EX-99.1 2 a05-1472_2ex99d1.htm EX-99.1

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

 

CONTACT:

 

Investor Relations

 

Amy Carpi, (203) 656-7651

 

amy.carpi@jetblue.com

 

 

 

Corporate Communications

 

Gareth Edmondson-Jones, (718) 709-3060

 

gareth.edmondson-jones @jetblue.com

 

JETBLUE ANNOUNCES FOURTH QUARTER AND
FULL YEAR 2004 EARNINGS

 

Low-Fare Carrier Achieves Sixteenth Consecutive Quarter of Profitability

 

New York, NY (January 27, 2005) — JetBlue Airways Corporation (NASDAQ: JBLU) today reported its results for the fourth quarter and full year 2004:

 

•                  Operating revenues for the quarter totaled $334.0 million, representing growth of 27.0% over operating revenues of $262.9 million in the fourth quarter of 2003.  For the full year, operating revenues totaled $1.27 billion, representing growth of 26.8% over operating revenues of $998.4 million for the full year 2003.

 

•                  Operating income in the quarter was $12.2 million, resulting in a 3.7% operating margin, compared to operating income of $35.0 million and a 13.3% operating margin in the fourth quarter of 2003.  For the full year 2004, operating income was $112.9 million, resulting in an operating margin of 8.9%.  This compares with operating income of $168.8 million and a 16.9% operating margin for the full year 2003.

 

•                  Net income for the quarter was $2.4 million, representing earnings of $0.02 per diluted share, compared with fourth quarter 2003 net income of $19.5 million, or $0.17 per diluted share.  For the full year 2004, net income totaled $47.5 million, or $0.43 per diluted share, compared with net income of $103.9 million, or $0.96 per diluted share, for the full year 2003.  Results

 


 

for the full year 2003 reflect the receipt of $22.8 million in compensation related to the Emergency War Time Supplemental Appropriations Act.  Net of income taxes and profit sharing, this amounts to $11.5 million, or $0.11 per diluted share for the twelve months ended December 31, 2003.

 

 “I’m extremely proud of the efforts our crewmembers made this quarter, a very tough one characterized by continued high fuel prices and weak yields,” said David Neeleman, JetBlue’s Chairman and CEO.  “Many challenges remain as we start our sixth year of operations, yet we are confident that we have the capital structure, the low cost base and the customer loyalty to allow us to continue to grow and prosper over the long term.”

 

During the fourth quarter of 2004, JetBlue achieved a completion factor of 99.9% of scheduled flights, compared to 99.6% in 2003.  On-time performance, defined by the US Department of Transportation as arrivals within 14 minutes of schedule, was 80.1% in the fourth quarter of 2004 compared to 86.7% for the same period in 2003.  For the full year 2004, JetBlue achieved a completion factor of 99.4% versus 99.5% reported for the full year 2003.  On-time performance for the full year 2004 was 81.6%, compared to 84.3% for the full year 2003.  The Company attained a load factor in the fourth quarter of 2004 of 82.9%, a decrease of 0.2 points on a capacity increase of 36.2% over the fourth quarter of 2003.  Load factor for the full year 2004 was 83.2%, a decrease of 1.3 points on a capacity increase of 38.6%.

 

Dave Barger, President and COO, commented, “The JetBlue Team, now over 7,500 strong, rose to the occasion to meet the unique challenges of 2004.  In 2005, the breadth of our airline will continue to develop as we add another fifteen A320 aircraft to our route system, launch our new fleet of Embraer

 

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E190 aircraft later this year, further grow our route network, and expand our home base here in New York City.”

 

For the fourth quarter 2004, operating revenues increased by 27.0% over 2003 to $334.0 million.  Revenue passenger miles increased 36.0% from the fourth quarter of 2003 to 4.2 billion.  Yield per passenger mile was 7.58 cents, down 7.1% compared to 2003 on a 1.7% increase in average length of haul.  Operating revenue per available seat mile (RASM) decreased 6.7% year-over-year to 6.56 cents.  Available seat miles grew 36.2% to 5.1 billion.  Operating expenses for the fourth quarter were $321.8 million, up 41.2% from the fourth quarter of 2003.  Operating expense per ASM (CASM) for the fourth quarter 2004 increased 3.7% year-over-year to 6.32 cents.  During the quarter, realized fuel price was $1.24 per gallon, a 47.4% increase over fourth quarter 2003 realized fuel price of $0.84.  As a result of its fuel hedging program, JetBlue realized a $13.1 million benefit in the fuel expense line in the fourth quarter and a $37.0 million benefit for the full year 2004.  JetBlue ended the year with $449.2 million in cash and short-term investments.

 

JetBlue will conduct a conference call to discuss its quarterly earnings today, January 27, at 10:00 a.m. Eastern Time.  A live broadcast of the conference call will be available via the World Wide Web at http://investor.jetblue.com.

