- CEO Joanna Geraghty told staff that the carrier is looking at further reducing off-peak flying, and unprofitable routes as well as combining some leadership roles.
- She said some initiatives remain in place, like deliveries of new aircraft and a new domestic first-class cabin.
- The carrier has been looking for ways to increase revenue a year after a failed acquisition of Spirit Airlines, and last month it announced a new partnership with United Airlines.
JetBlue Airways CEO Joanna Geraghty told staff that the carrier is implementing a host of new cost cuts as softer-than-expected travel demand is making break-even operating margins this year unlikely.
“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.
JetBlue didn’t immediately comment.
The airline will further cut flights, pause retrofits and park some of its Airbus jets, the memo said. The carrier is also assessing the “size and scope of our leadership team and have identified ways to combine or restructure certain roles for greater efficiency at the leadership level,” the memo said.
The carrier has been looking for ways to increase revenue a year after a failed acquisition of Spirit Airlines. Last month, it announced a new partnership with United Airlines.
This is breaking news. Check back for updates.
