JetBlu delays Embraer delivery, places order with Airbus

|By:, SA News Editor

In an effort to reduce expenses by transitioning to planes that use less fuel and carry more passengers, JetBlu (JBLU) has deferred delivery of 24 Embraer (ERJ) E190s and placed an order for 35 Airbus (EADSF) A321s, Bloomberg says.

The deal is valued at around $4B.

The move is indicative of "a trend we are seeing in the industry as airlines seek to reduce unit costs," Cowen says.

For its part, ERJ says the move is simply an example of "natural fleet management based on market opportunities and the company’s business plan."

The outlook for the E190 is still positive at JBLU, as CFO Mark Powers says "there’s always a place for a good 100-seater in [the] fleet." Similarly, ERJ notes that "there has been no order cancellation but a restructuring of deliveries overtime.”