JetBlue Announces Second Quarter Results

Low-Fare Carrier Achieves 10% Operating Margin for Second Quarter 2007 and Announces Plans to Adjust Growth


NEW YORK, July 24, 2007 (PRIME NEWSWIRE) -- JetBlue Airways Corporation (Nasdaq:JBLU) today reported its results for the second quarter 2007:



   * Operating revenues for the quarter totaled $730 million, 
     representing growth of 19.4% over operating revenues of $612 
     million in the second quarter of 2006.  

   * Operating income for the quarter was $73 million, resulting in
     a 10.0% operating margin, compared to operating income of $47
     million and a 7.7% operating margin in the second quarter of 2006.  

   * Pre-tax income for the quarter was $43 million, resulting in
     a 5.9% pre-tax margin, compared with pre-tax income of $25 
     million and a 4.1% pre-tax margin in the year-ago period.  

   * Net income for the quarter was $21 million, representing 
     earnings of $0.11 per diluted share, compared with second 
     quarter 2006 net income of $14 million, or $0.08 per
     diluted share.  

"We are delighted to report a double-digit operating margin for the second quarter-- especially in light of the soft revenue environment we faced during most of the quarter. I am very proud of the hard work and dedication our crewmembers put forth to achieve these results," said Dave Barger, JetBlue's President and CEO.

In addition, JetBlue announced the planned sale of three Airbus A320 aircraft from its fleet later this year and the deferral of 16 EMBRAER 190 aircraft originally scheduled for delivery from 2007 through 2012 to 2013 through 2015.



 JetBlue EMBRAER 190 Modified Firm Aircraft Delivery Schedule (1)
 ------------------------------------------------------------------------
             2007   2008   2009   2010   2011   2012   2013   2014   2015   
 ------------------------------------------------------------------------
 Previous 
  Firm E190 
  Orders      10     10     10     10     10     11     11      6      0
 ------------------------------------------------------------------------
 Revised 
  Firm E190 
  Orders       7      6      6      8      8     10     12     12      9
 ------------------------------------------------------------------------
 Net Change   (3)    (4)    (4)    (2)    (2)    (1)     1      6      9
 ------------------------------------------------------------------------

 (1) Terms agreed upon in principle, subject to the execution of a 
     definitive agreement

"Slowing capacity growth will allow us to strengthen our balance sheet and facilitate earnings growth," Barger said. "Our options for the A320 and the E190 aircraft remain unchanged, which preserves our ability to take advantage of market opportunities. We believe our strong brand, high quality product and exceptional crewmembers will allow us to continue to prosper over the long term."

During the second quarter, JetBlue achieved a completion factor of 98.5% of scheduled flights, compared to 99.8% in 2006. On-time performance, defined by the U.S. Department of Transportation as arrivals within 14 minutes of schedule, was 69.0% in the second quarter compared to 77.9% in the same period in 2006. JetBlue attained a load factor in the second quarter of 2007 of 83.5%, an increase of 1.3 points on a capacity increase of 12.0% over the second quarter of 2006.

For the second quarter, revenue passenger miles increased 13.7% from the second quarter of 2006 to 6.7 billion. Yield per passenger mile was 10.13 cents, up 3.8% compared to 2006. Passenger revenue per available seat mile (PRASM) increased 5.4% year-over-year to 8.46 cents. Available seat miles grew 12.0% to 8.1 billion. Operating expenses for the second quarter were $657 million, up 16.3% from the second quarter of 2006. Operating expense per ASM (CASM) for the second quarter 2007 increased 3.9% year-over-year to 8.14 cents. During the quarter, realized fuel price was $2.00 per gallon, a 2.8% decrease over second quarter 2006 realized fuel price of $2.06 per gallon. Excluding fuel, CASM increased 3.3% year-over-year. Average stage length during the second quarter was 1,135 miles, down 9.4% from a year ago. JetBlue ended the quarter with $772 million in cash and investment securities.

John Harvey, JetBlue's Executive Vice President and CFO, commented: "I am very pleased with our solid cost performance this quarter, and we will continue to focus on efficiency improvements and cost control going forward. Our ability to deliver the JetBlue Experience to our customers with a low cost structure differentiates JetBlue from the rest of the industry."

Looking ahead, for the third quarter of 2007, JetBlue expects to report an operating margin between six and eight percent based on an assumed aircraft fuel cost per gallon of $2.18, net of hedges. Pre-tax margin for the quarter is expected to be between one and three percent. CASM is expected to increase between eight and ten percent over the year-ago period. Excluding fuel, CASM in the third quarter is expected to increase between eight and ten percent year over year. Capacity is expected to increase between 10 and 12 percent in the third quarter and stage length is expected to decrease roughly two percent over the same period last year.