 

About JetBlue

 

About JetBlue

 

JetBlue is a low-fare, low-cost passenger airline, which provides high-quality customer service. JetBlue operates a fleet of 70 new Airbus A320 aircraft and plans to add 14 additional A320s and 7 Embraer E190s to its fleet in 2005. Based at New York City’s John F. Kennedy International Airport, JetBlue currently operates 276 flights a day and serves 30 destinations in 12 states, Puerto Rico, the Dominican Republic and The Bahamas.

 

All JetBlue aircraft feature roomy leather seats; all equipped with an in-seat digital entertainment system offering up to 36 channels of free DIRECTV® programming. On many flights, a selection of first-run movies and bonus features from FOX InFlight Premium Entertainment may be available. (*)

 

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With JetBlue, all seats are assigned, all travel is ticketless, all fares are one-way, and a Saturday night stay is never required. For more information, schedules and fares, please visit www.jetblue.com or call JetBlue reservations at 1-800-JETBLUE (538-2583), 1-888-538-2583 if calling from Puerto Rico, or 1-200-9898 if calling from the Dominican Republic. This press release, as well as past press releases, can be found on www.jetblue.com.

 

(*) DIRECTV® service is not available on flights between JFK and Puerto Rico or the Dominican Republic; however, where available, FOX InFlight Premium Entertainment is offered complimentary on these routes.

 

# # #

 

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, our ability to implement our growth strategy including the integration of the Embraer E190 aircraft into our operations, our significant fixed obligations and our reliance on high daily aircraft utilization, increases in maintenance costs, fuel prices and interest rates, our dependence on the New York market, seasonal fluctuations in our operating results, our reliance on sole suppliers, government regulation, the loss of key personnel and potential problems with our workforce, the potential liability associated with the handling of our customer data and future acts of terrorism or the threat of such acts or escalation of U.S. military involvement overseas. Additional 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 2003 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.

 

4


 

JETBLUE AIRWAYS CORPORATION

 

CONSOLIDATED STATEMENTS OF INCOME

 

(in thousands, except per share amounts)

(unaudited)

 

 

 

 

Three Months Ended
December 31,

 

Percent

 

Twelve Months Ended
December 31,

 

Percent

 

 

 

2004

 

2003

 

Change

 

2004

 

2003

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

Passenger (1)

 

$

320,365

 

$

253,720

 

26.3

 

$

1,220,758

 

$

965,091

 

26.5

 

Other

 

13,671

 

9,224

 

48.2

 

45,214

 

33,260

 

35.9

 

Total operating revenues

 

334,036

 

262,944

 

27.0

 

1,265,972

 

998,351

 

26.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and benefits

 

89,377

 

72,731

 

22.9

 

337,118

 

267,334

 

26.1

 

Aircraft fuel

 

80,192

 

40,598

 

97.5

 

255,366

 

147,316

 

73.3

 

Landing fees and other rents

 

23,097

 

17,242

 

33.9

 

91,181

 

68,691

 

32.7

 

Aircraft rent

 

17,668

 

16,304

 

8.4

 

70,216

 

59,963

 

17.1

 

Sales and marketing

 

16,775

 

12,552

 

33.6

 

63,198

 

53,587

 

17.9

 

Depreciation and amortization

 

23,233

 

14,904

 

55.9

 

76,540

 

50,397

 

51.9

 

Maintenance materials and repairs

 

12,495

 

8,661

 

44.3

 

44,901

 

23,114

 

94.3

 

Other operating expenses

 

58,993

 

44,952

 

31.2

 

214,509

 

159,116

 

34.8

 

Total operating expenses

 

321,830

 

227,944

 

41.2

 

1,153,029

 

829,518

 

39.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

12,206

 

35,000

 

(65.1

)

112,943

 

168,833

 

(33.1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

3.7

%

13.3

%

(9.6

)pts.

8.9

%

16.9

%

(8.0

)pts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSE)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(16,966

)

(8,823

)

92.3

 

(53,478

)

(28,897

)

85.1

 

Capitalized interest

 

3,011

 

1,556

 

93.5

 

8,874

 

5,203

 

70.6

 

Interest income and other

 

2,483

 

2,786

 

(10.9

)

8,483

 

7,539

 

12.5

 

Government compensation (2)

 

—

 

—

 

 

 

—

 

22,761

 

 

 

Total other income (expense)

 

(11,472

)

(4,481

)

 

 

(36,121

)

6,606

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

734

 

30,519

 

(97.6

)

76,822

 

175,439

 

(56.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

(1,659

)

10,979

 

 

 

29,355

 

71,541

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

$

2,393

 

$

19,540

 

(87.8

)

$

47,467

 

$

103,898

 

(54.3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.02

 

$

0.19

 

 

 

$

0.46

 

$

1.07

 

 

 

Diluted

 

$

0.02

 

$

0.17

 

 

 

$

0.43

 

$

0.96

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

103,969

 

101,664

 

 

 

103,179

 

97,274

 

 

 

Diluted

 

110,738

 

112,081

 

 

 

110,809

 

109,504

 

 

 

 

(1)          During the fourth quarter of 2004, we recorded additional passenger revenue of $3.5 million to recognize expired customer credits based on stated terms.  We also recorded other non-recurring charges totaling $2.0 million.  The effect of these adjustments, net of profit-sharing and income taxes, was $0.8 million, or $0.01 per diluted share for the three and twelve months ended December 31, 2004.

