JetBlue secures former Spirit slots at LaGuardia Airport

JetBlue Airways has secured former Spirit Airlines takeoff and landing rights at New York’s LaGuardia Airport, giving the carrier a rare chance to add capacity at one of the country’s most crowded airports. For investors watching airline growth, the key point is scarcity: at LaGuardia, access to the runway can be as valuable as the aircraft flying from it.

The rights cover up to 12 roundtrip flights, JetBlue said, according to CNBC. The deal still needs final approval from the court and regulators, so the airline cannot treat the added access as fully locked in yet.

Airport “slots” are government-controlled permissions for airlines to take off or land at specific congested airports. LaGuardia is tightly restricted because of limited airspace and heavy demand in the New York market, which means carriers cannot add flights there as freely as they might at less crowded airports.

Spirit previously held the slots before the budget airline shut down in May. CNBC described Spirit’s collapse as the biggest U.S. airline failure in decades, and its airport assets are now moving through U.S. Bankruptcy Court in New York.

JetBlue eyes Terminal A

JetBlue also told employees in a Monday note viewed by CNBC that it is evaluating how the slots could fit into its network strategy. The airline said any expansion tied to the slots would not take place until 2027, according to the note.

The company is also considering a move to Terminal A at LaGuardia, better known as the Marine Air Terminal, CNBC reported. The Art Deco terminal was used by Spirit until the airline closed down in early May.

JetBlue has history there as well. The carrier previously operated from the Marine Air Terminal before shifting to a newer terminal years ago. In the employee note cited by CNBC, JetBlue called the Marine Air Terminal “a convenient terminal travelers love.”

The possible terminal move adds another layer to the reshuffling at LaGuardia. Gates and slots matter because they determine how many flights an airline can operate, especially in a city where airport infrastructure and airspace limits hold back growth.

Capacity is the real prize

Airlines have used larger planes in some cases to carry more passengers when they cannot add more flights, CNBC reported. That strategy can help increase seat capacity without requiring new slots, but it does not replace the value of getting fresh runway access in a restricted market.

JetBlue’s LaGuardia plans come as the New York-based carrier has been changing its footprint elsewhere. Last month, the airline said it would reduce staffing at LaGuardia and Newark Liberty International Airport while expanding service at Fort Lauderdale-Hollywood International Airport in Florida, according to CNBC.

JetBlue did not immediately respond to CNBC’s request for comment. The final shape of the LaGuardia plan depends on the pending court and regulatory approvals tied to Spirit’s former assets.

This story draws on original reporting from CNBC.