NEW YORK, Jan. 29, 2008 (PRIME NEWSWIRE) -- JetBlue Airways Corporation (Nasdaq:JBLU) today reported its results for the fourth quarter and full year 2007:
* Operating revenues for the quarter totaled $739 million,
representing growth of 16.6% over operating revenues of $633
million in the fourth quarter of 2006. For the full year,
operating revenues totaled $2.84 billion, representing growth
of 20.2% over operating revenues of $2.36 billion for the full
year 2006.
* Operating income for the quarter was $30 million, resulting in a
4.1% operating margin, compared to an operating income of $64
million and a 10.2% operating margin in the fourth quarter of
2006. For the full year 2007, operating income was $169 million,
resulting in an operating margin of 6.0%. This compares with
operating income of $127 million and a 5.4% operating margin for
the full year 2006.
* Pre-tax loss for the quarter was $3 million, compared with
pre-tax income of $30 million in the year-ago period. For the
full year, pre-tax income was $41 million, compared with pre-tax
income of $9 million for the full year 2006.
* Net loss for the quarter was $4 million, representing a net loss
of $0.02 per diluted share, compared with fourth quarter 2006 net
income of $17 million, or earnings of $0.10 per diluted share.
For the full year 2007, net income totaled $18 million, or $0.10
per diluted share, compared with a net loss of $1 million, or
$0.00 per diluted share, for the full year 2006.
* Cash and investment securities of $834 million at the end of the
fourth quarter, which does not include Lufthansa's $300 million
investment in JetBlue.
"We are delighted to report a profit for 2007 -- our first full-year profit since 2004 -- especially in light of the operational challenges and record high fuel prices we faced during the year," said Dave Barger, JetBlue's CEO. "Although soaring fuel prices contributed to our fourth quarter loss, we believe we are well positioned as we move into 2008 with a strong brand, superior product and solid financial position."
Operational Performance
For the fourth quarter, revenue passenger miles increased 7.1% year-over-year to 6.2 billion on a capacity increase of 11.5%, resulting in a fourth quarter load factor of 76.6%, a decrease of 3.1 points year over year. Yield per passenger mile in the fourth quarter was 10.89 cents, up 6.7% compared to the fourth quarter of 2006. Passenger revenue per available seat mile (PRASM) for the fourth quarter 2007 increased 2.5% year-over-year to 8.34 cents. For the full year 2007, PRASM increased 6.3% year over year.
JetBlue's operating expense per available seat mile (CASM) for the fourth quarter increased 11.7% year-over-year to 8.73 cents. Excluding fuel, CASM increased 4.5% to 5.48 cents. During the quarter, JetBlue's realized fuel price was $2.34 per gallon, a 21.8% increase over fourth quarter 2006 realized fuel price of $1.92.
Russ Chew, JetBlue's President and COO, commented, "Thanks to the hard work and dedication of our crewmembers, we achieved significant operational improvements during 2007. Our ability to deliver exceptional customer service with a low cost structure continues to differentiate us from the rest of the industry."
Recent JetBlue highlights include:
* JetBlue and Lufthansa consummated their stock purchase agreement
transaction, and as a result, Lufthansa now holds a 19 percent
ownership interest in JetBlue.
* JetBlue launched new service from New York (JFK) to St. Maarten
and Puerto Plata, Dominican Republic, strengthening its network
in the Caribbean. In addition, JetBlue announced that it will
begin nonstop service from Orlando to Cancun, Mexico and Santo
Domingo, Dominican Republic in March 2008. JetBlue now serves
17 destinations from Orlando.
* JetBlue continued its focus on innovation with the introduction
and testing of complimentary in-flight e-mail and instant
messaging services for its customers on aircraft "BetaBlue."
JetBlue is the first U.S. domestic carrier to provide such free
in-flight connectivity.
LiveTV -- Continental Airlines Agreement
LiveTV, a wholly owned subsidiary of JetBlue, announced today that it has entered into a long-term agreement with Continental Airlines to install and service its inflight entertainment system on Continental's new generation Boeing 737 and 757-300 aircraft. LiveTV has provided live television programming and other services to JetBlue since its inception. LiveTV also serves seven other airlines around the world with its inflight entertainment products, including DIRECTV-based live television programming and XM Satellite Radio, and wireless services, including a handheld platform for in-cabin sales.
First Quarter and Full Year Outlook
Looking ahead, for the first quarter of 2008, JetBlue expects to report an operating margin between zero and two percent based on an assumed aircraft fuel cost per gallon of $2.50, net of hedges. Pre-tax margin for the quarter is expected to be between negative five and negative three percent. PRASM is expected to increase between 10 and 12 percent year over year. CASM is expected to increase between 9 and 11 percent over the year-ago period. Excluding fuel, CASM in the first quarter is expected to decrease between two and zero percent year over year. Capacity is expected to increase between 13 and 15 percent in the first quarter and stage length is expected to increase roughly four percent over the same period last year.
For the full year 2008, JetBlue expects to report an operating margin between six and eight percent based on an assumed aircraft fuel cost per gallon of $2.55, net of hedges. Pre-tax margin for the full year is expected to be between one and three percent. PRASM for the full year is expected to increase between nine and 11 percent year over year. CASM for the full year is expected to increase between 10 and 12 percent over full year 2007. Excluding fuel, CASM in 2008 is expected to increase between three and five percent year over year. Capacity for the full year 2008 is expected to increase between five and eight percent over 2007 and stage length is expected to increase about one percent over full year 2007.
