NEW YORK, July 21, 2005 (PRIMEZONE) -- JetBlue Airways Corporation (Nasdaq:JBLU) today reported its results for the second quarter 2005:
-- Operating revenues for the quarter totaled $430.1 million,
representing growth of 34.5% over operating revenues of
$319.7 million in the second quarter of 2004.
-- Operating income in the quarter was $39.1 million, resulting
in a 9.1% operating margin, compared to operating income of
$45.1 million and a 14.1% operating margin in the second quarter
of 2004.
-- Net income for the quarter was $12.2 million, representing
earnings of $0.11 per diluted share, compared with second
quarter 2004 net income of $21.5 million, or $0.19 per
diluted share.
"Once again, our crewmembers pulled through to deliver a solid performance in a tough quarter characterized by a 55% increase year-over-year in the cost of aircraft fuel," said David Neeleman, JetBlue's Chairman and CEO. "We continue to see strong demand for JetBlue's service, and are excited and gratified by our customer loyalty in new and existing markets."
During the second quarter of 2005, JetBlue achieved a completion factor of 99.7% of scheduled flights versus 99.9% in the second quarter of 2004. On-time performance, defined by the US Department of Transportation as arrivals within 14 minutes of schedule, was 76.0% in the second quarter of 2005 compared to 84.1% for the same period in 2004. The Company attained a load factor in the second quarter of 2005 of 87.7%, an increase of 3.2 points on a capacity increase of 25.5% over the second quarter of 2004.
"With eighteen consecutive quarters of profitable growth under our belt, we're proud of our crewmembers' accomplishments," commented Dave Barger, President and COO. "As we embark on the next phase of our growth with the upcoming delivery of our first Embraer E190 aircraft, we remain committed to getting better as we get bigger."
For the second quarter 2005, yield per passenger mile was 8.04 cents, up 2.4% compared to 2004 on a 2.9% increase in average length of haul. Operating revenue per available seat mile (RASM) increased 7.1% year-over-year to 7.36 cents. Revenue passenger miles increased 30.2% from the second quarter of 2004 to 5.1 billion. Available seat miles grew 25.5% to 5.8 billion. Operating expenses for the second quarter were $391.0 million, up 42.4% from the second quarter of 2004. Operating expense per ASM (CASM) for the second quarter 2005 increased 13.4% year-over-year to 6.69 cents. On a fuel-neutral to prior year period basis, CASM increased 3.7% to 6.12 cents. Operating margin, on a fuel-neutral to prior year period basis, was 16.9% in the second quarter 2005. During the quarter, realized fuel price was $1.50 per gallon, a 54.7% increase over second quarter 2004 realized fuel price of $0.97. JetBlue ended the second quarter with $562 million in cash and investment securities.
JetBlue will conduct a conference call to discuss its quarterly earnings today, July 21, 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
JetBlue is a low-fare, low-cost passenger airline, which provides high-quality customer service. JetBlue operates a fleet of 77 new Airbus A320 aircraft and plans to add nine additional A320s and eight Embraer E190s to its fleet in 2005. Based at New York City's John F. Kennedy International Airport, JetBlue currently operates 316 flights a day and serves 32 destinations in 13 states, Puerto Rico, the Dominican Republic and The Bahamas. JetBlue plans to start daily nonstop service from Newark, NJ to Fort Lauderdale and Orlando on October 5, 2005, to West Palm Beach, Tampa and Fort Myers on October 19, 2005, and to San Juan, PR on November 17, 2005.
All JetBlue aircraft feature roomy leather seats; all equipped with an in-seat digital entertainment system offering up to 36 channels of free DIRECTV(r) programming - no other airline offers more live satellite TV options. On flights longer than two hours, a selection of first-run movies and bonus features from FOX InFlight is also available. (1)
With JetBlue, all seats are assigned, all travel is ticketless, all fares are one-way, and an overnight 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.
