JetBlue Airways Corp. JBLU announced the temporary consolidation of services in the five major cities of Boston, Los Angeles, New York City, San Francisco and Washington, D.C. due to unprecedented drop in air travel demand as the coronavirus crisis continues unabated.Starting Apr 15 through Jun 10, the airline will only operate essential services at one or two airports in the above-mentioned metro areas.
The Long Island City, NY-based carrier will temporarily cease operations at T. F. Green International Airport in Boston while still continuing services at Boston Logan International Airport. With this, the airline’s daily departures from Boston will decline to 28 in April from its normal average of 180. In Los Angeles, the carrier will suspend operations at Hollywood Burbank Airport and Ontario International Airport but maintain connectivity with Los Angeles International and Long Beach airports, the average daily departure totaling five in April, down from 44.
In New York, this Zacks Rank #3 (Hold) company will continue operations at John F. Kennedy International Airport and Newark Liberty International Airport, maintaining an average daily departure of 30 this month compared with the usual number of 215 departures from New York. Services at LaGuardia Airport, Westchester County Airport and Stewart International Airport will be suspended.
In San Francisco, the carrier will maintain two daily departures for this month, operating only at San Francisco International Airport. The airline usually operates 19 daily flights from the city including those from San Jose International Airport. Lastly, Baltimore/Washington International Thurgood Marshall Airport flights will be suspended while Washington National Airport will run five daily flights in April. JetBlue usually operates 34 flights a day from the capital region. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Per a Reuters report, the airline is seeking approval from the U.S. Transportation Department to temporarily stall operations across 11 other domestic airports including Dallas, Houston, Minneapolis, Portland, Sacramento and Albuquerque from Apr 15 through Jun 10.
With large-scale travel restrictions and dwindling demand, JetBlue reduced its April capacity by 80% for each day. Other U.S. carriers like United Airlines UAL, American Airlines AAL and Delta Air Lines DAL also lowered capacity dramatically.
Shares of JetBlue have plunged more than 54% since early February due to coronavirus-related woes.
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