JetBlue Airways is implementing new cost-cutting measures, including reducing flights and parking aircraft, due to soft travel demand.
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The airline is also looking to wind down underperforming routes and re-assessing its leadership team.
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JetBlue CEO Joanna Geraghty stated that achieving a breakeven operating margin in 2025 is unlikely, and the company is facing higher operating costs due to grounded aircraft from ongoing engine inspections.
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“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,” Geraghty said in a note to staff dated Monday, which was seen by CNBC.
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U.S. airlines, including JetBlue, are scaling back capacity and adapting to weaker demand amid economic uncertainty and trade policies. JetBlue had previously deferred deliveries of new aircraft and cut planned capital expenditures to adjust to the challenging environment.
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