JetBlue Airways (JBLU) is making strategic adjustments to improve profitability and cut costs. The airline announced plans to eliminate several unprofitable routes, redeploy aircraft equipped with its premium Mint business class, and tweak its European services.
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JBLU Will Cut Flights on Certain Routes
Starting in April, JetBlue will stop operating its Mint business class on Seattle routes. The airline will also cut flights from Fort Lauderdale to Jacksonville, New York’s JFK to Austin, Houston, Miami, and Milwaukee, as well as routes between Westchester, N.Y., and Milwaukee. Additionally, JetBlue will cease service to San Jose, California.
While Florida remains a strong market, the airline cited challenges in Miami due to competition from legacy carriers like American Airlines (AAL) and Delta (DAL). However, it will continue flying to Miami from Boston.
JBLU Plans to Announce New Europe Routes
According to a company memo cited by CNBC, JetBlue plans to announce new routes next week for Europe. However, for the summer 2025 travel season, it will discontinue its second JFK-Paris flight and summer-only service between JFK and London’s Gatwick Airport.
These changes aside, JetBlue stated that the airline has seen stronger-than-expected revenue and bookings for November and December.
In addition, the airline stated that passengers affected by these changes can choose alternative flights or receive refunds if no suitable options are available.
Is JBLU a Buy or Sell?
Analysts remain sidelined about JBLU stock, with a Hold consensus rating based on one Buy, five Holds, and three Sells. Over the past year, JBLU has increased by more than 40%, and the average JBLU price target of $6.17 implies a downside potential of around 6% from current levels.
