JetBlue Airlines plans to shutter its U.S. and Canadian airports after a federal appeals court overturned a decision that found the airline violated antitrust law by charging its airfare rivals too much for flights.
The airline plans to re-enter bankruptcy proceedings and is seeking to reduce the costs of its flights to its core markets, said the airline’s chief executive, Thomas C. McElroy, in a statement Tuesday.
The U.K.-based carrier, which operates its largest domestic hub in Boston, said it is reducing the number of domestic flights and will continue to offer frequent service to its customers.
The company’s new strategy includes consolidating its domestic operations and increasing the number and range of routes, McElroys statement said.
JetBlue, which is based in Arlington, Virginia, has been one of the biggest airlines in the U.R.S., and the company is the largest in the world by revenue.
“We are confident that our customers will be well served by the reopening of our U.V. flights,” McElRoy said.
“Our customers value the experience of JetBlue and our commitment to quality and reliability has not changed.”
The decision comes as airlines around the world are grappling with a surge in cancellations and a shortage of seats.
Some airlines are moving away from booking frequent fliers to paying more to secure more seats, while others are expanding their flights.
While McEloy said the airlines plan to continue offering flights, he did not say when those would begin.
McElroy said JetBlue will start to charge passengers for airfare if the airline does not receive new passenger demand.
In addition, the airline will also reduce the number or range of airfares that it offers to its main regional hubs in Washington, New York and Los Angeles.
The carrier also will introduce a new, cheaper plan for its business passengers.