been suspended since the onset of the COVID-19 pandemic.
Furthermore, JetBlue will be cutting several routes without completely withdrawing from markets. This includes a significant reduction of its short-haul flights from Los Angeles International Airport (LAX). The airline will end service to several destinations from LAX, including Las Vegas' Harry Reid International Airport (LAS), Miami International Airport (MIA), Reno-Tahoe International Airport (RNO), San Francisco International Airport (SFO), Seattle-Tacoma International Airport (SEA), Daniel Oduber Quirós International Airport (LIR) in Costa Rica, Cancun International Airport (CUN), and Puerto Vallarta International Airport (PVR) in Mexico.
While reducing certain routes, JetBlue will continue to serve other markets from Los Angeles, such as Palm Beach International Airport (PBI), Buffalo Niagara International Airport (BUF), Salt Lake City International Airport (SLC), Orlando International Airport (MCO), and Lynden Pindling International Airport (NAS) in Nassau, Bahamas.
The changes in route offerings come as JetBlue adjusts its plans following the termination of its proposed acquisition of low-cost carrier Spirit Airlines. According to Jehn, without the planned acquisition and the necessary aircraft time and gates to grow organically, the airline needs to refocus. As a result, JetBlue will decrease its operations at LAX from approximately 34 flights a day to 24.
JetBlue will also be pulling several destinations from its focus city in Fort Lauderdale, including Hartsfield-Jackson Atlanta International Airport (ATL), Austin-Bergstrom International Airport (AUS), Nashville International Airport (BNA), Louis Armstrong New Orleans International Airport (MSY), and Salt Lake City International Airport (SLC).
In the internal memo, Jehn emphasized JetBlue's overall initiative to return to profitability and improve operational reliability amid various challenges. This includes dealing with required inspections for some Pratt & Whitney GTF engines, which are expected to ground about a dozen jets at any given time starting in 2024.
According to Jehn, every route now has to prove its profitability to stay in JetBlue's network. As a result of these route cuts, the airline will free up aircraft to strengthen its network and focus on its key routes along the East Coast, to Caribbean vacation and VFR (visiting friends and relatives) destinations, and on long-haul, cross-country flights.
JetBlue remains committed to its premium transcontinental service to LAX from Newark Liberty International Airport, JFK, and Boston Logan International Airport.
The network realignment is a response to the dissolution of JetBlue's Northeast Alliance with American Airlines and the cancellation of the planned merger with Spirit Airlines. These developments have forced JetBlue to reevaluate its network plans.
With the focus on returning to profitability, JetBlue's CEO Joanna Geraghty has made operational reliability a priority. The airline plans to make additional changes in Fort Lauderdale, including shifting flights from several Southeast cities to destinations with proven demand.
JetBlue is confident that the changes being made, along with other revenue and cost programs, will strengthen the airline and position it for long-term success.