ATW Daily News

JetBlue to defer 21 A320 deliveries

Thursday May 29, 2008

JetBlue Airways will defer delivery of 21 A320s to 2014-15 from 2009-11 to "help us further moderate our growth rate in 2009 and beyond, which will enhance liquidity and defer future debt obligations," CEO Dave Barger said. Last summer the carrier announced the delay of 16 E-190s to the same timeframe (ATWOnline, July 25, 2007) as it sought to put the brakes on its rapid expansion and get a handle on its operation (ATW, October 2007). Difficult conditions still persist, however, and Barger said late Tuesday that "in the face of escalating fuel costs, we believe it is essential to take a more financially conservative approach to managing our business." JetBlue reported an $8 million loss in the first quarter.

Separately, the airline announced its intent to raise $160 million through the public offering of convertible debentures in two series with an aggregate principal of $80 million each. The debentures will mature in 2038, although JetBlue said one series likely will be subject to redemption in 2013 and the other in 2015.

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