JetBlue Airways (NASDAQ:JBLU) saw its stock decline by 5% on Tuesday after a leaked internal memo revealed that CEO Joanna Geraghty warned employees of further cost-cutting steps amid persistent weakness in travel demand.

In a staff message dated Monday and reviewed by CNBC, Geraghty acknowledged that the airline continues to operate using borrowed funds and cautioned that a recovery in demand won’t be enough to make up for the losses incurred this year. As a result, she said that achieving break-even operating margins in 2025 now appears unlikely.

To address these challenges, the company plans to scale back its flight schedule even more, delay aircraft upgrades, and temporarily take some Airbus planes out of service. Additionally, leadership changes are on the table, with Geraghty stating that JetBlue has “identified ways to combine or restructure certain roles” at the executive level to improve efficiency.

JetBlue has not issued a public comment in response to the report.

The broader airline sector also faced pressure on Tuesday, as renewed geopolitical tensions in the Middle East dragged down overall market sentiment.

JetBlue Airways stock price