JetBlue posts surprise profit, delays buying $3 billion worth of Airbus planes

(Reuters) -JetBlue Airways posted a surprise second-quarter profit and delayed plans to buy Airbus planes worth about $3 billion in its push for profitability through cost-cuts, sending its shares up 9% in early trading on Tuesday.

The airline had earlier this year decided to cut some of its loss-making routes and moved resources to better-performing regions.

The New York-based carrier has been grappling with higher operating costs as inspections of Pratt & Whitney's Geared Turbofan engines have led to the grounding of several aircraft.

JetBlue said on Tuesday it was targeting $800 million to $900 million in incremental core profits in 2027.

"We are actively reinvesting in our core geographies in New York, New England, Florida and Puerto Rico, while exiting routes and BlueCities that don't meet our financial hurdle rate," President Marty St. George said.

Airlines are experiencing a summer travel boom, with expectations to transport 271 million passengers during the season, a 6.3% rise from last year, according to Airlines for America, a group that represents major U.S. carriers.

JetBlue reported an adjusted profit of 8 cents per share for second quarter ended June 30, compared with analysts' average estimates of a 11 cents loss, according to LSEG data.

"The carrier's 2Q results look positive, with management's decision to exit some unprofitable markets leading to a better outcome on unit revenue and unit costs," Citi analyst Stephen Trent wrote in a note.

"In spite of the 2Q beat, it is curious to see no continued improvement in the 3Q or full-year unit cost guide," he said.

For the third quarter, JetBlue expects revenue to fall in the range of 1.5% to 5.5%, while analysts were expecting it to grow nearly 1%.

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; Editing by Arun Koyyur)