JetBlue Airways is implementing several cost-cutting measures as weaker-than-expected travel demand threatens the airline’s goal of breaking even this year. CEO Joanna Geraghty informed employees that the path to profitability will take longer than anticipated, and the airline is still relying on borrowed funds to maintain operations.
“We’re hopeful that demand and bookings will rebound, but even a recovery won’t fully offset the ground we’ve lost this year,” Geraghty wrote in a memo to staff on Monday, which was obtained by CNBC.
The airline did not respond to requests for comment.
JetBlue is joining several other U.S. carriers in adjusting its capacity plans, particularly for the second half of 2025, as domestic bookings continue to fall short of projections. According to the U.S. Department of Labor, average airfare dropped by 7.3% in May compared to the same month last year. In response to the ongoing uncertainty, JetBlue and other airlines have withdrawn their financial forecasts for 2025.
The airline has been seeking new revenue sources and cost reductions following two major legal setbacks in recent years: a federal judge blocked its proposed merger with Spirit Airlines in 2023, and another ruling dismantled its Northeast Alliance with American Airlines. JetBlue last reported an annual profit in 2019.
To cut costs, JetBlue plans to reduce off-peak flights and eliminate unprofitable routes. The airline will also pause interior upgrades for four older Airbus aircraft and temporarily remove them from service. At the same time, plans to refurbish six other jets will proceed as scheduled next year.
Additional measures under consideration include streamlining leadership positions, evaluating hiring plans, and reducing corporate travel.
