JetBlue is bracing for a tough 2025 amid ongoing economic anxiety.
According to a memo obtained by Reuters, the airline is "unlikely" to break even in 2025, and thus will implement cost-cutting measures that includes reducing flights, parking aircraft, as well winding down underperforming routes and prioritizing profitable ones.
Suffice it to say, the soft travel demand is to blame.
"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," JetBlue CEO Joanna Geraghty said.
She added, "While most airlines are feeling the impact, it's especially frustrating for us, as we had hoped to reach breakeven operating margin this year, which now seems unlikely."
Related: United Airlines and JetBlue Airways Announce Major News on Thursday
News of the bleak outlook triggered shares to fall 2.5%. The company's shares have lost more than 42% this year, Reuters reports.
Back in April, JetBlue withdrew its 2025 forecast due to President Donald Trump's ongoing and unpredictable trade war, which have made it excruciatingly challenging for companies to forecast how businesses will perform. The Trump administration's trade and tariffs policies have also forced Americans to think twice about unnecessary spending, including on travel.
The writing had been on the wall, of sorts, for some time. JetBlue previously announced it was deferring 44 new Airbus jets. And now, plans to retrofit six of its Airbus jets have also been put on hold.
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