8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 29, 2009

JETBLUE AIRWAYS CORPORATION

(Exact name of registrant as specified in its charter)

Delaware
(State of Other Jurisdiction of
Incorporation) 000-49728
(Commission
File Number) 87-0617894
(I.R.S. Employer
Identification No.)

118-29 Queens Boulevard, Forest Hills, New York 11375
(Address of principal executive offices) (Zip Code)

(718) 286-7900
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 2.02 Results of Operations and Financial Condition
	Item 9.01 Financial Statements and Exhibits
SIGNATURE
EXHIBIT INDEX
EX-99.1: PRESS RELEASE

Item 2.02 Results of Operations and Financial Condition

     On January 29, 2009, we issued a press release announcing our financial results for the fourth quarter and year ended December 31, 2008. A copy of the press release is attached to this report as Exhibit 99.1 and is incorporated herein by reference.

     The information included under Item 2.02 of this report is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Act of 1934, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933.

Item 9.01 Financial Statements and Exhibits

     (d) Exhibits

Exhibit
Number	Description
99.1	Press Release dated January 29, 2009 of JetBlue Airways Corporation announcing financial results for the fourth quarter and year ended December 31, 2008.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	JETBLUE AIRWAYS CORPORATION (Registrant)
Date: January 29, 2009	By:	/s/ Edward Barnes
		Executive Vice President and Chief Financial Officer (Principal Financial Officer)

EXHIBIT INDEX

Exhibit
Number	Exhibit
99.1	Press Release dated January 29, 2009 announcing financial results for the fourth quarter and year ended December 31, 2008.

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE	CONTACTS: Investor Relations
	(718)709-2202
	ir@jetblue.com

Corporate Communications
(718) 709-3089
CorporateCommunications@jetblue.com

JETBLUE ANNOUNCES FOURTH QUARTER AND
FULL YEAR 2008 PRE-TAX RESULTS

New York, NY (January 29, 2009) — JetBlue Airways Corporation (NASDAQ: JBLU) today reported its pre-tax results for the fourth quarter and full year 2008:

• Pre-tax loss of $49 million in the fourth quarter, which includes a special non-cash charge of $53 million related to the valuation of JetBlue’s auction rate securities. Excluding this special charge, JetBlue reported pre-tax income for the quarter of $4 million. This compares to a pre-tax loss of $3 million in the year-ago period.

• For the full year 2008, JetBlue reported a pre-tax loss of $76 million. Excluding the special charge, JetBlue reported a pre-tax loss of $23 million. This compares to pre-tax income of $41 million for the full year 2007.

• JetBlue is evaluating the tax deductibility of the special charge, but has not yet finalized the amount given the technical nature of the issue. As a result, today JetBlue is only reporting its pre-tax results. Once the tax treatment for this special charge is finalized, JetBlue will report its net results in its Annual Report on Form 10-K, which will be filed in mid-February.

“While we are disappointed to report a loss, I am very proud of what JetBlue accomplished in 2008,” said Dave Barger, JetBlue’s CEO. “Against the backdrop of record fuel prices and unprecedented economic challenges, we effectively managed our capacity and strengthened our network. We also made significant progress in our efforts to further enhance the JetBlue experience for our customers. JetBlue’s industry-leading unit revenue growth throughout the year reflects the outstanding work of our crewmembers.”

Operational Performance

Operating revenues for the fourth quarter totaled $811 million, representing growth of 9.8% over operating revenues of $739 million in the fourth quarter of 2007. For the full year, operating revenues totaled $3.39 billion, representing growth of 19.2% over operating revenues of $2.84 billion for the full year 2007.

For the fourth quarter, revenue passenger miles decreased 5.0% year-over-year to 5.9 billion on a capacity decrease of 7.4%, resulting in a fourth quarter load factor of 78.6%, an increase of 2.0 points year over year. Yield per passenger mile in the fourth quarter was 12.23 cents, up 12.3% compared to the fourth quarter of 2007. Passenger revenue per available seat mile (PRASM) for the fourth quarter 2008 increased 15.3% year-over-year to 9.62 cents. For the full year 2008, PRASM increased 14.0% year over year.

-2-

Operating expenses for the quarter increased 7.5%, or $53 million, over the prior year period. JetBlue’s operating expense per available seat mile (CASM) for the fourth quarter increased 16.1% year-over-year to 10.14 cents. Excluding fuel, CASM increased 17.2% to 6.42 cents. For the full year 2008, JetBlue’s CASM, excluding fuel, increased 8.7% to 5.94 cents.

