JetBlue to reduce flights, cut costs in response to weak travel demand
Show Caption
Hide Caption
United Airlines and JetBlue partner with new 'Blue Sky' frequent flyer program
The newly announced Blue Sky partnership between United and JetBlue lets travelers earn miles on both airlines while enhancing preferred services and flight options.
Scripps News
JetBlue Airways JBLU.O is planning new cost-cutting measures such as reducing flights and parking aircraft, as soft travel demand makes achieving a breakeven operating margin in 2025 "unlikely", according to an internal memo seen by Reuters.
The carrier will also look to wind down underperforming routes while focusing on profitable ones, and is reassessing the size and scope of its leadership team, JetBlue CEO Joanna Geraghty said in the memo to employees.
JetBlue shares fell 2.5% in morning trading and have lost more than 42% this year.
"We're hopeful demand and bookings will rebound, but even a recovery won't fully offset the ground we've lost this year and our path back to profitability will take longer than we'd hoped," Geraghty said.
Frequent flyer win: United and JetBlue plan to share miles and status benefits
The New York-based airline is facing higher operating costs as ongoing inspections of RTX's RTX.N Pratt & Whitney's Geared Turbofan engines have grounded a number of its aircraft.
U.S. airlines are also under pressure from President Donald Trump's trade policies and sweeping tariffs that have fanned economic uncertainty and made Americans conscious about spending on travel.
As a result, major U.S. airlines are scaling back capacity ahead of the typically busy summer travel season as they look to protect fares and adapt to weaker demand.
"While most airlines are feeling the impact, it's especially frustrating for us, as we had hoped to reach breakeven operating margin this year, which now seems unlikely," JetBlue's Geraghty said.
The company had withdrawn its 2025 forecast in April citing a weakening demand environment.
JetBlue had earlier revealed plans to defer deliveries of 44 new Airbus AIR.PA jets, cutting planned capital expenditures by about $3 billion between 2025 and 2029. It was also cutting down on some unprofitable routes.
The carrier also plans to pause retrofitting six of its Airbus AIR.PA jets and will park them instead, according to the memo.
The airline declined to comment on the cost-cut measures, which were first reported by CNBC earlier in the day.
Reporting by Shivansh Tiwary in Bengaluru; Editing by Devika Syamnath
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
11 minutes ago
- Yahoo
Exclusive-US embeds trackers in AI chip shipments to catch diversions to China, sources say
By Fanny Potkin, Karen Freifeld and Jun Yuan Yong SINGAPORE/NEW YORK (Reuters) -U.S. authorities have secretly placed location tracking devices in targeted shipments of advanced chips they see as being at high risk of illegal diversion to China, according to two people with direct knowledge of the previously unreported law enforcement tactic. The measures aim to detect AI chips being diverted to destinations which are under U.S. export restrictions, and apply only to select shipments under investigation, the people said. They show the lengths to which the U.S. has gone to enforce its chip export restrictions on China, even as the Trump administration has sought to relax some curbs on Chinese access to advanced American semiconductors. The trackers can help build cases against people and companies who profit from violating U.S. export controls, said the people who declined to be named because of the sensitivity of the issue. Location trackers are a decades-old investigative tool used by U.S. law enforcement agencies to track products subject to export restrictions, such as airplane parts. They have been used to combat the illegal diversion of semiconductors in recent years, one source said. Five other people actively involved in the AI server supply chain say they are aware of the use of the trackers in shipments of servers from manufacturers such as Dell and Super Micro, which include chips from Nvidia and AMD. Those people said the trackers are typically hidden in the packaging of the server shipments. They did not know which parties were involved in installing them and where along the shipping route they were put in. Reuters was not able to determine how often the trackers have been used in chip related investigations or when U.S. authorities started using them to investigate chip smuggling. The U.S. started restricting the sale of advanced chips by Nvidia, AMD and other manufacturers to China in 2022. In one 2024 case described by two of the people involved in the server supply chain, a shipment of Dell servers with Nvidia chips included both large trackers on the shipping boxes and smaller, more discreet devices hidden inside the packaging — and even within the servers themselves. A third person said they had seen images and videos of trackers being removed by other chip resellers from Dell and Super Micro servers. The person said some of the larger trackers were roughly the size of a smartphone. The U.S. Department of Commerce's Bureau of Industry and Security, which oversees export controls and enforcement, is typically involved, and Homeland Security Investigations and the Federal Bureau of Investigation, may take part too, said the sources. The HSI and FBI both declined to comment. The Commerce Department did not respond to requests for comment. The Chinese foreign ministry did not have immediate comment. Super Micro said in a statement that it does not disclose its 'security practices and policies in place to protect our worldwide operations, partners, and customers.' It declined to comment on any tracking actions by U.S. authorities. Dell said it is 'not aware of a U.S. Government initiative to place trackers in its product shipments.' Nvidia declined to comment, while AMD did not answer a request for comment. CHIP RESTRICTIONS The United States, which dominates the global AI chip supply chain, has sought to limit exports of chips and other technology to China in recent years to restrain its military modernization. It has also put restrictions on the sale of chips to Russia to undercut war efforts against Ukraine. The White House and both houses of Congress have proposed requiring U.S. chip firms to include location verification technology with their chips to prevent them