JetBlue is slashing costs as it braces for another tough financial year. With consumer demand lagging and economic uncertainty growing, the airline is pulling back on flights and freezing spending across several areas.
In a message to employees on Monday, CEO Joanna Geraghty warned that reaching a break-even operating margin in fiscal 2025 is "unlikely." She added, “We’re hopeful demand and bookings will rebound, but even a recovery won’t fully offset the ground we've lost this year.” The airline still depends on borrowed cash to operate.
Geraghty, who took over in 2024, was tasked with pulling the struggling airline out of its financial hole. JetBlue has not posted a profitable year since the pandemic began and reported a $1.4 billion loss in 2020. A federal judge also blocked its $3.8 billion merger with Spirit Airlines earlier this year, citing concerns over reduced competition.
To save money, JetBlue will continue cutting flight capacity. It’s scaling back service on low-demand days like Tuesdays and Wednesdays and reducing frequency on overlapping routes. Most of those cuts are already built into the current schedule, but more are coming.
The airline is planning to end underperforming routes and redirect flights to more profitable ones. Details on those changes will roll out over the next few weeks. In addition, JetBlue will pause planned updates to older A320s and park some of them after the summer season.
Six of the remaining 10 A320s in the older layout will still be updated early next year. But for now, JetBlue is tapping the brakes on aircraft upgrades in light of reduced demand.
Leadership is also being streamlined. JetBlue is restructuring executive roles and trimming back optional training programs, especially at its support center in Long Island City, New York.
A new travel and expense policy will be rolled out this week. Business travel is being closely reviewed, and departments are being told to cut spending. Hiring and vendor expenses are also under the microscope.
Despite all the cuts, JetBlue says it's still investing in key areas. That includes compensation reviews for frontline staff, strategic hiring, and continuing programs like JetBlue Scholars. The airline is also moving forward with its new domestic first class offering, which remains in development.