JetBlue Airways is implementing cost-cutting measures due to weakened travel demand amid economic uncertainty. The airline has announced it will reduce flights, especially on Tuesdays and Wednesdays, and wind down underperforming routes.
In a note to staff, CEO Joanna Geraghty stated that reaching a break-even operating margin in fiscal 2025 is “unlikely” due to the pandemic’s lasting impact on the industry. The airline had posted an annual loss of $1.4 billion in 2020 and recently rejected its merger with Spirit Airlines.
To cut costs, JetBlue will reduce flying capacity, pause plans for restyling some A320 classics, and implement a new travel and expense policy to minimize business travel expenses. However, the company is still investing in frontline crew compensation reviews and merit increases at its support center.
Geraghty also stated that the airline will continue to assess hiring and business partner spending to reduce costs. Despite these changes, JetBlue plans to launch its first-ever domestic first class and hire for key frontline roles. The carrier expects to announce route changes over the next few weeks.
Source: https://www.foxbusiness.com/lifestyle/jetblue-cut-flights-carrier-says-unlikely-break-even-2025-due-weaker-travel-demand