JetBlue Reports Unexpected Profit and Delays in Aircraft Deliveries, According to Reuters

By Shivansh Tiwary and Rajesh Kumar Singh

JetBlue Airways reported an unexpected profit for the second quarter and announced the deferral of deliveries for 44 Airbus A321neo aircraft until 2030 and later, as part of its strategy to enhance earnings.

The New York-based airline aims to achieve an increase in core profits ranging from $800 million to $900 million by 2027. This goal will be pursued through a commitment to reliable operations and a focus on leisure travel demand in key markets such as New York, New England, Florida, and Latin America.

To manage costs, JetBlue stated that the deferral of aircraft deliveries would lower its projected capital expenditures by approximately $3 billion between 2025 and 2029.

“It is imperative we keep our costs low so we can continue offering customers the most value when they fly,” stated CEO Joanna Geraghty during an earnings call with analysts.

Following the announcement, JetBlue’s stock saw a rise of about 13%, trading at $6.68 in the afternoon.

While travel demand remains robust, an oversupply of airline seats in the domestic market has put downward pressure on airfares, complicating efforts for U.S. carriers to offset rising labor and operational costs.

Additionally, JetBlue faces challenges linked to Pratt & Whitney’s Geared Turbofan (GTF) engines, which have necessitated taking several aircraft out of service. The airline now anticipates that an average of mid to high teens grounded aircraft will be in service in 2025, with increased uncertainty in 2026 and beyond. The issues with the engines were cited as a factor in the decision to defer aircraft deliveries.

“At this stage, we simply can’t afford to continue taking delivery of costly new aircraft that may need to be parked due to engine availability issues,” commented JetBlue CFO Ursula Hurley.

For the second quarter, JetBlue reported an adjusted profit of 8 cents per share, significantly better than analysts’ average expectation of an 11-cent loss. However, the airline’s total operating revenue fell by 6.9% to $2.43 billion, slightly above Wall Street’s anticipated figure of $2.40 billion.