exv99w1
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
NEW YORK (July 26, 2011) — JetBlue Airways Corporation (NASDAQ: JBLU) today reported its
results for the second quarter 2011:
| |
• |
|
Operating income for the quarter was $86 million, resulting in a 7.5% operating margin,
compared to operating income of $95 million and a 10.2% operating margin in the second
quarter of 2010. |
| |
| |
• |
|
Pre-tax income of $43 million in the second quarter. This compares to pre-tax income of
$52 million in the second quarter of 2010. |
| |
| |
• |
|
Net income for the second quarter was $25 million, or $0.08 per diluted share. This
compares to JetBlue’s second quarter 2010 net income of $31 million, or $0.10 per diluted
share. |
“Thanks to the hard work of our outstanding crewmembers, we reported another profitable quarter
with record revenues,” said Dave Barger, JetBlue’s President and Chief Executive Officer. “Our
targeted growth strategy in Boston and the Caribbean continues to pay off and help mitigate the
significant pressure from high fuel costs.”
Operational Performance
JetBlue reported record second quarter operating revenues of $1.2 billion. Revenue passenger miles
for the second quarter increased 7.9% to 7.69 billion on a capacity increase of 8.7%, resulting in
a second quarter load factor of 81.5%, a decrease of 0.5 points year over year.
Yield per passenger mile in the second quarter was 13.60 cents, up 13.9% compared to the second
quarter of 2010. Passenger revenue per available seat mile (PRASM) for the second quarter 2011
increased 13.2% year-over-year to 11.08 cents and operating revenue per available seat mile (RASM)
increased 12.6% year-over-year to 12.19 cents.
Operating expenses for the quarter increased 26%, or $220 million, over the prior year period
driven primarily by $160 million in additional fuel expense. JetBlue’s operating expense per
available seat mile (CASM) for the second quarter increased 16% year-over-year to 11.28 cents.
Excluding fuel, CASM increased 1.7% to 6.62 cents.
-2-
“JetBlue crewmembers did a very good job of controlling costs while running a great operation,”
said Ed Barnes, JetBlue’s Chief Financial Officer. “We remain focused on continuing to improve our
operational efficiency and lowering non-fuel unit costs, which is especially important in this high
fuel price environment.”
Fuel Expense and Hedging
JetBlue continued to hedge fuel to manage price volatility. Specifically, JetBlue hedged
approximately 43% of its fuel consumption during the second quarter, resulting in a realized fuel
price of $3.31 per gallon, a 44% increase over second quarter 2010 realized fuel price of $2.30.
JetBlue recorded $5 million in gains on fuel hedges that settled during the second quarter.
JetBlue has hedged approximately 48% of its third quarter projected fuel requirements and 43% of
its remaining 2011 projected fuel requirements using a combination of crude call options and
collars, jet fuel swaps and heating oil collars. Based on the fuel curve as of July 21, JetBlue
expects an average price per gallon of fuel, including the impact of hedges and fuel taxes, of
$3.33 in the third quarter and $3.24 for the full year 2011.
Balance Sheet Update
JetBlue ended the second quarter with approximately $1.2 billion in unrestricted cash and short
term investments.
“With manageable debt maturities and capital commitments in the near term, we believe we are well
positioned to maintain strong liquidity and successfully navigate this challenging environment,”
said Barnes. “At the same time, our strong cash position gives us the flexibility to make smart
strategic decisions and continue to seize opportunities in the competitive landscape, particularly
in Boston and the Caribbean.”
Third Quarter and Full Year Outlook
For the third quarter of 2011, CASM is expected to increase between 13 and 15 percent over the
year-ago period. Excluding fuel, CASM in the third quarter is expected to decrease between two and
four percent year over year.
CASM for the full year is expected to increase between 14 and 16 percent over full year 2010.
Excluding fuel, CASM in 2011 is expected to range from zero to positive two percent year over year.
Capacity is expected to increase between nine and 11 percent in the third quarter and to increase
between six and eight percent for the full year.
JetBlue will conduct a conference call to discuss its quarterly earnings today, July 26, 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 is New York’s Hometown Airline ™ with other focus cities in Boston, Fort Lauderdale,
Los Angeles, and Orlando. Known for its award-winning service and free TV as much as its low fares,
JetBlue offers the most legroom in coach of any U.S.
