-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Q4xuHTgcpqwYj3tUpEpF/iZ6E6dR1Xxm1IWrrol+ZUU+0NKx+TwsblviMKtDPmE9 zqT/5QXTWIiW72xPiJJyfw== 0000950136-07-000494.txt : 20070130 0000950136-07-000494.hdr.sgml : 20070130 20070130075508 ACCESSION NUMBER: 0000950136-07-000494 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20070130 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070130 DATE AS OF CHANGE: 20070130 FILER: COMPANY DATA: COMPANY CONFORMED NAME: JETBLUE AIRWAYS CORP CENTRAL INDEX KEY: 0001158463 STANDARD INDUSTRIAL CLASSIFICATION: AIR TRANSPORTATION, SCHEDULED [4512] IRS NUMBER: 870617894 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-49728 FILM NUMBER: 07562992 BUSINESS ADDRESS: STREET 1: 118-29 QUEENS BOULEVARD CITY: FOREST HILLS STATE: NY ZIP: 11375 BUSINESS PHONE: 7182867900 MAIL ADDRESS: STREET 1: 118-29 QUEENS BOULEVARD CITY: FOREST HILLS STATE: NY ZIP: 11375 8-K 1 file1.htm




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 30, 2007



JETBLUE AIRWAYS CORPORATION

 (Exact name of registrant as specified in its charter)



Delaware

000-49728

87-0617894

(State of Other Jurisdiction of

(Commission

(I.R.S. Employer

Incorporation)

File Number)

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:


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

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

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

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 January 30, 2007, we issued a press release announcing our financial results for the fourth quarter and year ended December 31, 2006.  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 30, 2007 of JetBlue Airways Corporation announcing financial results for the fourth quarter and year ended December 31, 2006.









 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 30, 2007

By:

/s/ HOLLY NELSON

 

 

Senior Vice President and Controller

(principal accounting officer)












EXHIBIT INDEX


Exhibit

Number


Exhibit

 

 

99.1

Press Release dated January 30, 2007 announcing financial results for the fourth quarter and year ended December 31, 2006.








EX-99.1 2 file2.htm PRESS RELEASE



FOR IMMEDIATE RELEASE

CONTACTS:

Investor Relations

       (203) 669-3191

                  ir@jetblue.com


 Corporate Communications

(718) 709-3089

       CorporateCommunications@jetblue.com


                                                                     


JETBLUE ANNOUNCES FOURTH QUARTER AND

FULL YEAR 2006 RESULTS


Low-Fare Airline Achieves 10.2% Operating Margin for Fourth Quarter 2006


New York, NY (January 30, 2007) -- 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





- 2 -


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, and were instrumental in our improved results.  In 2007 JetBlue plans 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





- 3 -


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
December 31,
  
Percent
    
 Twelve Months Ended
December 31,
  
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
December 31,
  
Percent
    
Twelve Months Ended 
December 31,
  
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 (1)
    
76.0
%
  
91.0
%
  
(15.0
) pts.
    
81.4
%
  
86.1
%
  
(4.7
) pts.
Aircraft utilization (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) (1)
    
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
%
  
1.6
  pts.
Full-time equivalent employees at period end (1)
                        
9,265
   
8,326
   
11.3
 
 
(1) Excludes operating expenses and employees of LiveTV, LLC, which are unrelated to our airline operations.
 
SELECTED CONSOLIDATED BALANCE SHEET DATA
(in millions)

   
December 31,
2006
  
December 31,
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 (2)
(in millions, except per share amounts or as otherwise noted)
 
   

Three Months Ended
December 31,
  

Twelve Months Ended
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
 
 
(2)
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.
 
SOURCE: JetBlue Airways Corporation
 
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