JetBlue's fourth-quarter passenger revenue grew 3 percent year over year to $1.9 billion as the carrier adjusted its growth strategy to accommodate delivery delays from Airbus.
Last summer, the carrier received notice of production delays on Airbus A321neo aircraft, forcing it to cut its expected deliveries from 13 to six for the year. In all, 10 of 27 aircraft on order have been significantly delayed, and JetBlue expects Airbus to deliver this year only 11 of 14 of the Neo aircraft, president and COO Joanna Geraghty said in an earnings call.
JetBlue is making up for some of the delayed delivery by leasing used A321 aircraft, which it will begin flying later this year, but growth in the first quarter will be "unusually low for us," Geraghty said.
The later deliveries also have slowed JetBlue's cabin restyling schedule, Geraghty said. The carrier currently has completed 53 and expects to finish by early 2021, she said.
It has not, however, pushed back the carrier's goal to begin European service next year, and JetBlue still is determining which London airport it will use. "We continue to work multiple paths around slots at a number of London-area airports, and we're confident that our London plans will work in any number of airports," Geraghty said.
For the fourth quarter, JetBlue's traffic was up 5.2 percent year over year, and capacity was up 6 percent, which Geraghty said was due to a higher completion factor and changing the cabin refresh schedule. JetBlue's load factor declined 0.6 percentage points to 81.9 percent, and the average fare was up 1.3 percent to $185.96.
JetBlue reported net income of $161 million for the fourth quarter, down from $170 million in the fourth quarter of 2018. For the full year, JetBlue's net income was $569 million, up from $189 million in 2018.
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