CHICAGO, March 19 (Reuters) - JetBlue Airways ( JBLU )
will eliminate a number of its routes and markets, and reduce
service in Los Angeles to improve its financial performance, the
company said on Tuesday.
In a memo seen by Reuters, network planning head Dave Jehn
told JetBlue's ( JBLU ) crew members the airline is not faring well in
some short-haul routes in western U.S. and Midwest markets, and
South America.
"More than ever, every route has to earn its right to
stay in the network," Jehn said.
As a result, it will stop serving markets such as Bogotá in
Colombia, Quito in Ecuador, Lima in Peru and Kansas City in
June.
Jehn said Tuesday's move does not change the airline's seat
capacity outlook for this year, which is expected to drop by a
low single-digit percentage rate from 2023.
JetBlue's ( JBLU ) earnings have been pressured by higher operating
costs and uneven travel demand. Jehn said demand after the
pandemic has shifted away from some routes. The collapse of
JetBlue's ( JBLU ) proposed merger with Spirit Airlines ( SAVE ) has
prompted the need to "refocus" in Los Angeles, he said.
The carrier is also dealing with an aircraft shortage due to
a snag with RTX's Pratt & Whitney geared turbofan that
powers the popular Airbus A320neo jets. In January,
JetBlue ( JBLU ) said it had seven aircraft out of service, with the
number expected to rise to as much as 15 by the end of 2024.
New JetBlue ( JBLU ) CEO Joanna Geraghty has vowed "aggressive
action" to return the airline to profitability. The measures
include deferring about $2.5 billion in aircraft capital
expenditure and cutting costs through buyouts to employees in
corporate, airport and customer support functions.
It is also trying to generate an extra $300 million in
revenue this year.