JetBlue to reduce flights as part of cost-cutting measures, internal restructuring | FOX 51 Gainesville

JetBlue to reduce flights as part of cost-cutting measures, internal restructuring

JetBlue Airways is implementing broad cost-cutting measures, including cutting flights, pausing upgrades to aircraft, and reducing internal spending, as it struggles to regain profitability. 

What we know:

In a note to employees, JetBlue CEO Joanna Geraghty acknowledged it is "unlikely" the airline will reach a break-even operating margin in fiscal 2025, citing lagging consumer demand and ongoing financial strain. 

The airline is currently relying on borrowed cash to fund operations and is adjusting its capacity—especially on lower-demand travel days like Tuesdays and Wednesdays—to better align with market conditions.

What we don't know:

JetBlue has yet to release a full list of the underperforming routes it intends to eliminate, although the company has said more announcements are expected in the coming weeks. It’s also unclear how deep the internal restructuring will go and whether additional layoffs, if any, may result from the budget reductions across departments and support centers. 

The financial impact of the paused A320 restyling program is also not yet fully outlined.

The backstory:

JetBlue has not posted an annual profit since 2019. The pandemic-era collapse in travel demand led to a $1.4 billion loss in 2020. In 2024, the airline suffered another blow when its proposed $3.8 billion merger with Spirit Airlines was blocked by a federal judge, who ruled the deal would harm competition in the budget airline market. Geraghty, who became CEO in 2024 after serving as president, was tasked with stabilizing the struggling carrier.

What they're saying:

On route cuts, JetBlue CEO Joanna Geraghty said the airline will focus on "winding down underperforming routes" and shifting flying to more profitable areas.

"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, who took the helm in 2024, said in the note, adding that the airline is still relying on borrowed cash to keep the operation running.

FOX 35 News spoke with visitors at Orlando International Airport on Tuesday about the news.

"My only concern is that means more people on the flights that I usually book," said traveler Nate Reeser.

"It's more reason to maybe just, you know, shop around — and wise to — you know if they're putting prices down, take that into consideration," said traveler Meghan Lasek.

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The Source: This story was written based on information shared by JetBlue, FOX Business, and visitors at Orlando International Airport .

 

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