CEO outlines cuts as airline struggles with falling bookings
JetBlue is signaling growing concern about travel demand and financial stability, as CEO Joanna Geraghty warned employees in an internal memo that the airline is unlikely to reach break-even operating margin this year. Geraghty said the company is still relying on borrowed cash to stay afloat and will implement cost-cutting measures to conserve liquidity.
“We’re hopeful demand and bookings will rebound, but even a recovery won’t fully offset the ground we’ve lost this year,” she wrote. The memo outlines plans to reduce flights on lower-demand weekdays, cut underperforming routes, and pause aircraft upgrades to rein in expenses. The Airbus A320 modernization program is among the delayed initiatives.
Leadership restructuring and job cuts under review
Beyond operational adjustments, JetBlue is also evaluating reductions to its leadership structure. Geraghty noted that the company has “identified ways to combine or restructure certain roles for greater efficiency at the leadership level.” The extent of potential job cuts remains unclear.
JetBlue’s stock has declined over 40% in 2025, sharply underperforming peers like Southwest and Delta. The company withdrew its fiscal 2025 guidance in April following a mixed first-quarter earnings report. While JetBlue’s loss per share of $0.59 was narrower than expected, revenue fell short at $2.40 billion compared to analyst expectations of $2.41 billion.
Travel demand slows despite falling airfare
JetBlue attributed its struggles in part to weakened off-peak demand. President Marty St. George previously warned of ongoing softness in bookings, citing macroeconomic uncertainty and eroding consumer confidence. Geraghty’s latest comments suggest those headwinds have intensified.
According to the Consumer Price Index, airfares were down 7.3% in May year-over-year, following a 7.9% drop in April. Despite cheaper flights, travel demand has not rebounded as hoped. AAA Northeast’s Robert Sinclair Jr. said the summer may turn out to be “middle of the road” in terms of travel volume, with consumer caution still prevalent.
JetBlue pivots to more profitable routes
As part of its revised strategy, JetBlue will shift capacity from weak-performing routes to destinations with greater profitability potential. The airline has not specified which routes will be cut, but the focus appears to be on preserving cash and maintaining essential operations while awaiting a demand recovery.
Geraghty acknowledged the airline’s challenges but emphasized the need for decisive action. “Our path back to profitability will take longer than we’d hoped,” she said, underlining that the airline’s future will depend on adaptability and disciplined cost management.
