JetBlue among first US airlines to seek waivers to suspend flights to 12 cities
![JetBlue's head of air service, and ground crew members waved goodbye as JetBlue flight 836 begins service at MSP to Boston Thursday May 3, 2018 Bloomington, MN. ] JERRY HOLT • jerry.holt@startribune.com](/_next/image/?url=https%3A%2F%2Frunway-media-production.global.ssl.fastly.net%2Fus%2Foriginals%2F2020%2F04%2FGettyImages-1156780640-scaled.jpg&w=3840&q=75)
JetBlue Airways is seeking approval to suspend service to 12 cities as it faces near-zero passenger demand during the novel coronavirus pandemic.
The request is among the first by U.S. carriers for exemptions to the air service requirements attached to the more than $50 billion in aid available under the government's coronavirus stimulus package, officially known as the CARES Act. New York-based JetBlue has applied for some of the $25 billion in grants earmarked for airline staff compensation.
JetBlue proposed suspending service to the 12 cities from April 15 to June 10, according to a filing with the Department of Transportation on Wednesday. If approved, JetBlue would temporarily halt service to Albuquerque (ABQ); Bozeman, Montana (BZN); Dallas/Fort Worth (DFW); Houston Bush Intercontinental (IAH); Minneapolis/St. Paul (MSP); Palm Springs, California (PSP); Portland, Oregon (PDX); Reno (RNO); Sacramento (SMF); Worcester (ORH), Massachusetts; and the airports serving Aguadilla (BQN) and Ponce (PSE) in Puerto Rico.
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"There are so few customers traveling to justify even the reduced service levels required by the [CARES Act], and a rigid interpretation of the [air] service obligation will only threaten to unnecessarily diminish JetBlue’s liquidity," the airline said in its filing. Liquidity refers to the amount of cash a company has on hand to pay its bills.
Airlines are required to maintain a minimal level of air service to all of the destinations in the U.S. they serve in exchange for CARES Act funds. The only exception is for large metropolitan regions served by multiple airports designated by the DOT or a special exemption, such as the one JetBlue sought on Wednesday.
Other airlines have sought creative ways to meet the requirements.
Alaska Airlines is consolidating routes to 12 cities by “tagging” flights to six of them on to existing service to the other six cities. American Airlines is suspending many nonstop flights to its nine domestic hubs and focusing on maintaining service to primarily its two largest bases in Charlotte (CLT) and Dallas/Fort Worth (DFW).
JetBlue previously unveiled plans to temporarily suspend flights to eight airports in the Boston, Los Angeles, New York, San Francisco and Washington areas, consolidating its operations in each of those areas at a smaller number of airports. Those cuts come amid an 80% cut in system capacity by the carrier.
Related: JetBlue consolidating flights in New York, Los Angeles and 3 more big cities
JetBlue is allowing travelers with flights booked through May 31 to change itineraries with no fee. Customers can get a refund if their flight is cancelled or the time is change by two hours or more.
The airline's size varies widely in each of the 12 airports where it wants to suspend flights. JetBlue is the sole carrier serving Ponce. It was also the largest at both Aguadilla and Worcester airports last year. But at Bozeman, Dallas/Fort Worth, Houston, Minneapolis and Portland, the airline had less than a 1% share of passengers in 2019, according to DOT data via Cirum.
The CARES Act leaves it to the DOT to determine what air service is "reasonable and practicable" for airlines to receive funds to continue. However, there are some situations where the decision may be made for the DOT, for example in Aguadilla and Ponce where the Federal Aviation Administration and government of Puerto Rico have agreed to close the airports to commercial service.
In addition, JetBlue notes that it only serves Palm Springs seasonally in the winter and had suspended service for the summer as previously planned on March 27.
Related: Airline coronavirus change and cancellation policies
"JetBlue fully intends to gradually resume service to the levels prescribed in the [CARES Act] at each of these airports as soon as it is both safe to do so and when even the slightest customer demand re-emerges," the airline said.
However, former Hawaiian Airlines network analyst Adam Nathan pointed out on Twitter that "it's hard to restart service and re-stimulate a market once you drop it for a while."
There is near universal agreement across airline management, industry organizations and Wall Street analysts that the industry will be smaller when it recovers from COVID-19. What that means for JetBlue, and every U.S. carrier, remains to be seen. But whether flights resume at airports where service was suspended will be closely watched.
Combined, the 20 airports that JetBlue plans and wants to suspend flights to through June amounted to nearly 13% of its system capacity in 2019, Cirium data shows.
Related: How will airlines rebuild their route maps after the coronavirus?
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.