JetBlue Airways Corp.’s stock dropped nearly 8% on Tuesday after Chief Executive Joanna Geraghty said the carrier’s path to profitability will be longer than expected due to a decline in travel activity.

JetBlue plans to reduce its capacity and cut unprofitable routes as the travel industry grapples with a slowdown in demand fueled by economic concerns. Why it matters: JetBlue has already been struggling to regain its footing after its plan to merge with Spirit Airlines was blocked by a federal judge in 2024.

JetBlue is sounding the alarm on weakening consumer travel demand. In an internal memo obtained by Yahoo Finance, CEO Joanna Geraghty told employees it is "unlikely" that it will