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jetBlue starts heavy scrutiny of Embraer 190 fleet as it works to meet cost and margin ambitions

Analysis

jetBlue Airways has joined many other US airlines in undertaking a comprehensive fleet review, but its reasons are different from those of its larger counterparts United and Delta, which are assessing their future widebody needs. jetBlue is focused on the opposite end of the spectrum, studying the future viability of the smallest aircraft in its fleet - the 100-seat Embraer 190.

The airline is reiterating declarations it made regarding the Embraer 190s earlier in 2017 to determine whether the unit revenue benefits it derives from their operation are worth the aircraft's higher operating costs. jetBlue is the largest worldwide operator of the aircraft, and represents 33% of existing orders for the Embraer 190.

jetBlue has also deferred some Airbus deliveries and switched some of its 2018 orders from the NEO model to current generation jets as A320neo operators have experienced some engine problems with the jets. The fleet review is part of jetBlue's efforts to achieve lower costs in the 2018 to 2020 period, while attempting to drive margins above the industry average.

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