A JetBlue Airways Airbus A321-231 taxis at San Diego Worldwide Airport on March 4, 2025 in San Diego, California.
Kevin Carter | Getty Pictures
JetBlue Airways CEO Joanna Geraghty instructed employees that the service is implementing a bunch of latest value cuts as softer-than-expected journey demand is making break-even working margins this 12 months “unlikely.”
“We’re hopeful demand and bookings will rebound, however even a restoration will not absolutely offset the bottom we have misplaced this 12 months and our path again to profitability will take longer than we would hoped. Which means we’re nonetheless counting on borrowed money to maintain the airline working,” Geraghty mentioned in a be aware to employees dated Monday, which was seen by CNBC.
JetBlue did not instantly remark.
JetBlue will additional reduce off-peak flights and trim unprofitable routes. It is going to 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 observe for subsequent 12 months, Geraghty wrote.
The service can be assessing its hiring plans and will mix some management roles and rein in journey spending, in keeping with the memo.
Final month, JetBlue introduced a brand new partnership with United Airways that can enable clients to e-book flights on one another’s airline and earn and use frequent flyer applications.
Geraghty, who took the reins at JetBlue in February final 12 months, instructed employees that whereas the service is assessing its hiring plans, it should proceed to convey on new frontline 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 keen to splurge on their journeys. The memo mentioned it is nonetheless planning to outfit a few of its planes with its first domestic-first class and construct airport lounges.
“These are the constructing blocks of a stronger JetBlue, they usually stay in movement,” Geraghty mentioned.
