Low cost air carrier JetBlue has announced it will discontinue operations in Ontario, CA, beginning Sept. 3.
“The dramatic rise in fuel prices has forced us to make the difficult decision to discontinue operations in Ontario,” said CEO Dave Barger. “While we understand the impact this decision has on our customers and our crewmembers, we need to make appropriate network adjustments to better match our capacity with customer demand.”
JetBlue also announced that it will defer 10 EMBRAER 190 aircraft originally scheduled for delivery between 2009 and 2011 to 2016.
“We believe slower growth, combined with our rigorous cost control and aggressive revenue focus, will further strengthen our liquidity position, which is essential in this environment,” said Ed Barnes, JetBlue’s CFO.
In addition, JetBlue announced it has obtained a new $110 million line of credit with Citigroup Global Markets Inc. JetBlue plans to use the funding to fund working capital, capital expenditures and other general corporate purposes. The credit facility, which expires next July, is secured by a portion of JetBlue’s auction rate securities.
“We are keenly focused on cash preservation and liquidity,” said Barnes. “This new line of credit further bolsters our financial position and better positions us to address the challenges and opportunities that lie ahead.”