JetBlue Airways may slow European ambitions as it pushes back Airbus A321 deliveries
JetBlue Airways plans to land in London by the end of next year, maybe even at the city's popular Heathrow airport.
But London has always just been a jumping off point for the New York-based carrier. JetBlue has painted a vision of possible flights to more than 20 European cities with the Airbus A321LR and A321XLR jets it has on order. Both planes are variants of the efficient A321neo that can fly the longer distances needed to hop the Atlantic Ocean.
The coronavirus pandemic may be putting those European aspirations on hold. In a report on JetBlue's third quarter results Tuesday, Raymond James analyst Savanthi Syth noted that a deferral of seven long-haul A321LR jets may signal a "slower ramp in its transatlantic ambitions."
Want more airline-specific news? Sign up for TPG's free new biweekly Aviation newsletter!
A delay to JetBlue's Europe plans comes as international travel continues to bear a heavy blow from COVID-19. International air travel traveler volumes on U.S. airlines were down 78% year-over-year during the week ending Oct. 20, according to the latest data from trade group Airlines for America (A4A). For comparison, domestic traveler numbers were down 68%.
The International Air Transport Association (IATA) forecasts that global air travel will not recover to 2019 levels until around 2024. And airlines — especially those flying across borders — are likely to face a tough time until a system of widely recognized health checks is implemented and a vaccine is broadly available.
One on-going effort to reopen international air travel is the CommonPass app. Developed by The Commons Project Foundation with support from the World Economic Forum, the app collects a user's COVID status and verifies his or her identity. It then presents that data — excluding any private health data — via a common platform to airlines and customs officials.
The Commons Project hopes to deploy the CommonPass app to all travelers in select markets early in the new year.
Related: United Airlines tests CommonPass app, potential travel bubble solution on London-Newark flight
JetBlue maintains plans to begin flights to London from both Boston (BOS) and New York JFK next year. Even with the latest A321LR delays, it will still take three jets — all decorated with its new "Streamers" tail — to begin flights in 2021. Another three will arrive in 2022.
"It's shells," JetBlue CEO Robin Hayes said of the delivery schedule changes during a third quarter earnings call on Tuesday. "We have moved over 50% of our A321 orderbook out of 2020 to 2022 [and] into the future… I feel now we have the balance right."
The A321LRs are also due to arrive with an updated cabin and new Mint premium product. Hayes and executives did not comment on these planned updates on Thursday.
Related: JetBlue says likelihood of London Heathrow flights has improved because of pandemic
While JetBlue deferred A321LR deliveries, its Airbus A220 schedule remains unchanged. The airline is due to take its first A220-300 adorned with the new "Hops" tail design in December. Another seven are due next year and a further eight in 2022.
JetBlue plans to replace its 60 Embraer E190s with the 70 A220s it has on order. However, it has not updated its previous plans to remove the E-Jets by 2025 since the pandemic began.
On Thursday, the carrier reported a $393 million net loss during the three months ending in September. Its critical daily cash burn fell to an average of $6.1 million a day and executives anticipate it to drop to between $4 million to $6 million during the final three months of 2020.
JetBlue flew just 43% of what it flew a year ago in the third quarter, even with more than 60 new routes. It plans to fly roughly 55% of a year ago — including new winter flights to places like Montrose, Colorado (MTJ) and Palm Springs, California (PSP) — during the final quarter of 2020.
Related: Airlines are flying some unexpected routes during the pandemic
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.