JetBlue among first US airlines to seek waivers to suspend flights to 12 cities

Apr 8, 2020

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

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.

Get Coronavirus travel updates. Stay on top of industry impacts, flight cancellations, and more.

 

View this post on Instagram

 

A post shared by Evan.H (1K) (@rocky_mountain_planespotting) on

“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 plans or seeks to suspend service to 20 airports around the U.S. Its routes to the 20 airports in March 2020. (Image by Cirium)
JetBlue plans or seeks to suspend service to 20 airports around the U.S. Its routes to those airports in March 2020. (Image by Cirium)

 

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?

Featured image by Jerry Holt/Star Tribune via Getty Images.

Delta SkyMiles® Platinum American Express Card

Earn 90,000 bonus miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new card in the first three months of card membership. Offer ends 11/10/2021.

With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.

Apply Now
More Things to Know
  • Limited Time Offer: Earn 90,000 Bonus Miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new Card in your first 3 months. Offer expires 11/10/2021.
  • Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
  • Earn 3X Miles on Delta purchases and purchases made directly with hotels.
  • Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
  • Earn 1X Miles on all other eligible purchases.
  • Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
  • Enjoy your first checked bag free on Delta flights.
  • Fee Credit for Global Entry or TSA Pre✓®.
  • Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
  • No Foreign Transaction Fees.
  • $250 Annual Fee.
  • Terms Apply.
  • See Rates & Fees
Regular APR
15.74%-24.74% Variable
Annual Fee
$250
Balance Transfer Fee
N/A
Recommended Credit
Excellent/Good
Terms and restrictions apply. See rates & fees.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.