JetBlue agreed to pay a $2 million fine after the U.S. Department of Transportation found the airline operated multiple chronically delayed routes, impacting passengers and competition. This marks the first penalty for unrealistic scheduling practices, with half of the fine allocated to compensate affected customers, who will receive at least $75 each for past or future disruptions.

Transportation Secretary Pete Buttigieg emphasized the importance of realistic scheduling, stating that chronic delays harm travelers and undermine industry standards. Investigations into other airlines for similar issues are ongoing.

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Pete Buttigieg, United States Secretary of Transportation

JetBlue, ranked seventh-worst for on-time performance among North American carriers last year, was found responsible for 80% of disruptions across four routes. The airline attributed delays to air traffic control (ATC) challenges in the Northeast and Florida. JetBlue called for modernization of ATC systems and staffing improvements to reduce delays nationwide.

This penalty follows setbacks for JetBlue, including a federal judge’s block on its merger with Spirit Airlines and the end of its Northeast partnership with American Airlines, both deemed anticompetitive. Over the last five years, JetBlue’s stock has lost nearly half its value.