New York-based airline JetBlue is undertaking cost-cutting measures due to economic headwinds buffeting travel demand this summer, its CEO said on Tuesday.
The carrier would be reducing flights due to soft travel demand, JetBlue CEO Joanna Geraghty told employees in an internal memo, according to Reuters. The airline had been aiming to achieve a break-even operating margin this year, which now seems “unlikely,” Geraghty noted in the memo.
JetBlue is one of many United States airlines that has been impacted by President Trump’s ongoing trade policies and tariffs that have been fueling economic uncertainties for many Americans in recent months. As a result, travel demand among would-be passengers—especially budget travelers who would buy domestic economy seats—is softer this summer than usual.
Other U.S. budget carriers, such as Southwest and Spirit, have also had to cut summer flights from their schedules, and both carriers reported net losses in the first quarter of the year. JetBlue also reported a net loss for Q1 2025.
JetBlue also said it would start wrapping up operations on underperforming routes in order to focus resources on more profitable ones, and it will be reassessing the size of its leadership team, Geraghty said in the memo, according to Reuters.
Also complicating operational matters for JetBlue is the fact that several of its aircraft are currently grounded due to issues with Pratt & Whitney’s Geared Turbofan engines. Those engines, which are found on Airbus A320neo jets, have had to undergo inspections starting in 2023 to check for a manufacturing flaw.
Inspections on each plane can take up to 300 days, Reuters reports, but are expected to wrap up sometime in 2026.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
