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Pratt & Whitney's GTF Engines to Power 45 JetBlue Aircrafts
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Pratt & Whitney, one of the operating segments of United Technologies Corporation , announced that JetBlue Airways Corporation (JBLU - Free Report) will power another 45 Airbus A320neo family aircrafts with its Geared Turbofan (GTF) engines.
This follows a previous order of 40 GTF-powered A320neo family aircraft. This indicates that JetBlue has committed to 85 GTF-powered aircraft, which includes both A320neo and A321neo models. Pratt & Whitney will deliver engine maintenance through a 15-year EngineWise service agreement.
JetBlue believes the engines will optimize aircraft performance and efficiency, while reducing cost and minimizing carbon footprint. Since early 2016, the GTF engine has consistently exhibited its ability to lower fuel burn by 16%, shrink nitrogen oxide emissions by 50% to the regulatory standard and diminish noise footprint by 75%.
Industry observers widely expected the Pratt & Whitney engine business to be the profit driver for its parent firm, United Technologies. However, till date, the engines have failed to live up to expectations as the business continues to dent overall earnings. Nevertheless, United Technologies outperformed the industry with a gain of 7.6% in the last six months, against a decline of 11.3% for the latter.
In February, problems emerged with the Pratt & Whitney engines on its best-selling A320neo planes, which led to multiple instances of in-flight engine shutdown. Following this, Airbus stopped all deliveries of its Pratt & Whitney-powered A320neo aircraft. In response to this, European regulators and the FAA (Federal Aviation Administration) issued formal warnings of the risk of shutdown due to Pratt & Whitney’s engines.
Later, Pratt & Whitney stated that it resolved the issue which affected the GTF engines. The problem is the latest in a string of setbacks for Pratt & Whitney’s GTF engines. The engine has been plagued by durability issues and delivery delays since a long time.
However, JetBlue’s recent order reaffirmed its faith in Pratt & Whitney’s troubled jet engines. Conquering the engine issues continues to be critical for the company, which is leaning heavily on the GTF engines to fight General Electric in the market to power narrow-body planes. Interestingly, United Technologies invested a whopping $10 billion to develop the quieter and more fuel-efficient engine.
Federal Signal has trumped estimates in each of the trailing four quarters and generated an average beat of 16.5%.
Leucadia National has beaten estimates in three of the trailing four quarters, the average earnings surprise being 6.6%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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Pratt & Whitney's GTF Engines to Power 45 JetBlue Aircrafts
Pratt & Whitney, one of the operating segments of United Technologies Corporation , announced that JetBlue Airways Corporation (JBLU - Free Report) will power another 45 Airbus A320neo family aircrafts with its Geared Turbofan (GTF) engines.
This follows a previous order of 40 GTF-powered A320neo family aircraft. This indicates that JetBlue has committed to 85 GTF-powered aircraft, which includes both A320neo and A321neo models. Pratt & Whitney will deliver engine maintenance through a 15-year EngineWise service agreement.
JetBlue believes the engines will optimize aircraft performance and efficiency, while reducing cost and minimizing carbon footprint. Since early 2016, the GTF engine has consistently exhibited its ability to lower fuel burn by 16%, shrink nitrogen oxide emissions by 50% to the regulatory standard and diminish noise footprint by 75%.
Industry observers widely expected the Pratt & Whitney engine business to be the profit driver for its parent firm, United Technologies. However, till date, the engines have failed to live up to expectations as the business continues to dent overall earnings. Nevertheless, United Technologies outperformed the industry with a gain of 7.6% in the last six months, against a decline of 11.3% for the latter.
In February, problems emerged with the Pratt & Whitney engines on its best-selling A320neo planes, which led to multiple instances of in-flight engine shutdown. Following this, Airbus stopped all deliveries of its Pratt & Whitney-powered A320neo aircraft. In response to this, European regulators and the FAA (Federal Aviation Administration) issued formal warnings of the risk of shutdown due to Pratt & Whitney’s engines.
Later, Pratt & Whitney stated that it resolved the issue which affected the GTF engines. The problem is the latest in a string of setbacks for Pratt & Whitney’s GTF engines. The engine has been plagued by durability issues and delivery delays since a long time.
However, JetBlue’s recent order reaffirmed its faith in Pratt & Whitney’s troubled jet engines. Conquering the engine issues continues to be critical for the company, which is leaning heavily on the GTF engines to fight General Electric in the market to power narrow-body planes. Interestingly, United Technologies invested a whopping $10 billion to develop the quieter and more fuel-efficient engine.
Zacks Rank & Stock to Consider
United Technologies has a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the same space include Federal Signal Corporation (FSS - Free Report) and Leucadia National Corporation , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Federal Signal has trumped estimates in each of the trailing four quarters and generated an average beat of 16.5%.
Leucadia National has beaten estimates in three of the trailing four quarters, the average earnings surprise being 6.6%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>