2nd Quarter Earnings email.
 

Q2 Earnings email from CFO in short...

NO Profit Sharing (thanks to the rotten-to-the-core ***FORMULA***). While JB's primary competitor paid 14% last year and is forecast to pay more next year...

More Airbus delays... I'd be curious to see a comparison among A321NEO airlines to see if JB takes a higher percentage of delivery delays than other healthy airlines... Delayed cabin refresh, so JB's customers can continue to enjoy interiors from Fred Flintstone's era.

Costs. Costs. Costs. Make sure you continue to remember you do, and must, work harder for less.

Just saved you 5 minutes.

Focus on costs are what Wall Street needs to see from us. I don’t consider that to a negative data point.

I’d also say that delaying aircraft, delaying cabin refresh could point to a merger or some other type of consolidation. We have the dough to do the cabin refresh, and everyone from Robin down knows it needs to happen. I can certainly make a case that this is positioning for the future vs fear to spend $$.

Either way, we are just folks guessing on an anonymous board.

It’s not more delays...the delays announced today were already known. Still planning on 6 this year. Also, you must have been super curious since you couldn’t even use Google to get your answer. AA deferring 5 planned 321NEO deliveries into 2020.

https://www.flightglobal.com/news/articles/american-a321neo-deliveries-slide-on-airbus-delays-457732/

Airbus has been transparent about NEO production delays since October of last year.

The 320 interiors are being delayed to support the capacity needed to make up for delayed 321 deliveries. Makes sense to keep aircraft online a bit longer to avoid cancelling routes.

But yeah...the sky is falling...lemonade...GAS meter zero...blah blah blah...

Did you not realize I asked if other airlines are taking a similar ***PERCENTAGE*** of delivery delays?

That is VERY different than what you responded with.

Any additional wisdom you'd like to give me?

Focusing on costs to please Wall Street is the company's job. The reason they put it in this communication, and the reason they spent 75% of the April 10th party talking about keeping costs low is to lower your overall compensation expectations. IMO.

The sky isn’t falling but if any employees are giving one small ounce of extra effort to this place they are [emoji1658] ing stupid.

Zero incentive to GAF.


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Isn’t there another thread about sprint and t mobile merging? What I got out of the email and this thread is a for sure merge with ATT... we really aren’t even an airline. We are a cell phone company that happens to fly airplanes.

Well, at least you made me laugh... Very funny.

That was UAL's CEO's old post merger line..... UAL is a technology company.... with wings!

Sure, I’ll do the math for you. According to that article AA will take 12 deliveries this year. If five are being delayed, that would mean 29.4% of their 2019 NEO deliveries are pushed to next year.

The fundamental problem I have with your question is that the answer is in no way relevant to the discussion. These delays are due to ENGINE AND AIRFRAME PRODUCTION DELAYS BY THE MANUFACTURERS. Please explain how this is indicative of the financial or operation health of the customer airlines? The planes just aren’t there. Everyone wants them...just gotta wait.

Aer Lingus had to cancel routes due to production delays.

https://www.google.com/amp/s/amp.independent.ie/life/travel/travel-news/delayed-delivery-of-aer-lingus-aircraft-to-impact-thousands-of-passengers-37876736.html

Hawaiian had to cut routes due to NEO delays.

https://www.google.com/amp/s/www.fool.com/amp/investing/2018/02/26/airbus-a321neo-engine-delays-hawaiian-airlines.aspx

There are plenty of reasons to be critical of the operation but this just isn’t one of them.

Ah, now we're getting somewhere. For comparison, JB in 2019 lost 54% of it's scheduled NEO deliveries... AA only lost 29.4% as you say.

How could this be! I mean, it's just Airbus/engine manufactures right?!?

And they did make a change to the delivery expectations today. Previously it was announced that JB would take "a minimum of 6" NEOs in 2019. Today they say "a maximum of 6".

I have said before, there was NO way they could train and hire for 13 deliveries this year as well as staff/hire for CBA requirements and fix their staffing shortage simultaneously. Now we know JB is taking nearly twice the delivery delay ***percentage*** vs. AA in the same year! How can that be?!? Well, Airbus is indeed running behind schedule, and you don't think they asked their customers if any of them would be willing to accept any additional delivery delays to accommodate customers that really want deliveries now?

Would you like a clue from the company to support that notion? How about this from the company earnings slide show today:

"3Q capacity unusually low, driven by NEO delays and ***adjustments to support RASM and margin***".

Do you understand what that paragraph means?

Any more wisdom you'd like to demonstrate?

Different engines... different delays


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I understand, but to the genius that took after me for asking about other airline NEO delays, why use an airline as an example that uses a different engine?

More importantly, why would a company that supposedly wants all their NEO deliveries TRIM capacity beyond the missing NEO deliveries even FURTHER to "support RASM and margins"?

Looks like lots of PW engine NEOs being delivered lately, many repeat deliveries to the same airline.

Many with Spaceflex cabin.

https://aibfamily.flights/search?aircraft_type=A321&family=A320

Incorrect. Only 4 of 9 A321neo's delivered with the P&W engines have been delivered since JetBlue got theirs. Of those 9, none were to a repeat customer, and all came from the XFW factory. 8 had the space flex cabin.

Of the 11 A320's delivered since JetBlue got theirs with P&W engines, which are a different variant, 3 were to a single customer, and only 3 came from the XFW factory. IndiGo was that customer, which placed their order for 280 A320neo family aircraft on June 22, 2011, making them the third customer to place an order for the family of aircraft. With the size of the order and when the order was placed, along with the delivery slots they had, early+current delivery delays, it's no surprise they are taking more deliveries than JetBlue currently.

To summarize: 15 A32xneo planes with P&W engines delivered from June 29-today, 16 including JB. 3 went to a single customer.

You are fake news

Edit: I would like to add that IndiGo is the largest customer of the A320neo family with a total of 430 aircraft on order. 280 being for the P&W engines.

Fake news? No. Having a hunch I'm trying to reconcile would be much more accurate.

And, in this particular case, I'd prefer to be wrong.

You are fake news. Why? Because you pick out the little tidbits of factual information and then you twist it to fit your narrative. You are no different than CNN. Your words were as I quote, "Looks like lots of PW engine NEOs being delivered lately, many repeat deliveries to the same airline." The last part is what I would like to highlight. "Many deliveries to the same airline". I gave factual figures and there were, count them, three deliveries since June 29th (approximately 18% of the P&W deliveries) that went to a single customer. That is a few deliveries. A far cry from many, but don't let that slow down your agenda. As I highlighted though, they are the largest customer (7% of total orders to date) and a customer that placed their orders very early on, thus giving them the choice of delivery slots to fit their company needs.

Why only back to June 29th?

You seem to know a lot about the internal workings here. Can you please share with the group how many pilots JB is able to train in 2019? And how many are actually needed for both new airframes as well as attrition and CBA needs?

Having those raw numbers (facts) will help us all understand the maff behind your claims that you "have been saying all along".

Thanks in advance.