Jetblue to report profit for 4th qtr and year

[BLUE BAYOU]

Later to be announced today, Jetblue will report profit for 4th quarter and full year. Numbers will be released later at conference call at 1000am EST.

 

[SoCentralRain]

Well, it's an "operating profit."

As long as the profit sharing check shows up.

Cheers,

SCR

 

[Longhorn]

Some of the info is already out.
http://biz.yahoo.com/ap/070130/earns_jetblue.html?.v=1

 

[waterski]

JETBLUE ANNOUNCES FOURTH QUARTER AND ​

FULL YEAR 2006 RESULTS​

​

Low-Fare Airline Achieves 10.2% Operating Margin for Fourth Quarter 2006​

New York, NY (January 30, 2007) -- JetBlue Airways Corporation (NASDAQ: JBLU) today reported its results for the fourth quarter and full year 2006:

• Operating revenues for the quarter totaled $633 million, representing growth of 42.1% over operating revenues of $446 million in the fourth quarter of 2005. For the full year, operating revenues totaled $2.26 billion, representing growth of 38.9% over operating revenues of $1.70 billion for the full year 2005.

• Operating income for the quarter was $64 million, resulting in a 10.2% operating margin, compared to an operating loss of $31 million and a negative 7.1% operating margin in the fourth quarter of 2005. For the full year 2006, operating income was $127 million, resulting in an operating margin of 5.4%. This compares with operating income of $48 million and a 2.8% operating margin for the full year 2005.

• Pre-tax income for the quarter was $30 million, compared with a pre-tax loss of $55 million in the year-ago period. For the full year, pre-tax income was $9 million, compared with a pre-tax loss of $24 million for the full year 2005.

• Net income for the quarter was $17 million, representing earnings of $0.10 per diluted share, compared with fourth quarter 2005 net loss of $42 million, or a loss of $0.25 per diluted share. For the full year 2006, net loss totaled $1 million, or $0.00 per diluted share, compared with a net loss of $20 million, or a loss of $0.13 per diluted share, for the full year 2005.

"I'm tremendously proud of the efforts our crewmembers have made in advancing our plan to institutionalize low-cost carrier spending habits and improve revenue overall - we’ve made great progress since the beginning of 2006,” said David Neeleman, JetBlue's Chairman and CEO. "We are optimistic about what lies ahead as we seek to further improve our financial and operating performance.”

During the fourth quarter of 2006, JetBlue achieved a completion factor of 99.6% of scheduled flights versus 98.9% in the fourth quarter of 2005. On-time performance, defined by the US Department of Transportation as arrivals within 14 minutes of schedule, was 68.4% in the fourth quarter of 2006 compared to 71.4% for the same period in 2005. For the full year 2006, JetBlue achieved a completion factor of 99.5%, compared to 99.2% in the full year 2005. On-time performance for the full year 2006 was 72.8%, compared to 71.6% for the full year 2005. The company attained a load factor in the fourth quarter of 2006 of 79.7%, a decrease of 1.4 points on a capacity increase of 14.5% over the fourth quarter of 2005. Load factor for the full year 2006 was 81.6%, a decrease of 3.6 points on a capacity increase of 20.6%.

Dave Barger, JetBlue’s President and COO, commented, “The JetBlue team, now 11,000 strong, rose to the occasion and met the difficult operational and financial challenges of 2006. The creativity and innovation of our crewmembers positions us well for 2007, a year in which we plan to grow capacity eleven to fourteen percent while continuing to enhance the JetBlue Experience.”

For the fourth quarter, yield per passenger mile was 10.21 cents, up 25.0% compared to 2005. Operating revenue per available seat mile (RASM) increased 24.1% year-over-year to 8.71 cents. Revenue passenger miles increased 12.4% from the fourth quarter of 2005 to 5.8 billion. Available seat miles (ASMs) grew 14.5% to 7.3 billion. Operating expenses for the fourth quarter were $569 million, up 19.1% from the fourth quarter of 2005. Operating expense per ASM (CASM) for the fourth quarter 2006 increased 4.1% year-over-year to 7.82 cents, while average stage length decreased 17.9%. Excluding fuel, CASM increased 2.3% to 5.24 cents. During the quarter, realized fuel price was $1.92 per gallon, a 2.8% increase over fourth quarter 2005 realized fuel price of $1.87. JetBlue ended the fourth quarter and full year with $699 million in cash and investment securities.