 

(2)          In May 2003 we received $22.8 million in compensation related to the Emergency War Time Supplemental Appropriations Act.  Net of profit-sharing and income taxes, this amounted to $11.5 million, or $0.11 per diluted share for the twelve months ended December 31, 2003.

 


 

JETBLUE AIRWAYS CORPORATION

 

COMPARATIVE OPERATING STATISTICS

 

 

 

Three Months Ended
December 31,

 

Percent

 

Twelve Months Ended
December 31,

 

Percent

 

 

 

2004

 

2003

 

Change

 

2004

 

2003

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue passengers

 

3,178,517

 

2,377,510

 

33.7

 

11,782,625

 

9,011,552

 

30.8

 

Revenue passenger miles (000)

 

4,226,616

 

3,108,125

 

36.0

 

15,730,302

 

11,526,945

 

36.5

 

Available seat miles (000)

 

5,095,656

 

3,741,357

 

36.2

 

18,911,051

 

13,639,488

 

38.6

 

Load factor

 

82.9

%

83.1

%

(0.2

)pts.

83.2

%

84.5

%

(1.3

)pts.

Breakeven load factor (1)

 

82.4

%

74.5

%

7.9

pts.

77.7

%

72.5

%

5.2

pts.

Aircraft utilization (hours per day)

 

13.2

 

12.8

 

2.9

 

13.4

 

13.0

 

3.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average fare

 

$

100.79

 

$

106.72

 

(5.6

)

$

103.61

 

$

107.09

 

(3.3

)

Yield per passenger mile (cents)

 

7.58

 

8.16

 

(7.1

)

7.76

 

8.37

 

(7.3

)

Passenger revenue per available seat mile (cents)

 

6.29

 

6.78

 

(7.3

)

6.46

 

7.08

 

(8.8

)

Operating revenue per available seat mile (cents)

 

6.56

 

7.03

 

(6.7

)

6.69

 

7.32

 

(8.5

)

Operating expense per available seat mile (cents)

 

6.32

 

6.09

 

3.7

 

6.10

 

6.08

 

0.3

 

Airline expense per available seat mile (cents) (1)

 

6.24

 

6.08

 

2.6

 

6.03

 

6.07

 

(0.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Departures

 

24,649

 

18,201

 

35.4

 

90,532

 

66,920

 

35.3

 

Average stage length (miles)

 

1,325

 

1,318

 

0.6

 

1,339

 

1,272

 

5.3

 

Average number of operating aircraft during period

 

66.5

 

49.6

 

34.0

 

60.6

 

44.0

 

37.8

 

Average fuel cost per gallon

 

$

1.24

 

$

0.84

 

47.4

 

$

1.06

 

$

0.85

 

24.5

 

Fuel gallons consumed (000)

 

64,526

 

48,143

 

34.0

 

241,087

 

173,157

 

39.2

 

Percent of sales through jetBlue.com during period

 

74.7

%

74.6

%

0.1

pts.

75.4

%

73.0

%

2.4

pts.

Full-time equivalent employees at period end (1)

 

 

 

 

 

 

 

6,413

 

4,892

 

31.1

 

 

SELECTED CONSOLIDATED BALANCE SHEET DATA

(in thousands)

 

 

 

December 31,
2004

 

December 31,
2003

 

Cash and cash equivalents

 

$

410,417

 

$

570,695

 

Total assets

 

2,798,644

 

2,185,757

 

Total debt

 

1,544,812

 

1,108,595

 

Stockholders’ equity

 

756,200

 

671,136

 

 

NON-GAAP FINANCIAL MEASURES (2)

(in thousands)

 

 

 

Three Months
Ended
December 31,
2004

 

Twelve Months
Ended
December 31,
2004

 

Fuel Neutral Operating Expenses to Prior Period

 

 

 

 

 

Operating expenses as reported

 

$

321,830

 

$

1,153,029

 

Less: Reported aircraft fuel

 

(80,192

)

(255,366

)

Add: Aircraft fuel at prior period cost per gallon

 

54,413

 

205,109

 

Profit sharing impact

 

3,867

 

7,539

 

Fuel neutral operating expenses

 

$

299,918

 

$

1,110,311

 

 

 

 

 

 

 

Fuel neutral operating margin

 

10.2

%

12.3

%

Fuel neutral operating expense per available seat mile (cents)

 

5.89

 

5.87

 

 

(1)          Excludes operating expenses and employees of LiveTV, LLC, which are unrelated to our airline operations

(2)          In management’s view, comparative analysis of results can be enhanced by excluding the significant increase in the price of aircraft fuel, which is beyond our control.

 

SOURCE:  JetBlue Airways Corporation