JetBlue Slashes Flights and Expenses as 2025 Profitability Remains Elusive

JetBlue Airways Chief Executive Officer Joanna Geraghty informed employees that the airline is introducing several cost-saving measures due to lower-than-anticipated travel demand, making it “unlikely” for the company to achieve break-even operating margins this year.

“We are optimistic that demand and bookings will pick up, but even a recovery won’t completely compensate for the losses we’ve experienced this year, and our journey back to profitability is going to take longer than we initially anticipated. This means we are still depending on borrowed funds to keep the airline operational,” Geraghty mentioned in a memo to staff on Monday, which was reviewed by CNBC.

JetBlue has yet to provide any comments.

U.S. airlines have announced plans to reduce capacity, especially in the latter half of the year, as domestic travel bookings have turned out weaker than expected, leading to decreased fares. In May, airfare dropped by 7.3% compared to the previous year, according to an inflation report from the U.S. Department of Labor. JetBlue and other airlines have withdrawn their 2025 financial predictions, citing economic uncertainty that makes demand forecasting difficult.

After federal judges halted its attempt to acquire budget airline Spirit Airlines last year and its proposed Northeast U.S. partnership with American Airlines in 2023, JetBlue has been searching for ways to boost revenue and cut expenses. The latest annual profit for the airline was reported in 2019.

JetBlue will further reduce flights during off-peak times and eliminate non-profitable routes. Additionally, the airline will halt the retrofitting of four older Airbus A320 jets with new interiors and put them into storage, while still planning to refurbish the remaining six jets next year, Geraghty noted.

The airline is also reviewing its hiring strategy and may merge certain leadership roles while tightening travel expenses, as per the memo.

Recently, JetBlue announced a partnership with United Airlines, enabling customers to book flights on both airlines and earn or redeem frequent flyer miles.

Geraghty, who became CEO of JetBlue in February of last year, informed staff that while the airline is evaluating its hiring plans, it will proceed with hiring more front-line employees and fill other key positions, including a director for the United partnership, “due to its critical importance to our operations.”

JetBlue has made significant investments in premium-class seating to attract travelers willing to spend more on their journeys. The memo indicated that the airline still intends to equip some of its aircraft with domestic first-class cabins and construct airport lounges.

“These initiatives are fundamental to building a stronger JetBlue, and they are still progressing,” Geraghty stated.