JetBlue plans new cost cuts amid weak travel demand, memo shows
How did your country report this? Share your view in the comments.
Diverging Reports Breakdown
JetBlue plans new cost cuts as 2025 breakeven hopes dim, memo shows
JetBlue Airways (JBLU.O) is planning new cost-cutting measures such as reducing flights as soft travel demand makes achieving a breakeven operating margin in 2025 “unlikely” The shares of the carrier fell nearly 3% in morning trading. JetBlue will also look for opportunities to wind down underperforming routes while focusing on profitable ones, CEO Joanna Geraghty said in a memo to employees. The airline declined to comment on the cost-cut measures.
Item 1 of 2 JetBlue logo is seen on an Airbus A321LR at the 54th International Paris Airshow at Le Bourget Airport near Paris, France, June 20, 2023. REUTERS/Benoit Tessier/File Photo
June 17 (Reuters) – JetBlue Airways (JBLU.O) , opens new tab is planning new cost-cutting measures such as reducing flights as soft travel demand makes achieving a breakeven operating margin in 2025 “unlikely”, according to an internal memo seen by Reuters.
The shares of the carrier fell nearly 3% in morning trading.
Sign up here.
JetBlue will also look for opportunities to wind down underperforming routes while focusing on profitable ones, and is reassessing the size and scope of its leadership team, JetBlue CEO Joanna Geraghty said in the memo to employees.
The New-York based airline is facing higher operating costs as ongoing inspections of RTX’s (RTX.N) , opens new tab Pratt & Whitney’s Geared Turbofan engines have grounded a number of its aircraft.
Also deepening headwinds for U.S. airlines, President Donald Trump’s trade policies and sweeping tariffs have fanned economic uncertainty and made Americans conscious about spending on travel.
“While most airlines are feeling the impact, it’s especially frustrating for us, as we had hoped to reach break-even operating margin this year, which now seems unlikely,” Geraghty said in the memo.
JetBlue had earlier revealed plans to defer deliveries of 44 new Airbus (AIR.PA) , opens new tab jets, cutting planned capital expenditures by about $3 billion between 2025 and 2029.
The airline declined to comment on the cost-cut measures, which were first reported by CNBC earlier in the day.
Reporting by Shivansh Tiwary in Bengaluru; Editing by Devika Syamnath
Our Standards: The Thomson Reuters Trust Principles. , opens new tab