Where are low-cost airlines cutting back now? New planes

Airlines that spent years clamoring for new jets are changing their tune.

Cash-strapped, low-cost and deep discounter airlines are putting off spending billions of dollars on new aircraft to save money as they try to return to steady profitability and face the impact of engine repairs.

Airlines flooded the U.S. with flights this year, driving down fares particularly in the domestic market, where low-cost carriers concentrate, and weighing on carriers’ revenue while costs have gone up. Spirit Airlines

, JetBlue Airways

and Frontier Airlines

last posted annual profits in 2019, while larger carriers have returned to profitability.

Lower prices on plane tickets are noticeable: Fare-tracker Hopper estimates “good deal” airfare in September is going for $240 for roundtrip U.S. domestic flights, down 8% from last year.

Now, some of those same airlines are dialing back their growth plans and deferring deliveries of new aircraft. The bulk of the price of an airplane is paid upon delivery.

“You have too much supply, so it’s natural for us as an industry to reduce the supply,” Frontier CEO Barry Biffle said. Frontier earlier this month said it is is deferring 54 Airbus aircraft to at least 2029.

Part of the problem is that years of aircraft delivery delays mean carriers don’t want to add too many planes too quickly, Biffle said.