For the full year 2007, JetBlue expects to report an operating margin between five and seven percent based on an assumed aircraft fuel cost per gallon of $2.07, net of hedges. Pre-tax margin for the full year is expected to be between one and three percent. CASM for the full year is expected to increase between seven and nine percent over full year 2006. Excluding fuel, CASM in 2007 is expected to increase between six and eight percent year over year. Capacity for the full year 2007 is expected to increase between 10 and 12 percent over 2006 and stage length is expected to decrease roughly five percent over full year 2006.

JetBlue will conduct a conference call to discuss its quarterly earnings today, July 24, at 10:00 a.m. Eastern Time. A live broadcast of the conference call will be available via the internet at http://investor.jetblue.com.

New York-based JetBlue Airways has created a new airline category based on value, service and style. Known for its award-winning service and free TV as much as its low fares, JetBlue is now pleased to offer customers the most legroom throughout coach (based on average fleet-wide seat pitch for U.S. airlines). JetBlue is also America's first and only airline to offer its own Customer Bill of Rights, with meaningful compensation for customers inconvenienced by service disruptions within JetBlue's control. Visit www.jetblue.com/promise for details. JetBlue serves 54 cities with up to 575 daily flights. With JetBlue, all seats are assigned, all travel is ticketless, all fares are one-way, and an overnight stay is never required. For information or reservations call 1-800-JETBLUE (1-800-538-2583) or visit www.jetblue.com.

JetBlue's 36 channels of DIRECTV(r) service is not available on flights outside the continental United States; however, where applicable, FOX InFlight(tm) is offered complimentary on these routes. FOX InFlight(tm) is a trademark of Twentieth Century Fox Film Corporation. JetBlue's in-flight entertainment is powered by LiveTV, a wholly owned subsidiary of JetBlue.

The JetBlue logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=795

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; increases in fuel prices, maintenance costs and interest rates; our ability to implement our growth strategy, including the ability to operate reliably the EMBRAER 190 aircraft; our significant fixed obligations; our ability to attract and retain qualified personnel and maintain our culture as we grow; our reliance on high daily aircraft utilization; our dependence on the New York metropolitan market and the effect of increased congestion in this market; our reliance on automated systems and technology; our being subject to potential unionization; our reliance on a limited number of suppliers; changes in or additional government regulation; changes in our industry due to other airlines' financial condition; and external geopolitical events and conditions. Further 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 2006 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We undertake no obligation to update any forward-looking statements to reflect events or circumstances that may arise after the date of this release.



                        JETBLUE AIRWAYS CORPORATION

                    CONSOLIDATED STATEMENTS OF OPERATIONS

              (in millions, except share and per share amounts)
                                (unaudited)

                 Three Months Ended           Six Months Ended
                      June 30,                    June 30,
                  ----------------            ----------------
                                    Percent                     Percent
                   2007     2006     Change    2007     2006     Change
                  -------  -------  -------   -------  -------  -------

 OPERATING 
  REVENUES
  Passenger       $   683  $   579    18.0    $ 1,247  $ 1,042   19.7
  Other                47       33    44.9         91       60   52.7
                  -------  -------            -------  -------
   Total 
    operating
    revenues          730      612    19.4      1,338    1,102   21.4

 OPERATING EXPENSES
  Salaries, wages
   and benefits       158      134    18.1        322      266   20.9
  Aircraft fuel       226      192    17.5        416      352   18.1
  Landing fees and
   other rents         47       37    26.4         92       75   22.4
  Depreciation and
   amortization        43       37    13.7         85       71   19.0
  Aircraft rent        30       25    24.5         60       47   28.9
  Sales and
   marketing           31       30     1.7         60       50   19.0
  Maintenance
   materials
   and repairs         27       23    20.2         53       44   21.0
  Other operating
   expenses            95       87     9.5        190      175    9.0
                  -------  -------            -------  -------
    Total 
     operating
     expenses         657      565    16.3      1,278    1,080   18.3
                  -------  -------            -------  -------

 OPERATING INCOME      73       47    56.6         60       22  178.7

  Operating margin   10.0%     7.7%    2.3 pts.   4.5%     2.0%   2.5 pts.

