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): July 22, 2010

JETBLUE AIRWAYS CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	000-49728	87-0617894
(State of Other Jurisdiction of Incorporation)	(Commission File Number)	(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))

Item 2.02 Results of Operations and Financial Condition

     On July 22, 2010, we issued a press release announcing our financial results for the second quarter ended June 30, 2010. 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 July 22, 2010 of JetBlue Airways Corporation announcing financial results for the second quarter ended June 30, 2010.

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: July 22, 2010	By:	/s/ Donald Daniels
		Vice President, Controller and
		Chief Accounting Officer (Principal Accounting Officer)

EXHIBIT INDEX

Exhibit
Number	Exhibit
99.1	Press Release dated July 22, 2010 announcing financial results for the second quarter ended June 30, 2010.

EX-99.1

Exhibit 99.1

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

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

JETBLUE ANNOUNCES SECOND QUARTER RESULTS
JetBlue reports record revenues and highest-ever quarterly operating income

New York, NY (July 22, 2010) — JetBlue Airways Corporation (NASDAQ: JBLU) today reported its results for the second quarter 2010:

• Operating income for the quarter was $94 million, resulting in a 10.1% operating margin, compared to operating income of $76 million and a 9.4% operating margin in the second quarter of 2009.

• Pre-tax income for the quarter was $51 million. This compares to pre-tax income of $36 million in the second quarter of 2009.

• Net income for the second quarter was $30 million, or $0.10 per diluted share. This compares to JetBlue’s second quarter 2009 net income of $20 million, or $0.07 per diluted share.

“We are pleased to report a return to profitability in the second quarter with our highest-ever quarterly operating income,” said Dave Barger, JetBlue’s CEO. “During the quarter, we reported record revenues, reflecting an improved demand environment and the efforts of our outstanding crewmembers, who continue to be recognized with awards for exceptional customer service. Our second quarter results demonstrate the progress we are making to strengthen our network in Boston and New York, maximize revenues, control costs and maintain a long-term sustainable growth rate.”

Operational Performance

JetBlue reported record second quarter revenues of $939 million. Revenue passenger miles for the second quarter increased 8.9% to 7.1 billion on a 5.5% increase in capacity, resulting in a second quarter load factor of 82.0%, an increase of 2.5 points year over year.

Yield per passenger mile in the second quarter was 11.93 cents, up 8.2% compared to the second quarter of 2009. Passenger revenue per available seat mile (PRASM) for the second quarter 2010 increased 11.7% year over year to 9.78 cents and operating revenue per available seat mile (RASM) increased 10.4% year-over-year to 10.81 cents.

Operating expenses for the quarter increased 15.5%, or $114 million, over the prior year period. JetBlue’s operating expense per available seat mile (CASM) for the second quarter increased 9.5% year-over-year to 9.72 cents. Excluding fuel, CASM increased 8.2% to 6.51 cents.

Fuel Expense and Hedging

JetBlue continued to hedge fuel to help manage price volatility. Specifically, JetBlue hedged approximately 45% of its fuel consumption during the second quarter, resulting in a realized fuel price of $2.30 per gallon, a 12.3% increase over second quarter 2009 realized fuel price of $2.05. JetBlue recorded $2 million in losses on fuel hedges that settled during the second quarter.

JetBlue has hedged approximately 47% of its third quarter projected fuel requirements and 46% of its fourth quarter projected fuel requirements with a combination of crude call options, jet fuel swaps and heating oil collars. JetBlue expects an average price per gallon of fuel, including the impact of hedges and fuel taxes, of $2.27 in the third quarter and $2.28 for the full year 2010.

Balance Sheet Update

JetBlue ended the second quarter with approximately $1.0 billion in unrestricted cash and short term investments, essentially unchanged from the end of the first quarter. “Our operating cash flow allowed us to make prudent investments in the business while maintaining a strong liquidity balance,” said Ed Barnes, JetBlue’s CFO.

In July, UBS repurchased $49 million in par value of JetBlue’s auction rate securities. JetBlue used the proceeds from this sale to repay a $40 million loan from UBS, which was secured by the repurchased auction rate securities. As a result of this sale, JetBlue no longer holds any auction rate securities.

Third Quarter and Full Year Outlook

“We are encouraged by the strengthening revenue environment as we continue to develop additional revenue streams with Sabre, our new customer service and reservations system,” said Barnes. “With some of our biggest challenges behind us — including the closure of JFK Airport’s principal runway and the implementation of Sabre — we are optimistic about the rest of the year.”

For the third quarter of 2010, PRASM is expected to increase between 12 and 15 percent year over year. RASM is expected to increase between 11 and 14 percent year over year. CASM is expected to increase between three and five percent over the year-ago period. Excluding fuel, CASM in the third quarter is expected to increase between two and four percent year over year.

PRASM for the full year is expected to increase between nine and 12 percent year over year. RASM is expected to increase between eight and 11 percent year over year. CASM for the full year is expected to increase between six and eight percent over full year 2009. Excluding fuel, CASM in 2010 is expected to increase between four and six percent year over year.

Capacity is expected to increase between six and eight percent in the third quarter and for the full year.

