JetBlue accelerates Airbus A220 deliveries, Boston-Washington a possible early route
JetBlue Airways is accelerating deliveries of the popular Airbus A220 even as it trims the number of new jets arriving over the next two years amid an uncertain outlook following the coronavirus pandemic.
The New York-based carrier will take its first of 70 A220-300s later this year as planned, betting on the jet's economics to help its bottom line through the crisis, JetBlue chief financial officer Steve Priest said during an earnings call on Thursday. Another seven A220s will arrive next year — one more than previously planned — and eight in 2022.
"The economics of this aircraft are spectacular and I’m pleased to have them in the orderbook," he told analysts when asked whether keeping the deliveries made sense.
Priest added that the "business case" for the jet — which is expected to seat about 130 passengers in a 2-3 layout for JetBlue — remained despite the crisis. JetBlue CEO Robin Hayes chimed in that the A220 could even benefit routes like the shuttle between Boston Logan (BOS) and Washington Reagan National (DCA).
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JetBlue is in survival mode as the COVID-19 crisis hits the industry hard. The airline has parked some 170 of its 262 planes — two-thirds of its fleet — cut capacity by 80% in the second quarter, and some 11,000 staff have taken voluntary unpaid leave.
Despite these efforts, JetBlue lost $268 million during the three months ending in March. Demand for air travel fell off a cliff at the end of February when COVID-19 began spreading across the U.S.
Americans, by and large, are staying put. Many states and cities remain under shelter-at-home or safer-at-home orders as officials work to flatten the curve and boost testing capacity ahead of further re-openings. Even then, it's not clear how quickly people will return to the sky.
A recent survey by the International Air Transport Association (IATA) found that at least 40% of would-be travelers will wait at least six months after restrictions are eased before flying again.
Related: JetBlue, Spirit Airlines say leisure flyers beginning to return — slowly
With so many unknowns, JetBlue has adjusted its fleet plans. It paused a multi-year effort to reconfigure, or "restyle," the cabins on is Airbus A320s with new seats, inflight entertainment and other interior upgrades. The airline is also awaiting more clarity on the recovery before making a decision on how many of its 170 parked jets will return to service.
The carrier has slashed its new Airbus A321neo deliveries by 22 aircraft through 2022. Under the revised schedule, JetBlue will take four more jets this year, five A321neos and five of the longer-range A321LRs next year, and seven A321LRs in 2022.
The A321LRs are needed for JetBlue to launch its long-planned service to London. Due to begin in 2021, Hayes said Thursday that the plans will be "shifted back a bit in terms of timing" due to the crisis.
Related: JetBlue is pressing ahead with plans to fly to London
JetBlue is already laying out possible service plans for the A220s. First ordered in 2018, the planes will seat around 130-passengers in a 2-3 economy class layout. They will replace the carrier's 60 100-seat Embraer E190s over the next few years, though that timeline could also be accelerated following the coronavirus.
“Markets like a Boston-DCA where we have multiple frequencies a day, those markets might be better served with less frequency for a period of time," said Hayes. "An airplane like a A220 could be really helpful for that in actually helping us serve it more positively.”
Prior to the crisis, JetBlue offered up to 14 flights a day between Boston and Washington National, almost exclusively on E190s, according to Cirium schedules.
The Boston-Washington route has been one of the carrier's "best markets," as JetBlue director of route planning Andrea Lusso described it to TPG last year.
Related: Airlines flew empty flights to get coronavirus aid; now they’re asking Congress for help
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- 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.
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| 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. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
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 $6,000 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.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.