Neeleman writing checks his body can't cash

[FlyBoeingJets]

JetBlue Feeling Fuel-Cost Drag
http://www.thestreet.com/tsc/c.gif
By Ross Snel
TheStreet.com Staff Reporter
7/12/2005 11:28 AM EDT
Click here for more stories by Ross Snel




JetBlue (JBLU:Nasdaq - commentary - research) says it will be in the black in the second half of the year, but that high fuel costs are going to squeeze its margins.

JetBlue continues to expect a second-half operating profit. The forecast, made in a regulatory filing late Monday, assumes fuel will cost the airline $1.68 a gallon, including hedges designed to reduce exposure to skyrocketing energy prices.

But the New York airline warned that if fuel stays at that level for the rest of the year, it would expect to report a lower operating margin than its previous guidance, which assumed fuel would cost $1.45 in the second half of the year.

In a quarterly filing on April 25, JetBlue predicted a full-year operating margin between 5% and 7%. Shares fell 33 cents, or 1.6%, to $20.40.

The airline, which has been profitable in every quarter since the beginning of 2001, said it made Monday's filing to "clarify" comments CEO David Neeleman gave in an interview with Reuters that was published last Friday.

Reuters quoted Neeleman as saying JetBlue could continue to make a profit even if crude oil prices rose as high as $80 a barrel.

The CEO also said in the interview that he believes the airline can eventually improve its operating margin because oil prices will either decline or go so high that rivals like Delta Air Lines (DAL:NYSE - commentary - research) are forced out of business. Fellow low-cost carrier Southwest (LUV:NYSE - commentary - research) will kick off the earnings reports for the airlines before the opening bell Thursday, when it's scheduled to release second-quarter results.

 

[FlyBoeingJets]

deleted

 

[FlyBoeingJets]

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549



FORM 8-K


CURRENT REPORT


PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934


DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): JULY 8, 2005


JETBLUE AIRWAYS CORPORATION
(Exact name of registrant as specified in its charter)


DELAWARE 000-49728 87-0617894
(State of Other Jurisdiction of (Commission (I.R.S. Employer
Incorporation) File Number) Identification No.)




118-29 QUEENS BOULEVARD, FOREST HILLS, NEW YORK 11375
(Address of principal executive offices) (Zip Code)


(718) 709-3026
(Registrant's telephone number, including area code)


Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))

ITEM 8.01. OTHER EVENTS.

JetBlue Airways Corporation is filing this report to clarify certain
comments relating to forecasted results of operations for the second half of
2005 attributed to JetBlue's Chairman and Chief Executive Officer, David
Neeleman, in an interview with Reuters published on July 8, 2005. Based on the
company's current and preliminary financial forecast, which assumes an aircraft
fuel price of $1.68 per gallon, net of hedges, in the second half of 2005 and
consistent with the company's practice of providing earnings guidance on an
operating margin basis, JetBlue currently continues to expect to report an
operating profit in the second half of 2005. However, if fuel remains at the
assumed price of $1.68 per gallon, net of hedges, for the second half, the
company would expect to report a lower operating margin in the second half
relative to its prior guidance, which was based on an assumed aircraft fuel
price of $1.45 per gallon, net of hedges, in the second half of 2005.

Additional information will be available at the company's regularly
scheduled second quarter earnings conference call, which will be held on July 21
at 10:00 a.m. ET and available at http://investor.jetblue.com.

This report 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 on 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 report.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



JETBLUE AIRWAYS CORPORATION


Date: July 11, 2005 By: /s/ HOLLY NELSON
--------------------------------
Vice President and Controller
(principal accounting officer)
​

 

[lowecur]

Mr. Neeleman has to learn not to embellish so much. I know he is proud of the airline and it's accomplishments, but Jetblue is a public company and people buy the stock based on his statements. The following was said in that article, and this is probably the reason for the SEC filing today:


But Neeleman said he is confident the airline can eventually boost its margin because oil prices will either decline or will rise so much that JetBlue's loss-plagued rivals like Delta Air Lines Inc. (NYSE:DAL - News) will be driven out of business.

"Either way, we'll get there because our model works under these environments, and it's not working for some of our competitors," he said at his office at JetBlue's headquarters near its hub airport, John F. Kennedy International in New York. "What we're seeing in the market is not sustainable."

The article states he is talking sometime in the future, but the SEC filing wants to clarify that it won't happen anytime soon.

 

[StopNTSing]

sounding more like People Express every day....

 

[surplus1]

10-4 ....

 

[B6Busdriver]

sounding more like People Express every day....

zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz

 

[TexaSWA]

zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz

JJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJ

 

[scarlet]

BUY BOEING!!!!!!!!!!!!!!!!

MADE IN THE USA

anyone heard that lately

 

[DIAMONDDD]

BUY BOEING!!!!!!!!!!!!!!!!

MADE IN THE USA

anyone heard that lately

\

CL65......Surely built in America...Surely

 

[davis]

ntsing

and the difference between you and comair is....? P F T ...you flaming piece of FOD!!!!

 

[B6Driver]

"sounding more like People Express every day...."

Now slow down there Mr. Newbie SW. Southwest is a great company built over a long period of time by a lot of hard working people. You as an F/O were not part of all that for very long so lighten up and wait your turn to pass judgment.

 

[USAFftrplt]

5 years and b6 goes bust!

 

[jetblue320]

5 years and b6 goes bust!

Yea...that's right....five MORE years and we'll be dust/bust. "They" said that about us year one Pal, and look at us now. Keep nay saying, if it makes you feel good.

I thank the Lord every day that they extended my five year contract. Giving up my seniority and going to the bottom of the list wasn't that big of a deal. Now, if we have to start paying for our planes and maintenance, and fuel, well, then I'll probably be singing a different tune for sure.

