US hits JetBlue with $2 million penalty over continual flight delays

By David Shepardson

WASHINGTON (Reuters) -The U.S. Transportation Division imposed a $2 million penalty on JetBlue Airways (NASDAQ:JBLU) for working 4 chronically delayed flights on home routes – the primary time it has imposed such a fantastic on an airline for the prohibited scheduling observe.

USDOT mentioned on Friday that as a part of a consent settlement with the airline, JetBlue can pay a $1 million fantastic and the rest will go to compensate clients affected by its continual delays or any future disruptions inside the subsequent yr.

As a part of the settlement, JetBlue has agreed to offer vouchers value a minimal of $75 for passengers for future flight cancellations or delays of three hours or extra attributable to the airline inside the subsequent yr.

“As we speak’s motion places the airline trade on discover that we anticipate their flight schedules to replicate actuality,” mentioned Transportation Secretary Pete Buttigieg.

JetBlue, which didn’t admit legal responsibility, mentioned in a press release it appreciates “how essential it’s to our clients to reach to their locations on-time and work very laborious to function our flights as scheduled.”

It criticized USDOT for a persistent lack of ample air visitors management staffing. “We imagine accountability for dependable air journey equally lies with the U.S. authorities, which operates our nation’s air visitors management system,” the airline mentioned.

USDOT mentioned at varied factors in 2022 and 2023 JetBlue operated chronically delayed flights between New York and Raleigh-Durham, Fort Lauderdale and Orlando together with a flight between Fort Lauderdale and Windsor Locks, Connecticut.

“No matter the reason for the delay (provider, climate, nationwide airspace, safety) for any particular flight, JetBlue had ample time to behave to keep away from the continual delays,” USDOT mentioned.

The airline mentioned it spent tens of hundreds of thousands of {dollars} to handle points with air visitors management particularly within the U.S. Northeast hall to as a lot as fairly potential stop any continual delays and made vital enhancements final yr in slicing journey disruptions.

USDOT mentioned there have been 395 delays and cancellations throughout 4 chronically delayed flights in complete, outlined as U.S. flights which can be canceled or arrive greater than half-hour late greater than 50% of the time over a month.

The division estimates JetBlue was liable for over 70% of the disruptions for the 4 chronically delayed flights.

USDOT final month sought touch upon whether or not it ought to mandate money compensation for prolonged delays or cancellations attributable to airways.

Southwest Airways (NYSE:LUV) in December 2023 agreed to offer $90 million in journey vouchers of $75 or extra to passengers delayed not less than three hours attending to last locations due to an airline-caused subject or cancellation, as a part of a USDOT settlement over the provider’s December 2022 vacation meltdown.