JetBlue picks up used jets as Airbus A321neo delays mount
JetBlue Airways has joined the ranks of carriers scrambling to make up for a shortfall in new jets as delivery delays of its new Airbus A321neos drag on into 2020.
The New York-based carrier has signed a deal to lease four used A321s -- something it has rarely done in its 20-year history -- as it tries to mitigate a shortfall of new planes this year, JetBlue finance chief Steve Priest said during an earnings call on Thursday.
JetBlue anticipates deliveries of 11 A321neos -- it is contracted to take 14 of the planes -- and the first one of 60 new Airbus A220s in 2020.
"We have confidence in the [delivery] guide, that can obviously evolve as things go forward," Priest said, suggesting that further A321neo delays -- as JetBlue experienced in 2019 -- are possible.
Sign up for the free daily TPG newsletter for more airline news!
JetBlue has company with its A321neo delays. American Airlines has also been forced to push back arrivals of the jet, while also contending with Boeing 737 MAX deliveries that remain halted until the aircraft is re-certified -- currently expected by mid-2020. Alaska Airlines, American, Southwest Airlines and United Airlines are all due to take MAX deliveries this year.
The Airbus delays are forcing JetBlue to make other trade offs. One is adding the used A321s to its 2020 fleet plan, and another is metering its roll-out of A320s with restyled cabins.
JetBlue has restyled 53 A320s with the new cabin to date, president Joanna Geraghty said on the call Thursday. However, the A321neo delivery delays has forced it slow the program and push back the expected completion of the effort to early 2021 from late 2020.
Related: Odds of getting JetBlue's updated A320s are ever more in your favor
The carrier's restyled A320 cabins feature a refreshed look like on the its A321s -- though no pantry as on the A321neos -- including personal entertainment screens at every seat and power outlets in every row. The reconfigured jets also have 12 additional seats with room for 162 passengers.
JetBlue has also slowed growth from Wall Street analysts' expectations due to the delays. The airline will grow capacity by 5.5-7.5% year-over-year in 2020, about two points lower than analysts' forecasts and slower than usual for JetBlue according to Geraghty. The focus remains growing in the carrier's core focus cities at Boston Logan (BOS) and Fort Lauderdale, at the cost of underperforming markets like Oakland (OAK).
"We plan to continue to take targeted network actions," said Geraghty. She added that every city and route has to "earn its way into our network."
JetBlue has also trimmed capacity to Puerto Rico, where it maintains a focus city in San Juan (SJU), following a drop in demand after several earthquakes hit the island earlier in January. Geraghty called the reductions "temporary."
Related: JetBlue drops Oakland, shrinks Long Beach amid broader route shakeup
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 3X | Earn 3X Miles on Delta purchases. |
| 1X | Earn 1X Miles on all other eligible purchases. |
Pros
- Delta SkyClub access when flying Delta
- Annual companion ticket for travel on Delta (upon renewal)
- Ability to earn MQDs through spending
- Various statement credits for eligible purchases
Cons
- Steep annual fee of $650
- Other Delta cobranded cards offer superior earning categories
- Earn 100,000 Bonus Miles after you spend $6,000 or more in purchases with your new Card within the first 6 months of Card Membership and an additional 25,000 bonus miles after you make an additional $3,000 in purchases on the Card within your first 6 months, starting from the date that your account is opened. Offer Ends 04/01/2026.
- Delta SkyMiles® Reserve American Express Card Members receive 15 Visits per Medallion® Year to the Delta Sky Club® when flying Delta and can unlock an unlimited number of Visits after spending $75,000 in purchases on your Card in a calendar year. Plus, you’ll receive four One-Time Guest Passes each Medallion Year so you can share the experience with family and friends when traveling Delta together.
- Enjoy complimentary access to The Centurion® Lounge in the U.S. and select international locations (as set forth on the Centurion Lounge Website), Sidecar by The Centurion® Lounge in the U.S. (see the Centurion Lounge Website for more information on Sidecar by The Centurion® Lounge availability), and Escape Lounges when flying on a Delta flight booked with the Delta SkyMiles® Reserve American Express Card. § To access Sidecar by The Centurion® Lounge, Card Members must arrive within 90 minutes of their departing flight (including layovers). To access The Centurion® Lounge, Card Members must arrive within 3 hours of their departing flight. Effective July 8, 2026, during a layover, Card Members must arrive within 5 hours of the connecting flight.
- Receive $2,500 Medallion® Qualification Dollars with MQD Headstart each Medallion Qualification Year and earn $1 MQD for each $10 in purchases on your Delta SkyMiles® Reserve American Express Card with MQD Boost to get closer to Status next Medallion Year.
- Enjoy a Companion Certificate on a Delta First, Delta Comfort, or Delta Main round-trip flight to select destinations each year after renewal of your Card. The Companion Certificate requires payment of government-imposed taxes and fees of between $22 and $250 (for itineraries with up to four flight segments). Baggage charges and other restrictions apply. Delta Basic experiences are not eligible for this benefit.
- $240 Resy Credit: When you use your Delta SkyMiles® Reserve American Express Card for eligible purchases with U.S. Resy restaurants, you can earn up to $20 each month in statement credits. Enrollment required.
- $120 Rideshare Credit: Earn up to $10 back in statement credits each month after you use your Delta SkyMiles® Reserve American Express Card to pay for U.S. rideshare purchases with select providers. Enrollment required.
- Delta SkyMiles® Reserve American Express Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- With your Delta SkyMiles® Reserve American Express Card, receive upgrade priority over others with the same Medallion tier, product and fare experience purchased, and Million Miler milestone when you fly with Delta.
- Earn 3X Miles on Delta purchases and earn 1X Miles on all other eligible purchases.
- No Foreign Transaction Fees. Enjoy international travel without additional fees on purchases made abroad.
- $650 Annual Fee.
- Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
- Terms Apply.
- See Rates & Fees