JetBlue to chop extra flights, different prices with break-even 2025 ‘unlikely’ as a consequence of weaker journey demand

JetBlue Airways CEO Joanna Geraghty instructed workers the service is implementing a number of recent value cuts as softer-than-expected journey demand is making break-even working margins this yr “unlikely.”

“We’re hopeful demand and bookings will rebound, however even a restoration will not totally offset the bottom we have misplaced this yr and our path again to profitability will take longer than we would hoped. Meaning we’re nonetheless counting on borrowed money to maintain the airline working,” Geraghty stated in a notice to workers dated Monday, which was seen by CNBC.

JetBlue did not instantly remark.

U.S. carriers have introduced plans to trim capability, notably within the second half of the yr, as bookings for home journey got here in weaker than anticipated this yr and fares fell. Airfare in Could was down 7.3% in contrast with final yr, in response to U.S. Division of Labor’s inflation report. JetBlue and different airways pulled their 2025 monetary forecasts, citing financial uncertainty that executives stated made it troublesome to foretell demand.

JetBlue has been searching for methods to extend income and reduce prices after federal judges blocked its deliberate acquisition of funds service Spirit Airways final yr and its Northeast U.S. alliance with American Airways in 2023. The airline final posted an annual revenue in 2019.

JetBlue will additional reduce off-peak flights and trim unprofitable routes. It can additionally pause plans to retrofit 4 of its older Airbus A320 jets with new interiors and park them, whereas the six remaining jets slated for the refurbishment are nonetheless on monitor for subsequent yr, Geraghty wrote.

The service can also be assessing its hiring plans and will mix some management roles and rein in journey spending, in response to the memo.

Final month, JetBlue introduced a new partnership with United Airways that may permit clients to e-book flights on one another’s airline and earn and use frequent flyer miles.

Geraghty, who took the reins at JetBlue in February final yr, instructed workers that whereas the service is assessing its hiring plans, it can proceed to deliver on new front-line staff and fill different positions, together with a brand new director for the United partnership, “given its significance to our enterprise.”

JetBlue has invested closely in premium-class seats in an effort to win over vacationers prepared to splurge on their journeys. The memo stated it is nonetheless planning to outfit a few of its planes with home top notch and construct airport lounges.

“These are the constructing blocks of a stronger JetBlue, and so they stay in movement,” Geraghty stated.