JetBlue Airways CEO Joanna Geraghty informed employees that the airline is enacting additional cost-cutting measures due to lower-than-expected travel demand, which is likely to prevent the airline from reaching break-even operating margins in 2025.

Geraghty expressed optimism that demand and bookings will eventually recover, but acknowledged that the airline has faced significant setbacks this year, requiring continued reliance on borrowed funds to sustain operations.

JetBlue will be reducing off-peak flights, discontinuing unprofitable routes, and postponing the refurbishment of four Airbus A320 jets, opting to park them instead. However, plans to upgrade six other jets are still on track for next year.

The carrier is also evaluating its hiring strategies, considering consolidating leadership positions, and tightening travel expenditure, as outlined in the memo.

Amid weaker domestic travel bookings and declining fares, U.S. airlines have announced capacity reductions for the latter part of the year. May airfare saw a 7.3% decrease compared to the previous year, according to the U.S. Department of Labor.

JetBlue has been exploring ways to boost revenue and cut costs following the failed attempts to merge with Spirit Airlines and establish a Northeast U.S. partnership with American Airlines in 2023. The airline's last profitable year was in 2019.

In a recent development, JetBlue unveiled a new collaboration with United Airlines, enabling customers to book flights on both airlines and utilize frequent flyer programs interchangeably.

Despite the ongoing assessment of hiring plans, JetBlue will continue to recruit frontline staff and fill key roles, including a director for the United partnership, emphasizing its significance to the business.

The airline's investment in premium-class seating and airport lounges remains a priority, reflecting its commitment to enhancing the travel experience for passengers.

Geraghty affirmed that these initiatives are crucial for JetBlue's growth and will continue to be pursued.