JetBlue experiences a 20% increase in stock price following surprise profit and $3 billion aircraft spending deferral.

• JetBlue Airways posted a surprise profit for the second quarter.
• The airline announced that it would postpone $3 billion in aircraft purchases until 2029 to enhance its cash flow.

On Tuesday, the airline's shares experienced a 20% increase in value following the announcement of a surprise profit and the decision to postpone $3 billion in aircraft expenditures until 2029 in order to enhance cash flow.

To regain profitability, the New York-based airline has been eliminating unprofitable routes and decreasing expenses amidst rising expenses and a saturated domestic market.

On Tuesday, the airline announced that it has stopped 50 routes and is concentrating more on its services in New York, New England, and Puerto Rico, where it has traditionally excelled. Additionally, the airline is attempting to optimize its use of aircraft equipped with premium seats, such as its Mint aircraft, in order to maximize revenue.

JetBlue predicts that implementing these changes will enable it to increase its pretax profit from $800 million to $900 million between 2025 and 2027.

Despite analysts' predictions of a quarterly loss, the airline recorded a $25 million profit in the second quarter, which was 82% less than the previous year's profit.

Joanna Geraghty, a JetBlue veteran who became CEO in February, experienced a win when activist investor Carl Icahn disclosed a nearly 10% stake in the company hours after she started. He won two board seats days later.

JetBlue has consistently ranked at the bottom of U.S. carriers, but the airline is now taking additional steps to improve its reliability, such as adding more buffer time to flights.

JetBlue and called off their merger agreement earlier this year after the New York airline's planned acquisition of the budget carrier was blocked by a federal judge. Both airlines have stated that they face challenges in competing with larger rivals.

This story is developing. Please check back for updates.