JetBlue Airways Corp., once among the fastest-growing airlines in the industry, said yesterday it is delaying deliveries of some of the new Embraer 190 jets it had been scheduled to receive from 2007 to 2010.
The Forest Hills-based airline said that instead of getting 18 of the Brazilian-built E-190s next year, it would take delivery of only 10. The company cited higher fuel prices and increasing competition as considerations in its decision, factors that have been plaguing JetBlue and other airlines for several years, even though passenger traffic has increased dramatically since falling off after the Sept. 11, 2001, terror attacks.
The airline also said, as it has previously, that its growth target for next year will be to increase capacity 14 percent to 17 percent, down from its previous goal of 18 percent to 20 percent.
Amy Carpi, JetBlue's director of investor relations, said in a telephone interview that the airline may be slowing its growth a bit but, "We remain a growth airline."
JetBlue's fleet consisted entirely of 156-passenger Airbus A-320 jets until it began acquiring the smaller E-190s, which carry about 100 passengers and enable the airline to focus on high-return, shorter flights. The airline has orders for 100 E-190s and options on another 100 by the year 2016.
Ray Neidl, who follows the airline industry for Calyon Securities in Manhattan, said he had been predicting slower growth for JetBlue.
"The larger carriers are coming back" after cleaning up their balance sheets by cutting capacity and unprofitable routes, Neidl said. This is putting further pressure on low-cost carriers such as JetBlue, although low-cost Southwest Airlines remains profitable. Neidl said he sees further slowing in growth for JetBlue.
JetBlue in October reported a third-quarter loss of $500,000, compared with a gain of $2.69 million during the same period last year.
In a statement, David Neeleman, JetBlue's founder and chairman, said, "We are now entering a new chapter in the JetBlue story - still a story of strategic growth, but more a targeted growth that builds on our market dominance on the East Coast, and in particular, our home base" at Kennedy Airport.
Shares of JetBlue closed yesterday at $13.83, up 45 cents.
Copyright 2005 LexisNexis, a division of Reed Elsevier Inc. All rights reserved.
Terms and Conditions | Privacy Policy
News stories provided by third parties are not edited by "Site Publication" staff. For suggestions and comments, please click the Contact link at the bottom of this page.