Looking ahead, for the first quarter of 2007, JetBlue expects to report an operating margin between two and four percent based on an assumed aircraft fuel cost per gallon of $1.91, net of hedges. Pre-tax margin for the quarter is expected to be between negative four and negative two percent. CASM is expected to increase between six and eight percent over the year-ago period. Excluding fuel, CASM in the first quarter is expected to increase between four and six percent year over year. Capacity is expected to increase between 14 and 16 percent in the first quarter and stage length is expected to decrease roughly 14% over the same period last year.

For the full year 2007, JetBlue expects to report an operating margin between 10 and 12 percent based on an assumed aircraft fuel cost per gallon of $1.93, net of hedges. Pre-tax margin for the full year is expected to be between five and seven percent. CASM for the full year is expected to increase between five and seven percent over full year 2006. Excluding fuel, CASM in 2007 is expected to increase between seven and nine percent year over year. Capacity for the full year 2007 is expected to increase between 11 and 14 percent over 2006 and stage length is expected to decrease roughly 7% over full year 2006. The CASM and ex-fuel CASM guidance in both the first quarter and full year includes the impact of the reduction in seats on JetBlue’s A320 aircraft from 156 to 150 seats per aircraft.

 

[Lake Alice]

Atleast its in the right direction.

 

[Longhorn]

Nice avatar...

 

[jonjuan]

"JetBlue Airways Corp. reported a fourth-quarter profit that fell a penny short of analysts' expectations, although revenue beat the Street. The New York-based discount carrier also said it expects fuel costs to decline a bit this year.
Merrill Lynch analyst Michael Linenberg called the results a "significant improvement" over last year's loss. But he also said the company's guidance foresees a loss for the March quarter. Analysts were projecting a profit for the period. Shares declined 36 cents, or 2.5 percent, to $14.15 in premarket trading, from their close on the Nasdaq at $14.50.
For 2007, the airline forecast an operating margin of 10% to 12% and an increase in costs of 7% to 9%, excluding fuel. That forecast includes JetBlue's plan to reduce seats on its A320 aircraft to 150 from 156."

 

[Lake Alice]

I thought it only fair that we celebrate tha man who does so much for us.

It's a good look for the man.

 

[jimcav]

Good news now let's get those 190 rates up.

 

[Andy]

I, for one, am impressed. I didn't expect to see JBLU in the black. Congrats.

 

[Longhorn]

deleted

 

[brainhurts]

RTP worked. Kind of painful, but it is working. Good job Dave and Dave. Now lets have a great 07 so we can work on those bennies.

 

[ATRCA]

Good for you guys. Fine folks over there a Blue. I got the thanks but no thanks but am still a fan. Hope it all works out for you guys.

 

[8vATE]

Good news now let's get those 190 rates up.

You may have to wait a while..

They were just raised.

 

[lowecur]

Jetblue will sell 5 more 320s in 2007 according to CFO John Harvey. Since they expect delivery of 12 new 320s, this will be a net increase of only 7 for 2007.

No profit for the 1st Q is disconcerting, since analysts had projected a profit of 7 cents a share. Some posters on other boards say the $3M cost to remove/rearrange seats is the reason. I don't buy that, as I think B6 is basing their estimate on poor bookings so far. I see they have just plugged in a $29-49 sale on 50 underperforming routes.

Average stage length will increase from a 1st Q projection of 1070 to a year end projection of 1100. This is probably due to to the opening of SFO and the possible opening of LAX(depending on what happens with DL).

New cities will grow between 8-10, and includes the recent announcements of ORD, SFO, and White Plains. So you will have at least 5 additional announcements and possibly 7. Jetblue still has no midwest hub, and I believe they could innitiate preliminary talks with F9 if things don't unfold with consolidation in the next 12 months. Private equity will also be considered if the 2nd and 3rd Q projections shrink.

imp:​

 

[Wiskey Driver]

Congrats to you JB!!!!!!

