Press ReleaseSource: JetBlue Airways Corporation
JetBlue Announces First Quarter Results
Tuesday April 22, 7:45 am ET
NEW YORK, April 22, 2008 (PRIME NEWSWIRE) -- JetBlue Airways Corporation (NasdaqGS:JBLU - News) today reported its results for the first quarter 2008: * Operating revenues for the quarter totaled $816 million, representing growth of 34.2% over operating revenues of $608 million in the first quarter of 2007. * Operating income for the quarter was $17 million, resulting in a 2.2% operating margin, compared to an operating loss of $13 million and a negative 2.2% operating margin in the first quarter of 2007. * Pre-tax loss for the quarter was $13 million, compared with a pre- tax loss of $45 million in the year-ago period. * Net loss for the quarter was $8 million, representing a net loss of $0.04 per diluted share, compared with first quarter 2007 net loss of $22 million, or a loss of $0.12 per diluted share. * Cash and cash equivalents of $713 million and $313 million of investment securities at the end of the first quarter.
``We are pleased with our strong unit revenue performance and cost discipline during the quarter,'' said Dave Barger, JetBlue's CEO. ``We continue to see healthy demand throughout our network, and we are encouraged with the industry's more disciplined approach to capacity. However, JetBlue is not immune to the unprecedented rise in fuel prices, and we are taking steps to respond to this environment.
``We have further reduced our 2008 capacity growth to three to five percent by aggressively managing our flight schedule after the peak summer travel period, and we intend to make further adjustments to our network as necessary. We will also continue our focus on cost discipline and revenue enhancements,'' said Barger.
JetBlue Announces New Checked Bag Policy
JetBlue announced today that it has changed its checked bag policy to allow customers to check one bag at no charge and a second bag for a $20 service fee. This new policy becomes effective for customers traveling on or after June 1, 2008. ``We have found that a majority of our customers check only one bag, and with this new policy, customers who check extra bags may continue to do so for a nominal fee designed to offset the extra fuel required to transport the extra bags, which will help us maintain our competitive fares for all our customers,'' said Barger.
Operational Performance
For the first quarter, revenue passenger miles increased 10.4% year-over-year to 6.5 billion on a capacity increase of 13.9%, resulting in a first quarter load factor of 78.2%, a decrease of 2.4 points year over year. Yield per passenger mile in the first quarter was 11.40 cents, up 20.2% compared to the first quarter of 2007. Passenger revenue per available seat mile (PRASM) for the first quarter 2008 increased 16.5% year-over-year to 8.92 cents.
JetBlue's operating expense per available seat mile (CASM) for the first quarter increased 12.8% year-over-year to 9.51 cents. Excluding fuel, CASM decreased 0.2% to 5.84 cents. During the quarter, JetBlue's realized fuel price was $2.65 per gallon, a 40.5% increase over first quarter 2007 realized fuel price of $1.88. Russ Chew, JetBlue's President and COO, commented, ``Our solid operational performance -- against the backdrop of record high fuel prices and a weakening economic environment -- reflects the outstanding efforts of our 12,000 crewmembers. While this is a difficult environment for the industry, we believe JetBlue is well-positioned with a terrific brand, outstanding crewmembers, a strong cash position, and a flexible fleet order book. We are optimistic about the opportunities that lie ahead.''
JetBlue Announces First Quarter Results
Tuesday April 22, 7:45 am ET
NEW YORK, April 22, 2008 (PRIME NEWSWIRE) -- JetBlue Airways Corporation (NasdaqGS:JBLU - News) today reported its results for the first quarter 2008: * Operating revenues for the quarter totaled $816 million, representing growth of 34.2% over operating revenues of $608 million in the first quarter of 2007. * Operating income for the quarter was $17 million, resulting in a 2.2% operating margin, compared to an operating loss of $13 million and a negative 2.2% operating margin in the first quarter of 2007. * Pre-tax loss for the quarter was $13 million, compared with a pre- tax loss of $45 million in the year-ago period. * Net loss for the quarter was $8 million, representing a net loss of $0.04 per diluted share, compared with first quarter 2007 net loss of $22 million, or a loss of $0.12 per diluted share. * Cash and cash equivalents of $713 million and $313 million of investment securities at the end of the first quarter.
``We are pleased with our strong unit revenue performance and cost discipline during the quarter,'' said Dave Barger, JetBlue's CEO. ``We continue to see healthy demand throughout our network, and we are encouraged with the industry's more disciplined approach to capacity. However, JetBlue is not immune to the unprecedented rise in fuel prices, and we are taking steps to respond to this environment.
``We have further reduced our 2008 capacity growth to three to five percent by aggressively managing our flight schedule after the peak summer travel period, and we intend to make further adjustments to our network as necessary. We will also continue our focus on cost discipline and revenue enhancements,'' said Barger.
JetBlue Announces New Checked Bag Policy
JetBlue announced today that it has changed its checked bag policy to allow customers to check one bag at no charge and a second bag for a $20 service fee. This new policy becomes effective for customers traveling on or after June 1, 2008. ``We have found that a majority of our customers check only one bag, and with this new policy, customers who check extra bags may continue to do so for a nominal fee designed to offset the extra fuel required to transport the extra bags, which will help us maintain our competitive fares for all our customers,'' said Barger.
Operational Performance
For the first quarter, revenue passenger miles increased 10.4% year-over-year to 6.5 billion on a capacity increase of 13.9%, resulting in a first quarter load factor of 78.2%, a decrease of 2.4 points year over year. Yield per passenger mile in the first quarter was 11.40 cents, up 20.2% compared to the first quarter of 2007. Passenger revenue per available seat mile (PRASM) for the first quarter 2008 increased 16.5% year-over-year to 8.92 cents.
JetBlue's operating expense per available seat mile (CASM) for the first quarter increased 12.8% year-over-year to 9.51 cents. Excluding fuel, CASM decreased 0.2% to 5.84 cents. During the quarter, JetBlue's realized fuel price was $2.65 per gallon, a 40.5% increase over first quarter 2007 realized fuel price of $1.88. Russ Chew, JetBlue's President and COO, commented, ``Our solid operational performance -- against the backdrop of record high fuel prices and a weakening economic environment -- reflects the outstanding efforts of our 12,000 crewmembers. While this is a difficult environment for the industry, we believe JetBlue is well-positioned with a terrific brand, outstanding crewmembers, a strong cash position, and a flexible fleet order book. We are optimistic about the opportunities that lie ahead.''
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