JetBlue cuts intra-west flying in Q4 capacity cull

JetBlue Airways will reduce capacity growth by about two points in the fourth quarter and cull unprofitable flying, as part of an effort to lift margins amid higher fuel prices. The capacity cuts will run through schedules in the "upcoming days" and will be effective September, says executive VP of commercial and planning Marty St George in an earnings call. JetBlue will re-deploy less profitable intra-west flying from its Long Beach focus city to transcontinental markets, and also cut off-peak flights on multi-frequency routes, he adds. The reallocation of the intra-west flying will drive about $30 to $40m of incremental run rate earnings, says CE Robin Hayes, with the benefit making a meaningful impact beginning in Q1 2019. JetBlue's plans to reduce service within the US west coast is the latest step in a retreat in that market, following its disappointment at Long Beach where it failed to win city council approval in early 2017 to begin international flights. This April, the airline announced it would slash a third of its flights out of the airport starting in early September. St George, who says the airline had "great hopes" for Long Beach, calls the intra-west market a "very tough yield environment".<br/>