JetBlue Airways has ordered 30 Airbus A321 aircraft valued at US$3.6 billion, as the carrier expands its Mint premium product.
The US airline agreed to buy 15 more A321s with the current engine option for delivery starting next year, and 15 more A321s with new, more fuel efficient engines starting in 2020. The new aircraft will be used in part to expand cross-country flights in the United States, JetBlue said on Tuesday.
The news came as the budget carrier said quarterly profit rose 18.4 per cent as it continued to benefit from lower fuel costs.
JetBlue paid $1.43 per gallon on average in the quarter, down 33 per cent from a year ago.
However, revenue per available seat mile, a closely watched measure that compares sales to flight capacity, fell 8.2 per cent.
The New York-based carrier’s net income rose to $180 million, or 53 cents per share, in the second quarter ended June 30 from $152m, or 44 cents per share, a year earlier.
Analysts had estimated 49 cents per share, according to Reuters.
Shares of JetBlue, which rose 0.8 per cent in premarket trading, had fallen about 24 per cent this year up to Monday’s close.
Also today, Canada’s WestJet Airlines reported higher than expected quarterly revenue and profit as its passenger traffic rose and fuel costs fell.
WestJet’s fuel expenses, typically an airline’s largest variable cost, declined 15 per cent in the second quarter ended June 30.
Load factor, which measures how effectively the airline filled seats, rose to 80.8 per cent from 78.1 per cent, a year earlier.
The Calgary-based carrier has shifted its focus to eastern Canada and suspended nearly a dozen daily flights from Alberta, which has been hit by a slump in oil prices.
WestJet’s net earnings slumped 40.5 percent to C$36.7m (Dh102.1m), or 30 Canadian cents per share, but beat the average analyst estimate by a cent, according to Reuters.
Revenue rose slightly to C$949.3m, topping the average estimate of C$945.8m.
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