(1) DIRECTV(r) service is not available on flights between JFK or Newark and Puerto Rico or the Dominican Republic; however, where available, FOX InFlight 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, our ability to maintain our culture, our reliance on high daily aircraft utilization, 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 reliance on sole suppliers, additional government regulation and future acts of terrorism or the threat of such acts or escalation of U.S. military involvement overseas. 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 2004 Annual Report Form 10-K/A 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.
The JetBlue logo is available at: http://media.primezone.com/prs/single/?pkgid=795
JETBLUE AIRWAYS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
June 30,
------------------- Percent
2005 2004 Change
-------- -------- -------
OPERATING REVENUES
Passenger $412,139 $309,175 33.3
Other 17,913 10,543 69.9
-------- --------
Total operating revenues 430,052 319,718 34.5
OPERATING EXPENSES
Salaries, wages and benefits 105,429 83,902 25.7
Aircraft fuel 111,307 57,430 93.8
Landing fees and other rents 28,316 21,868 29.5
Depreciation and amortization 27,726 17,441 59.0
Aircraft rent 18,076 17,740 1.9
Sales and marketing 20,291 18,342 10.6
Maintenance materials and repairs 13,579 8,391 61.8
Other operating expenses 66,258 49,516 33.8
-------- --------
Total operating expenses 390,982 274,630 42.4
-------- --------
OPERATING INCOME 39,070 45,088 (13.3)
Operating margin 9.1% 14.1% (5.0)pts.
OTHER INCOME (EXPENSE)
Interest expense (25,367) (12,519) 102.6
Capitalized interest 3,871 1,810 113.8
Interest income and other 5,094 2,135 138.6
-------- --------
Total other income (expense) (16,402) (8,574)
-------- --------
INCOME BEFORE INCOME TAXES 22,668 36,514 (37.9)
Income tax expense 10,485 15,056
-------- --------
NET INCOME $ 12,183 $ 21,458 (43.2)
======== ========
EARNINGS PER COMMON SHARE:
Basic $ 0.12 $ 0.21
======== ========
Diluted $ 0.11 $ 0.19
======== ========
Weighted average shares
outstanding:
Basic 104,935 102,996
Diluted 110,854 115,574
Six Months Ended
June 30,
------------------- Percent
2005 2004 Change
-------- -------- -------
OPERATING REVENUES
Passenger $770,023 $588,791 30.8
Other 34,251 19,930 71.9
-------- --------
Total operating revenues 804,274 608,721 32.1
OPERATING EXPENSES
Salaries, wages and benefits 203,885 161,486 26.3
Aircraft fuel 197,927 106,675 85.5
Landing fees and other rents 54,413 43,385 25.4
Depreciation and amortization 52,049 33,757 54.2
Aircraft rent 35,889 34,995 2.6
Sales and marketing 39,748 31,766 25.1
Maintenance materials and repairs 27,119 20,888 29.8
Other operating expenses 128,512 98,017 31.1
-------- --------
Total operating expenses 739,542 530,969 39.3
-------- --------
OPERATING INCOME 64,732 77,752 (16.7)
Operating margin 8.0% 12.8% (4.8)pts.
OTHER INCOME (EXPENSE)
Interest expense (46,025) (22,340) 106.0
Capitalized interest 7,669 3,386 126.5
Interest income and other 8,098 3,480 132.7
-------- --------
Total other income (expense) (30,258) (15,474)
-------- --------
INCOME BEFORE INCOME TAXES 34,474 62,278 (44.6)
Income tax expense 15,324 25,627
-------- --------
NET INCOME $ 19,150 $ 36,651 (47.8)
======== ========
EARNINGS PER COMMON SHARE:
Basic $ 0.18 $ 0.36
======== ========
Diluted $ 0.17 $ 0.33
======== ========
Weighted average shares
outstanding:
Basic 104,632 102,623
Diluted 110,443 110,842
JETBLUE AIRWAYS CORPORATION
COMPARATIVE OPERATING STATISTICS
Three Months Ended
June 30,
----------------------- Percent
2005 2004 Change
--------- --------- ---------
Revenue passengers 3,695,906 2,920,697 26.5
Revenue passenger miles (000) 5,124,689 3,935,385 30.2
Available seat miles (000) 5,846,200 4,656,795 25.5
Load factor 87.7% 84.5% 3.2 pts.
