JetBlue Beats United Airlines On USDOT Bid For Flights To Presque Isle, Maine

The United States Department of Transportation (DOT) has disclosed that JetBlue has won an Essential Air Service (EAS) contract to provide flights to Presque Isle, Maine, which is served by Presque Isle Northern Maine Airport (PQI). The airline will serve the airport with the Embraer E190 and Airbus A220-300 aircraft.

Beating out three competitors

In total, the DOT received five applications from four different carriers, American Airlines, Boutique Air, which provided two different applications, JetBlue, and United Airlines for the EAS contract. All airlines applied to fly from Boston Logan International Airport (BOS) to PQI daily, with the essential service flights starting on September 1 and ending on August 31, 2026.

Previously, the EAS route was served by United Airlines, which won the previous two-year contract, lasting from June 1, 2022, to May 31. The carrier served the Newark Liberty International Airport (EWR)–PQI route with a Mitsubishi CRJ550. The DOT provided an annual subsidy of $10.8 million.

Nevertheless, on January 19, the DOT issued an order for airlines to propose new services to PQI, receiving proposals from the four aforementioned airlines. However, the quarter’s proposals differed in the requested annual subsidy rate, the aircraft, and the origin airports from where they would operate to the airport in Maine.

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JetBlue’s first EAS contract

The following proposals were made by American Airlines, Boutique Air, JetBlue, and United Airlines. Notably, this was the first time that JetBlue bid for an EAS contract, which subsidizes a specific route to a certain airport within the US, providing air services to more remote and/or underserved communities within the country.

The City of Presque Isle supported JetBlue’s proposal, noting that the airline’s application was favored because of BOS’ connectivity, services with much larger aircraft than other airlines had proposed, and JetBlue’s classification as a low-cost carrier. As a side note, the Department of Justice (DOJ) – successfully – argued that JetBlue was not a low-cost carrier, which resulted in a judge ruling that the JetBlue and Spirit Airlines merger would increase fares and reduce choices for passengers in the US.

Photo: Lukas Wunderlich | Shutterstock

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Around $2 million in profit

Nevertheless, the DOT filing detailed that JetBlue planned to earn $4.1 million in revenue on the EAS route, with operating costs being $12.7 million during the first year when the airline still plans to operate the Embraer 190. With a $10.4 million subsidy, JetBlue would earn a profit of $1.8 million on the route.

Photo: JetBlue Airways

During the second year of the EAS, the carrier planned to earn $5 million in revenue, offset by $14.2 million in operating expenses when JetBlue would upgauge the route to the Airbus A220-300. However, a $11.2 million subsidy would result in an annual profit of $2.1 million. The A220-300 would add 40 additional seats compared to the E190, the filing read.

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