JetBlue Airways is preparing to implement additional cost-saving measures and flight reductions as weaker-than-expected travel demand has made a break-even financial performance for 2025 increasingly unlikely, according to a memo shared with employees by CEO Joanna Geraghty.
In the staff communication dated Monday, Geraghty acknowledged that the carrier’s financial recovery will take longer than originally hoped, citing ongoing reliance on borrowed cash to maintain operations.
“We’re hopeful demand and bookings will rebound, but even a recovery won’t fully offset the ground we’ve lost this year,” Geraghty wrote.
JetBlue plans to further reduce off-peak flying and eliminate unprofitable routes. The airline will also delay the refurbishment of four older Airbus A320 jets and temporarily park them, though six other jets remain on schedule to be updated next year.
Other cost-containment efforts include reassessing hiring plans, consolidating some leadership positions, and curbing corporate travel spending. However, JetBlue will continue hiring frontline workers and is actively recruiting a new director to manage its recently launched partnership with United Airlines, which allows customers to book flights across both airlines and use each other’s loyalty programs.
The broader airline industry is also responding to a slowdown in domestic travel demand. According to the U.S. Department of Labor, airfare in May dropped 7.3% from the same month last year. Several U.S. carriers have announced plans to scale back capacity in the second half of 2025.
JetBlue’s latest moves follow a string of strategic setbacks, including the blocked acquisition of Spirit Airlines earlier this year and the court-ordered dissolution of its Northeast alliance with American Airlines in 2023. The airline has not reported an annual profit since 2019.
Despite the financial challenges, Geraghty emphasized that JetBlue is maintaining long-term investments intended to enhance its competitive position. These include the introduction of the airline’s first domestic first-class product and new airport lounges, as well as the delivery of new aircraft.
“These are the building blocks of a stronger JetBlue, and they remain in motion,” Geraghty said.
JetBlue did not immediately respond to requests for comment.
