REPORT: JetBlue to Trim Flights Due to Revenue Losses

On Thursday, JetBlue officials reported a decline in revenue for January that could cause the airline to trim flights to destinations in Latin America, Puerto Rico and the continental United States.

According to FoxNews.com, JetBlue announced its revenue per available seat mile (RASM) in the first quarter of 2016 dropped by between eight and nine percent compared to last year. In the final quarter of 2016, the RASM fell by 1.5 percent.

In the fourth quarter of 2016, JetBlue’s reported earnings were $172 million, a drop of $18 million during the same period in 2015. The concern is that the decline in RASM could impact how investors view the airline.

“We have shown an ability to react,” JetBlue CEO Robin Hayes said on a conference call. “It is early enough in the year that we do have most of the year ahead of us as we start to think about the changes will make. Some of those you will see quite soon.”

While the drop in revenue is a major concern for the airline, JetBlue reported fourth-quarter sales of $1.64 billion with quarterly profit of 50 cents a share, which beat estimates from analysts by one cent.

JetBlue was also dealt a blow Tuesday when the city council in Long Beach, California, voted to not allow the city’s airport to build a U.S. Customs and Border Protection facility despite the airline agreeing to pay for the construction, according to the Long Beach Press Telegram.

JetBlue is the Long Beach Airport’s largest carrier and was attempting to add the federal inspections facility to increase the number of flights to Latin America.

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