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JetBlue, Spirit, Frontier reduce purchases of new aircraft


Cash-strapped low-cost and deep discounter airlines are postponing the purchase of new aircraft to save money and return to profitability. This decision is driven by factors such as reduced demand, lower prices on plane tickets, engine repairs, and the impact of the pandemic on the airline industry. Some airlines like Frontier and JetBlue are deferring deliveries of new planes, despite facing challenges like grounded jets from engine recalls. Aircraft leasing companies like AerCap are stepping in to assume some of the deferred orders to help the airlines manage their expenses. The global airline industry is experiencing a scarcity of new fuel-efficient planes, causing lease rates for aircraft from manufacturers like Airbus and Boeing to rise to record levels. Despite the challenges, Airbus and Boeing continue to have a strong demand for their products with thousands of unfilled orders. Airlines are adjusting their fleet plans and growth strategies to mitigate costs, including offering staff voluntary leave programs and delaying hiring. Southwest Airlines, for example, is seeking cost-saving opportunities in response to delayed aircraft deliveries from Boeing. Airlines are facing financial pressure and uncertainties about the future, as they navigate through the challenges presented by the pandemic and the ongoing changes in the airline industry.

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www.nbcnews.com

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