JetBlue Airways plans to reduce its flight capacity and eliminate unprofitable routes as the travel industry faces a slowdown in demand driven by economic uncertainties.
The airline has been struggling to recover after a federal judge blocked its planned merger with Spirit Airlines in 2024, intensifying the challenges it faces.
“Economic uncertainty has shaken consumer confidence and softened travel demand, hurting our plans for the year,” JetBlue CEO Joanna Geraghty wrote in an internal memo obtained by Axios.
She acknowledged that while most airlines are feeling the pressure, JetBlue had hoped to break even this year—a goal now deemed unlikely. Geraghty added that “our path back to profitability will take longer than we’d hoped,” noting the company is still relying on borrowed funds to sustain operations.
As a result of these developments, JetBlue shares fell 7.9% to close at $4.21. Other major carriers, including Delta, Southwest, and United, also saw declines in their stock prices.
JetBlue plans to reduce flights, especially during low-demand days like Tuesdays and Wednesdays, and to cut specific routes. The airline intends to announce these changes in the coming weeks.
Additional cost-saving measures will include slowing jet renovations, leadership changes, reductions in support center staff, and cuts to travel expenses.
The moves come as JetBlue seeks to avoid the financial fate of Spirit Airlines, which filed for bankruptcy after their merger deal collapsed.
