NEW YORK, Jan. 30, 2007 (PRIME NEWSWIRE) -- JetBlue Airways Corporation (Nasdaq:JBLU) today reported its results for the fourth quarter and full year 2006:
* Operating revenues for the quarter totaled $633 million, representing growth of 42.1% over operating revenues of $446 million in the fourth quarter of 2005. For the full year, operating revenues totaled $2.36 billion, representing growth of 38.9% over operating revenues of $1.70 billion for the full year 2005. * Operating income for the quarter was $64 million, resulting in a 10.2% operating margin, compared to an operating loss of $31 million and a negative 7.1% operating margin in the fourth quarter of 2005. For the full year 2006, operating income was $127 million, resulting in an operating margin of 5.4%. This compares with operating income of $48 million and a 2.8% operating margin for the full year 2005. * Pre-tax income for the quarter was $30 million, compared with a pre-tax loss of $55 million in the year-ago period. For the full year, pre-tax income was $9 million, compared with a pre-tax loss of $24 million for the full year 2005. * Net income for the quarter was $17 million, representing earnings of $0.10 per diluted share, compared with fourth quarter 2005 net loss of $42 million, or a loss of $0.25 per diluted share. For the full year 2006, net loss totaled $1 million, or $0.00 per diluted share, compared with a net loss of $20 million, or a loss of $0.13 per diluted share, for the full year 2005.
"I'm tremendously proud of the efforts our crewmembers have made in advancing our plan to institutionalize low-cost carrier spending habits and improve revenue overall -- we've made great progress since the beginning of 2006," said David Neeleman, JetBlue's Chairman and CEO. "We are optimistic about what lies ahead as we seek to further improve our financial and operating performance."
During the fourth quarter of 2006, JetBlue achieved a completion factor of 99.6% of scheduled flights versus 98.9% in the fourth quarter of 2005. On-time performance, defined by the US Department of Transportation as arrivals within 14 minutes of schedule, was 68.4% in the fourth quarter of 2006 compared to 70.9% for the same period in 2005. For the full year 2006, JetBlue achieved a completion factor of 99.5%, compared to 99.2% in the full year 2005. On-time performance for the full year 2006 was 72.8%, compared to 71.4% for the full year 2005. The company attained a load factor in the fourth quarter of 2006 of 79.7%, a decrease of 1.4 points on a capacity increase of 14.5% over the fourth quarter of 2005. Load factor for the full year 2006 was 81.6%, a decrease of 3.6 points on a capacity increase of 20.6%.
Dave Barger, JetBlue's President and COO, commented, "The JetBlue team, now 11,000 strong, rose to the occasion and met the difficult operational and financial challenges of 2006. The creativity and innovation of our crewmemebers positions us well for 2007, a year in which we plan to grow capacity eleven to fourteen percent, while continuing to enhance the JetBlue Experience."
For the fourth quarter, yield per passenger mile was 10.21 cents, up 25.0% compared to 2005. Operating revenue per available seat mile (RASM) increased 24.1% year-over-year to 8.71 cents. Revenue passenger miles increased 12.4% from the fourth quarter of 2005 to 5.8 billion. Available seat miles (ASMs) grew 14.5% to 7.3 billion. Operating expenses for the fourth quarter were $569 million, up 19.1% from the fourth quarter of 2005. Operating expense per ASM (CASM) for the fourth quarter 2006 increased 4.1% year-over-year to 7.82 cents, while average stage length decreased 17.9%. Excluding fuel, CASM increased 2.3% to 5.24 cents. During the quarter, realized fuel price was $1.92 per gallon, a 2.8% increase over fourth quarter 2005 realized fuel price of $1.87. JetBlue ended the fourth quarter and full year with $699 million in cash and investment securities.
Looking ahead, for the first quarter of 2007, JetBlue expects to report an operating margin between two and four percent based on an assumed aircraft fuel cost per gallon of $1.91, net of hedges. Pre-tax margin for the quarter is expected to be between negative four and negative two percent. CASM is expected to increase between six and eight percent over the year-ago period. Excluding fuel, CASM in the first quarter is expected to increase between four and six percent year over year. Capacity is expected to increase between 14 and 16 percent in the first quarter and stage length is expected to decrease roughly 14 percent over the same period last year.
For the full year 2007, JetBlue expects to report an operating margin between 10 and 12 percent based on an assumed aircraft fuel cost per gallon of $1.93, net of hedges. Pre-tax margin for the full year is expected to be between five and seven percent. CASM for the full year is expected to increase between five and seven percent over full year 2006. Excluding fuel, CASM in 2007 is expected to increase between seven and nine percent year over year. Capacity for the full year 2007 is expected to increase between 11 and 14 percent over 2006 and stage length is expected to decrease roughly seven percent over full year 2006. The CASM and ex-fuel CASM guidance in both the first quarter and full year includes the impact of the reduction in seats on JetBlue's A320 aircraft from 156 to 150 seats per aircraft.
