Jan. 3 (UPI) — JetBlue Airways is being fined $2 million for “chronic flight delays,” with half that amount going to compensate affected passengers, the U.S. Department of Transportation announced Friday.
The department issued the fine after an investigation into the low-cost carrier’s scheduling practices uncovered “a prohibited unrealistic scheduling practice which can harm both passengers and fair competition across the airline industry.”
The financial penalty marks the first time a U.S. airline has been fined for chronic flight delays.
Airlines are prohibited under law from offering what the department calls unrealistic schedules, which is deemed an anticompetitive practice.
The Department of Transportation found the New York-based airline routinely delayed its flights on at least 145 occasions during the scope of the investigation. The departments found those flights were chronically delayed for a minimum of five consecutive months.
Department of Transportation rules define chronic delays as any flight arriving more than 30 minutes late more than 50% of the time. The definition applies to flights that are scheduled to fly at least 10 times per month. If the conditions are not met for four or more consecutive months, the airline is deemed to be carrying out unrealistic scheduling.
The agency said Friday JetBlue did not heed departmental warnings about delays on the airline’s route between New York City’s John F. Kennedy International Airport and Raleigh-Durham, N.C.
JetBlue also chronically delayed flights between Fort Lauderdale, Fla., and New York City as well as Windsor Locks, Conn. The airline also delayed flights between Orlando and Fort Lauderdale.
The airline has seen a reduction in flights in the United States, Mexico and South America after a failed merger with rival low-cost carrier Spirit Airlines last March.
Half of the $2 million fine is being collected by the U.S. Treasury. Some of the remaining $1 million will be distributed to passengers who were previously affected by JetBlue’s unrealistic scheduling and chronic delays. Part of that amount will be set aside to compensate future JetBlue passengers for any further delays.
Per-passenger compensation must reach a minimum of $75.
“Illegal chronic flight delays make flying unreliable for travelers. Today’s action puts the airline industry on notice that we expect their flight schedules to reflect reality,” Transportation Secretary Pete Buttigieg said in the department’s statement Friday.
“The department will enforce the law against airlines with chronic delays or unrealistic scheduling practices in order to protect healthy competition and ensure passengers are treated fairly.”