JetBlue lands FAA approval for Spirit's old slots at LaGuardia Airport

JetBlue Airways (JBLU) received FAA approval this week to acquire 22 takeoff and landing slots at New York City's LaGuardia Airport from Spirit Airlines (FLYYQ). The decision clears a major regulatory hurdle for the $58.5M purchase and gives JetBlue (JBLU) key operating rights at an airport where congestion and federal restrictions limit expansion.

The slots became available after Spirit stopped passenger operations in May and began liquidating its assets. JetBlue (JBLU) won the court-supervised bidding process, with a slightly higher bid than Frontier Airlines (ULCC). The acquisition transfers existing operating rights rather than creating new airport capacity, allowing JetBlue (JBLU) to grow without increasing LaGuardia’s overall slot allocation.

The package comprises 12 daily departure slots and 10 arrival slots, which could give JetBlue (JBLU) 12 additional round-trip flights from the airport. Per the conditions of the FAA approval, JetBlue (JBLU) cannot lease or trade the acquired slots to another airline until after April 2028. It also received a temporary waiver from minimum-use requirements through April 2027, giving it time to arrange aircraft and schedules without immediately risking forfeiture under the usage rules.

For investors, the purchase strengthens JetBlue's (JBU) New York City presence while it works to restore profitability. Regulators rejected objections that the transfer would weaken budget competition, noting JetBlue’s share of LaGuardia slots remained below 5% and that it competes independently against larger network airlines.

Shares of JetBlue (JBLU) are down 11% on a year-to-date basis.

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