JetBlue hit with $2 million fine over chronic flight delays

Investing.com -- JetBlue Airways (NASDAQ:JBLU ) Corp. has been penalized with a $2 million fine by the US Transportation Department. The airline was fined for continuously delaying some flights and setting unrealistic schedules, marking a first-of-its kind enforcement action by the department.

The fine was imposed during the final days of the Biden administration, which has been stern in its stance against airlines regarding consumer protection issues. The administration's initiatives have included regulations that mandate automatic refunds when flights are significantly delayed or canceled, rules aimed at safeguarding wheelchair users, and other enforcement actions addressing issues such as civil rights violations.

Transportation Secretary Pete Buttigieg criticized chronic flight delays as a major inconvenience for travelers in a news release on Friday. The action against JetBlue demonstrates to the industry that the department expects flight schedules to be realistic.

According to the Transportation Department, promising customers schedules that do not accurately represent true departure and arrival times is an unfair and deceptive business practice. This is because it enables airlines to attract more business by misleading customers. US rules categorize a "chronically delayed flight" as one that arrives more than 30 minutes late more than 50% of the time and is flown at least 10 times a month.

The US government discovered that JetBlue operated at least four such flights at least 145 times from June 2022 to November 2023, impacting thousands of passengers. This included a route between John F. Kennedy International Airport in New York and Raleigh-Durham, North Carolina. The Bureau of Transportation Statistics estimates that the airline was responsible for over 70% of the disruptions.

JetBlue stated on Friday that it has invested tens of millions of dollars over the past two years to minimize flight delays, especially those related to air-traffic control issues. While the company agreed to a settlement with the department regarding the four flights in question, it argued that the responsibility for reliable air travel should also be shared by the US government, which operates the country's air traffic control system.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source: Investing.com