Airbus Updates No.4341

US low-cost carriers defer Airbuses

Over the last few weeks, three major US low-cost carriers have announced that they are deferring deliveries of new Airbus A320neo-family aircraft. They are doing this to reduce capital expenditure in the coming years, the expectation of lower passenger demand, as well as issues with the new engines.

On 1 July 2024, Spirit Airlines was the first to announce that they have deferred all new Airbuses it had planned to take delivery of between July 2025 and December 2026 until 2030 and 2031. How many aircraft are exactly involved hasn't been communicated. The airline currently has open orders for 23 A320neos and 30 A321neos.

JetBlue announced on 30 July 2024 that it has agreed with Airbus to defer 44 A321neos to 2030 onwards. The airline will not take delivery of any new Airbus between 2026 and 2029. JetBlue has open orders with Airbus for 49 A321neos. The delivery of new A220-300s will continue, of which they still have 66 on order.

The last airline to announce a deferral is Frontier Airlines, which did so on 8 August 2024. In total, the airline is deferring 54 A320neos and A321neos which it planned to take delivery of between 2025 and 2028. Instead, they now plan to take them on from 2029 onwards. Next to the deferral, Frontier Airlines also said it has decided to swap orders for eighteen A321XLRs into regular A320neos. The low-cost carrier currently has open orders with Airbus for 49 A320neos and 147 A321neos.

Airbus Updates No.4335

 

JetBlue Airways defers Airbus A321neo deliveries

JetBlue Airways (B6, New York JFK) and Airbus have entered into an amended delivery schedule deferring forty-four A321-200Ns initially due from 2025 to 2029, to 2030 and beyond, the US carrier announced in its 2024 second quarter financial results.

Following this deferral, JetBlue’s firm aircraft orders remain as follows:

• the remainder of 2024: twelve A220-300s, one A321neo;
• 2025: twenty A220-300s, four A321neo;
• 2026: twenty A220-300s;
• 2027: five A220-300s;
• 2028: seven A220-300s;
• 2029 onwards: four A220-300s and forty-four A321neo.

Additionally, JetBlue has the option to purchase twenty A220-300s between 2027 and 2028.

Chief Executive Officer Joanna Geraghty said during an investor call that restoring the company’s balance sheet is critical to securing its future and returning to profitable growth.

“We simply cannot continue to invest in capital-intensive assets that must be financed upon delivery and that are subsequently unable to produce a return because they have to be parked due to required maintenance and lengthy wait times. With that in mind, we’ve come to an agreement with Airbus to defer forty-four A321neo aircraft, which are the fleet most impacted by the Pratt & Whitney GTF engine issues. This will reduce our upcoming capital expenditures by USD3 billion, helping us to improve our free cash flow outlook and restore our balance sheet health,” she said.

The carrier’s fleet currently comprises 308 aircraft, including thirty-four A220-300s, 130 A320-200s, sixty-three A321-200s, twenty-five A321-200NX, eleven A321-200NX(LR), and forty-five E190s.

In the first half of 2024, JetBlue reported a net loss of USD691 million. The carrier added that it is still working with Pratt & Whitney to secure compensation for 2024 and that the engines' removal's full impact and potential remediation steps remain uncertain.