In their financial results this week, JetBlue has confirmed that they will delay deliveries of Airbus aircraft & as well as the exit of their Embraer fleet by 2025.
The carrier has made some significant changes via their second-quarter results, which we will get into in this article.
Without further ado, let’s get into it…
The JetBlue News on Airbus Delivery Delays & Embraer Fleet Exit…
It is understood that JetBlue began the work to smoothen the upcoming delivery stream back in January.
However, in July, the airline deferred 44 Airbus A321neo aircraft on order from 2025-2029 to 2030 and beyond, which will provide savings of $3bn.
Seen above, the contractual aircraft delivery assumption assumes that.
Within this, they have also extended leases on or purchased off lease 12 Airbus A320 aircraft to drive lighter growth.
As for the E190 aircraft, JetBlue have now confirmed the airline will retire these aircraft next year.
This allows simplification of it’s fleet being the Airbus A220 and A320 Family aircraft for better commonality.
Furthermore, they will also lighten the cost load as well by remaining with one manufacturer.
On the A220, they are prioritising deliveries of that aircraft more compared to the A321neo.
This is because they have 90% more premium seats and deliver 30% lower unit costs compared to the E190.
It is understood 16 E190s will be retired this year, with the final seven taking place next year.
Their Numbers for the Second Quarter…
Adjusted net income at JetBlue for the second quarter of this year came in at $26m.
Revenues dropped 6.9% year-over-year to $2.4bn, which was partly driven by system capacity dropping 2.7%.
Under the JetForward strategy, the airline is aiming to have a $800-900m targeted incremental EBIT between next year and 2027.
Commenting on the numbers, of which the full stats can be accessed here, was Joanne Geraghty, the airline’s CEO:
“We closed the first half of 2024 with meaningful year-over-year improvements in our operation and exceeded our second quarter guidance through strong execution, early evidence the changes we are implementing as part of our refocused strategy are yielding positive benefits,”.
“Today, and as the year progresses, we are excited to share more details about JetForward, our strategic framework to return JetBlue to sustained profitability, and the four priority moves aimed at driving significant value over the coming years.
“These include boosting reliability and doubling down on our commitment to caring service to improve satisfaction and drive cost savings; reinvesting in building the best leisure network on the East Coast, where we are positioned to win; enhancing our existing product offerings and loyalty perks to better deliver the elevated and differentiated experiences our customers want; and keeping our costs low so that we can continue to offer customers exceptional value in the sky as we build a secure financial future for JetBlue.”
Overall…
In conclusion, it remains clear that JetBlue is continuing the work of adaptation in their financials.
With delivery delays taking place on it’s Airbus A321neo aircraft, it can be assumed that transatlantic growth plans will slow.
What is interesting is the airline’s approach to becoming a single-manufacturer operator through the exit of the Embraer E190.
Looking ahead, all eyes will be on what comes next in terms of highlights for the third-quarter of this year.
But for now, the carrier has work to do in order to grow but to maintain suitable financial sustainability.
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