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JetBlue has not had an easy time lately. The airline has tried to shed its low-cost carrier image and appeal to more premium travelers as demand has shifted away from the cheap seats and domestic routes to the front of the plane (Business and First Class) and international holidays. The airline has tried to woo American and Delta elite flyers with status matches, partnered with Brightline for train connections in Florida, added more snacks and meal options, promised First Class seats and lounges in 2026, and even entered into an exclusive partnership with United Airlines. Unfortunately, none of this seems to be enough and now JetBlue is having to make some deep cuts.
The airline shared an internal memo with employees yesterday. This has been leaked and is quite somber in tone. It reads:
Over the past few months, we’ve discussed how economic uncertainty has shaken consumer confidence and softened travel demand — hurting our plans for the year. While most airlines are feeling the impact, it’s especially frustrating for us, as we had hoped to reach break-even operating margin this year, which now seems 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.
JetForward is making strong progress and remains the right long-term strategy. However, we must now take near-term steps to rein in spending and preserve cash.”
It goes on to list changes that JetBlue is planning in order to reduce costs and save cash. These include:
- Reducing capacity due to weaker demand. Tuesdays and Wednesdays and markets with multiple frequencies will see cuts.
- Underperforming routes will be dropped and shifted to places with profit potential.
- Cabin updates on Airbus A320s will be halted (this impacts four planes).
- An assessment of the size and scope of the leadership team will be conducted with potential restructuring on the way.
- The airline will update its T&E policy and have traveling employees cut back.
It seems to me like JetBlue is suffering a slow death. Its United partnership will largely help United and I still contend that it’s only the beginning before an eventual acquisition. I don’t think that would be a bad thing. United would definitely become a dominant player in NYC, get its South Florida hub, and better go head-to-head with Delta in Boston. It would save JetBlue’s employees and provide customers with an incredible route network.
Anthony’s Take: We’ll see if the latest cuts and changes are enough to get JetBlue headed towards profitability. My take is that they need to get First Class seats installed and lounges open quickly if they want to have a chance at survival.
(Image Credits: JetBlue.)
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Advertiser & Editorial Disclosure: The Bulkhead Seat earns an affiliate commission for anyone approved through the links above This compensation may impact how and where links appear on this site. We work to provide the best publicly available offers to our readers. We frequently update them, but this site does not include all available offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed, or approved by any of these entities.