WD.

 

[Frequency]

Let me ask a question. Is it possible that a lot of that profit is from the sell off of the A320's?

Also did Jetblue steal the Airtran playbook? First they followed them into Stewart Newburgh (announced a week later), then into White Plains (announced a month later)? Should we expect them to announce St. Louis and San Diego soon? Is it coincidence? Just wondering. The numbers look great (82% load factor) but if the tickets are at $29-49 that is no surprise.

 

[Longhorn]

Well, we serve san diego from JFK, BOS and IAD and have for a long time now.

 

[Bavarian Chef]

Jetblue will sell 5 more 320s in 2007 according to CFO John Harvey. Since they expect delivery of 12 new 320s, this will be a net increase of only 7 for 2007.

No profit for the 1st Q is disconcerting, since analysts had projected a profit of 7 cents a share. Some posters on other boards say the $3M cost to remove/rearrange seats is the reason. I don't buy that, as I think B6 is basing their estimate on poor bookings so far. I see they have just plugged in a $29-49 sale on 50 underperforming routes.

Average stage length will increase from a 1st Q projection of 1070 to a year end projection of 1100. This is probably due to to the opening of SFO and the possible opening of LAX(depending on what happens with DL).

New cities will grow between 8-10, and includes the recent announcements of ORD, SFO, and White Plains. So you will have at least 5 additional announcements and possibly 7. Jetblue still has no midwest hub, and I believe they could innitiate preliminary talks with F9 if things don't unfold with consolidation in the next 12 months. Private equity will also be considered if the 2nd and 3rd Q projections shrink.

imp:​

Did he actually say we we're gonna sell 5 more aircraft?

My take on the 1st Q: another low ball number. Lower the expectations now and hope to outperform later.

 

[zkmayo]

I read recently that B6's avg fare is now around $125 versus $94 a year ago. So no, the 29-45 fares are not the problem. I dont even the 2 or 3 we offer on each flight either, but theyre made to create buzz/word of mouth advertising.

 

[lowecur]

Let me ask a question. Is it possible that a lot of that profit is from the sell off of the A320's? I think they lost their shirt, unless it's accounting mumbo jumbo. The 4th Q Income shows a loss of $1M, with a full year loss of $6M. On the Expense side it shows a $4M charge for this Q, and $12M for the year.

Also did Jetblue steal the Airtran playbook? First they followed them into Stewart Newburgh (announced a week later), then into White Plains (announced a month later)? Should we expect them to announce St. Louis and San Diego soon? Is it coincidence? Just wondering. The numbers look great (82% load factor) but if the tickets are at $29-49 that is no surprise.

Jetblue wants to be the LCC 800lb gorilla in the NYC area, and they aren't going to let FL get a foothold.....just as FL wasn't going to let B6 get a foothold in ATL.

FL announced IAD to BOS awhile back and B6 followed with their own announcement a few weeks later. FL never started the route. FL beat them to the punch with ROC to BOS, but I don't think it ever panned out and was dropped.

imp:​

 

[lowecur]

Did he actually say we we're gonna sell 5 more aircraft? http://www.newyorkbusiness.com/apps/pbcs.dll/article?AID=/20070130/FREE/70130005/1066/breaking See the 4th paragraph.

My take on the 1st Q: another low ball number. Lower the expectations now and hope to outperform later.

They are basing their projections on bookings, and right now they aren't too good. Things could firm up by mid February, we'll have to see.

11,000 employees and 119 a/c. What ever happened to the 80 employees per a/c they are supposed get to by the end of 2007 to cut expenses? Sounds like they are way behind schedule and will need to fire some employees.

imp:​

 

[Bavarian Chef]

They are basing their projections on bookings, and right now they aren't too good. Things could firm up by mid February, we'll have to see.

11,000 employees and 119 a/c. What ever happened to the 80 employees per a/c they are supposed get to by the end of 2007 to cut expenses? Sounds like they are way behind schedule and will need to fire some employees.

imp:​

Did you listen to the conference call? I didn't but I was told he didn't put a number on the sales, if any. That's probably the best source.

