Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

United Airlines to halt service at New York's JFK airport in October

Published 09/30/2022, 02:13 PM
Updated 10/01/2022, 09:35 AM
© Reuters. FILE PHOTO: Passengers carry their luggage at John F. Kennedy International Airport in New York City, U.S., December 26, 2021. REUTERS/Jeenah Moon/File Photo
JBLU
-
DAL
-
AAL
-

By David Shepardson

WASHINGTON (Reuters) -United Airlines said on Friday it will suspend service in late October to New York's John F. Kennedy Airport (JFK).

Earlier this month, United had threatened to take the action if the Federal Aviation Administration (FAA) did not grant the air carrier additional flights.

United has been flying just twice daily to San Francisco and Los Angeles from JFK, the busiest New York-area airport, after resuming service in 2021.

"Given our current, too-small-to-be-competitive schedule out of JFK — coupled with the start of the Winter season where more airlines will operate their slots as they resume JFK flying — United has made the difficult decision to temporarily suspend service at JFK," United said in a memo seen by Reuters. The airline did not specify when it might resume service.

United said its "discussions with FAA have been constructive" but added "it's also clear that process to add additional capacity at JFK will take some time."

United said the decision would impact 100 employees who work at JFK but emphasized that "no one is losing their job" and employees will transition to other nearby stations.

United has been working to pursue additional slots - which are takeoff and landing authorizations - through the FAA and by seeking commercial agreements to acquire slots from other airlines.

The FAA said Friday it is "dedicated to doing its part to safely expand New York City airports and airspace capacity. We will follow our fair and well-established process to award future slots to increase competition."

United said without permanent slots it cannot serve JFK "effectively compared to the larger schedules and more attractive flight times flown by" JetBlue Airways (NASDAQ:JBLU) and American Airlines (NASDAQ:AAL).

© Reuters. FILE PHOTO: Passengers carry their luggage at John F. Kennedy International Airport in New York City, U.S., December 26, 2021. REUTERS/Jeenah Moon/File Photo

United in 2015 struck a long-term deal to lease 24 year-round slots at JFK to Delta Air Lines (NYSE:DAL) as it ended JFK service to concentrate at its nearby Newark hub in northern New Jersey.

United argues there is room to grow at JFK, the 13th-busiest U.S. airport, because the FAA and the Port Authority since 2008 have made significant infrastructure investments, including "the widening of runways, construction of multi-entrance taxiways, and the creation of aligned high-speed turnoffs."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.