JBLU - JetBlue Q1 Earnings Preview: Recovery Is Underway
2024-04-19 07:40:43 ET
Summary
- JetBlue has faced significant challenges in the past year, including the termination of its Northeast Alliance with American Airlines and the failed merger with Spirit Airlines.
- The airline has undergone leadership changes, with former President and COO Joanna Geraghty replacing Robin Hayes and hedge fund investor Carl Icahn purchasing a stake in the company.
- JetBlue is making big route changes, including trimming routes at New York LaGuardia, reducing its presence at Los Angeles International Airport, and cutting routes at Fort Lauderdale. The aim is to improve operational reliability and financial performance.
The past nine months have been some of the most difficult any single airline has faced in the history of U.S. aviation. Almost a year ago, American Airlines Group Inc. ( AAL ) and JetBlue Airways Corporation ( JBLU ) saw their Northeast Alliance - NEA - ruled to be anti-competitive and was ordered to be terminated by a federal judge, siding with the U.S. Dept. of Justice. Although the NEA began as an attempt by AAL to return usage of its New York LaGuardia and JFK airport slots to compliance with FAA slot usage requirements, the deal morphed into an expansive joint venture and slot-swapping exercise that did what the U.S. has never allowed two domestic airlines to do. While American and JetBlue had fought to preserve the deal, JBLU ultimately decided not to appeal the federal district court ruling while AAL says it continues to want to appeal so that the basis of law can be determined for future deals. The two airlines are in the final process of unraveling their deal....
JetBlue Q1 Earnings Preview: Recovery Is Underway