 OTHER INCOME
  (EXPENSE)
  Interest expense    (56)     (42)   33.3       (108)     (79)  35.7
  Capitalized
   interest            11        7    50.0         19       12   52.2
  Interest income
   and other           15       13    14.3         27       23   18.2
                  -------  -------            -------  -------
    Total other
     income
     (expense)        (30)     (22)   39.7        (62)     (44)  40.5
                  -------  -------            -------  -------
 INCOME (LOSS)
  BEFORE
  INCOME TAXES         43       25                 (2)     (22)

  Pre-tax margin      5.9%     4.1%    1.8 pts.  (0.1)%   (2.0)%  1.9 pts.

  Income tax
   expense
   (benefit)           22       11                 (1)      (4)
                  -------  -------            -------  -------

 NET INCOME
  (LOSS)          $    21  $    14            $    (1) $   (18)
                  =======  =======            =======  =======

 EARNINGS (LOSS)
  PER COMMON 
  SHARE:

  Basic           $  0.12  $  0.08            $    --  $ (0.10)
                  =======  =======            =======  =======
  Diluted         $  0.11  $  0.08            $    --  $ (0.10)
                  =======  =======            =======  =======

  Weighted average
   shares 
   outstanding
   (thousands):

   Basic          179,514  174,772            178,862  174,013
   Diluted        198,585  180,841            178,862  174,013


                        JETBLUE AIRWAYS CORPORATION

 COMPARATIVE OPERATING STATISTICS

                 Three Months Ended           Six Months Ended
                      June 30,                    June 30,
                  ----------------            ----------------
                                    Percent                     Percent
                   2007     2006     Change    2007     2006     Change
                  -------  -------  -------   -------  -------  -------

 Revenue 
  passengers 
  (thousands)       5,587    4,525    23.5     10,678    8,860    20.5
 Revenue                                  
  passenger miles                                   
  (millions)        6,736    5,924    13.7     12,678   11,460    10.6
 Available seat                                
  miles (ASMs)                                  
  (millions)        8,066    7,202    12.0     15,436   13,779    12.0
 Load factor         83.5%    82.2%  1.3 pts.   82.1%    83.5%  (1.1) pts.
 Breakeven load                                    
  factor (a)         79.6%    79.5%  0.1 pts.   83.5%    85.4%  (1.9) pts.
 Aircraft                                  
  utilization                              
  (hours per day)    13.2     13.0     1.8      12.9     12.9      0.2
                                          
 Average fare     $122.17  $127.87    (4.5)  $116.74  $117.59     (0.7)
 Yield per                                
  passenger                               
  mile (cents)      10.13     9.77     3.8      9.83     9.09      8.2
 Passenger 
  revenue per 
  ASM (cents)        8.46     8.03     5.4      8.08     7.56      6.8
 Operating                                
  revenue per 
  ASM (cents)        9.05     8.48     6.6      8.67     7.99      8.4
 Operating                                
  expense per 
  ASM (cents)        8.14     7.83     3.9      8.28     7.84      5.6
 Operating                                
  expense per
  ASM, excluding                               
  fuel (cents)       5.34     5.17     3.3      5.58     5.28      5.7
 Airline                                  
  operating                               
  expense per
  ASM (cents)                                 
  (a)                8.07     7.77     3.8      8.21     7.76      5.7
                                          
 Departures        49,513   37,688    31.4    96,087   72,105     33.3
 Average                                  
  stage length                                  
  (miles)           1,135    1,253    (9.4)    1,111    1,249    (11.1)
 Average number 
  of operating                               
  aircraft                                
  during period     126.7    102.6    23.5     124.1     99.1     25.3
 Average fuel 
  cost per 
  gallon          $  2.00  $  2.06    (2.8)  $  1.95  $  1.97     (1.0)
 Fuel gallons                                 
  consumed                                
  (millions)          113       93    21.0       214      179     19.3
 Percent of                               
  sales through                                 
  jetblue.com                             
  during period      74.0%     79.5% (5.5) pts.  75.2%    80.8%  (5.6) pts.
 Full-time                                
  equivalent                              
  employees                               
  at period end (a)                             9,421    9,337     0.9
                                           
 (a) Excludes operating expenses and employees of LiveTV, LLC,
     which are unrelated to our airline operations.       


                                                      
 SELECTED CONSOLIDATED BALANCE SHEET DATA                 
 (in millions)                                            
                                        June 30,     December 31,
                                          2007          2006
                                        --------      --------
 Cash, cash equivalents and investment  
  securities                            $    772      $    699
 Total assets                              5,356         4,843
 Total debt                                3,005         2,840
 Stockholders' equity                        993           952


            

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