AirTran to Defer Delivery of 18 Planes - TheStreet

AirTran to Defer Delivery of 18 Planes

Citing skyrocketing fuel costs, the carrier will postpone 18 Boeing 737-700 jets until 2013 through 2014.
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AirTran

(AAI)

said it will defer delivery of 18 aircraft, becoming the second fast-growing low-fare carrier to announce this week that it will delay deliveries.

Citing skyrocketing fuel costs, AirTran said it will postpone 18 Boeing 737-700 jets until 2013 through 2014. The planes had been scheduled for delivery between 2009 and 2011.

AirTran said in April that it would halt planned capacity increases in September, and that in 2009, when it had planned 10% growth, it will keep capacity level.

"This transaction will accomplish a substantial portion of that plan," CEO Bob Fornaro said Friday in a prepared statement. "We appreciate the support of Boeing in this action."

JetBlue

(JBLU) - Get Report

said Tuesday it will defer delivery of 21 Airbus A320 aircraft, taking them in 2014 and 2015, rather than from 2009 through 2011. In the fourth quarter, JetBlue expects a 2.8% decline in capacity, the first quarter of negative growth in its history.

In 2007, AirTran grew by 19.4% and JetBlue by 11.6%.