JetBlue is seeing softer-than-expected travel demand and this year could further cut flights and costs, according to a CNBC report based on a June 16 internal memo from JetBlue CEO Joanna Geraghty that CNBC had reviewed.
The airline also is “unlikely” to see break-even operating margins this year, according to the CNBC report.
“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 the memo according to CNBC. “That means we’re still relying on borrowed cash to keep the airline running.”
JetBlue did not immediately respond to a request for comment.
The memo also noted JetBlue would pause retrofitting four older Airbus A320 planes and instead park them, while plans for six other aircraft updates will remain on track, according to the report. In addition, JetBlue is reviewing its hiring plans and could combine some leadership roles. The memo, however, said that the carrier will continue to add first class to some of its planes and build airport lounges.
The report comes a few weeks after JetBlue and United Airlines on May 29 announced a partnership, dubbed Blue Sky, which focuses on reciprocal loyalty benefits, being able to purchase each carriers’ flights on the others’ websites and apps, and some slot benefits for United at New York’s John F. Kennedy International Airport and for JetBlue at Newark Liberty International Airport.
Geraghty took the reins at JetBlue in February 2024. The carrier in July 2024 launched its recover plan, JetForward, which refocused the airline on its leisure business and included a target of $800 million to $900 million in earnings before interest and taxes through 2027.
Recent Comments