Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

United Airlines threatens to drop JFK service if U.S. does not approve more flights

Published 09/06/2022, 10:08 PM
Updated 09/06/2022, 10:55 PM
© Reuters. A United Airlines worker assists travelers at Ronald Reagan Washington National Airport in Arlington, Virginia, U.S., April 19, 2022. REUTERS/Kevin Lamarque/File Photo

By David Shepardson

WASHINGTON (Reuters) -United Airlines said on Tuesday it plans to end service in October to New York's John F. Kennedy Airport (JFK) if the Federal Aviation Administration (FAA) does not grant the air carrier additional flights.

United Chief Executive Scott Kirby (NYSE:KEX) wrote to Acting FAA Administrator Billy Nolen last week to urge him to increase capacity at JFK, according to an email Tuesday by the airline to employees that was seen by Reuters.

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

"If we are not able to get additional allocations for multiple seasons, we will need to suspend service at JFK, effective at the end of October," United's email said.

The FAA said in a statement Tuesday it "must consider airspace capacity and runway capacity to assess how changes would affect flights at nearby airports. Any additional slots at JFK would follow the FAA's well-established process of awarding them fairly and to increase competition."

United said it had been working to pursue additional slots - which are takeoff and landing authorizations - through the FAA and market at JFK "so that we can grow to be more competitive" and said without permanent slots it cannot serve JFK "effectively compared to the larger schedules and more attractive flight times flown by our competitors" like JetBlue Airways (NASDAQ:JBLU) and American Airlines (NASDAQ:AAL).

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.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

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."

In June, the FAA approved United's request to temporarily cut about 50 daily summer departures from its Newark airport hub to address congestion, representing 12% of United's 425 daily flights at Newark. United is the dominant carrier at Newark, operating 69% of flights.

Latest comments

Good for jetblue
corporate blackmail - simple response - okay, bye
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.