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JetBlue adjusts network strategy amid competitive pressures

JetBlue adjusts network strategy amid competitive pressures
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JetBlue is making strategic changes to its flight network as part of an effort to reduce losses and prioritize profitable routes. The airline has already made several adjustments this year, and more route cuts are expected.

According to reports by JonNYC, JetBlue will discontinue its seasonal flight from New York's JFK Airport to London Gatwick next year, shifting focus instead to Heathrow. However, Gatwick will continue receiving flights from Boston Logan International Airport.

The airline will also reduce the frequency of flights to Paris Charles de Gaulle by eliminating a seasonal second daily service from New York. As a result, Paris will see one daily flight each from New York and Boston.

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Several domestic routes have been cut due to competition with legacy carriers like American Airlines and Delta Air Lines. These include services from New York JFK to Miami, Austin, Houston, and Milwaukee. Some routes are not being entirely suspended but shifted to winter seasonal schedules, such as flights from Boston to Grenada and Phoenix, and New York to Tulum.

JetBlue has communicated these changes internally and hinted at potential base transfers for some employees. Bloomberg reported JetBlue's statement: “Most of our customers impacted by these changes will be able to select alternate flight options themselves on JetBlue.com. Where alternate routes are not available, customers will be provided with a refund.”

This year alone, JetBlue has removed several routes including Los Angeles-Cancun, New York LaGuardia-Jacksonville, New York JFK-Portland, Fort Lauderdale-Nashville, and New York JFK-Detroit among others. By January 2025 over 50 routes are expected to be axed.

CEO Joanna Geraghty emphasized the airline's focus on the East Coast leisure network as it continues "doubling down in the Northeast." JetBlue aims for $800-900 million in incremental EBIT between 2025 and 2027 while addressing revenue growth challenges related to inflation.

JetBlue plans further announcements of new routes soon which may include new transatlantic services.

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