Spanish
NEW YORK. – US airline JetBlue Airways has informed its staff about a new round of austerity measures that includes flight cuts, suspension of unprofitable routes, and adjustments to its fleet modernization plans, amid travel demand that continues to be below projections.
According to its CEO, Joanna Geraghty, through an internal memo distributed this Monday, the company faces a complex financial outlook that will make it difficult to achieve break-even operating margins for the remainder of the year.
"Although we expect a recovery in bookings and demand, this will not be enough to reverse the accumulated losses. Profitability will take longer than anticipated and we continue to depend on external financing to maintain operations," Geraghty pointed out in the document accessed by international media.
In response to this context, JetBlue has decided to further reduce the number of flights during off-peak hours and eliminate connections that do not generate financial returns. In addition, it will temporarily suspend the renovation of four Airbus A320 model aircraft, as part of a modernization plan that, for now, will only continue with the remaining six scheduled for 2025.
The company is also reevaluating its hiring strategies, with the possibility of consolidating executive positions and limiting expenses associated with corporate travel, as part of a comprehensive effort to contain costs.
This announcement comes in a context where several US airlines have adopted similar measures, especially for the second half of the year. The drop in domestic flight bookings and the decrease in fares —which fell 7.3% in May compared to the same month last year, according to the U.S. Department of Labor— reflect a slowdown in the sector's recovery pace.
So far, JetBlue has not issued any further official comments on these decisions.
