by Lacey Pfalz
Last updated: 10:50 AM ET, Tue January 30, 2024
JetBlue Airways announced a new chief operating officer and predicted that the company would see a fall in revenue during the first quarter of the year, along with higher costs.
Warren Christie, currently the head of safety, security, fleet operations, airports and JetBlue University, will be promoted to chief operating officer effective February 12, 2024. He takes the place of Joanna Geraghty, who will be assuming the role of chief executive officer.
Christie has over 30 years of experience in aviation, ranging from his time as an Officer in the United States Navy to his tenure at JetBlue, which spans twenty-one years.
“I’m thrilled that my first leadership appointment is to promote Warren into the role of chief operating officer, where he will help lead our teams in our effort to improve reliability and restore profitability in our airline,” said Geraghty. “With 35 years of aviation experience – 21 of those at JetBlue – he is well positioned to help us tackle the unique challenges we face while continuing to lead with safety as a core element of our culture.”
Speaking of profitability, Reuters reported the airline would consider deeper cost cuts after predictions that it would see a fall in revenue and higher costs during the first three months of 2024. It predicts its first-quarter revenue to fall 5-9 percent, with full-year revenue falling flat, while non-fuel costs are predicted to rise as much as 11 percent year-over-year.
It is also planning to defer $2.5 billion in planned aircraft capital expenditure to 2028.
“We remain intensely focused on restoring profitability, taking steps to ensure every dollar we invest is making an impact. As part of these efforts, we are carefully evaluating deeper cuts to our controllable costs beyond our ongoing fleet modernization and structural cost programs,” said Ursula Hurley, JetBlue’s CFO. “Through these initiatives, coupled with the evolution of our network and product offering, I am confident in our ability to re-establish profitability and position JetBlue to restore historical earnings power.”
JetBlue has had to grapple with its network as travelers lead a swing in demand from peak and off-peak travel periods. It will move its capacity that underperforms to premium leisure and more popular markets to generate more revenue. For example, it recently cut service from New York to Milwaukee and Ponce in Puerto Rico.
It’s also facing an uncertain future after its merger with Spirit Airlines was rejected by a judge who cited antitrust concerns over the creation of the fifth-largest airline in the nation. Both Spirit and JetBlue are set to appeal the judge’s initial decision.
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