JetBlue posts surprise profit, delays aircraft deliveries

(Recasts first paragraph, adds comments from earnings call, updates share price)

By Shivansh Tiwary and Rajesh Kumar Singh

July 29 (Reuters) - JetBlue Airways on Tuesday posted a surprise second-quarter profit and deferred deliveries of 44 Airbus 321neo aircraft to 2030 and beyond as part of its efforts to drive up earnings.

The New York-based airline said it was targeting $800 million to $900 million in incremental core profits in 2027 by running a reliable operation and focusing on leisure travel demand in New York, New England, Florida and Latin American markets.

The company is also looking to control costs. It said deferring aircraft deliveries would reduce its planned capital expenditure by about $3 billion between 2025 and 2029.

"It is imperative we keep our costs low so we can continue offering customers the most value when they fly," CEO Joanna Geraghty told analysts on an earnings call.

JetBlue's shares were up about 13% at $6.68 in afternoon trade.

While travel demand remains strong, an excess supply of airline seats in the domestic market has dampened airfares, making it harder for U.S. carriers to mitigate a run-up in labor and other operating costs.

JetBlue's operations are also impacted by troubles with Pratt & Whitney's Geared Turbofan (GTF) engines, which have forced it to take a number of its aircraft out of service.

The company said it now expects the average number of grounded aircraft in 2025 to be in mid to high teens with "greater uncertainty" in 2026 and beyond. It blamed the engine troubles for its decision to defer the aircraft deliveries.

"At this stage, we simply can't afford to continue taking delivery of costly new aircraft that may need to be parked due to engine availability issues," JetBlue CFO Ursula Hurley said.

JetBlue reported an adjusted profit of 8 cents per share in the second quarter, compared with analysts' average estimates of a 11 cents loss, according to LSEG data.

The company's total operating revenue fell 6.9% to $2.43 billion, compared with Wall Street expectations of $2.40 billion.

(Reporting by Shivansh Tiwary in Bengaluru and Rajesh Kumar Singh in Chicago; Editing by Arun Koyyur and Will Dunham)