JetBlue will conduct a conference call to discuss its quarterly earnings today, July 22, 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

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Voted “Most Eco-Friendly Airline” by Zagat’s Airline Survey in 2008 and 2009, New York-based JetBlue Airways has created a new airline category based on value, service and style. In 2010, the carrier also ranked “Highest in Customer Satisfaction Among Low-Cost Carriers in North America” by J.D. Power and Associates, a customer satisfaction recognition received for the sixth year in a row. 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 61 cities with 650 daily flights. New service to Ronald Reagan Washington National Airport in Washington, DC and to Bradley International Airport in Hartford, CT begins in November. With JetBlue, all seats are assigned, all fares are one-way, and an overnight stay is never required. For information or reservations call 1-800-JET-BLUE (1-800-538-2583), TTY/TDD 1-800-336-5530 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. When used in this document and in documents incorporated herein by reference, the words “expects,” “plans,” “anticipates,” “indicates,” “believes,” “forecast,” “guidance,” “outlook,” “may,” “will,” “should,” “seeks,” “targets” and similar expressions are intended to identify forward-looking statements. 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; volatility in financial and credit markets which could affect our ability to obtain debt and/or lease financing or to raise funds through debt or equity issuances; 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; a continuance of the economic recessionary conditions in the U.S. or a further economic downturn leading to a continuing or accelerated decrease in demand for domestic and business air travel; 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 2009 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.

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JETBLUE AIRWAYS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

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

	Three Months Ended										Six Months Ended
	June 30,							Percent			June 30,							Percent
	2010			2009				Change			2010			2009				Change
OPERATING REVENUES
Passenger	$	850		$	721				17.8		$	1,635		$	1,427				14.6
Other		89			86				4.7			174			173				0.9
Total operating revenues		939			807				16.4			1,809			1,600				13.1
OPERATING EXPENSES
Aircraft fuel and related taxes		279			236				18.4			533			458				16.4
Salaries, wages and benefits		218			192				13.4			437			377				15.7
Landing fees and other rents		58			54				7.0			112			104				7.9
Depreciation and amortization		54			56				(4.8	)		111			111				(0.4	)
Aircraft rent		31			32				(3.2	)		62			64				(3.4	)
Sales and marketing		43			38				12.8			83			75				11.0
Maintenance materials and repairs		41			34				23.1			80			71				13.3
Other operating expenses		121			89				35.7			255			191				33.8
Total operating expenses		845			731				15.5			1,673			1,451				15.3
OPERATING INCOME		94			76				25.3			136			149				(8.6	)
Operating margin		10.1	%		9.4	%	0.7			pts.		7.5	%		9.3	%	(1.8			) pts.
OTHER INCOME (EXPENSE)
Interest expense		(43	)		(49	)			(11.2	)		(90	)		(98	)			(8.4	)
Capitalized interest		1			2				(48.3	)		2			4				(52.5	)
Interest income and other		(1	)		7				(107.1	)		1			1				(35.4	)
Total other income (expense)		(43	)		(40	)			9.4			(87	)		(93	)			(6.1	)
INCOME BEFORE INCOME TAXES		51			36							49			56
Pre-tax margin		5.5	%		4.5	%	1.0			pts.		2.7	%		3.5	%	(0.8			) pts.
Income tax expense		21			16							20			24
NET INCOME	$	30		$	20						$	29		$	32
EARNINGS PER COMMON SHARE:
Basic	$	0.11		$	0.08						$	0.11		$	0.13
Diluted	$	0.10		$	0.07						$	0.10		$	0.11
Weighted average shares outstanding (thousands):
Basic		275,229			251,770							274,644			248,102
Diluted		346,437			323,262							345,755			319,482

JETBLUE AIRWAYS CORPORATION

COMPARATIVE OPERATING STATISTICS

	Three Months Ended										Six Months Ended
	June 30,							Percent			June 30,							Percent
	2010			2009				Change			2010			2009				Change
Revenue passengers (thousands)		6,114			5,691				7.4			11,642			10,982				6.0
Revenue passenger miles (millions)		7,126			6,545				8.9			13,596			12,585				8.0
Available seat miles (ASMs) (millions)		8,688			8,237				5.5			17,112			16,179				5.8
Load factor		82.0	%		79.5	%	2.5			pts.		79.5	%		77.8	%	1.7			pts.
Aircraft utilization (hours per day)		11.8			11.9				(0.3	)		11.8			11.9				(1.0	)
Average fare	$	139.02		$	126.74				9.7		$	140.43		$	129.94				8.1
Yield per passenger mile (cents)		11.93			11.02				8.2			12.02			11.34				6.0
Passenger revenue per ASM (cents)		9.78			8.76				11.7			9.55			8.82				8.3
Operating revenue per ASM (cents)		10.81			9.80				10.4			10.57			9.89				6.9
Operating expense per ASM (cents)		9.72			8.88				9.5			9.77			8.97				9.0
Operating expense per ASM, excluding fuel (cents)		6.51			6.02				8.2			6.66			6.13				8.6
Airline operating expense per ASM (cents) (a)		9.55			8.66				10.3			9.58			8.74				9.6
Departures		56,202			54,885				2.4			110,569			107,899				2.5
Average stage length (miles)		1,102			1,067				3.3			1,102			1,066				3.4
Average number of operating aircraft during period		151.0			147.4				2.5			151.0			144.9				4.2
Average fuel cost per gallon	$	2.30		$	2.05				12.3		$	2.25		$	2.04				10.0
Fuel gallons consumed (millions)		121			115				5.4			237			224				5.8
Full-time equivalent employees at period end (a)												10,906			10,235				6.6

(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,
	2010		2009
Cash and cash equivalents	$	477	$	896
Total investment securities		682		246
Total assets		6,590		6,557
Total debt		3,116		3,304
Stockholders’ equity		1,556		1,541

SOURCE: JetBlue Airways Corporation