NEW YORK (April 13, 2018) -- JetBlue Airways Corporation (NASDAQ: JBLU) today released recasted selected financial information for the quarterly and annual periods for fiscal years ended December 31, 2017 and 2016 for the adoption of Accounting Standard Update 2014-09, Revenue from Contracts with Customers.
JETBLUE AIRWAYS CORPORATION | ||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
Recasted | ||||||||||||||||||||||||||
Reported Fiscal | Adjustments For Adoption | Recasted Fiscal | Percent Change | |||||||||||||||||||||||
2017 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | 2017 | vs. 2016 | ||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||
Passenger | $ | 6,288 | $ | 105 | $ | 116 | $ | 130 | $ | 122 | $ | 6,761 | 6.0 | |||||||||||||
Other | 727 | (109 | ) | (122 | ) | (125 | ) | (120 | ) | 251 | 22.8 | |||||||||||||||
Total operating revenues | 7,015 | (4 | ) | (6 | ) | 5 | 2 | 7,012 | 6.5 | |||||||||||||||||
Revenue Per Available Seat Mile (RASM) | 12.53 | 12.52 | 2.0 | |||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||
Aircraft fuel and related taxes | 1,363 | — | — | — | — | 1,363 | 26.9 | |||||||||||||||||||
Salaries, wages and benefits | 1,887 | — | — | — | — | 1,887 | 11.1 | |||||||||||||||||||
Landing fees and other rents | 397 | — | — | — | — | 397 | 11.1 | |||||||||||||||||||
Depreciation and amortization | 446 | — | — | — | — | 446 | 13.7 | |||||||||||||||||||
Aircraft rent | 100 | — | — | — | — | 100 | (9.0 | ) | ||||||||||||||||||
Sales and marketing | 267 | 1 | 1 | 1 | 1 | 271 | 3.0 | |||||||||||||||||||
Maintenance, materials and repairs | 622 | — | — | — | — | 622 | 10.5 | |||||||||||||||||||
Other operating expenses | 933 | — | — | — | — | 933 | 7.6 | |||||||||||||||||||
Total operating expenses | 6,015 | 1 | 1 | 1 | 1 | 6,019 | 13.1 | |||||||||||||||||||
OPERATING INCOME | 1,000 | (5 | ) | (7 | ) | 4 | 1 | 993 | (21.2 | ) | ||||||||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||||||||||||
Interest expense | (95 | ) | — | — | — | — | (95 | ) | (15.0 | ) | ||||||||||||||||
Capitalized interest | 10 | — | — | — | — | 10 | 20.0 | |||||||||||||||||||
Interest income and other | 6 | — | — | — | — | 6 | (14.9 | ) | ||||||||||||||||||
Total other income (expense) | (79 | ) | — | — | — | — | (79 | ) | (18.0 | ) | ||||||||||||||||
INCOME BEFORE INCOME TAXES | 921 | (5 | ) | (7 | ) | 4 | 1 | 914 | (21.4 | ) | ||||||||||||||||
Income tax (benefit) expense | (226 | ) | (2 | ) | (3 | ) | 2 | 19 | (210 | ) | (148.1 | ) | ||||||||||||||
NET INCOME | $ | 1,147 | $ | (3 | ) | $ | (4 | ) | $ | 2 | $ | (18 | ) | $ | 1,124 | 54.8 | ||||||||||
EARNINGS PER COMMON SHARE: | ||||||||||||||||||||||||||
Basic | $ | 3.49 | $ | — | $ | (0.01 | ) | $ | 0.01 | $ | (0.05 | ) | $ | 3.42 | ||||||||||||
Diluted | $ | 3.47 | $ | (0.01 | ) | $ | (0.02 | ) | $ | — | $ | (0.05 | ) | $ | 3.41 |
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JETBLUE AIRWAYS CORPORATION | |||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
(in millions, except per share amounts) | |||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
Reported | Recasted | ||||||||||||||||||||||
Fiscal | Adjustments For Adoption | Fiscal | |||||||||||||||||||||
2016 | Q1 2016 | Q2 2016 | Q3 2016 | Q4 2016 | 2016 | ||||||||||||||||||
OPERATING REVENUES | |||||||||||||||||||||||
Passenger | $ | 6,013 | $ | 94 | $ | 102 | $ | 92 | $ | 79 | $ | 6,380 | |||||||||||
Other | 619 | (95 | ) | (108 | ) | (109 | ) | (103 | ) | 204 | |||||||||||||
Total operating revenues | 6,632 | (1 | ) | (6 | ) | (17 | ) | (24 | ) | 6,584 | |||||||||||||
RASM | 12.37 | 12.28 | |||||||||||||||||||||
OPERATING EXPENSES | |||||||||||||||||||||||
Aircraft fuel and related taxes | 1,074 | — | — | — | — | 1,074 | |||||||||||||||||
Salaries, wages and benefits | 1,698 | — | — | — | — | 1,698 | |||||||||||||||||
Landing fees and other rents | 357 | — | — | — | — | 357 | |||||||||||||||||
Depreciation and amortization | 393 | — | — | — | — | 393 | |||||||||||||||||
Aircraft rent | 110 | — | — | — | — | 110 | |||||||||||||||||
Sales and marketing | 259 | 1 | 1 | 1 | 1 | 263 | |||||||||||||||||
