The week of Jan. 7 began with another bit of news as the aviation world roils over the grounding of the Boeing 737 Max 9 (BA) -) after a door panel blew out mid-flight: naming declining health as the main reason for the decision, JetBlue Airways (JBLU) -) CEO Robin Hayes shared that he would be stepping down after nine years at the helm.
The role will be filled by current president and Chief Operating Officer Joanna Geraghty.
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The shift in leadership comes at a time when JetBlue is waiting for the results of a Department of Justice (DOJ) lawsuit that looked to block its plans to acquire budget airline Spirit Airlines (SAVE) -) for $3.8 billion.
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“The extraordinary challenges and pressure of this job have taken their toll, and on the advice of my doctor and after talking to my wife, it's time I put more focus on my health and wellbeing," Hayes, who is 57 and came over to the airline from a long career at British Airways, said in a statement on his resignation.
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At 51, Geraghty has been working in different roles at JetBlue since coming over to the airline in 2005. She has been in her current role as second-in-command since 2018 and, now, says that she plans to “continue working with JetBlue’s 25,000 crewmembers who are as energized as I am about challenging the status quo and bringing humanity to an industry long dominated by the legacy carriers.”
Geraghty’s appointment also makes her the only woman at the helm of a major U.S. airline.
The statement around “bringing humanity” to the industry comes at a time when a larger number of passengers are frustrated with what they perceive as a decrease in service post-pandemic. Understaffing coupled with skyrocketing numbers of people traveling has put pressure on the industry to hire at rates not currently possible particularly for highly skilled professionals like air traffic controllers.
‘Strong plan for JetBlue as we work to return to profitability’
JetBlue has also struggled with declining revenue; last October, it reported an 8.2% year-over-year decline in revenue as well as a $129 million net loss overall.
“I’m so proud of what we’ve accomplished over the last 20-plus years and I am looking forward to building on this momentum as we execute on our strategic initiatives, return to profitable growth, and generate sustainable value for our shareholders and all our stakeholders,” Geraghty said further.
While Geraghty’s early statement lacks specifics around what exactly she will do to improve the situation, profitability and how to return to it as quickly as possible have repeatedly come up in the different things that JetBlue leaders said over the switch. As much of JetBlue’s future strategy hinges on its plans to buy Spirit, specifics will depend on the DOJ case ruling — the Massachusetts court heard closing remarks on whether the acquisition would create an anti-competitive environment last December.
“Joanna and the team have developed a strong plan for JetBlue as we work to return to profitability,” Hayes said of the switch.
