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]

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[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