-3-
airline and super-spacious Even More Space seats. 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 66 cities with more than 700 daily flights. Later this year, JetBlue plans
to introduce service to St. Thomas and St. Croix in the U.S. Virgin Islands, La Romana, Dominican
Republic, and Liberia, Costa Rica, subject to government approval. 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-JETBLUE (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 2010 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, |
|
|
Percent |
|
|
June 30, |
|
|
Percent |
|
| |
|
2011 |
|
|
2010 |
|
|
Change |
|
|
2011 |
|
|
2010 |
|
|
Change |
|
OPERATING REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Passenger |
|
$ |
1,046 |
|
|
$ |
851 |
|
|
|
23.0 |
|
|
$ |
1,952 |
|
|
$ |
1,637 |
|
|
|
19.3 |
|
Other |
|
|
105 |
|
|
|
89 |
|
|
|
17.0 |
|
|
|
211 |
|
|
|
174 |
|
|
|
21.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating revenues |
|
|
1,151 |
|
|
|
940 |
|
|
|
22.4 |
|
|
|
2,163 |
|
|
|
1,811 |
|
|
|
19.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft fuel and related taxes |
|
|
439 |
|
|
|
279 |
|
|
|
57.6 |
|
|
|
792 |
|
|
|
533 |
|
|
|
48.6 |
|
Salaries, wages and benefits |
|
|
235 |
|
|
|
218 |
|
|
|
7.7 |
|
|
|
470 |
|
|
|
437 |
|
|
|
7.6 |
|
Landing fees and other rents |
|
|
63 |
|
|
|
58 |
|
|
|
10.0 |
|
|
|
120 |
|
|
|
112 |
|
|
|
7.4 |
|
Depreciation and amortization |
|
|
58 |
|
|
|
54 |
|
|
|
7.6 |
|
|
|
114 |
|
|
|
111 |
|
|
|
3.0 |
|
Aircraft rent |
|
|
36 |
|
|
|
31 |
|
|
|
15.7 |
|
|
|
70 |
|
|
|
62 |
|
|
|
12.6 |
|
Sales and marketing |
|
|
51 |
|
|
|
43 |
|
|
|
17.6 |
|
|
|
96 |
|
|
|
83 |
|
|
|
15.6 |
|
Maintenance materials and repairs |
|
|
54 |
|
|
|
41 |
|
|
|
28.7 |
|
|
|
106 |
|
|
|
80 |
|
|
|
32.1 |
|
Other operating expenses |
|
|
129 |
|
|
|
121 |
|
|
|
6.8 |
|
|
|
264 |
|
|
|
255 |
|
|
|
3.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
1,065 |
|
|
|
845 |
|
|
|
26.0 |
|
|
|
2,032 |
|
|
|
1,673 |
|
|
|
21.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME |
|
|
86 |
|
|
|
95 |
|
|
|
(9.6 |
) |
|
|
131 |
|
|
|
138 |
|
|
|
(5.0 |
) |
Operating margin |
|
|
7.5 |
% |
|
|
10.2 |
% |
|
(2.7 |
) pts. |
|
|
6.1 |
% |
|
|
7.6 |
% |
|
(1.5 |
)pts. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(44 |
) |
|
|
(43 |
) |
|
|
2.3 |
|
|
|
(88 |
) |
|
|
(90 |
) |
|
|
(1.6 |
) |
Capitalized interest |
|
|
1 |
|
|
|
1 |
|
|
|
9.4 |
|
|
|
2 |
|
|
|
2 |
|
|
|
27.7 |
|
Interest income and other |
|
|
— |
|
|
|
(1 |
) |
|
|
(126.6 |
) |
|
|
4 |
|
|
|
1 |
|
|
|
269.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other income (expense) |
|
|
(43 |
) |
|
|
(43 |
) |
|
|
0.5 |
|
|
|
(82 |
) |
|
|
(87 |
) |
|
|
(5.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES |
|
|
43 |
|
|
|
52 |
|
|
|
|
|
|
|
49 |
|
|
|
51 |
|
|
|
|
|
Pre-tax margin |
|
|
3.8 |
% |
|
|
5.6 |
% |
|
(1.8 |
)pts. |
|
|
2.3 |
% |
|
|
2.8 |
% |
|
(0.5 |
)pts. |
Income tax expense |
|
|
18 |
|
|
|
21 |
|
|
|
|
|
|
|
21 |
|
|
|
21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME |
|
$ |
25 |
|
|
$ |
31 |
|
|
|
|
|
|
$ |
28 |
|
|
$ |
30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.09 |
|
|
$ |
0.11 |
|
|
|
|
|
|
$ |
0.10 |
|
|
$ |
0.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.08 |
|
|
$ |
0.10 |
|
|
|
|
|
|
$ |
0.10 |
|
|
$ |