Breakeven load factor (a) 82.3% 74.3% 8.0 pts.
Aircraft utilization
(hours per day) 13.7 13.7 0.6
Average fare $ 111.51 $ 105.86 5.3
Yield per passenger mile (cents) 8.04 7.86 2.4
Passenger revenue per
available seat mile (cents) 7.05 6.64 6.2
Operating revenue per
available seat mile (cents) 7.36 6.87 7.1
Operating expense per
available seat mile (cents) 6.69 5.90 13.4
Airline expense per
available seat mile (cents)(a) 6.62 5.84 13.3
Departures 27,382 22,145 23.6
Average stage length (miles) 1,369 1,348 1.5
Average number of operating
aircraft during period 74.3 58.6 26.7
Average fuel cost per gallon $ 1.50 $ 0.97 54.7
Fuel gallons consumed (000) 74,390 59,370 25.3
Percent of sales through
jetBlue.com during period 77.4% 75.2% 2.2 pts.
Six Months Ended
June 30,
----------------------- Percent
2005 2004 Change
--------- --------- ---------
Revenue passengers 7,095,992 5,570,770 27.4
Revenue passenger miles (000) 9,559,217 7,307,680 30.8
Available seat miles (000) 11,014,853 8,875,315 24.1
Load factor 86.8% 82.3% 4.5 pts.
Breakeven load factor(a) 82.5% 73.6% 8.9 pts.
Aircraft utilization
(hours per day) 13.5 13.5 0.3
Average fare $ 108.52 $ 105.69 2.7
Yield per passenger mile (cents) 8.06 8.06 (0.0)
Passenger revenue per
available seat mile (cents) 6.99 6.63 5.4
Operating revenue per
available seat mile (cents) 7.30 6.86 6.5
Operating expense per
available seat mile (cents) 6.71 5.98 12.2
Airline expense per
available seat mile (cents)(a) 6.65 5.93 12.1
Departures 53,019 42,990 23.3
Average stage length (miles) 1,332 1,323 0.6
Average number of operating
aircraft during period 72.6 57.0 27.3
Average fuel cost per gallon $ 1.41 $ 0.94 49.2
Fuel gallons consumed (000) 140,671 113,095 24.4
Percent of sales through
jetBlue.com during period 76.9% 76.1% 0.8 pts.
Full-time equivalent employees
at period end(a) 7,284 5,781 26.0
SELECTED CONSOLIDATED BALANCE SHEET DATA
(in thousands)
June 30, December 31,
2005 2004
---------- -----------
Cash, cash equivalents and
investment securities $ 561,897 $ 449,162
Total assets 3,380,649 2,798,644
Total debt 1,988,087 1,544,812
Stockholders' equity 789,042 756,200
NON-GAAP FINANCIAL MEASURES(b)
(in thousands)
Three Months Six Months
Ended Ended
June 30, June 30,
2005 2005
-------- --------
Fuel Neutral Operating Expenses
to Prior Period
Operating expenses as reported $390,982 $739,542
Less: Reported aircraft fuel (111,307) (197,927)
Add: Aircraft fuel at prior period
cost per gallon 71,959 132,685
Profit sharing impact 5,902 9,786
-------- --------
Fuel neutral operating expenses $357,536 $684,086
Fuel neutral operating margin 16.9% 14.9%
Fuel neutral operating expense per
available seat mile (cents) 6.12 6.21
(a) Excludes operating expenses and employees of LiveTV, LLC,
which are unrelated to our airline operations
(b) 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.