JetBlue weighs deeper cost cuts as sales outlook falls short

JetBlue Airways Corp. is evaluating deeper cost cuts, delaying aircraft and reworking its flight network in an effort to return to profitability in the wake of the near-collapse of its planned purchase of Spirit Airlines Inc. The initiatives, detailed Tuesday in the carrier’s latest financial report, show how incoming CEO Joanna Geraghty aims to bring clarity to JetBlue’s uncertain future. The company forecast a bigger decline in revenue than Wall Street had expected this quarter, even as JetBlue’s sales and earnings beat estimates for the end of last year. The report highlights the challenges facing many US carriers, including persistently high costs, uneven domestic travel demand, sluggish supply chains and maintenance delays. JetBlue joined Southwest Airlines Co. and Alaska Air Group Inc. in slowing 2024 growth plans in response, with flying capacity down in the low-single digits this year. The quarterly report was the final one for CEO Robin Hayes, who said earlier this month that he would step down Feb. 12. Geraghty will become the first woman to lead a major US air carrier when she assumes the post. JetBlue, which has long been hindered by high costs, is taking “aggressive action” to return to profit, Geraghty said in a statement. It’s evaluating deeper cuts beyond its existing expense-reduction plan that it says will provide savings of as much as $200m by the end of this year. It has also begun $300m in steps to boost revenue, including shifting more flights to leisure destinations like the Caribbean and the Bahamas and expanded flights to Europe to capitalize on current demand trends.<br/>