JetBlue is deferring delivery of 13 aircraft over the next
few years as part of a "detailed review of current and future fleet,"
CFO Steve Priest said.
The carrier has pushed back delivery of eight
A321neo aircraft from 2019 to 2023, and five more that are scheduled for
delivery in 2020 have been deferred to 2024, said Priest, who
was promoted to CFO earlier this year. Additionally, JetBlue changed 11
A321neo aircraft slated for next year to the older engine design, A321ceo, all
part of a larger cost-control effort by the carrier.
JetBlue also is taking "a hard look at the future of
the E190, of which it has an outstanding order. A research note from Cowen
& Co. predicted "that order will be canceled or pared."
During the first quarter, JetBlue's passenger revenue
declined 1.8 percent year over year to $1.5 billion. Traffic increased 3.9
percent as capacity increased 4.2 percent, diminishing load factor by 0.3
percentage points to 83.9 percent. The carrier's average fare declined 7.8
percent year over year to $149.41 during the first quarter.
The
carrier reported a net income of $85 million for the quarter, down from $207
million in the first quarter of 2016. Its total operating expenses rose 15
percent year over year during the quarter, including a 50.2 percent increase in
fuel costs.