Fuel Hedging

JetBlue hedged approximately 24% of its fuel consumption during the fourth quarter, resulting in a realized fuel price of $2.67 per gallon, a 14.0% increase over fourth quarter 2007 realized fuel price of $2.34. JetBlue recorded $58 million in losses on fuel hedges that settled during the fourth quarter.

Due to the rapid decline in fuel prices during the fourth quarter, JetBlue modified its fuel hedge portfolio, effectively minimizing fuel hedging losses and cash collateral requirements related to further oil price declines. At the end of the fourth quarter, JetBlue had posted approximately $117 million in cash collateral with fuel hedge counterparties related to its 2009 fuel hedge contracts.

As of December 31, 2008, JetBlue had hedged approximately 8% of its projected fuel requirements for 2009. JetBlue expects an average price per gallon of fuel, including the impact of hedges, of $2.07 in the first quarter and $1.99 for the full year 2009.

“We expect lower fuel prices will provide significant savings to JetBlue in 2009,” said Ed Barnes, JetBlue’s CFO.

Balance Sheet Update

JetBlue ended the fourth quarter with $561 million in cash and cash equivalents. In addition, JetBlue had $258 million of auction rate securities, net of impairment losses, at the end of the quarter. JetBlue recorded a $53 million accounting charge in the fourth quarter to reflect a decline in the market value of some of its auction rate securities. The accompanying financial tables contain further information regarding this impairment charge.

“We strengthened our balance sheet in 2008 by paying down almost $700 million of debt, and we will continue to take steps to bolster our liquidity,” said Barnes. “With minimal debt maturities in 2009, we believe JetBlue is very well positioned to successfully manage through this period of economic uncertainty and build for the future.”

First Quarter and Full Year Outlook

Looking ahead, for the first quarter of 2009, JetBlue expects to report an operating margin between six and eight percent. Pre-tax margin for the quarter is expected to be between zero and two percent. PRASM is expected to increase between two and four percent year over year. RASM is expected to increase between five and seven percent year over year. CASM is expected to increase between zero and two percent over the year-ago period. Excluding fuel, CASM in the first quarter is expected to increase between 11 and 13 percent year over year. Capacity is expected to decrease between five and seven percent in the first quarter and stage length is expected to decrease roughly six percent over the same period last year.

-3-

For the full year 2009, JetBlue expects to report an operating margin between 12 and 14 percent. Pre-tax margin for the full year is expected to be between six and eight percent. PRASM for the full year is expected to increase between one and four percent year over year. RASM for the full year is expected to increase between three and six percent. CASM for the full year is expected to decrease between five and seven percent over full year 2008. Excluding fuel, CASM in 2009 is expected to increase between 10 and 12 percent year over year. Capacity for the full year 2009 is expected to decrease between zero and two percent over 2008 and stage length is expected to decrease about six percent over full year 2008.

JetBlue will conduct a conference call to discuss its quarterly earnings today, January 29, at 9:30 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 Lots of Legroom and super-spacious Even More Legroom seats. 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 52 cities with 600 daily flights. New service to San Jose, Costa Rica, begins in 2009. 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.

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 and our new terminal at JFK; 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 2007 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,						Percent			December 31,						Percent
	2008			2007			Change			2008			2007			Change
OPERATING REVENUES
Passenger	$	722		$	677			6.7		$	3,056		$	2,636			15.9
Other		89			62			43.0			332			206			61.1
Total operating revenues		811			739			9.8			3,388			2,842			19.2
OPERATING EXPENSES
Aircraft fuel		280			264			5.9			1,352			929			45.5
Salaries, wages and benefits		175			167			4.5			694			648			7.0
Landing fees and other rents		48			44			8.0			200			180			10.6
Depreciation and amortization		60			47			30.4			205			176			16.6
Aircraft rent		32			32			1.1			129			124			4.2
Sales and marketing		33			29			16.7			151			121			25.5
Maintenance materials and repairs		30			28			3.7			127			106			19.4
Other operating expenses		104			98			6.4			421			389			8.4
Total operating expenses		762			709			7.5			3,279			2,673			22.7
OPERATING INCOME		49			30			62.6			109			169			(35.2	)
Operating margin		6.1	%		4.1	%	2.0		pts.		3.2	%		6.0	%	(2.8)		pts.
OTHER INCOME (EXPENSE)
Interest expense		(59	)		(59	)		0.0			(232	)		(225	)		3.1
Capitalized interest		5			13			(59.9	)		48			43			11.3
Interest income and other		(44	)		13			(439.3	)		(1	)		54			(102.1	)
Total other income (expense)		(98	)		(33	)		192.9			(185	)		(128	)		44.8
INCOME (LOSS) BEFORE INCOME TAXES		(49	)		(3	)					(76	)		41
Pre-tax margin		(6.0	)%		(0.4	)%	(5.6)		pts.		(2.2	)%		1.4	%	(3.6)		pts.
Weighted average shares outstanding (thousands):
Basic		247,748			181,156						228,390			179,766
Diluted		247,748			181,156						228,390			184,260

