JetBlue Airways Corp. saw its shares surge by the most in nearly four years after the new CEO outlined a strategy to restructure the airline’s operations and increase profits. The company plans to focus more on leisure travel in areas where it has historically been successful, such as New York, New England, Florida, and Puerto Rico. By cutting costs, deferring new aircraft purchases, and exiting some markets, JetBlue aims to generate an additional $800 million to $900 million in pretax profit from 2025 to 2027.
The decision to defer $3 billion in spending on new aircraft until 2030 and beyond, as well as pulling out of 15 cities, is part of JetBlue’s efforts to streamline operations and improve profitability. The CEO’s priority is to return the carrier to consistent profits, which have been elusive since 2019. Despite concerns about lower revenue and higher costs in the short term, JetBlue is focused on long-term sustainability and efficiency in its operations. The company is also facing challenges due to aircraft defects and the inability to pursue acquisitions following legal obstacles.