Have a nice day.

 

[Hardknock]

are those chicks naked under there jets?

 

[StopNTSing]

and the difference between you and comair is....? P F T ...you flaming piece of FOD!!!!

I LUV you too, man...

 

[StopNTSing]

"sounding more like People Express every day...."

Now slow down there Mr. Newbie SW. Southwest is a great company built over a long period of time by a lot of hard working people. You as an F/O were not part of all that for very long so lighten up and wait your turn to pass judgment.

You know, I've read this, and re-read it, and re-re-read it, and it still makes absolutely no sense. Take off your blue sunglasses (and the chip on your shoulder) and read my post again. My opinion is that JetBlue mgmt (i.e. Neeleman) is sounding increasingly like the mgmt of ill-fated People Express (i.e. Beauvais). What does it matter if I'm an FNG at SWA, a crusty old fart at AA, or an insurance salesman/airline analcyst-wannabee? It's only my opinion and I'll pass it along here any time I feel like it.

P.S. I'll have 5 years in at SWA this fall (yes, the upgrades ain't what they used to be).

 

[TWheat61]

I love how Neeleman has kinda backstabbed airbus. Here's airbus helping Jet Blue get going and paying for maintenance, waving loan payments, etc. Then Neeleman goes out and buys 100 friggin Taco Jets. Nicely done!

 

[oldxfr8dog]

My opinion is that JetBlue mgmt (i.e. Neeleman) is sounding increasingly like the mgmt of ill-fated People Express (i.e. Beauvais).

I think you are mixing up your fast-talking, "two-tens-for-a-five", "I'll put my wife and kids on as consultants", "I'll walk off with millions", CEOs.
Beauvais was America West and West Pac.
Of course, I could be wrong. Was he People's as well?

 

[DIAMONDDD]

I think you are mixing up your fast-talking, "two-tens-for-a-five", "I'll put my wife and kids on as consultants", "I'll walk off with millions", CEOs.
Beauvais was America West and West Pac.
Of course, I could be wrong. Was he People's as well?

I think Peoples Express had Don Burr as the CEO.

 

[RichardFitzwell]

Looks like Continental will go head to head with jetBlue in Newark. My money's on CAL (literally)...

EWR-Florida routes get more flights, lower fares

CO announced Tuesday that it will expand service to Florida from EWR, and it has reduced fares from EWR to eight Florida cities.

Due to an expected increase in demand for its lower fares, CO will add eight daily roundtrip flights between EWR and Fort Lauderdale (FLL), Fort Myers (RSW), Orlando (MCO), Tampa (TPA) and West Palm Beach (PBI), beginning Oct. 1. In total this fall, CO will offer 35 daily roundtrip flights from EWR to those five cities.

CO also introduced a $69-one-way fare between EWR and FLL, RSW, MCO, TPA, PBI, Daytona Beach (DAB), Miami (MIA) and Sarasota (SRQ). Some restrictions apply.

Earlier Tuesday, JetBlue announced it will begin EWR-Florida service this year.

 

[Skank]

Your statement here begins with two rather well-used fallacies, then draws a conclusion based on those fallacies. Do I need to tell you what that conclusion is worth?

I love how Neeleman has kinda backstabbed airbus. Here's airbus helping Jet Blue get going and paying for maintenance, waving loan payments, etc. Then Neeleman goes out and buys 100 friggin Taco Jets. Nicely done!

 

[Flying Freddie]

5 years and b6 goes bust!

Thanks for the info. Gotta get my resume updated.

 

[B6Driver]

I love to read these postings because they give me such a laugh.

 

[StopNTSing]

I think Peoples Express had Don Burr as the CEO.

Thanks, I stand corrected. Got my B's mixed up.

 

[Dinger]

Scarlet.......you're a TOOL. Get off of your "buy American Jets" soap box. Think financially (that's about money). Are you going to start an airline with the MOST expensive equipment.....or are you going to shop around for the best deal with the big picture in mind. Next thing we are going to hear from you is that you want us all to buy American cars. That's where the money is. Go b!tch about people buying Honda's or Toyota's. If you're worried about the U.S economy......go find a board to post your junk on where someone really cares.

If you have a problem with JetBlue.....there is therapy available. If you have a problem with airlines buying Airbus.....I think you're screwed and should check yourself in to the nearest idiot ward.

For the record, I drive a Ford and fly an American made jet.

 

[michael707767]

I love how Neeleman has kinda backstabbed airbus. Here's airbus helping Jet Blue get going and paying for maintenance, waving loan payments, etc. Then Neeleman goes out and buys 100 friggin Taco Jets. Nicely done!

Backstabbing? I call it smart business. In the end, I bet Embraer made him a better deal than Airbus did, so who is to blame for JetBlue buying the Embraer?

 

[Dogwood]

Backstabbing? I call it smart business. In the end, I bet Embraer made him a better deal than Airbus did, so who is to blame for JetBlue buying the Embraer?

Good Answer. The truth is that Airbus does not have a true 100 seat airplane and Emb does. Airbus screwed up with the 318. They should have made it a little smaller, and that would have opened up a HUGE market. Had it been a true 100 seater, with a common type as the 320 series, then I can assure you we'd have them on the property in August..

I think the public will like the 190. I've sat in the back of one, and it has the feel of a bigger plane than it actually is.

As was said earlier, customers want a fair price, good consistant service, and the feeling of being safe. In that aspect, the industry has not changed. In just about every other way, it has. The type of wine served on board has little to do with how people choose their airline these days. Believe it or not there was a time when it was an important factor.

DW - (JB - 320FO)