JetBlue CEO Joanna Geraghty told staff on Monday that the company is looking to cut costs in response to soft travel demand.
“We’re hopeful demand and bookings will rebound, but 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,” Geraghty said in a memo that was seen by Skift. “That means we’re still relying on borrowed cash to keep the airline running.”
These cost cuts include cutting more underperforming routes and reducing off-peak flying. JetBlue had originally intended to retrofit 10 Airbus A320s in 2026, but will now only retrofit six, while the other four will be parked at the end of summer.
Geraghty said it was unlikely that JetBlue would break-even this year.
“While most airlines are certainly 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,” Geraghty said in the memo.
The carrier is also reconsidering hiring plans and could combine some leadership roles.
U.S. Airlines Respond to Weaker Travel Demand
JetBlue said during its first quarter earnings call in April that it planned to reduce capacity in anticipation of softer demand in the second quarter. Airlines have been reducing capacity in the second half of the year in response to weaker domestic travel demand.
The airline industry has been grappling with declining consumer confidence, which has hit domestic travel demand particularly hard. Legacy carriers like Delta Air Lines and United Airlines reported a profitable first quarter in part due to high demand for international and premium travel offsetting softness in domestic.
Geraghty said in the memo that JetBlue would continue hiring for “key frontline roles and strategic support center positions.” The carrier is currently hiring a new director to oversee its United partnership due to its “importance to our business.”
JetBlue is also continuing to develop domestic first-class seats, receive new aircraft orders and open more lounges, Geraghty said.
“These are the building blocks of a stronger JetBlue, and they remain in motion,” she said.
Airlines Sector Stock Index Performance Year-to-Date
What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies.
The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more airlines sector financial performance.
Read the full methodology behind the Skift Travel 200.
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