Airbus A320 Orders Surpass 10,000 as JetBlue Revamps Fleet

By EarningsFOXBusiness

Airbus said its Boeing (NYSE:BA) 737 rival, the A320, reached the 10,000-order milestone recently thanks to a new deal with U.S. discount carrier JetBlue (NASDAQ:JBLU).

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The New York-based airline announced earlier that it bought 15 A321ceo and 20 of the new more fuel-efficient A321neo aircraft as it looked to revamp its fleet.

It also opted to upsize eight A320ceo aircraft and 10 A320neo planes currently on backlog to the same number of bigger, more expensive A321ceos and A321neos, respectively.

In a statement, JetBlue CEO Dave Barger said the increased order of the A321s, which it believes are ideal for its high-density markets, will help it to “better match capacity with demand.”

The aircraft will help power its Mint premium service on the New York-Los Angeles and New York-San Francisco markets.

“It is the right aircraft for JetBlue's lucrative routes,” Barger said.

The announcement came the same day that JetBlue reported a weaker-than-expected profit on higher costs. Expenses for fuel were up 4%, while costs for maintenance materials and repairs jumped 28%.

Airbus, which competes with U.S. jet maker Boeing for airline demand, has been selling the A320 since 1984. It has sold about 2,400 of the next-generation neo jets since the program launched, and the first neos are expected to be delivered in 2015.

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