JetBlue has deferred deliveries of 44 Airbus A321 aircraft until 2030 and beyond, a move toward solidifying the airline's balance sheet and improve cash flow.
The 44 planes had been scheduled for delivery between 2025 and 2029.
The aircraft deferrals also will slow JetBlue's transatlantic growth. The deferral includes 13 A321XLR (extra-long range) aircraft, which JetBlue had intended to use for more Europe service. JetBlue's transatlantic network currently includes 11 routes, all from New York JFK and Boston to London, Dublin, Amsterdam, Paris and Edinburgh.
CEO Joanna Geraghty called European flying "an important part of the JetBlue network."
"We're pleased with what it does seasonally and what it does adding contributions to our loyalty program," Geraghty said during JetBlue's Q2 earnings call on Tuesday. "Obviously, the deferral of the XLR will have impacts on growth in that market, but it's by no means a retreat, it's a further learning how to ensure that those routes are profitable."
The aircraft deferrals will reduce JetBlue's capital expenditures through this decade by approximately $3 billion. The airline now expects to take just 11 more A321s this decade.
On average, JetBlue will have 11 A321s grounded this year due to mandated inspections of Pratt & Whitney GTF engines for potential metal contamination. The airline expects that number to be in the mid to high teens next year.
Geraghty said those inspections, and other engine reliability issues, have made A321 purchases a poor use of capital for now. To keep up with capacity plans, JetBlue has instead extended or bought out leases on 12 of its existing planes in the A320 family.
During the earnings call, JetBlue executives also outlined a package of initiatives called JetForward that is expected drive $800-$900 million in additional earnings through 2027. JetBlue hopes the initiative will help it break even in 2025.
Some of the initiatives have been implemented already. JetBlue has already announced exits from more than 50 routes this year as well as 15 destinations, reorganizing its network to sharpen focus on its core markets in New York, New England, Florida, the Caribbean and transcontinental. Recent exit announcements include Minneapolis; Charlotte, N.C.; Palm Springs, Calif.; San Antonio, Texas; Tallahassee, Fla.; and Burbank, Calif.
The airline has also instituted commercial changes, including allowing basic economy flyers to stow a carry-on bag, as well as paid seat selection. Enhancements to its premium offerings will be announced later in the year, airline president Marty St. George said.
Geraghty said JetBlue has begun investing more in operational reliability, an area in which it has long lagged competitors. Those expenditures include more scheduled maintenance time, automated tracking of aircraft turns, expanded block time for some flights and enhanced self-service tools for customers. The changes helped drive a seven-point improvement in JetBlue's on-time rate in the second quarter, the airline said.
JetBlue reported Q2 net income of $25 million, defying analyst expectations of a losing quarter. Its stock soared as a result; it was up more than 11% in mid-afternoon trading.