Jet Blue losses?

[Fugawe]

Looks like JetBlue's honeymoon is over. Having to actually pay for their jets, and with mx costs now a factor as jets age, and paying high fuel costs like everyone else has taken it's toll.

Are they headed the way of Air Florida, People's Express, etc? Any JB'ers out there with an inside perspective?

Fugawe

---BTW, you can bet JBLU mgmt will walk with cash, no matter what happens.

-----------pasted article--------------
JetBlue Announces Fourth Quarter and Full Year 2005 Results
Wednesday February 1, 7:30 am ET


NEW YORK, Feb. 1, 2006 (PRIMEZONE) -- JetBlue Airways Corporation (NasdaqNM:JBLU - News) today reported its results for the fourth quarter and full year 2005:


-- Net loss for the quarter was $42.4 million, representing a
loss per share of $0.25. These results include $13.0 million
in unusual charges consisting of $6.9 million in non-cash stock-
based compensation expense related to the accelerated vesting
of certain employee stock options and a $6.1 million charge for
development costs related to a maintenance and inventory tracking
system that will not be implemented. Excluding these two unusual
items, the reported net loss would have been $32.0 million, or a
loss per diluted share of $0.19 in the fourth quarter. This
compares with fourth quarter 2004 net income of $1.5 million,
or $0.01 per diluted share. For the full year 2005, net loss
totaled $20.3 million, or a $0.13 loss per share. Excluding
these two unusual items, the reported net loss would have been
$9.8 million, or a loss per diluted share of $0.06 for the full
year ended December 31, 2005, compared with net income of $46.2
million, or $0.28 per diluted share, for the full year 2004.

-- Operating loss for the quarter was $31.5 million, resulting in
a negative 7.1% operating margin. Excluding the impact of the
unusual items, the reported operating margin would have been
negative 4.1%. This compares to operating income of $10.8
million and a 3.2% operating margin in the fourth quarter of 2004.
For the full year 2005, operating income was $47.6 million,
resulting in an operating margin of 2.8%. Excluding the impact
of the unusual items, operating margin for the full year 2005
would have been 3.6%. This compares with operating income of
$110.9 million and an 8.8% operating margin for the full year
2004.

-- Operating revenues for the quarter totaled $446.0 million,
representing growth of 34.0% over operating revenues of $332.8
million in the fourth quarter of 2004. For the full year,
operating revenues totaled $1.70 billion, representing growth of
34.5% over operating revenues of $1.26 billion for the full year
2004.

 

[Occam's Razor]

Fugawe,

Remember the missile employment doctrine of "shoot-look-shoot"?

On this forum "look-shoot" works better.

Even with a cue, you should sort first.

Your friend...really.

 

[Fugawe]

O.R.,

Been a long time since I did any sortin' or shootin' -- no shots here, just observations. Airline biz is brutal as you well know, takes it's toll on the employees primarily.

So I ask, any JBer's with an inside view?


Fugawe

 

[FN FAL]

O.R.,

Been a long time since I did any sortin' or shootin' -- no shots here, just observations. Airline biz is brutal as you well know, takes it's toll on the employees primarily.

So I ask, any JBer's with an inside view?


Fugawe

Why, you looking at getting your 737 type so you can job there?

 

[Fugawe]

Wow, anyone except those with bones to pick care to post on this thread?

Fugawe

 

[EDUC8-or]

The Company attained a load factor in the fourth quarter of 2005 of 81.1%, a decrease of 1.8 points on a capacity increase of 24.7% over the fourth quarter of 2004. Load factor for the full year 2005 was 85.2%

That's a pretty high load factor to see a loss. I never really looked at the financing JetBlue got on their airplanes, but there's another company out there that recently filed bankruptcy because they got such a "great deal" on their financing and it came back to bite them in the rear. I'm hoping and thinking they can keep turning a profit like they did in the past. Expensive gas doesn't help.

 

[Fugawe]

That's a pretty high load factor to see a loss. I never really looked at the financing JetBlue got on their airplanes, but there's another company out there that recently filed bankruptcy because they got such a "great deal" on their financing and it came back to bite them in the rear. I'm hoping and thinking they can keep turning a profit like they did in the past. Expensive gas doesn't help.[/quote

]

Yeah, that's a great load factor for sure, but we all know that's just part of the puzzle. 100% LF with tickets at $1 won't work though, it's a tough balancing act. The majors have suffered (except SW) trying to re-balance their act for years now.

I wish the JB folks the best. We all work our butts off to be the best pilots we can be only to have some MBA wingnut reinvent the mgmt wheel and wreck a viable company. Problem is, the workers are left with the shambles while mgmt generally walks off with millions.

Most mgmt types are at their companies for an avg of a 5 yr touch-and-go, then they're off to another company. Their goal is to increase short-term shareholder values -- it's largely how Wall St assigns value (ie, increase in stock price measured monthly and qtrly -- annuals are a factor, but well after the others). Decisions are made often that aren't always best for the long run. Look at many of the goofy attempts many of the majors have tried to differentiate their product from another airline.

Don't know where JB is headed. Really depends on how much room they have to cut costs like most everyone else has had to. Their labor costs aren't a crusher, but capital expenditures and variables (like fuel) will be now become an issue as they age and try to grow beyond the many cherry routes they now have.

I got a private msg that was informative re: JB. Writer mentioned I go to the 'Majors' thread on this site. Writer said JB was a whipping-boy there for some reason. I don't know anything about that, I haven't been to that thread.

Some seem defensive about JB, not sure why. Truth is that they're (JB) probably looking at tough times ahead (like many others) -- not sure why some get their shorts in a knot over questions about this.

Fugawe

 

[FN FAL]

Wow, anyone except those with bones to pick care to post on this thread?

Fugawe

You guys have to quit wishing ill will on each other, it's bad for morale and it's just plain bad ju ju.

 

[Occam's Razor]

Fugawe,

I mention doing a sort first only because there has been considerable discussion on this Forum about the losses at JetBlue.

http://forums.flightinfo.com/showthread.php?t=71826

 

[[email protected]]

i wonder how much that nose gear accident cost them and how that factors in to 2005's financial results.

 

[C601]

i wonder how much that nose gear accident cost them and how that factors in to 2005's financial results.

What you talking about lol, it does not cause them a penny

 

[Fugawe]

Fugawe,

I mention doing a sort first only because there has been considerable discussion on this Forum about the losses at JetBlue.

[URL="http://forums.flightinfo.com/showthread.php?t=71826"]http://forums.flightinfo.com/showthread.php?t=71826[/URL]

Gotcha. Like I mentioned, I don't spend a lot of time surfing so I didn't see the 'Majors' forum -- I was simply posting a question re: a current financial release about JB.

Looks like no one here is really interested in discussing the biz side of the issue. Too many suspicions of ulterior motives. Guess we'll leave it at that.


Thanks,
Fugawe

 

[filejw]

How about this.I don't like any business that gets away from it original vision and setup.Busy under use airports like JFK and LBG don't seam to be in the same vision as say Boston. The two airplane thing bothers me too.I know the 318 is to heavy but training cost are a big deal. They are starting to look like a Legacy carrier.