JetBlue

Despite unexpected Q2 profit, JetBlue delays new Airbus planes order to cut costs

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Despite expectations of a loss, JetBlue Airways surprised analysts with a $25 million profit for the second quarter, down 82% from the previous year. To reduce costs, JetBlue announced it would delay purchasing approximately $3 billion worth of Airbus A321neo jetliners until 2029. This move aims to help the company generate gross profits between $800 million and $900 million by 2027.

JetBlue has faced challenges, including grounded planes due to Pratt & Whitney engine issues and legal setbacks with partnerships and acquisition attempts. Courts struck down a partnership with American Airlines in the Northeast and a bid by the previous CEO to buy Spirit Airlines. CEO Joanna Geraghty, who took over in February, is steering the company through these difficulties by cutting unprofitable routes and focusing on leisure travellers in key regions.

Despite the Q2 profit, JetBlue has accumulated $3 billion in losses and hasn’t posted a full-year profit since 2020. Sales for the quarter fell 7% to $2.43 billion, slightly exceeding analysts’ forecasts. The airline anticipates continued revenue declines and rising costs, excluding fuel, in the next quarter.

This post was published on 31 July 2024 12:55

André Orban

M. Sc. Engineering

Published by
André Orban

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