JetBlue Announces Cost-Cutting Plan

Shares of JetBlue Airways (JBLU) - Get Report flew higher on Tuesday after announcing plans to reduce costs at its Investor Day. The New York-based airline says it will generate between $250 million to $300 million in annual cost savings by 2020. Approximately $125 million of the savings will come in aircraft maintenance operations. But, Jetblue says it has no plans for furloughs of non-union workers. The company also plans to double its stock-repurchase authorization to $500 million through 2019. Focusing on the fourth quarter, JetBlue expects revenue per available seat mile to decline by 1% to 2%, better than an anticipated 3% decline.

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