JetBlue will conduct a conference call to discuss its quarterly earnings today, January 30, 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.
About JetBlue
JetBlue Airways is focused on creating a new airline category -- an airline that offers value, service and style. Based out of New York City, and entering its seventh year, the low-cost carrier currently serves 50 destinations with up to 500 flights daily. Onboard JetBlue, customers enjoy roomy leather seats with industry-leading legroom on the A320 aircraft(a), and no middle seats on the E190 aircraft. Customers also enjoy 36 channels of free DIRECTV(r) programming(b), the most live TV available on any airline. On flights longer than two hours, a selection of first-run movies and bonus features from FOX InFlight(tm) is also available. JetBlue offers customers generous brand name snacks and beverages, including freshly brewed Dunkin' Donuts(r) coffee, and delicious wines selected by the airline's Low Fare Sommelier, Josh Wesson from Best Cellars(r). On overnight flights from the West, the airline now offers Shut-Eye Service(tm), with a comfort kit designed exclusively for JetBlue by Bliss Spa and other special amenities including a "good morning" hot towel service. 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.
The JetBlue logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=795
(a) The modification of JetBlue's A320 fleet which will bring customers 36 inches of leg room in rows one through eleven will be complete by March 2007.
(b) 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.
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 integration of the EMBRAER 190 aircraft into our operations; 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; 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 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 2005 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 Twelve Months Ended
December 31, December 31,
----------------- Percent ---------------- Percent
2006 2005 Change 2006 2005 Change
------- ------- ------ ------- ------- ------
OPERATING REVENUES
Passenger $ 592 $ 420 40.6 $ 2,223 $ 1,620 37.2
Other 41 26 66.8 140 81 74.2
------- ------- ------- -------
Total operating
revenues 633 446 42.1 2,363 1,701 38.9
OPERATING EXPENSES
Salaries, wages
and benefits 147 116 27.1 553 428 29.3
Aircraft fuel 188 152 23.3 752 488 54.1
Landing fees and
other rents 41 32 27.4 158 112 40.5
Depreciation and
amortization 41 34 19.2 151 115 31.8
Aircraft rent 29 20 44.8 103 74 39.0
Sales and
marketing 27 20 34.2 104 81 27.1
Maintenance
materials and
repairs 20 17 19.9 87 64 35.9
Other operating
expenses 76 86 (11.6) 328 291 12.7
------- ------- ------- -------
Total operating
expenses 569 477 19.1 2,236 1,653 35.2
------- ------- ------- -------
OPERATING INCOME 64 (31) 305.3 127 48 167.5
Operating margin 10.2% (7.1)% 17.3 pts. 5.4% 2.8% 2.6 pts.
OTHER INCOME
(EXPENSE)
Interest expense (49) (33) 50.7 (173) (107) 62.0
Capitalized
interest 8 5 63.7 27 16 66.6
Interest income
and other 7 4 58.5 28 19 43.9
------- ------- ------- -------
Total other
income
(expense) (34) (24) 46.9 (118) (72) 65.9
------- ------- ------- -------
INCOME (LOSS)
BEFORE INCOME
TAXES 30 (55) 9 (24)
Pre-tax margin 4.7% (12.4)% 17.1 pts. 0.4% (1.4)% 1.8 pts.
Income tax
expense
(benefit) 13 (13) 10 (4)
------- ------- ------- -------
NET INCOME
(LOSS) $ 17 $ (42) $ (1) $ (20)
======= ======= ======= =======
EARNINGS (LOSS)
PER COMMON SHARE:
Basic $ 0.10 $ (0.25) $ -- $ (0.13)
======= ======= ======= =======
Diluted $ 0.10 $ (0.25) $ -- $ (0.13)
======= ======= ======= =======
Weighted average
shares outstanding
(thousands):
Basic 176,822 167,532 175,113 159,889
Diluted 197,204 167,532 175,113 159,889
JETBLUE AIRWAYS CORPORATION
COMPARATIVE OPERATING STATISTICS
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------- Percent ---------------- Percent
2006 2005 Change 2006 2005 Change
------- ------- ------- ------- ------- -------
Revenue passengers
(thousands) 4,932 3,850 28.1 18,565 14,729 26.0
Revenue passenger
miles (millions) 5,798 5,157 12.4 23,320 20,200 15.4
Available seat
miles (ASMs)
(millions) 7,278 6,356 14.5 28,594 23,703 20.6
Load factor 79.7% 81.1% (1.4)pts. 81.6% 85.2% (3.6)pts.
