JetBlue Improves Forecast for Grounded Aircraft Amid P&W GTF Issue
ByAinvest
Wednesday, Jul 30, 2025 4:40 am ET1min read
JBLU--
According to the company's earnings call on July 29, 2025, JetBlue's chief executive, Joanna Geraghty, announced that the revised forecast allows the airline to begin growing capacity again in 2026. This growth phase will continue through the end of the decade, reflecting a more favorable unit-cost growth trajectory and supporting the company's path back to profitability [1].
The improved forecast is attributed to the extension of required maintenance intervals due to better-than-expected GTF durability performance and aggressive self-help measures to source spare engines. JetBlue expects to average fewer than 10 groundings this year, down from mid-to-high teens, and anticipates that 2025 will represent the peak, with groundings reducing further in 2026 and being fully resolved by the end of 2027 [1].
This positive development allows JetBlue to park older A320 aircraft following the summer air travel peak and sell upcoming A321XLR deliveries. The airline also plans to retire its last Embraer 190 jets by the end of the summer, replacing them with Airbus A220-300s [1].
JetBlue reported a second-quarter net loss of $74 million, compared to a $25 million profit during the same period of last year. The company forecasts capacity to decrease year-on-year between 2.5% and 0.5% for the full year [2].
JetBlue's improved forecast and growth plans are expected to be further bolstered by its collaboration with United Airlines, known as Blue Sky. This partnership aims to increase incremental EBIT by $50 million, bringing the target to $850-950 million by 2027 [2].
Shares of JetBlue Airways are up 5% in pre-market trade on Tuesday, reflecting investor confidence in the airline's improved outlook [2].
References:
[1] https://www.flightglobal.com/fleets/jetblue-projects-new-growth-era-powered-by-better-than-expected-grounded-aircraft-forecast/163979.article
[2] https://www.nasdaq.com/articles/jetblue-airways-posts-loss-q2-issues-update-aog-forecast
UAL--
JetBlue reports that its forecast for aircraft on the ground due to a Pratt & Whitney GTF engine issue has improved. The airline expects to cycle through groundings "much faster."
JetBlue Airways (JBLU) has reported a significant improvement in its forecast for aircraft on the ground due to Pratt & Whitney Geared Turbofan (GTF) engine issues. The airline now expects to cycle through groundings "much faster" than previously anticipated, indicating a more optimistic outlook for its fleet recovery.According to the company's earnings call on July 29, 2025, JetBlue's chief executive, Joanna Geraghty, announced that the revised forecast allows the airline to begin growing capacity again in 2026. This growth phase will continue through the end of the decade, reflecting a more favorable unit-cost growth trajectory and supporting the company's path back to profitability [1].
The improved forecast is attributed to the extension of required maintenance intervals due to better-than-expected GTF durability performance and aggressive self-help measures to source spare engines. JetBlue expects to average fewer than 10 groundings this year, down from mid-to-high teens, and anticipates that 2025 will represent the peak, with groundings reducing further in 2026 and being fully resolved by the end of 2027 [1].
This positive development allows JetBlue to park older A320 aircraft following the summer air travel peak and sell upcoming A321XLR deliveries. The airline also plans to retire its last Embraer 190 jets by the end of the summer, replacing them with Airbus A220-300s [1].
JetBlue reported a second-quarter net loss of $74 million, compared to a $25 million profit during the same period of last year. The company forecasts capacity to decrease year-on-year between 2.5% and 0.5% for the full year [2].
JetBlue's improved forecast and growth plans are expected to be further bolstered by its collaboration with United Airlines, known as Blue Sky. This partnership aims to increase incremental EBIT by $50 million, bringing the target to $850-950 million by 2027 [2].
Shares of JetBlue Airways are up 5% in pre-market trade on Tuesday, reflecting investor confidence in the airline's improved outlook [2].
References:
[1] https://www.flightglobal.com/fleets/jetblue-projects-new-growth-era-powered-by-better-than-expected-grounded-aircraft-forecast/163979.article
[2] https://www.nasdaq.com/articles/jetblue-airways-posts-loss-q2-issues-update-aog-forecast
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