from being diverted to countries where U.S. export regulations restrict sales. China has slammed the U.S. exports curbs as part of a campaign to suppress its rise and criticized the location tracking proposal. Last month, the country's powerful cyberspace regulator summoned Nvidia to a meeting to express its concerns over the risks of its chips containing "backdoors" that would allow remote access or control, which the company has strongly denied. In January, Reuters reported the U.S. had traced organized AI chip smuggling to China via countries such as Malaysia, Singapore, and the UAE — but it is unclear if tracking devices were involved. The use of trackers by U.S. law enforcement goes back decades. In 1985, Hughes Aircraft shipped equipment subject to U.S. export controls, according to a court decision reviewed by Reuters. Executing a search warrant, the U.S. Customs Service intercepted the crate at a Houston airport and installed a tracking device, the decision noted. U.S. export enforcement agents sometimes install trackers after getting administrative approval. Other times they get a judge to issue a warrant authorizing use of the device, one source said. With a warrant, it is easier to use the information as evidence in a criminal case. A company may be told about the tracker, if they are not a subject of the investigation, and may consent to the government's installation of the trackers, the source added. But the devices can also be installed without their knowledge. People involved in diverting export-controlled chip and server shipments to China said they were aware of the devices. Two of the supply chain sources, who are China-based resellers of export-controlled chips, said they regularly took care to inspect diverted shipments of AI chip servers for the trackers due to the risks of the devices being embedded. An affidavit filed with a U.S Department of Justice complaint regarding the arrests of two Chinese nationals charged with illegally shipping tens of millions of dollars' worth of AI chips to China earlier this month describes one co-conspirator instructing another to check for trackers on Quanta H200 servers, which contain Nvidia chips. It said the English language text was sent by a co-conspirator, whose name was redacted, to one of the defendants, Yang Shiwei. 'Pay attention to see if there is a tracker on it, you must look for it carefully," said the person, who went on to call the Trump administration by an obscenity. "Who knows what they will do." Sign in to access your portfolio
Yahoo
24 minutes ago
- Yahoo
Why Chainlink Is Soaring Today
Key Points While much of the crypto market was relatively sleepy, Chainlink popped on news of a key partnership. The cryptocurrency will team up with the New York Stock Exchange's parent company to bring institution-grade data to the blockchain. This could help cement Chainlink's role as a key bridge between crypto and legacy finance. 10 stocks we like better than Chainlink › Chainlink (CRYPTO: LINK) is on the rise. As of 5:11 p.m. ET today, it was up 9.4% from Monday at 4:00 p.m. The rise comes as the S&P 500 gained 1.1% and Bitcoin gained 0.7%. Chain Link, an "oracle" token that helps bridge the gap between real-world information and crypto blockchains, is teaming up with Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange. Chain Link will bridge Wall Street and blockchain The partnership will see ICE's consolidated feed, which pulls data from more than 300 exchanges and marketplaces worldwide, integrated into Chainlink's data streams., This will bring critical financial data to more than 2,000 blockchain applications and financial institutions that interact with the blockchain. Crypto projects now have access to data of the same quality and real-time speed that traditional finance organizations have enjoyed. Chain Link believes this will help lay the groundwork for large-scale tokenization of assets like precious metals and, more generally, blur the lines between traditional finance and crypto. ICE's Global Data Delivery VP Maurisa Baumann said the partnership will bring "trusted, structured multi-asset class data" to crypto platforms and drive crypto adoption in capital markets. Things are looking up for Chainlink While Chainlink's price is still heavily tied to broader sentiment in the crypto world, this is a major step in ensuring it has long-term value outside of crypto. Institutional integration is key for crypto projects that want to grow beyond the limitations of the crypto market. Should you buy stock in Chainlink right now? Before you buy stock in Chainlink, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Chainlink wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 11, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Chainlink. The Motley Fool has a disclosure policy. Why Chainlink Is Soaring Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24 minutes ago
- Yahoo
LINK Surges 10% as Chainlink Reserve, ICE Partnership Fuel Explosive Rally
Oracle service Chainlink's (LINK) native token surged 10% on Tuesday to a fresh seven-month high amid new traditional finance partnership and a recent token buyback initiative. The token topped $24 for the first time since February, extending its rally to 42% in a week. That's the biggest gain during among the top 50 tokens by market capitalization, CoinDesk data shows. Among the catalysts was a fresh collaboration between Chainlink and Intercontinental Exchange, the parent company of the New York Stock Exchange, to bring foreign exchange and precious metals pricing data on-chain. The partnership underscores the network's expanding role as a bridge between traditional finance and blockchain rails. A token purchase program dubbed the Chainlink Reserve, announced last week in a blog post, aims to convert revenue from Chainlink's services and enterprise integrations into LINK tokens, establishing persistent buying momentum. LINK now trades above its 50-day and 200-day moving averages, validating bullish momentum, CoinDesk's market analysis model showed. Near-term resistance emerged near $24, with support around $21.00–$21.30. Relative strength index (RSI) measurements approach overbought conditions at 72.72, indicating potential for near-term consolidation. A conclusive breakthrough above the $24.10-$24.13 resistance zone could trigger the subsequent rally phase. Read more Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
