Worst of JetBlue’s GTF-related aircraft groundings yet to come

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/>