JetBlue Airways recorded a net loss of $716 million for the first quarter. Excluding special items, the net loss was $145 million. Operating revenue decreased by 5.1% from the same period last year, while operating expenses increased by 14%.
The termination of the merger with Spirit Airlines, as well as a decrease in supply due to inspections of Pratt & Whitney engines, acted as a drag.
As part of cost reduction efforts, the airline will reduce flights from and to Los Angeles International Airport. From June 13, the number of flights will be reduced by about one-third to operate more profitable routes in the leisure market. In addition, it is withdrawing from seven airports including Baltimore, Bogota, Burlington, Kansas City, Lima, Newburgh, and Quito, and has launched new routes from New York and Boston to Dublin, and from Boston to Paris, maintaining the strong performance of transcontinental and intercontinental routes.
The airline continues to reduce costs through route consolidation and optimizing floor space in airports with high rental costs. The decrease in supply due to inspections of Pratt & Whitney engines is expected to continue into the second quarter, and the airline is planning measures such as extending the operating period of existing leased aircraft.
