JetBlue is pushing for more internal cost-cutting measures amid an ongoing slowdown in demand.
In a Monday memo to employees viewed by AirlineGeeks, CEO Joanna Geraghty said the New York-based airline is unlikely to become profitable this year, despite previous plans to break even. JetBlue last posted an annual profit in 2019.
“Over the past few months, we’ve discussed how economic uncertainty has shaken consumer confidence and softened travel demand – hurting our plans for the year,” she said. “While most airlines are feeling the impact, it’s especially frustrating for us, as we had hoped to reach break-even operating margin this year, which now seems unlikely.”
JetBlue reported a net loss of $208 million in the first quarter. Over the last year, the carrier has offered some pilots early buyouts, with 67 leaving the airline before their mandated retirement age.
Geraghty continued, “even a recovery won’t fully offset the ground we’ve lost this year and our path back to profitability will take longer than we’d hoped.” She said the airline continues to rely on borrowed cash.
Network Cuts
More “near-term” steps are needed to “rein in spending and preserve cash,” she said.
In recent weeks, the airline has already axed some routes, including planned service to Halifax, Nova Scotia, this summer. JetBlue has also reduced capacity on non-peak days, especially Tuesdays and Wednesdays, she said.
Additional network changes – including service suspensions – are on the way, Geraghty shared in her memo, with an announcement expected in the coming weeks. “We continue to look for opportunities to wind down underperforming routes and shift flying to places with profit potential,” she said.
JetBlue’s planned third-quarter capacity is up 2% year-over-year, according to Cirium Diio schedule data.
Parking Aircraft
The airline also plans to park four of its older Airbus A320s later this summer, Geraghty stated. These aircraft are in JetBlue’s older configuration.
Initially, the airline had planned to retrofit 10 of these A320s with refreshed interiors. Now, only six will receive these retrofits in early 2026.
In her memo, Geraghty detailed more cost cuts, including the restructuring of certain higher-level positions, reductions in optional trainings, and a more stringent travel policy.
“We recognize these cost-reducing measures have real impacts on crewmembers across JetBlue,” she added.
She remains hopeful that demand will rebound, while also expressing optimism over JetBlue’s new agreement with United, adding that it will “unlock new benefits for our customers.”