Maintenance, materials and repairs | 563 | — | — | — | — | 563 | |||||||||||||||||
Other operating expenses | 866 | — | — | — | — | 866 | |||||||||||||||||
Total operating expenses | 5,320 | 1 | 1 | 1 | 1 | 5,324 | |||||||||||||||||
OPERATING INCOME | 1,312 | (2 | ) | (7 | ) | (18 | ) | (25 | ) | 1,260 | |||||||||||||
OTHER INCOME (EXPENSE) | |||||||||||||||||||||||
Interest expense | (111 | ) | — | — | — | — | (111 | ) | |||||||||||||||
Capitalized interest | 8 | — | — | — | — | 8 | |||||||||||||||||
Interest income and other | 7 | — | — | — | — | 7 | |||||||||||||||||
Total other income (expense) | (96 | ) | — | — | — | — | (96 | ) | |||||||||||||||
INCOME BEFORE INCOME TAXES | 1,216 | (2 | ) | (7 | ) | (18 | ) | (25 | ) | 1,164 | |||||||||||||
Income tax (benefit) expense | 457 | (1 | ) | (3 | ) | (7 | ) | (9 | ) | 437 | |||||||||||||
NET INCOME | $ | 759 | $ | (1 | ) | $ | (4 | ) | $ | (11 | ) | $ | (16 | ) | $ | 727 | |||||||
EARNINGS PER COMMON SHARE: | |||||||||||||||||||||||
Basic | $ | 2.32 | $ | — | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.04 | ) | $ | 2.23 | ||||||||
Diluted | $ | 2.22 | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.03 | ) | $ | (0.04 | ) | $ | 2.13 |
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JETBLUE AIRWAYS CORPORATION | |||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS RECASTED | |||||||||||||||||||||||||||||||
(in millions, except per share amounts) | |||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||
Recasted | |||||||||||||||||||||||||||||||
Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2016 | Q2 2016 | Q3 2016 | Q4 2016 | ||||||||||||||||||||||||
OPERATING REVENUES | |||||||||||||||||||||||||||||||
Passenger | $ | 1,556 | $ | 1,766 | $ | 1,753 | $ | 1,686 | $ | 1,572 | $ | 1,589 | $ | 1,663 | $ | 1,556 | |||||||||||||||
Other | 44 | 70 | 65 | 72 | 43 | 48 | 52 | 61 | |||||||||||||||||||||||
Total operating revenues | 1,600 | 1,836 | 1,818 | 1,758 | 1,615 | 1,637 | 1,715 | 1,617 | |||||||||||||||||||||||
RASM | 11.79 | 12.89 | 12.70 | 12.67 | 12.40 | 12.04 | 12.43 | 12.25 | |||||||||||||||||||||||
OPERATING EXPENSES | |||||||||||||||||||||||||||||||
Aircraft fuel and related taxes | 323 | 325 | 347 | 368 | 215 | 274 | 293 | 291 | |||||||||||||||||||||||
Salaries, wages and benefits | 466 | 464 | 466 | 490 | 435 | 415 | 421 | 427 | |||||||||||||||||||||||
Landing fees and other rents | 95 | 101 | 104 | 96 | 85 | 92 | 98 | 81 | |||||||||||||||||||||||
Depreciation and amortization | 105 | 109 | 114 | 119 | 91 | 96 | 102 | 103 | |||||||||||||||||||||||
Aircraft rent | 26 | 24 | 26 | 25 | 28 | 28 | 28 | 27 | |||||||||||||||||||||||
Sales and marketing | 61 | 69 | 69 | 73 | 65 | 73 | 61 | 64 | |||||||||||||||||||||||
Maintenance, materials and repairs | 152 | 166 | 149 | 155 | 135 | 140 | 153 | 136 | |||||||||||||||||||||||
Other operating expenses | 230 | 231 | 229 | 242 | 214 | 213 | 223 | 217 | |||||||||||||||||||||||
Total operating expenses | 1,458 | 1,489 | 1,504 | 1,568 | 1,268 | 1,331 | 1,379 | 1,346 | |||||||||||||||||||||||
OPERATING INCOME | 142 | 347 | 314 | 190 | 347 | 306 | 336 | 271 | |||||||||||||||||||||||
OTHER INCOME (EXPENSE) | |||||||||||||||||||||||||||||||
Interest expense | (25 | ) | (24 | ) | (23 | ) | (22 | ) | (29 | ) | (28 | ) | (28 | ) | (26 | ) | |||||||||||||||
Capitalized interest | 2 | 2 | 3 | 2 | 2 | 2 | 2 | 2 | |||||||||||||||||||||||
Interest income and other | 2 | — | 3 | 1 | 1 | 2 | 2 | 2 | |||||||||||||||||||||||
Total other income (expense) | (21 | ) | (22 | ) | (17 | ) | (19 | ) | (26 | ) | (24 | ) | (24 | ) | (22 | ) | |||||||||||||||
INCOME BEFORE INCOME TAXES | 121 | 325 | 297 | 171 | 321 | 282 | 312 | 249 | |||||||||||||||||||||||
Income tax (benefit) expense | 39 | 118 | 116 | (483 | ) | 115 | 105 | 124 | 93 | ||||||||||||||||||||||
NET INCOME | $ | 82 | $ | 207 | $ | 181 | $ | 654 | $ | 206 | $ | 177 | $ | 188 | $ | 156 | |||||||||||||||
EARNINGS PER COMMON SHARE: | |||||||||||||||||||||||||||||||
Basic | $ | 0.25 | $ | 0.63 | $ | 0.56 | $ | 2.04 | $ | 0.64 | $ | 0.54 | $ | 0.58 | $ | 0.47 | |||||||||||||||
Diluted | $ | 0.24 | $ | 0.62 | $ | 0.55 | $ | 2.03 | $ | 0.60 | $ | 0.52 | $ | 0.55 | $ | 0.46 |
