JetBlue Cutting Routes & Delaying Refurbs: Rough

Intro

Over the past few years, we have seen JetBlue struggle to turn a profit. As a matter of fact, the last time JetBlue had a profitable year was back in 2019.

Well, over the past few months, domestic travel and non-premium travel seem to have taken quite a hit. Considering that the majority of the JetBlue fleet serves domestic routes, and most planes are in an all-economy layout, JetBlue has decided to change a few things up.

The Details

JetBlue has largely been focusing recently on cutting costs, rather than trying to boost profits. Airlines take different approaches all the time, but a memo sent out yesterday suggests the following be implemented going forward:

• JetBlue will continue to reduce capacity in attempt to match weaker demand, especially on Tuesdays and Wednesdays, and in markets with multiple frequencies. Think about Boston to Cleveland as an example (it's what comes to mind with 3x daily service)

• JetBlue will hope to look for opportunities to fly to more profitable routes, while...

• Also looking to fully cut non-profitable routes

• JetBlue will not be reconfiguring all A320s at the moment with their Mini Mint, four A320s that were initially supposed to be reconfigured in 2026 will now not be reconfigured until a later date

Now for the most interesting part of this:

• JetBlue will update its travel and expense policy, asking team members to closely scrutinize and reduce business travel spending

The last one is an interesting point to touch on, as we have constantly seen execs in airlines/airports run up hefty tabs (Denver and 17K Polaris to Europe). I wonder what that will look like going forward for execs...

JetBlue has so much potential, but can't seem to make it work...

A Quick Thought

I feel for JetBlue. I feel like there is so much potential for the airline, but they haven't been able to properly capitalize on what they have built. They dominate the Northeast region, much like Alaska dominates Seattle.

However, they sort of brought this upon themselves. With the potential merger coming with United (many years off if it goes through), I think it's more about just staying afloat for now, hence why they are trying to reduce expenses.

Final Thoughts

JetBlue has come out with a memo stating that the airline is looking to cut costs by any means necessary at the moment. Whether it be cutting midday routes which have multiple frequencies, or capping what the execs can spend when traveling. Let's see how this all pans out moving forward.