Joanna Geraghty, chief executive of JetBlue Airways (B6, New York JFK), has told employees that economic uncertainty and softer travel demand have hurt the airline’s plans to reach profitability in 2025 and forced the company to reduce capacity, axe routes, and slow down the cabin reconfiguration of its A320-200 fleet, grounding a portion of them.
In a letter sent to staff, seen by ch-aviation, Geraghty said: “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. That means we’re still relying on borrowed cash to keep the airline running.”
The company is reducing capacity to match weaker demand, especially during trough periods, Tuesdays and Wednesdays, and in markets with too much capacity. It also aims to wind down underperforming routes, shifting to more profitable markets.
“We expect to have some changes to announce over the next few weeks, and while it’s always disappointing to end service, it opens the door for us to find new routes to fly,” she said.
In terms of fleet reconfiguration, the company aims to retrofit ten of the 130 A320-200s in its fleet, taking them from 150 seats to 162. It had planned to change them in 2026, but now, the CEO said, it will retrofit only six and park the remaining four after the summer season. These six are still on track to be restyled early next year.
Finally, the company is also considering more C-level furloughs, implementing further budget reductions, and updating its travel and expense policy.
JetBlue Airways has been looking to increase revenues and cut costs after its proposed Spirit Airlines merger and Northeast Alliance with American Airlines fell through separately. Earlier this year, JetBlue and United Airlines announced a new partnership, but both companies denied having any further consolidation plans in their new alliance, which is set to grant United Airlines access to New York JFK, among other benefits.
