JetBlue May Be Biting Off More Than It Can Chew
Monday marked a big day for JetBlue Airways (NASDAQ: JBLU). Not only did the airline announce expanded service to London -- and that it had received permanent slots at Heathrow Airport -- JetBlue also increased its bid for Spirit Airlines (NYSE: SAVE).
JetBlue's European expansion and its effort to acquire Spirit represent two prongs of a strategy to become a serious rival to the biggest U.S. airlines. However, JetBlue may be getting too ambitious for its own good. Let's take a look.
JetBlue entered the transatlantic market last August with a single daily flight from New York to London's Heathrow Airport, using temporary slots at Heathrow that became available because of the COVID-19 pandemic. A month later, JetBlue added service to Gatwick Airport (the second-busiest London airport). This April, JetBlue confirmed that it would begin flying from Boston to both London airports later this year, giving it four daily roundtrips between the U.S. and London.
Source Fool.com
