JetBlue Airways announced a network-driven revision and extension of its A320 delivery schedule, including:
- A new order for 40 A320neo aircraft, offering up to 15% in fuel savings and increased range.
- Deferral of eight A320 aircraft from 2014-2015 to 2017 to smooth out aircraft deliveries, reducing capital commitment over the near term.
- Of the 52 A320 positions remaining on the current order book, 30 will be converted to A321s, powered by IAE engines, allowing greater network flexibility.
- A320 family deliveries starting in 2013 will come with winglets, and JetBlue will be a launch customer of retrofit winglets on the existing A320 fleet, in partnership with Airbus.
“Our network strategy, with its focus on New York, Boston, and the Caribbean/Latin America, is exceeding our expectations, and this revised fleet plan will help us continue to execute our strategy,” said JetBlue President and CEO Dave Barger. “Our goal is to continue to grow on a sustainable basis, generate positive free cash flow and continue to enhance our customers’ experience. With today’s announcement, we have taken significant steps in reducing our annual capital commitments through the next five years, while ensuring we are positioned for long-term success in a competitive, fuel challenged, environment,” said JetBlue Chief Financial Officer Ed Barnes.
In addition to the fleet adjustments noted above, JetBlue will optimize its EMBRAER 190 fleet to approximately 75 aircraft.
“The E190 is performing very well as our new, shorter-haul market aircraft, often serving to build the demand in the market for eventual up-gauge to our A320,” Mr. Barger said. “We are now at the point where the balance between frequency and capacity is tipping in favor of capacity, and we are exercising our most strategic asset – our order book – to better match capacity with growing network demand.”
