NEW YORK (AP) — JetBlue Airways reported a $25 million profit for the second quarter, and executives on Tuesday described a strategy of cutting costs to rebuild the business, sending the company's shares sharply higher.
The small profit was down 82% from a year ago, but it was a surprise to analysts who expected the New York-based airline to post a loss for the April-through-June quarter, which includes a big chunk of the peak summer travel season.
JetBlue announced that it would delay plans to buy about $3 billion worth of Airbus jetliners through 2029 as it cuts costs and hopes to generate gross profit of between $800 million and $900 million by 2027.
The shares rose 18% in late-morning trading, although they remain down two-thirds from their peak in 2021.
JetBlue has struggled as many of its planes have been grounded by the removal and inspection of Pratt & Whitney engines.
"We are working with Pratt on reaching a settlement that we believe reflects the extent of the impact to JetBlue, but it is definitely a frustrating situation," CEO Joanna Geraghty said on a call with analysts.
Even with the money-making second quarter, JetBlue has lost $3 billion and not posted a full-year profit since the start of 2020. Courts struck down a partnership with American Airlines in the Northeast and a bid by the previous CEO to buy Spirit Airlines.
JetBlue is under new leadership, with Geraghty, who took over as CEO in February, and two new board members who were appointed after financier Carl Icahn took a large stake in the company.
The airline is starting to cut money-losing routes, including leaving several cities, while increasing its focus on leisure travelers in the Northeast, Florida and Puerto Rico. Executives said other changes were coming.
JetBlue said its profit, excluding one-time items, worked out to 8 cents per share. Analysts expected an adjusted loss of 10 cents per share, according to a FactSet survey.
Sales fell 7% to $2.43 billion, beating analysts' forecast of $2.40 billion.
JetBlue forecast a continued decline in revenue and passenger-carrying capacity while costs other than fuel keep rising in the July-through-September quarter, compared with a year ago.