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 operated a fleet of four Embraer jets for employee travel between West Coast facilities.
This decision is part of aggressive cost-cutting measures implemented by Intel following dismal second-quarter earnings and a bleak financial forecast.
The shutdown complements broader cost reductions, including layoffs affecting 15% of its workforce, and comes after the shuttle service had only recently resumed in April 2024 after a previous year-long pause.

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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.