0.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding (thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
278,459 |
|
|
|
275,229 |
|
|
|
|
|
|
|
277,863 |
|
|
|
274,644 |
|
|
|
|
|
Diluted |
|
|
348,859 |
|
|
|
346,437 |
|
|
|
|
|
|
|
307,229 |
|
|
|
345,755 |
|
|
|
|
|
JETBLUE AIRWAYS CORPORATION
COMPARATIVE OPERATING STATISTICS
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
|
|
|
Six Months Ended |
|
|
| |
|
June 30, |
|
Percent |
|
June 30, |
|
Percent |
| |
|
2011 |
|
|
|
|
|
2010 |
|
Change |
|
2011 |
|
|
|
|
|
2010 |
|
Change |
Revenue passengers (thousands) |
|
|
6,622 |
|
|
|
|
|
|
|
6,114 |
|
|
|
8.3 |
|
|
|
12,661 |
|
|
|
|
|
|
|
11,642 |
|
|
|
8.8 |
|
Revenue passenger miles (millions) |
|
|
7,692 |
|
|
|
|
|
|
|
7,126 |
|
|
|
7.9 |
|
|
|
14,616 |
|
|
|
|
|
|
|
13,596 |
|
|
|
7.5 |
|
Available seat miles (ASMs) (millions) |
|
|
9,441 |
|
|
|
|
|
|
|
8,688 |
|
|
|
8.7 |
|
|
|
17,952 |
|
|
|
|
|
|
|
17,112 |
|
|
|
4.9 |
|
Load factor |
|
|
81.5 |
% |
|
|
|
|
|
|
82.0 |
% |
|
(0.5 |
)pts. |
|
|
81.4 |
% |
|
|
|
|
|
|
79.5 |
% |
|
(1.9 |
)pts. |
Aircraft utilization (hours per day) |
|
|
11.9 |
|
|
|
|
|
|
|
11.8 |
|
|
|
0.8 |
|
|
|
11.6 |
|
|
|
|
|
|
|
11.8 |
|
|
|
(1.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average fare |
|
$ |
158.01 |
|
|
|
|
|
|
$ |
139.20 |
|
|
|
13.5 |
|
|
$ |
154.20 |
|
|
|
|
|
|
$ |
140.60 |
|
|
|
9.7 |
|
Yield per passenger mile (cents) |
|
|
13.60 |
|
|
|
|
|
|
|
11.94 |
|
|
|
13.9 |
|
|
|
13.36 |
|
|
|
|
|
|
|
12.04 |
|
|
|
11.0 |
|
Passenger revenue per ASM (cents) |
|
|
11.08 |
|
|
|
|
|
|
|
9.79 |
|
|
|
13.2 |
|
|
|
10.88 |
|
|
|
|
|
|
|
9.57 |
|
|
|
13.7 |
|
Operating revenue per ASM (cents) |
|
|
12.19 |
|
|
|
|
|
|
|
10.83 |
|
|
|
12.6 |
|
|
|
12.05 |
|
|
|
|
|
|
|
10.58 |
|
|
|
13.9 |
|
Operating expense per ASM (cents) |
|
|
11.28 |
|
|
|
|
|
|
|
9.72 |
|
|
|
16.0 |
|
|
|
11.32 |
|
|
|
|
|
|
|
9.77 |
|
|
|
15.8 |
|
Operating expense per ASM, excluding fuel (cents) |
|
|
6.62 |
|
|
|
|
|
|
|
6.51 |
|
|
|
1.7 |
|
|
|
6.91 |
|
|
|
|
|
|
|
6.66 |
|
|
|
3.7 |
|
Airline operating expense per ASM (cents) (a) |
|
|
11.10 |
|
|
|
|
|
|
|
9.55 |
|
|
|
16.3 |
|
|
|
11.14 |
|
|
|
|
|
|
|
9.58 |
|
|
|
16.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Departures |
|
|
61,632 |
|
|
|
|
|
|
|
56,202 |
|
|
|
9.7 |
|
|
|
118,338 |
|
|
|
|
|
|
|
110,569 |
|
|
|
7.0 |
|
Average stage length (miles) |
|
|
1,091 |
|
|
|
|
|
|
|
1,102 |
|
|
|
(1.0 |
) |
|
|
1,083 |
|
|
|
|
|
|
|
1,102 |
|
|
|
(1.7 |
) |
Average number of operating aircraft during period |
|
|
164.6 |
|
|
|
|
|
|
|
151.0 |
|
|
|
9.0 |
|
|
|
163.0 |
|
|
|
|
|
|
|
151.0 |
|
|
|
7.9 |
|
Average fuel cost per gallon |
|
$ |
3.31 |
|
|
|
|
|
|
$ |
2.30 |
|
|
|
43.7 |
|
|
$ |
3.14 |
|
|
|
|
|
|
$ |
2.25 |
|
|
|
39.6 |
|
Fuel gallons consumed (millions) |
|
|
133 |
|
|
|
|
|
|
|
121 |
|
|
|
9.7 |
|
|
|
253 |
|
|
|
|
|
|
|
237 |
|
|
|
6.4 |
|
Full-time equivalent employees at period end (a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,609 |
|
|
|
|
|
|
|
10,906 |
|
|
|
6.4 |
|
|
|
|
| (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, |
| |
|
2011 |
|
2010 |
Cash and cash equivalents |
|
$ |
575 |
|
|
$ |
465 |
|
Total investment securities |
|
|
731 |
|
|
|
628 |
|
Total assets |
|
|
6,908 |
|
|
|
6,593 |
|
Total debt |
|
|
3,083 |
|
|
|
3,033 |
|
Stockholders’ equity |
|
|
1,690 |
|
|
|
1,654 |
|
SOURCE: JetBlue Airways Corporation