The author “Flying for Peanuts”, Frank Lorenzo, reveals what he learned in the industry on “The Count of the Claman”.
JetBlue implements a series of cost reduction measures, including the removal of certain flights, As economic uncertainty has reduced consumer confidence and subsequently attenuated consumer demand.
CEO, Joanna Geraghty, told staff on Monday in an internal note that he was “unlikely” that the company is reaching an exploitation margin of the profitability threshold during the year 2025 after years of financial tension.
“We hope that the request and the reservations will bounce back, but even a recovery will not fully compensate for the ground that we have lost this year and our return to profitability will take more time than we hoped,” said Geraghty, who took the bar in 2024, said in the note, adding that the airline is still based On money borrowed To maintain the operation in progress.
The CEO of JetBlue, Joanna Geraghty, told staff on Monday in an internal note that it was “unlikely” that the company is reaching an exploitation margin for the profitability threshold (Chris Ratcliffe / Bloomberg via Getty Images / Getty Images)
In 2024, Geraghty, who previously was president of the airline, was exploited to transform the company, which had been in a precarious situation for years due to challenges from the Covid-19 pandemic which made the industry scream.
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JetBlue has not displayed annual profitability since the start of the pandemic, the carrier undergoing a loss of $ 1.4 billion in 2020. In 2024, its fusion of $ 3.8 billion with Spirit Airlines was rejected by a federal judge on the grounds that it would harm the competition for low -cost plane travel tickets.
To curb spending and preserve short -term money, Geraghty said that the airline will continue to reduce flight capacity to match the lower demand, especially Tuesdays and Wednesdays and on the markets where it operates several flights for a single route.
However, the airline said that the majority of these discounts are already reflected in the airline’s current operating calendar. Meanwhile, the carrier is already looking to “Underperformative roads reduce“And move the flight to more profitable roads. The carrier should announce these changes in the coming weeks.
To curb expenditure and preserve short -term money, the airline will continue to reduce flight capacity to match the lower demand. ((Photo of the images Aaronp / Bauer-Griffin / GC) / Getty Images)
JetBlue is also stopping plans to restore some of its A320 classics in service and will rather park them at the end of the summer due to the reduced flight. Six of the 10 planes – the last of the older configuration – are always on the right track to be released at the start of next year.
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Aside from its service, the company also tries to stimulate efficiency among its leaders by combining or restoring certain roles. The carrier said that he also reduced certain virtual training programs in person and optional non -operational in his Support Center for Long Island City in New York.
JetBlue also tries to strengthen the efficiency of its leadership by combining or restoring certain roles. (Images Kevin Carter / Getty / Getty Images)
The carrier plans to issue a travel and expenditure policy updated this week to reduce certain travel costs. He also asks the organizations of the organization “examining closely and reducing business travel expenses”. He has also implemented budget discounts in support centers and assesses hiring, spending by business partners and other services purchased.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| Jblu | JetBlue Airways Corp. | 4.21 | -0.36 |
-7.88% |
Despite cost reduction changes, Geraghty said that the company was still investing in specific areas of its operations, including remuneration exams for front -line crew members, merit increases in the support center and programs such as JetBlue scholars. The company said it would also hire first -line roles and strategic support center positions.
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He always progresses with plans to launch his very first first national class, which is still in development.