JETBLUE AIRWAYS CORPORATION

COMPARATIVE OPERATING STATISTICS

	Three Months Ended									Twelve Months Ended
	December 31,						Percent			December 31,						Percent
	2008			2007			Change			2008			2007			Change
Revenue passengers (thousands)		5,108			5,181			(1.4	)		21,920			21,387			2.5
Revenue passenger miles (millions)		5,904			6,211			(5.0	)		26,071			25,737			1.3
Available seat miles (ASMs) (millions)		7,510			8,113			(7.4	)		32,442			31,904			1.7
Load factor		78.6	%		76.6	%	2.0		pts.		80.4	%		80.7	%	(0.3		)pts.
Breakeven load factor (a)		80.6	%		78.4	%	2.2		pts.		84.2	%		80.7	%	3.5		pts.
Aircraft utilization (hours per day)		11.2			12.6			(11.2	)		12.1			12.8			(5.5	)
Average fare	$	141.37		$	130.61			8.2		$	139.40		$	123.23			13.1
Yield per passenger mile (cents)		12.23			10.89			12.3			11.72			10.24			14.5
Passenger revenue per ASM (cents)		9.62			8.34			15.3			9.42			8.26			14.0
Operating revenue per ASM (cents)		10.80			9.10			18.6			10.44			8.91			17.2
Operating expense per ASM (cents)		10.14			8.73			16.1			10.11			8.38			20.6
Operating expense per ASM, excluding fuel (cents)		6.42			5.48			17.2			5.94			5.47			8.7
Airline operating expense per ASM (cents) (a)		9.86			8.54			15.5			9.87			8.27			19.4
Departures		49,763			50,274			(1.0	)		205,389			196,594			4.5
Average stage length (miles)		1,075			1,133			(5.2	)		1,120			1,129			(0.9	)
Average number of operating aircraft during period		139.9			132.1			5.8			139.5			127.8			9.2
Average fuel cost per gallon	$	2.67		$	2.34			14.0		$	2.98		$	2.09			42.5
Fuel gallons consumed (millions)		105			113			(7.1	)		453			444			2.1
Percent of sales through jetBlue.com during period		75.7	%		78.1	%	(2.4		)pts.		76.7	%		75.7	%	1.0		pts.
Full-time equivalent employees at period end (a)											9,895			9,909			(0.1	)

(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,
	2008		2007
Cash and cash equivalents	$	561	$	190
Total investment securities		244		644
Total debt		3,155		3,048

SOURCE: JetBlue Airways Corporation

JETBLUE AIRWAYS CORPORATION

NON-GAAP FINANCIAL MEASURES (b)

	Three Months Ended						Twelve Months Ended
	December 31, 2008						December 31, 2008
	$			Pre-tax margin			$			Pre-tax margin
	(millions)						(millions)
Income (Loss) before tax, excluding impairment of auction rate securities (ARS)
Loss before income taxes, as reported	$	(49	)		-6.0	%	$	(76	)		-2.2	%
Impairment of ARS		67						67
Put option related to ARS		(14	)					(14	)
ARS related charges, net		53						53
Income (loss) before taxes, excluding ARS related charges rate securities	$	4			0.5	%	$	(23	)		-0.7	%

(b) The fourth quarter of 2008 includes an other than temporary impairment charge for the Company’s investments in auction rate securities. Separately, during the fourth quarter, one of the institutions which brokered our ARS purchases granted the Company a put right. Beginning in 2010, this put right permits the Company’s sale of its auction rate securities with a par value of $85 million, at their full par value. This put right partially offsets the impairment charge. In management’s view, it is useful for investors to consider separately the impact of this impairment charge on the fourth quarter and full year operating results in order to facilitate our 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 a result of this impairment charge. 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.