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JETBLUE AIRWAYS CORPORATION | |||||||||||||||||||||||
SELECTED CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||||||
(in millions, except per share amounts) | |||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
As Reported | Adjustments | Recasted | As Reported | Adjustments | Recasted | ||||||||||||||||||
December 31, | for | December 31, | December 31, | for | December 31, | ||||||||||||||||||
2017 | Adoption | 2017 | 2016 | Adoption | 2016 | ||||||||||||||||||
Air traffic liability | $ | 1,215 | $ | 136 | $ | 1,351 | $ | 1,120 | $ | 129 | $ | 1,249 | |||||||||||
Deferred income taxes | 1,033 | (34 | ) | 999 | 1,354 | (49 | ) | 1,305 | |||||||||||||||
Retained earnings | 3,593 | (102 | ) | 3,491 | 2,446 | (80 | ) | 2,366 |
About JetBlue
JetBlue is New York's Hometown Airline®, and a leading carrier in Boston, Fort Lauderdale - Hollywood, Los Angeles (Long Beach), Orlando, and San Juan. JetBlue carries more than 40 million customers a year to 101 cities in the U.S., Caribbean, and Latin America with an average of 1,000 daily flights. For more information please visit www.jetblue.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which represent our management's beliefs and assumptions concerning future events. When used in this document and in documents incorporated herein by reference, the words “expects,” “plans,” “anticipates,” “indicates,” “believes,” “forecast,” “guidance,” “outlook,” “may,” “will,” “should,” “seeks,” “targets” and similar expressions are intended to identify forward-looking statements. 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; volatility in financial and credit markets which could affect our ability to obtain debt and/or lease financing or to raise funds through debt or equity issuances; volatility in fuel prices, maintenance costs and interest rates; our ability to implement our growth strategy; our significant fixed obligations and substantial indebtedness; 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 and Boston metropolitan markets and the effect of increased congestion in these markets; our reliance on automated systems and technology; our being subject to potential unionization, work stoppages, slowdowns or increased labor costs; our reliance on a limited number of suppliers; our presence in some international emerging markets that may experience political or economic instability or may subject us to legal risk; reputational and business risk from information security breaches or cyber-attacks; changes in or additional domestic or foreign government regulation; changes in our industry due to other airlines' financial condition; acts of war or terrorism; global economic conditions or an economic downturn leading to a continuing or accelerated decrease in demand for air travel; the spread of infectious diseases; adverse weather conditions or natural disasters; and external geopolitical events and conditions. It is routine for our internal projections and expectations to change as the year or each quarter in the year progresses, and therefore it should be clearly understood that the internal projections, beliefs and assumptions upon which we base our expectations may change prior to the end of each quarter or year.
Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. You should understand that many important factors, in addition to those discussed or incorporated by reference in this press release, could cause our results to differ materially from those expressed in the forward-looking statements. Potential factors that could affect our results include, in addition to others not described in this press release, those described in Item 1A of our 2017 Form 10-K under "Risks Related to JetBlue" and "Risks Associated with the Airline Industry". In light of these risks and uncertainties, the forward-looking events discussed in this press release might not occur.
CONTACTS
JetBlue Investor Relations
Tel: +1 718 709 2202
ir@jetblue.com
JetBlue Corporate Communications
Tel: +1 718 709 3089
corpcomm@jetblue.com
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