JetBlue Airways (JBLU) is making adjustments to its summer schedule to mitigate flight disruptions as the company ramps up hiring efforts in anticipation of peak travel demand, according to a CNBC report.
The airline has reduced its May capacity by 8-10% and expects similar cuts throughout the summer. This move comes as U.S. airlines are aggressively hiring to meet the anticipated surge in spring and summer travel. Last summer, staffing shortages amidst increased travel demand resulted in numerous flight cancellations across the United States. JetBlue has hired 2,500 employees this year but is still grappling with shortages.
Over the weekend, JetBlue had to cancel more than 300 flights, highlighting the ongoing challenges. Earlier in April, adverse weather conditions in Florida led to multiple cancellations and delays by several U.S. carriers, including JetBlue.
As the demand for air travel continues to rebound from the pandemic-induced slump, staffing shortages are increasingly evident during peak travel periods. Alaska Airlines, a subsidiary of Alaska Air Group (ALK), plans to trim its schedule by 2% through June due to a shortage of pilots. The airline has already canceled several flights this month due to staffing constraints.
According to the CNBC report, Alaska Airlines stated, “We’ve recently let down some of our valued guests by canceling an unusual number of flights.” The primary cause cited for cancellations was the shortage of pilots available to fly compared to the planned schedule set in January.
Both JetBlue and Alaska Air currently hold a Zacks Rank #3 (Hold).
At the time of this reporting:
– JBLU (JetBlue Airways Corporation) is trading at $5.77, with a decrease of $0.03 (-0.52%).
– Average analyst rating: 3.2 (Hold)
– Book Value: $7.741
Despite efforts to mitigate staffing challenges, JetBlue and other airlines face continued pressure to maintain their summer schedule amidst growing travel demand.
