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 Airways Corp. plans to hasten cost cuts by eliminating some flights, ending service to a number of cities and restructuring its leadership ranks.