NEW YORK, April 21, 2005 (PRIMEZONE) -- JetBlue Airways Corporation (Nasdaq:JBLU) today reported its results for the first quarter 2005:
-- Operating revenues for the quarter totaled $374.2 million,
representing growth of 29.5% over operating revenues of
$289.0 million in the first quarter of 2004.
-- Operating income in the quarter was $25.7 million, resulting in
a 6.9% operating margin, compared to operating income of
$32.7 million and an 11.3% operating margin in the first quarter
of 2004.
-- Net income for the quarter was $7.0 million, representing earnings
of $0.06 per diluted share, compared with first quarter 2004 net
income of $15.2 million, or $0.14 per diluted share.
"Thanks to the inspired efforts of our crewmembers, our financial performance was strong in the first quarter," said David Neeleman, JetBlue's Chairman and CEO. "In fact, on a fuel-neutral basis, our operating margin actually improved slightly over last year's first quarter operating margin. Looking ahead, we're seeing good strength in the second quarter, as our customers demonstrate their loyalty to JetBlue and our combination of excellent customer service, high-quality product and low fares."
During the first quarter of 2005, JetBlue achieved a completion factor of 98.6% of scheduled flights versus 99.8% in the first quarter of 2004. On-time performance, defined by the U.S. Department of Transportation as arrivals within 14 minutes of schedule, was 65.6% in the first quarter of 2005 compared to 83.7% for the same period in 2004. The Company attained a load factor in the first quarter of 2005 of 85.8%, an increase of 5.9 points on a capacity increase of 22.5% over the first quarter of 2004.
Dave Barger, President and COO, commented, "Our talented crewmembers worked hard to deliver the JetBlue Experience to more than 3.4 million customers this quarter, but weather, congestion and our commitment to not cancel flights resulted in an on-time performance that did not meet our high standards of excellence. While we were honored during the quarter to be named the number one airline for the second year in a row in the Airline Quality Rating survey published by the University of Nebraska and Wichita State University, we recognize that we're only as good as our last flight. To that end, we're encouraged that our on-time performance thus far in April has improved considerably."
For the first quarter 2005, operating revenues increased by 29.5% over 2004 to $374.2 million. Revenue passenger miles increased 31.5% from the first quarter of 2004 to 4.4 billion. Yield per passenger mile was 8.07 cents, down 2.7% compared to 2004 on a 2.5% increase in average length of haul. Operating revenue per available seat mile (RASM) increased 5.7% year-over-year to 7.24 cents. Available seat miles grew 22.5% to 5.2 billion. Operating expenses for the first quarter were $348.6 million, up 36.0% from the first quarter of 2004. Operating expense per ASM (CASM) for the first quarter 2005 increased 11% year-over-year to 6.74 cents. On a fuel-neutral to prior year period basis, CASM increased 4% to 6.32 cents. During the quarter, realized fuel price was $1.31 per gallon, a 42.6% increase over first quarter 2004 realized fuel price of $0.92. JetBlue ended the first quarter with $652 million in cash and investment securities.
JetBlue will conduct a conference call to discuss its quarterly earnings today, April 21, at 9:00 a.m. Eastern Time. A live broadcast of the conference call will be available via the World Wide Web at http://investor.jetblue.com.
About JetBlue
JetBlue is a low-fare, low-cost passenger airline, which provides high-quality customer service. JetBlue operates a fleet of 74 new Airbus A320 aircraft and plans to add 10 additional A320s and 7 Embraer E190s to its fleet in 2005. Based at New York City's John F. Kennedy International Airport, JetBlue currently operates 318 flights a day and serves 29 destinations in 12 states, Puerto Rico, the Dominican Republic and the Bahamas. JetBlue plans to commence new service from JFK to Portland on May 17 and to Burbank, CA on May 24.
All JetBlue aircraft feature roomy leather seats; all equipped with an in-seat digital entertainment system offering up to 36 channels of free DIRECTV(r) programming. On many flights, a selection of first-run movies and bonus features from FOX InFlight Premium Entertainment may be available. (see Note)
With JetBlue, all seats are assigned, all travel is ticketless, all fares are one-way, and an overnight stay is never required. For more information, schedules and fares, please visit www.jetblue.com or call JetBlue reservations at 1-800-JETBLUE (538-2583), 1-888-538-2583 if calling from Puerto Rico, or 1-200-9898 if calling from the Dominican Republic. This press release, as well as past press releases, can be found on www.jetblue.com.
Note: DIRECTV(r) service is not available on flights between JFK and Puerto Rico or the Dominican Republic; however, where available, FOX InFlight Premium Entertainment is offered complimentary on these routes.
