EX-99.1 2 file2.htm PRESS RELEASE

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 2007 ANNUAL PROFIT

Despite Record Fuel Prices, JetBlue Reports First Profitable Year Since 2004

New York, NY (January 29, 2008) “ 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

 

 

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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.

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.

 

 

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JETBLUE AIRWAYS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except share and per share amounts)

(unaudited)

 

 

 

Three Months Ended 
December 31, 

 

 

 

Twelve Months Ended 
December 31, 

 

 

 

 

 

 

Percent
Change

 

 

Percent
Change

 

 

 

2007

 

2006

 

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 amortization

 

 

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 December 31, 

 

Percent

 

Twelve Months Ended December 31, 

 

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,
2007

 

December 31,
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

 

SOURCE: JetBlue Airways Corporation