Breakeven load
factor(a) 76.0% 91.0% (15.0)pts. 81.4% 86.1% (4.7)pts.
Aircraft utiliza-
tion (hours per
day) 12.5 13.1 (5.0) 12.7 13.4 (5.1)
Average fare $120.01 $109.33 9.8 $119.73 $110.03 8.8
Yield per
passenger mile
(cents) 10.21 8.16 25.0 9.53 8.02 18.8
Passenger revenue
per ASM (cents) 8.13 6.62 22.8 7.77 6.84 13.7
Operating revenue
per ASM (cents) 8.71 7.02 24.1 8.26 7.18 15.2
Operating expense
per ASM (cents) 7.82 7.51 4.1 7.82 6.98 12.1
Operating expense
per ASM, excluding
fuel (cents) 5.24 5.12 2.3 5.19 4.92 5.5
Airline operating
expense per ASM
(cents)(a) 7.75 7.43 4.4 7.76 6.91 12.3
Departures 44,736 30,886 44.8 159,152 112,009 42.1
Average stage
length (miles) 1,087 1,324 (17.9) 1,186 1,358 (12.7)
Average number of
operating aircraft
during period 115.8 85.5 35.4 106.5 77.5 37.4
Average fuel cost
per gallon $ 1.92 $ 1.87 2.8 $ 1.99 $ 1.61 23.9
Fuel gallons
consumed (millions) 98 81 20.0 377 303 24.4
Percent of sales
through jetBlue.com
during period 76.2% 78.6% (2.4)pts. 79.1% 77.5% 1.6pts.
Full-time equivalent
employees at
period end (a) 9,265 8,326 11.3
(a) Excludes operating expenses and employees of LiveTV, LLC,
which are unrelated to our airline operations.
SELECTED CONSOLIDATED BALANCE SHEET DATA
(in millions)
December 31, December 31,
2006 2005
----------- -----------
Cash, cash equivalents and
investment securities $ 699 $ 484
Total assets 4,843 3,892
Total debt 2,840 2,326
Stockholders' equity 952 911
JETBLUE AIRWAYS CORPORATION
NON-GAAP FINANCIAL MEASURES(b)
(in millions, except per share amounts or as otherwise noted)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ -----------------
2006 2005 2006 2005
------- ------- ------- -------
Net income (loss) excluding
unusual items
Net income (loss) as reported $ 17 $ (42) $ (1) $ (20)
Unusual items, net of tax
Gain on sale of five Airbus
A320 aircraft (1) -- (6) --
Write-off of software
development costs -- 3 -- 3
------- ------- ------- -------
Net income (loss) excluding
unusual items $ 16 $ (39) $ (7) $ (17)
======= ======= ======= =======
Diluted earnings per share,
excluding unusual items
Net income (loss)
as reported $ 0.10 $ (0.25) $ -- $ (0.13)
Unusual items, net of tax
Gain on sale of five Airbus
A320 aircraft (0.01) -- (0.04) --
Write-off of software
development costs -- 0.02 -- 0.03
------- ------- ------- -------
Net income (loss) excluding
unusual items $ 0.09 $ (0.23) $ (0.04) $ (0.10)
======= ======= ======= =======
Operating expenses excluding
unusual items
Operating expenses as
reported $ 569 $ 477 $ 2,236 $ 1,653
Unusual Items
Gain on sale of five Airbus
A320 aircraft 4 -- 12 --
Write-off of software
development costs -- (6) -- (6)
Impact to profit sharing (2) -- (2) --
------- ------- ------- -------
Total unusual items 2 (6) 10 (6)
------- ------- ------- -------
Operating expenses excluding
unusual items $ 571 $ 471 $ 2,246 $ 1,647
======= ======= ======= =======
Operating margin, excluding
unusual items 9.9% (5.7)% 5.0% 3.2%
CASM (in cents)
Operating expenses as reported 7.82 7.51 7.82 6.98
Unusual items 0.03 (0.09) 0.03 (0.03)
------- ------- ------- -------
Operating expenses, excluding
unusual items 7.85 7.42 7.85 6.95
======= ======= ======= =======
(b) In management's view, it is useful for investors to consider
separately the impact of certain unusual items on the fourth
quarter and full year operating results, specifically the impact
of aircraft sales in 2006 and the write-off of software
development costs in 2005, in order to facilitate investors'
understanding of some of the key reasons for period-to-period
fluctuations in our operating results and to distinguish between
those reasons that relate to our ongoing operations and those
that are unusual in nature. Investors should consider these
non-GAAP financial measures in addition to, and not as a
substitute for, our financial performance measures prepared in
accordance with GAAP.