This press release contains statements of a forward-looking nature which represent our management's beliefs and assumptions concerning future events. Forward-looking statements involve risks, uncertainties and assumptions and are based on information currently available to us. Actual results may differ materially from those expressed in the forward looking statements due to many factors, including without limitation, our extremely competitive industry, our ability to implement our growth strategy including the integration of the Embraer E190 aircraft into our operations, our significant fixed obligations, our ability to maintain our culture, our reliance on high daily aircraft utilization, increases in maintenance costs, fuel prices, insurance costs and interest rates, our dependence on the New York market, our reliance on automated systems and technology, our reliance on sole suppliers, additional government regulation and future acts of terrorism or the threat of such acts or escalation of U.S. military involvement overseas. Information concerning these and other factors is contained in the Company's Securities and Exchange Commission filings, including but not limited to, the Company's 2004 Annual Report on Form 10-K/A. We undertake no obligation to update any forward-looking statements to reflect events or circumstances that may arise after the date of this release.
The JetBlue logo is available at: http://media.primezone.com/prs/single/?pkgid=795
JETBLUE AIRWAYS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
March 31,
-------------------- Percent
2005 2004 Change
-------- -------- -------
OPERATING REVENUES
Passenger $ 357,884 $ 279,616 28.0
Other 16,338 9,387 74.1
--------- ---------
Total operating revenues 374,222 289,003 29.5
OPERATING EXPENSES
Salaries, wages and benefits 98,456 77,584 26.9
Aircraft fuel 86,620 49,245 75.9
Landing fees and other rents 26,097 21,517 21.3
Depreciation and
amortization 24,323 16,316 49.1
Aircraft rent 17,813 17,255 3.2
Sales and marketing 19,457 13,424 44.9
Maintenance materials and
repairs 13,540 12,497 8.3
Other operating expenses 62,254 48,501 28.4
--------- ---------
Total operating expenses 348,560 256,339 36.0
--------- ---------
OPERATING INCOME 25,662 32,664 (21.4)
Operating margin 6.9% 11.3% (4.4) pts.
OTHER INCOME (EXPENSE)
Interest expense (20,658) (9,821) 110.4
Capitalized interest 3,798 1,576 141.0
Interest income and other 3,004 1,345 123.4
--------- ---------
Total other income
(expense) (13,856) (6,900)
--------- ---------
INCOME BEFORE INCOME TAXES 11,806 25,764 (54.2)
Income tax expense 4,839 10,571
--------- ---------
NET INCOME $ 6,967 $ 15,193 (54.1)
========= =========
EARNINGS PER COMMON SHARE:
Basic $ 0.07 $ 0.15
========= =========
Diluted $ 0.06 $ 0.14
========= =========
Weighted average shares
outstanding:
Basic 104,325 102,251
Diluted 110,028 110,227
JETBLUE AIRWAYS CORPORATION
COMPARATIVE OPERATING STATISTICS
Three Months Ended
March 31,
------------------- Percent
2005 2004 Change
-------- -------- ---------
Revenue passengers 3,400,086 2,650,073 28.3
Revenue passenger
miles (000) 4,434,528 3,372,295 31.5
Available seat
miles (000) 5,168,653 4,218,520 22.5
Load factor 85.8% 79.9% 5.9 pts.
Breakeven load
factor (a) 82.8% 73.0% 9.8 pts.
Aircraft utilization
(hours per day) 13.2 13.3 (0.2)
Average fare $ 105.26 $ 105.51 (0.2)
Yield per
passenger mile
(cents) 8.07 8.29 (2.7)
Passenger revenue
per available
seat mile (cents) 6.92 6.63 4.5
Operating revenue
per available
seat mile (cents) 7.24 6.85 5.7
Operating expense
per available
seat mile (cents) 6.74 6.08 11.0
Airline expense
per available
seat mile
(cents) (a) 6.68 6.05 10.4
Departures 25,637 20,845 23.0
Average stage
length (miles) 1,292 1,297 (0.4)
Average number of
operating
aircraft during
period 70.9 55.3 28.1
Average fuel cost
per gallon $ 1.31 $ 0.92 42.6
Fuel gallons
consumed (000) 66,281 53,725 23.4
Percent of sales
through
jetblue.com
during period 76.4% 76.9% (0.5) pts.
Full-time
equivalent
employees at
period end (a) 6,797 5,292 28.4
SELECTED CONSOLIDATED BALANCE SHEET DATA
(in thousands)
March 31, December 31,
2005 2004
-------------- --------------
Cash, cash equivalents and
investment securities $ 651,609 $ 449,162
Total assets 3,236,355 2,798,644
Total debt 1,897,257 1,544,812
Stockholders' equity 771,857 756,200
NON-GAAP FINANCIAL MEASURES (b)
(in thousands)
Three Months
Ended
March 31, 2005
---------------
Fuel Neutral Operating Expenses to Prior Period
Operating expenses as reported $ 348,560
Less: Reported aircraft fuel (86,620)
Add: Aircraft fuel at prior period cost per gallon 60,754
Profit sharing impact 3,880
Fuel neutral operating expenses $ 326,574
Fuel neutral operating margin 12.7%
Fuel neutral operating expense per available seat
mile (cents) 6.32
(a) Excludes operating expenses and employees of LiveTV, LLC,
which are unrelated to our airline operations
(b) In management's view, comparative analysis of results can
be enhanced by excluding the significant increase in the
price of aircraft fuel, which is beyond our control.