JetBlue has warned it will likely miss break even in this financial year as it embarks on further cost cutting measures.
In a staff memo, CEO Joanna Geraghty noted the airline is still using borrowed cash for flight operations.
“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,” Geraghty wrote.
The airline has been in the red since the pandemic, starting with a $1.4 billion loss in 2020.
Last year, a planned $3.8 billion merger with Spirit Airlines was blocked and its Northeast alliance with American Airlines never got off the ground.
JetBlue will rein in flight capacity on routes where it operates multiple flights a day and on days where there is weaker demand on other routes.
It will also gradually ‘wind down’ underperforming routes and focus on more profitable ones.
These changes will be announced in the coming weeks, it said.
There will be a leadership restructuring which may see some roles combined.
