JetBlue Airways released its Q2 earnings report today and there were a few interesting pieces of information located within. If you’re interested in reading the full report, you can find it here. Otherwise, I’ll summarize the key details below.
JetBlue has been working to return to profitability and managed to post a $25 million dollar profit in the second quarter of 2024 (or $0.07 earnings per share). While this is far from record profits, it isn’t a loss which is what the airline has reported for quite some time. The airline is targeting four “Priority Moves” to support an $800-900M targeted incremental EBIT from 2025-2027. The airline is referring to this as its “JetForward” strategy and includes the following areas of focus:
- Reliable and Caring Service: This includes improving on time performance, making investments in tools and technology, and delivering outstanding customer service
- Best East Coast Leisure Network: Refocusing the network around leisure flying originating in New York, New England, Florida and Latin geographies. Recently announced new routes to meet the needs of core customers in New England, including the addition of Manchester, NH to the network. Multiple rounds of network cuts, eliminating 15 destinations and removal of 50+ routes.
- Products and Perks Customers Value: Enhancing product offerings and loyalty perks to attract customers that value high quality and premium experiences (No mention of first class but we expect that announcement is coming soon).
- A Secure Financial Future: Recognizing $175 million of structural cost savings through 2027 via new technology investments and optimization. Deferring approximately $3 billion of capital expenditures through 2029.
JetBlue Announces Deferrals of Airbus A321neos to 2030 and Beyond
While the airline teased it in one of the four “Priority Moves” listed above, you had to dig into the investor presentation to find out that the airline was going to obtain that $3 billion deferral by pausing deliveries of the Airbus A321neo until 2030 at the earliest. The carrier had 44 of they type scheduled to be delivered from 2025-2029.
In addition to the deferral of the A321neos, JetBlue is planning to remove all of the Embraer E190s from its fleet in 2025. This will allow the airline to simplify into two fleet types with the Airbus A220 and A320 family of jets.
The airline does still seem committed to adding capacity between now and 2030 by extending the leases or purchasing off lease 12 Airbus A320s that were expected to be returned to the lessor. A220 deliveries will also be prioritized with the airline expected to receive 20 of the type each year through 2026 before dropping to 5 and 7 respectively for 2027 and 2028.
While not explicitly stated, I’d venture to guess that the airline has likely paused any additional transatlantic flying as it attempts to refocus the business on its core, East Coast leisure routes. The lack of additional A321neos will also have an impact on what can be added with the existing A321 capacity.
Summary
In its Q2 earnings report, JetBlue announced the deferrals of its Airbus A321neos until at least 2030 as part of a plan to return the New York based carrier to profitability. The airline will instead focus on expanding its fleet of Airbus A220 and A320 aircraft which is expected to provide $3 billion in capital expenditure savings.
(Images courtesy JetBlue)
