A drop-off in demand will prevent JetBlue from returning to profitability in 2025, said CEO Joanna Geraghty.
Joanna Geraghty
"We're hopeful demand and bookings will rebound, but even a recovery won't fully offset the ground we've lost this year. Our path back to profitability will take longer than we'd hoped," Geraghty wrote in a memo to the airline's staff this week. "That means we're still relying on borrowed cash to keep the airline running."
JetBlue recorded a net loss of $104 million last year, improving upon its 2023 loss of $310 million, making progress on its JetForward plan to reduce costs and boost yields. The airline last was profitable in 2019.
Among other steps, the airline has reduced capacity; refocused its route map on core markets in the Northeast, Florida and the Caribbean; deferred aircraft deliveries; and sold off its venture capital subsidiary JetBlue Ventures.
Geraghty wrote that various additional cost-cutting measures will be implemented in the near-term to preserve cash.
They'll include further capacity reductions, especially on Tuesdays and Wednesdays, and on routes with multiple daily frequencies. Underperforming routes will be axed, with announcements to come over the next few weeks.
JetBlue will also reduce its officer and director staffing count; cut the budget for support centers; and park four of its older Airbus A320 planes, among other measures.
JetBlue and United recently announced plans to form an extensive loyalty program partnership, with a launch coming as soon as this fall. Geraghty said hiring will continue for key support center and frontline positions, including a director to lead the United partnership.
She also said the airline is pushing ahead with plans to open its first lounges in New York JFK and Boston as well with its development of domestic first-class seats.
The carrier had previously targeted late this year for the opening of the two lounges and 2026 for the launch of first-class seats.