unaligned

JetBlue Airways shares plunged 28% on Tuesday after the New York-based carrier forecast lower-than-expected unit revenue and higher costs in the current quarter. The company, however, said it expects improvements in its performance in subsequent quarters and sees an adjusted operating margin in the range of 0.0% to 1% in 2025. Analysts at Raymond James said the forecast implied a loss of 75 cents a share for the year. That compares with analysts' average expectations for a loss of 58 cents a share, according to data compiled by LSEG. JetBlue's shares were down 28% at $5.82 in afternoon trade. The carrier forecast first-quarter revenue per available seat mile (RASM), an industry metric commonly known as unit revenue and a proxy for pricing power, of a decline of 0.5% to 3.5% growth. Analysts had been estimating a 6.88% growth. JetBlue said it expects Easter falling in the second quarter this year will reduce unit revenue by about 1.5% in the current quarter, delaying often strong holiday sales. The outlook contrasts with that of rivals such as Delta and United, which have forecast stronger-than-expected revenue. JetBlue attributed its downbeat outlook to lower exposure to corporate traffic as well as greater competitive pressure in some of its key markets. "We expect competitive capacity will continue to ebb and flow," JetBlue President Marty St. George told analysts on a call to discuss results.<br/>

While East Coast leisure carrier JetBlue Airways is already among the US airlines most hindered by Pratt & Whitney’s geared turbofan (GTF) engine recall, company executives warn that related aircraft groundings will get worse before they get better. Ursula Hurley, JetBlue’s CFO, said during New York-based JetBlue’s 28 January earnings call that the company anticipates “hitting peak AOG” [aircraft on ground] within the next “one to two years”. JetBlue says it averaged 11 narrowbody Airbus jets – including A321neos and A220-300s – grounded for engine inspections and repairs throughout 2024. The company expects its average number of grounded jets to rise into the “mid-to-high teens” this year, Hurley says. The outlook for 2026 is less clear. “There are a lot of inputs that can materially impact the number of aircraft we have on the ground – everything from Pratt & Whitney supply chain to their shop capacity,” Hurley says. ”So it does continue to remain pretty fluid. But in the next year or two, we believe we’ll be approaching that peak.” The aircraft on ground have been ”materially impacting” JetBlue’s financial performances. “We believe the groundings had a direct negative impact on operating margin of approximately two-and-a-half points in 2024,” says CE Joanna Geraghty. “We estimate that direct impact will grow to three points in 2025 as AOGs are expected to increase.” Currently, JetBlue has 14 aircraft listed as “in storage”, meaning they have been out of service for more than 30 days, according to aviation analytics company Cirium. That includes nine A321neos and five A220s. <br/>

Brazilian airline Azul said on Tuesday it has finalized a debt restructuring process regarding financial obligations with bondholders, suppliers and plane lessors, according to a securities filing. Azul said the process included the termination of almost $1.6b in debt from its balance sheet, while it also raised $525m in fresh money. The firm said that, with the conclusion of the talks, its financial leverage measured by a net debt to EBITDA ratio falls to 3.4 times from 4.8 times. Azul, which this month signed an agreement to explore talks for a merger with rival Gol, said the restructuring measures reduced its interest payments expected for this year by almost 1b reais ($170.7m). "We are very optimistic regarding Azul's future," CE John Rodgerson said in a press statement, adding the airline expects to receive 15 new Embraer's E2 jets during the year.<br/>

An Air Busan plane caught fire at an airport in Busan, South Korea, on Tuesday night, forcing all passengers and crew members to evacuate, officials said. The plane, an Airbus A321, had been scheduled to fly to Hong Kong from Gimhae International Airport, fire officials said, when a fire broke out near its tail at around 10:30 p.m., before takeoff. All 176 people on board — 169 passengers, six flight attendants and a flight engineer — escaped through evacuation slides, South Korea’s Transport Ministry said in a statement. Some minor injuries were reported, and at least two of the passengers were hospitalized with bruises they suffered while evacuating, the Transport Ministry said. Videos and photos of the blaze broadcast on local media showed fire engines battling flames on the plane’s fuselage as smoke billowed off the aircraft. The aircraft’s inflatable evacuation slides were deployed. Around 11:30 p.m., the fire was extinguished, the fire department said. It was not immediately clear what had caused the blaze. Investigators from the Transport Ministry and its Aviation and Railway Accident Investigation Board will investigate the matter, the ministry said. Air Busan, a low-cost carrier that operates domestic and international flights to and from Busan, is a subsidiary of Asiana Airlines, one of South Korea’s two main airlines. The plane had arrived in Busan from Jeju just before 9 p.m. local time, according to Flightradar24, a flight tracking service.<br/>

Indian low-cost carrier SpiceJet plans to reintroduce its first Boeing 737 Max 8 – grounded over unpaid dues to lessors – putting the jet into service on 29 January. The carrier says it aims to bring back three more Max 8s by April, as part of a wider 10-aircraft fleet restoration. SpiceJet says the 737 Max aircraft will allow it to operate to “high-demand markets” like Jeddah and Riyadh in Saudi Arabia “without any operational restrictions”. It had been an early operator of the type in India, taking delivery of its first aircraft in 2018. “The induction of these fuel-efficient planes will result in significant cost savings due to the Max’s reduced fuel consumption, lower maintenance requirements, and higher aircraft utilisation, all of which will contribute to further optimising the airline’s operations,” it states. The airline, which predominantly operates 737s, worked with US-based MRO firm StandardAero to re-induct the 737 Max. SpiceJet has returned to service three other grounded jets, as well as added seven newly-leased aircraft to its fleet, since October 2024. The airline last year went through several rounds of fundraising to settle its debts and to bring the grounded aircraft back to service. <br/>