JetBlue Airways pulled its 2025 forecast on Tuesday, as macroeconomic uncertainties stemming from U.S. President Donald Trump’s sweeping tariffs have made it difficult to predict travel demand.
Trump’s tariffs have sparked a global trade war and raised the odds of the world spiraling into recession, creating headwinds for major U.S. airlines which were benefiting from strong travel demand and solid pricing across their networks just two months ago.
“As we continue to monitor the evolving macro backdrop, we are evaluating all levers available to us to boost profitability and preserve cash, including additional capacity reductions, targeted cost savings and further evaluation of our fleet retirement schedule,” JetBlue CEO Joanna Geraghty said.
The airline reported a smaller-than-expected adjusted loss of 59 cents per share for quarter ended March 31, compared with analysts’ expectations of 61 cents according to data compiled by LSEG.
As travel is mainly a discretionary expense for many consumers and businesses, growing economic concerns have clouded the airline industry’s outlook.
JetBlue expects second-quarter revenue per available seat mile, a proxy for pricing power, to fall between 3.5% and 7.5%.
The New-York based airline is facing higher operating costs as ongoing inspections of RTX’s Pratt & Whitney’s Geared Turbofan engines have grounded a number of its aircraft.
The airline has deferred deliveries of 44 new Airbus jets, cutting planned capital expenditures by approximately $3 billion between 2025 and 2029.
Total first-quarter operating revenue fell 3.1% to $2.14 billion.
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