By David Shepardson
WASHINGTON (Reuters) -The U.S. Transportation Department imposed a $2 million penalty on JetBlue Airways (NASDAQ:JBLU) for operating four chronically delayed flights on domestic routes - the first time it has imposed such a fine on an airline for the prohibited scheduling practice.
USDOT said on Friday that as part of a consent agreement with the airline, JetBlue will pay a $1 million fine and the remainder will go to compensate customers affected by its chronic delays or any future disruptions within the next year.
As part of the settlement, JetBlue has agreed to provide vouchers worth a minimum of $75 for passengers for future flight cancellations or delays of three hours or more caused by the airline within the next year.
"Today's action puts the airline industry on notice that we expect their flight schedules to reflect reality,” said Transportation Secretary Pete Buttigieg.
JetBlue, which did not admit liability, said in a statement it appreciates "how important it is to our customers to arrive to their destinations on-time and work very hard to operate our flights as scheduled."
It criticized USDOT for a persistent lack of adequate air traffic control staffing. "We believe accountability for reliable air travel equally lies with the U.S. government, which operates our nation’s air traffic control system," the airline said.
USDOT said at various points in 2022 and 2023 JetBlue operated chronically delayed flights between New York and Raleigh-Durham, Fort Lauderdale and Orlando along with a flight between Fort Lauderdale and Windsor Locks, Connecticut.
"Regardless of the cause of the delay (carrier, weather, national airspace, security) for any specific flight, JetBlue had adequate time to act to avoid the chronic delays," USDOT said.
The airline said it spent tens of millions of dollars to address issues with air traffic control especially in the U.S. Northeast corridor to as much as reasonably possible prevent any chronic delays and made significant improvements last year in cutting travel disruptions.
USDOT said there were 395 delays and cancellations across four chronically delayed flights in total, defined as U.S. flights that are canceled or arrive more than 30 minutes late more than 50% of the time over a month.
The department estimates JetBlue was responsible for over 70% of the disruptions for the four chronically delayed flights.
USDOT last month sought comment on whether it should mandate cash compensation for lengthy delays or cancellations caused by airlines.
Southwest Airlines (NYSE:LUV) in December 2023 agreed to provide $90 million in travel vouchers of $75 or more to passengers delayed at least three hours getting to final destinations because of an airline-caused issue or cancellation, as part of a USDOT settlement over the carrier's December 2022 holiday meltdown.