US airline JetBlue is looking at further capacity reductions after seeing a decline in bookings during the first quarter of 2025.
Announcing a loss of $208 million for the first three months of the year, the airline’s CEO Joanna Geraghty said the airline was ‘evaluating all levers available to boost profitability and preserve cash’.
JetBlue chopped capacity for the first quarter by 4.3% year-on-year, and it is looking at ‘additional capacity reductions’ along with cost savings, including a further evaluation of its fleet retirement schedule, said Joanna.
She added that, due to ‘macroeconomic uncertainty’, the airline was not reaffirming its previous full-year guidance.
JetBlue President Marty St George said: “In the first quarter, we saw booking strength from January deteriorate into February and worsen into March.
“We expect softened demand for off-peak travel to continue into the second quarter, where the booking curve is more exposed to macro uncertainty and deteriorating consumer confidence.”
However, he said premium, international and loyalty revenues were ‘resilient’ and they will form core components of JetBlue’s long-term strategy.
Its revenue per available seat mile on transatlantic routes grew 28% year-over-year on 25% less capacity, which the airline said was ‘evidence of continuing market maturation and successful efforts to better seasonalise flying’.
The airline axed more than 50 routes last year and suspended flights from London Gatwick over the winter, focusing instead on its flights from Heathrow. It will resume its daily service from Gatwick to Boston next month, which will complement its twice-daily flight to New York JFK and daily service to Boston from Heathrow.
US media has reported that the airline is expected to announce a commercial partnership with US rival United Airlines within the next few days.
