FOR IMMEDIATE RELEASE
CONTACT:
Investor Relations
Amy Carpi, (203) 656-7651
amy.carpi@jetblue.com
---------------------
Corporate Communications
Todd Burke, (718) 709-3080
todd.burke@jetblue.com
----------------------
JETBLUE ANNOUNCES SECOND QUARTER 2005 EARNINGS
Low-fare Carrier Achieves 9.1% Operating Margin;
18th Consecutive Quarter of Profitability
New York, NY (July 21, 2005) -- JetBlue Airways Corporation (NASDAQ: JBLU) today
reported its results for the second quarter 2005:
o 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.
o 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.
o 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."
-2-
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.
-3-
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 eight 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.
JETBLUE AIRWAYS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(unaudited)
<TABLE>
Three Months Ended Six Months Ended
June 30, June 30,
------------------------------ Percent ----------------------------- Percent
2005 2004 Change 2005 2004 Change
-------------- -------------- --------- ------------- ------------- ----------
OPERATING REVENUES
Passenger $ 412,139 $ 309,175 33.3 $ 770,023 $ 588,791 30.8
Other 17,913 10,543 69.9 34,251 19,930 71.9
-------------- -------------- ------------- -------------
Total operating revenues 430,052 319,718 34.5 804,274 608,721 32.1
OPERATING EXPENSES
Salaries, wages and benefits 105,429 83,902 25.7 203,885 161,486 26.3
Aircraft fuel 111,307 57,430 93.8 197,927 106,675 85.5
Landing fees and other rents 28,316 21,868 29.5 54,413 43,385 25.4
Depreciation and amortization 27,726 17,441 59.0 52,049 33,757 54.2
Aircraft rent 18,076 17,740 1.9 35,889 34,995 2.6
Sales and marketing 20,291 18,342 10.6 39,748 31,766 25.1
Maintenance materials and repairs 13,579 8,391 61.8 27,119 20,888 29.8
Other operating expenses 66,258 49,516 33.8 128,512 98,017 31.1
-------------- -------------- ------------- -------------
Total operating expenses 390,982 274,630 42.4 739,542 530,969 39.3
-------------- -------------- ------------- -------------
OPERATING INCOME 39,070 45,088 (13.3) 64,732 77,752 (16.7)
Operating margin 9.1 % 14.1 % (5.0)pts. 8.0 % 12.8 % (4.8)pts.
OTHER INCOME (EXPENSE)
Interest expense (25,367) (12,519) 102.6 (46,025) (22,340) 106.0
Capitalized interest 3,871 1,810 113.8 7,669 3,386 126.5
Interest income and other 5,094 2,135 138.6 8,098 3,480 132.7
-------------- -------------- ------------- -------------
Total other income (expense) (16,402) (8,574) (30,258) (15,474)
-------------- -------------- ------------- -------------
INCOME BEFORE INCOME TAXES 22,668 36,514 (37.9) 34,474 62,278 (44.6)
Income tax expense 10,485 15,056 15,324 25,627
-------------- -------------- ------------- -------------
NET INCOME $ 12,183 $ 21,458 (43.2) $ 19,150 $ 36,651 (47.8)
============== ============== ============= =============
EARNINGS PER COMMON SHARE:
Basic $ 0.12 $ 0.21 $ 0.18 $ 0.36
============== ============== ============= =============
Diluted $ 0.11 $ 0.19 $ 0.17 $ 0.33
============== ============== ============= =============
Weighted average shares outstanding:
Basic 104,935 102,996 104,632 102,623
Diluted 110,854 115,574 110,443 110,842
</TABLE>
JETBLUE AIRWAYS CORPORATION
COMPARATIVE OPERATING STATISTICS
<TABLE>
Three Months Ended Six Months Ended
June 30, June 30,
------------------------ Percent ------------------------- Percent
2005 2004 Change 2005 2004 Change
---------- ---------- -------- ------------ ------------ --------
Revenue passengers 3,695,906 2,920,697 26.5 7,095,992 5,570,770 27.4
Revenue passenger miles (000) 5,124,689 3,935,385 30.2 9,559,217 7,307,680 30.8
Available seat miles (000) 5,846,200 4,656,795 25.5 11,014,853 8,875,315 24.1
Load factor 87.7 % 84.5 % 3.2 pts. 86.8 % 82.3 % 4.5 pts.
Breakeven load factor (1) 82.3 % 74.3 % 8.0 pts. 82.5 % 73.6 % 8.9 pts.
Aircraft utilization (hours per day) 13.7 13.7 0.6 13.5 13.5 0.3
Average fare $ 111.51 $ 105.86 5.3 $ 108.52 $ 105.69 2.7
Yield per passenger mile (cents) 8.04 7.86 2.4 8.06 8.06 --
Passenger revenue per available seat mile (cents) 7.05 6.64 6.2 6.99 6.63 5.4
Operating revenue per available seat mile (cents) 7.36 6.87 7.1 7.30 6.86 6.5
Operating expense per available seat mile (cents) 6.69 5.90 13.4 6.71 5.98 12.2
Airline expense per available seat mile (cents) (1) 6.62 5.84 13.3 6.65 5.93 12.1
Departures 27,382 22,145 23.6 53,019 42,990 23.3
Average stage length (miles) 1,369 1,348 1.5 1,332 1,323 0.6
Average number of operating aircraft during period 74.3 58.6 26.7 72.6 57.0 27.3
Average fuel cost per gallon $ 1.50 $ 0.97 54.7 $ 1.41 $ 0.94 49.2
Fuel gallons consumed (000) 74,390 59,370 25.3 140,671 113,095 24.4
Percent of sales through jetBlue.com during period 77.4 % 75.2 % 2.2 pts. 76.9 % 76.1 % 0.8 pts.
Full-time equivalent employees at period end (1) 7,284 5,781 26.0
</TABLE>
SELECTED CONSOLIDATED BALANCE SHEET DATA
(in thousands)
<TABLE>
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
</TABLE>
NON-GAAP FINANCIAL MEASURES (2)
(in thousands)
<TABLE>
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
</TABLE>
(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