JetBlue will conduct a conference call to discuss its quarterly earnings today, January 29, 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
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 introduced complimentary in-flight e-mail and instant messaging services on aircraft "BetaBlue," a first among U.S. domestic airlines. JetBlue is also America's first and only airline to offer its own Customer Bill of Rights, with meaningful and specific compensation for customers inconvenienced by service disruptions within JetBlue's control. Visit www.jetblue.com/promise for details. JetBlue serves 53 cities with 550 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.
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 Twelve Months Ended
December 31, December 31,
----------------- Percent ----------------- Percent
2007 2006 Change 2007 2006 Change
-------- -------- ------- -------- -------- -------
OPERATING
REVENUES
Passenger $ 677 $ 592 14.3 $ 2,636 $ 2,223 18.6
Other 62 41 48.6 206 140 46.9
-------- -------- -------- --------
Total
operating
revenues 739 633 16.6 2,842 2,363 20.2
OPERATING
EXPENSES
Salaries,
wages and
benefits 167 147 13.6 648 553 17.3
Aircraft
fuel 264 188 40.8 929 752 23.6
Landing fees
and other
rents 44 41 7.3 180 158 14.4
Depreciation
and amor-
tization 47 41 13.4 176 151 16.3
Aircraft rent 32 29 9.0 124 103 19.6
Sales and
marketing 29 27 8.6 121 104 16.4
Maintenance
materials
and repairs 28 20 36.4 106 87 21.4
Other
operating
expenses 98 76 28.8 389 328 18.5
-------- -------- -------- --------
Total
operating
expenses 709 569 24.5 2,673 2,236 19.5
-------- -------- -------- --------
OPERATING
INCOME 30 64 (52.9) 169 127 32.8
Operating
margin
4.1% 10.2% (6.1) pts. 6.0% 5.4% 0.6 pts.
OTHER INCOME
(EXPENSE)
Interest
expense (59) (49) 23.2 (225) (173) 30.5
Capitalized
interest 13 8 82.4 43 27 62.2
Interest
income
and other 13 7 99.2 54 28 96.2
-------- -------- -------- --------
Total
other
income
(expense) (33) (34) (3.2) (128) (118) 8.2
-------- -------- -------- --------
INCOME (LOSS)
BEFORE
INCOME
TAXES (3) 30 41 9
Pre-tax
margin (0.4)% 4.7% (5.1) pts. 1.4% 0.4% 1.0 pts.
Income tax
expense
(benefit) 1 13 23 10
-------- -------- -------- --------
NET INCOME
(LOSS) $ (4)$ 17 $ 18 $ (1)
======== ======== ======== ========
EARNINGS
(LOSS) PER
COMMON SHARE:
Basic $ (0.02)$ 0.10 $ 0.10 $ --
======== ======== ======== ========
Diluted $ (0.02)$ 0.10 $ 0.10 $ --
======== ======== ======== ========
Weighted
average
shares
outstanding
(thousands):
Basic 181,156 176,822 179,766 175,113
Diluted 181,156 197,204 184,260 175,113
JETBLUE AIRWAYS CORPORATION
COMPARATIVE OPERATING STATISTICS
Three Months Ended Twelve Months Ended
December 31, December 31,
----------------- Percent ----------------- Percent
2007 2006 Change 2007 2006 Change
-------- -------- ------- -------- -------- -------
Revenue
passengers
(thousands) 5,181 4,932 5.0 21,387 18,565 15.2
Revenue
passenger
miles
(millions) 6,211 5,798 7.1 25,737 23,320 10.4
Available
seat miles
(ASMs)
(millions) 8,113 7,278 11.5 31,904 28,594 11.6
Load factor 76.6% 79.7% (3.1) pts. 80.7% 81.6% (0.9) pts.
Breakeven
load
factor(a) 78.4% 76.0% 2.4 pts. 80.7% 81.4% (0.7) pts.
Aircraft
utilization
(hours per
day) 12.6 12.5 1.4 12.8 12.7 0.7
Average
fare $ 130.61 $ 120.01 8.8 $ 123.23 $ 119.73 2.9
Yield per
passenger
mile
(cents) 10.89 10.21 6.7 10.24 9.53 7.4
Passenger
revenue
per ASM
(cents) 8.34 8.13 2.5 8.26 7.77 6.3
Operating
revenue
per ASM
(cents) 9.10 8.71 4.6 8.91 8.26 7.8
Operating
expense
per ASM
(cents) 8.73 7.82 11.7 8.38 7.82 7.1
Operating
expense
per ASM,
excluding
fuel
(cents) 5.48 5.24 4.5 5.47 5.19 5.3
Airline
operating
expense per
ASM
(cents)(a) 8.54 7.75 10.2 8.27 7.76 6.6
Departures 50,274 44,736 12.4 196,594 159,152 23.5
Average
stage
length
(miles) 1,133 1,087 4.2 1,129 1,186 (4.7)
Average
number of
operating
aircraft
during
period 132.1 115.8 14.1 127.8 106.5 20.0
Average fuel
cost per
gallon $ 2.34 $ 1.92 21.8 $ 2.09 $ 1.99 5.0
Fuel gallons
consumed
(millions) 113 98 15.6 444 377 17.7
Percent of
sales
through
jetblue.com
during
period 78.1% 76.2% 1.9 pts. 75.7% 79.1% (3.4) pts.
Full-time
equivalent
employees
at period
end(a) 9,909 9,265 7.0
(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,
2007 2006
------------ ------------
Cash, cash equivalents and investment
securities $ 834 $ 699
Total assets 5,598 4,843
Total debt 3,048 2,840
Stockholders' equity 1,036 952