The news: Weaker-than-expected travel demand is driving JetBlue Airways to launch cost-cutting measures, including eliminating underperforming routes, ending service in some cities, halting nonessential aircraft refreshes, and restructuring its leadership team, per Bloomberg.

Zooming in: JetBlue is in a tough spot.

• In recent years, federal courts blocked the carrier’s planned acquisition of Spirit Airlines and dismantled its Northeast partnership with American Airlines—two initiatives that were once central to its growth strategy.
• Looking for new expansion paths, JetBlue recently announced a partnership with United Airlines that enables travelers to book across both carriers and earn or redeem frequent flyer miles interchangeably. The airline has also invested in premium-class seating to attract higher-spending customers.

Still, these moves haven’t been enough to offset persistent macroeconomic pressures. Even if demand recovers, the company’s “path back to profitability will take longer than we’d hoped,” wrote CEO Joanna Geraghty in a memo referenced in Bloomberg. And, like several of its peers, JetBlue has withdrawn its full-year guidance, citing demand softness.

Zooming out: The travel industry faces stiff headwinds.

• TSA data shows that the number of travelers passing through US airports over the past 90 days is down YoY—the first such decline since the peak of the COVID-19 pandemic, per the Financial Times.
• Spending data reinforces the trend. US consumers across income brackets cut back on air travel and hotel spending through May 2025 versus the same period in 2024, with the steepest declines among lower-income consumers, per a recent Bank of America Institute report.

Our take: Macro uncertainty is compounding the pressures on already struggling companies—whether it’s JetBlue, auto parts maker Marelli, or home furnishings retailer At Home—as each grapples with weakened demand, rising costs, and limited financial flexibility.

Go further: Read our Travel 2025 Infopack and/or watch our “Behind the Numbers” podcast on summer travel.

Editor's note: This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.