10:45 AM EST, 01/03/2025 (MT Newswires) -- (Updates with JetBlue's ( JBLU ) response in the fourth and the fifth paragraph and the latest stock movement in the sixth paragraph.)

JetBlue ( JBLU ) has received a $2 million penalty from the US Department of Transportation for operating multiple chronically delayed flights, the agency said on Friday.

"Illegal chronic flight delays make flying unreliable for travelers," Transportation Secretary Pete Buttigieg said in a statement. "Today's action puts the airline industry on notice that we expect their flight schedules to reflect reality."

The penalty marks the first time a federal agency has fined an airline for chronic delays, which are defined as a flight departing at least ten times a month and arriving more than 30 minutes late more than 50% of the time. Cancellations are considered delays in this calculation, according to the department, and half of the fine will be used to compensate affected passengers.

A JetBlue ( JBLU ) spokesperson told MT Newswires that JetBlue ( JBLU ) resolved issues related to four flights from 2022 and 2023 but emphasized that the US government shares responsibility for reliable air travel.

"We urge the incoming administration to prioritize modernizing outdated ATC technology and addressing chronic air traffic controller staffing shortages to reduce ATC delays that affect millions of air travelers each year," the spokesperson added.

Shares of JetBlue ( JBLU ) were down 2.2% in recent trading.

Price: 7.32, Change: -0.17, Percent Change: -2.21