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JetBlue to defer delivery of 21 Airbus A320
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JetBlue said the aircraft were originally scheduled for delivery between 2009 and 2011 and it plans to defer delivery until 2014 and 2015.
Record oil prices and a weakening U.S. economy have stalled the airline industry´s modest recovery from the 2001-2006 downturn.
JetBlue chief executive Dave Barger said on Tuesday the deferrals will help JetBlue further moderate its growth rate in 2009 and beyond, which will enhance liquidity and defer future debt obligations.
Last December, JetBlue announced it would sell a 19 percent stake in itself to Deutsche Lufthansa AG, Germany´s national flag-carrier, in a deal worth about $300 million.
"In the face of escalating fuel costs, we believe it is essential to take a more financially conservative approach to managing our business," said Barger on Tuesday.
Oil prices, trading around $129 a barrel on Tuesday, have roughly doubled in the past year.
Seven small airlines have filed for bankruptcy or stopped operating in the past five months and, if oil prices stay at current levels or go higher, some major airlines also face the prospect of bankruptcy, experts say.
To survive, major airlines have moved to increase fares and fees, cut jobs, cut costs and reduce capacity and services.
Airbus and rival Boeing keep a close watch on the capacity plans of airlines as they give the clearest indication of air travel demand and, ultimately, the need for new planes.
JetBlue shares fell about 4.5 percent following the closing bell on Tuesday after the company announced it was deferring the deliveries and also said it plans to offer $160 million of convertible debentures
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