Firings? Nah, just no hiring other than to replace the recently departed.

 

[lowecur]

Did you listen to the conference call? I didn't but I was told he didn't put a number on the sales, if any. That's probably the best source. You may be right as the SEC filing says: *"The total fleet included in the table above may decrease as we consider possible combinations of aircraft sales, assignments, and/or leases." If that's the case, then Crains Business took liberties with the article by posting the future sale of 5 a/c. I think much depends on what happens at LAX.

Firings? Nah, just no hiring other than to replace the recently departed.

You will have between 134 and 139 a/c by year end. To get down to 80 employees you have to basically freeze hiring and let attrition take it's coarse.

imp:​

 

[AAflyer]

You will have between 134 and 139 a/c by year end. To get down to 80 employees you have to basically freeze hiring and let attrition take it's coarse.

imp:​

Yes, the coarse (rough and crude) course of not hiring or letting some go will stink!

AAflyer

 

[Bavarian Chef]

You will have between 134 and 139 a/c by year end. To get down to 80 employees you have to basically freeze hiring and let attrition take it's coarse.

imp:​

They won't fire anyone, they'll "just fix the glitch."

 

[Blue Dude]

11,000 employees and 119 a/c. What ever happened to the 80 employees per a/c they are supposed get to by the end of 2007 to cut expenses? Sounds like they are way behind schedule and will need to fire some employees.

imp:​

Your math is a bit off. There are 11000 total employees, full and part time. The idea is to get below 80 full time equivalent employees per aircraft, not 80 employees per aircraft. The last I heard, they were already about there and were expecting somewhere in the mid 70's be the end of the year.

 

[lowecur]

Yes, the coarse (rough and crude) course of not hiring or letting some go will stink!

AAflyer

Cheeze it, it's the word police.

imp:

 

[lowecur]

Your math is a bit off. There are 11000 total employees, full and part time. The idea is to get below 80 full time equivalent employees per aircraft, not 80 employees per aircraft. The last I heard, they were already about there and were expecting somewhere in the mid 70's be the end of the year.

I bow to you dude, but I'd like to hear it from mgt. Have Dave Neelebarger call me.

imp:​

 

[ERJpusher]

Looks like Q1 2007 isn't looking so good...


NEW YORK, Jan 30 (Reuters) - JetBlue Airways Corp. (JBLU.O: Quote, Profile , Research) on Tuesday forecast a loss in the first quarter on rising costs, after higher fares helped the budget carrier post a profit in the fourth quarter.

The seven-year-old airline, seeking to control costs, has reined in growth by delaying deliveries of some aircraft and selling others. It has also raised fares at the expense of filling seats as it seeks to improve earnings. These efforts helped JetBlue return to profit in the fourth quarter. But the results were slightly below Wall Street expectations, and JetBlue's shares fell nearly 3 percent.

The No. 8 U.S. carrier by passenger traffic reported a net profit of $17 million, or 10 cents per share, compared with a loss of $42 million, or 25 cents per share, a year ago. Analysts expected a profit of 11 cents per share on average, according to Reuters Estimates.
Operating revenue jumped 42 percent to $633 million on a 14.5 percent rise in capacity and higher fares. Yield per passenger mile, a reflection of average ticket prices, rose 25 percent in the quarter.

The higher fares dented demand. Load factor -- a measure of the percentage of seats filled by paying passengers -- fell 1.4 points to 79.7 percent.
Despite the improvement last quarter, JetBlue guided toward a loss in the first quarter, forecasting a pretax margin of negative 4 percent to negative 2 percent. It said unit costs were expected to rise 6 percent to 8 percent.
Analysts expected JetBlue to post a profit of 9 cents per share in the first quarter, on average.

But the New York-based carrier expects a profit for the year, forecasting a pretax margin of 5 percent to 7 percent. JetBlue shares, which hit their highest level in more than two years earlier in January, fell 38 cents to $14.12 in morning trading on Nasdaq.
© Reuters 2007. All Rights Reserved.