Money-Losing Intel Grounds Corporate Air Shuttle Fleet

The tech giant posted a $1.6 billion net loss in the second quarter.

Ryan Ewing

Monday, August 05, 2024 at 04:29 PM ET

Verified

Edited By:

Kimberly Johnson

An Intel Air Shuttle aircraft [Shutterstock/ Sundry Photography]

Key Takeaways:

Intel is permanently shutting down its "Intel Air" corporate shuttle service, which utilized a fleet of four Embraer jets to transport employees between its West Coast facilities.
This decision is a direct consequence of dismal second-quarter earnings, a bleak forecast, and aggressive company-wide cost-cutting measures, including recent layoffs.
The shuttle's closure is part of a broader effort to scale back employee benefits, with Intel stating it can no longer afford programs considered "above market practice."

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Following dismal second-quarter earnings and a bleak forecast, Intel is grounding its fleet of four Embraer jets. The move comes after the company announced aggressive cost-cutting measures, including layoffs for 15 percent of its workforce.

The Santa Clara, California-based company has operated a corporate shuttle for decades, which moves employees through its various West Coast facilities. Commonly referred to as “Intel Air,” the aircraft fly on regular schedules with up to 24 flights per day before the COVID-19 pandemic.