United Airlines Threatens To Abandon JFK

The management of United Airlines is threatening to leave JFK unless they get permanent slots at the airport.

United returned to JFK in 2021

United Airlines resumed service to JFK in the spring of 2021. United pulled out of JFK so that it could focus on its hub at Newark Airport, as it believed that most passengers would travel out of EWR instead of JFK.

The decision to pull out of JFK was one of the biggest mistakes of United Airlines, according to CEO Scott Kirby. The New York market was not captured by United in the same way as it was by EWR.

United flies from New York to Los Angeles and San Francisco, but we haven't seen much growth beyond that. One of the few slot restricted airports in the United States is JFK.

The return of United to JFK was well timed, as there were more temporary slots at the airport around the time of the swine flu. Things aren't looking so good anymore.

Why United is threatening to pull out of JFK

According to a memo sent to employees this week, the airline might pull out of JFK as of October 2022. The problem is described in the letter.

For more than a year, we’ve pursued additional slots through the FAA and the industry market at JFK (New York-Kennedy) so that we can grow to be more competitive.

The reason is simple: without permanent slots, we can’t serve JFK effectively compared to the larger schedules and more attractive flight times flown by our competitors. For example, JetBlue currently flies to Los Angeles six times more often from JFK than United does and American flies there more than four times as frequently.

If you recall, United had an opportunity during COVID to gain access to some temporary slot times at JFK held by other airlines. Now that customer demand has surged back, the operators of these slots are resuming their use at the start of the winer season and beyond.

That’s why ever since we started flying our JFK routes in February 2021, our goal has been growth. During that time, we’ve made repeated requests to the FAA for permanent slots while also pursuing commercial agreements to acquire slots from other airlines — all in an effort to be more competitive at JFK.

Unfortunately, we have not been successful in gaining additional permanent slots.

The FAA is being urged to increase capacity. JFK has not increased hourly slots since 2008, according to United management. The memo states that it is in the best interest of the public for the FAA to increase slots at JFK and give some to United.

If more slots aren't granted to the airline, United will leave JFK.

If our latest request is approved and the FAA can offer United an interim multi-season allocation, we are prepared to expand and provide consumers a more competitive JFK offering.

But if we are not able to get additional allocations for multiple seasons, we will need to suspend service at JFK, effective at the end of October. That would obviously be a tough and frustrating step to take and one that we have worked really hard to prevent.

My take on United’s JFK problems

Competition may be good for consumers. It's absolutely true. New entrants should be allowed into the market so that the existing players have to work harder.

The stance of United seems self-serving.

• United Airlines voluntarily left JFK in 2015, then regretted the situation, and is now playing the victim card; why should United be granted permanent slots at JFK, rather than an airline that never had the opportunity to fly there?
• JFK is currently undergoing a major redevelopment project, so this might not be the time to expand capacity at the airport, even if the runways are able to handle it
• When United returned to JFK, the airline knew it was only getting temporary slots, so it seems a bit unrealistic that the airline thought it would easily be able to acquire permanent slots
• United is taking an all-or-nothing approach here, and wants a multi-season slot allocation, or else the airline will leave the airport
• United’s argument in favor of expanding JFK slots is exactly the opposite of the argument it makes about not expanding EWR slots; ultra low cost carriers have requested more slots at EWR, and United has repeatedly argued that the airport is already too congested, and allocating more slots to ultra low cost carriers would be bad for consumers

The Northeast Alliance between American and JetBlue is being challenged by the Department of Justice, which could help United in this case. I wouldn't be surprised to see some of those allocated to United given the chance.

Bottom line

If the airline isn't granted permanent slots at the airport, it will stop flying to JFK in October of 2022. United left the airport in 2015.

United only wants to keep investing in flights to the airport if it knows the flights will stay. The argument for expanding JFK slots is the same as the argument for not expanding EWR slots.

The big question is if United pulls out of JFK without permanent slots or if it's just a threat.

What do you think about United expanding at JFK?