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JetBlue Announces Second Quarter Results

NEW YORK, July 22, 2008 (PRIME NEWSWIRE) -- JetBlue Airways Corporation (Nasdaq:JBLU) today reported its results for the second quarter 2008:



 * Operating revenues for the quarter totaled $859 million,
   representing growth of 17.7% over operating revenues of
   $730 million in the second quarter of 2007.

 * Operating income for the quarter was $21 million, resulting in a
   2.4% operating margin, compared to operating income of $73 million
   and a 10.0% operating margin in the second quarter of 2007.

 * Pre-tax loss for the quarter was $10 million, compared with pre-tax
   income of $43 million in the year-ago period.

 * Net loss for the quarter was $7 million, representing a net loss
   of $0.03 per diluted share, compared with second quarter 2007 net
   income of $21 million, or $0.11 per diluted share.

 * Cash and cash equivalents of $846 million and $397 million of
   investment securities at the end of the second quarter.

"Thanks to the hard work and dedication of our crewmembers, we continued to achieve strong unit revenue growth during the second quarter," said Dave Barger, JetBlue's CEO. "We are also encouraged to see continued strength in our bookings throughout the summer. However, revenue gains are clearly not keeping pace with the extraordinary increase in the price of jet fuel."

"As the industry faces unprecedented challenges, we remain committed in our ongoing efforts to ensure that JetBlue is well-positioned for the long term," said Barger. "To that end, we have suspended our near-term growth plans beginning in September, after the busy summer travel period ends. In September of this year, we expect our capacity to be down about ten percent year over year, and we currently do not plan to grow in 2009."

JetBlue Announces Deferral of 10 EMBRAER 190 Aircraft and New $110 million Line of Credit

JetBlue announced today that it will defer 10 EMBRAER 190 aircraft originally scheduled for delivery between 2009 and 2011 to 2016.

"We believe slower growth, combined with our rigorous cost control and aggressive revenue focus, will further strengthen our liquidity position, which is essential in this environment," said Ed Barnes, JetBlue's CFO.

In addition, JetBlue announced it has obtained a new $110 million line of credit with Citigroup Global Markets Inc. JetBlue plans to use the funding to fund working capital, capital expenditures and other general corporate purposes. The credit facility, which expires next July, is secured by a portion of JetBlue's auction rate securities.

"We are keenly focused on cash preservation and liquidity," said Barnes. "This new line of credit further bolsters our financial position and better positions us to address the challenges and opportunities that lie ahead."

JetBlue To Discontinue Operations in Ontario, California

JetBlue announced it will discontinue operations in Ontario, CA, effective September 3, 2008.

"The dramatic rise in fuel prices has forced us to make the difficult decision to discontinue operations in Ontario," said Dave Barger. "While we understand the impact this decision has on our customers and our crewmembers, we need to make appropriate network adjustments to better match our capacity with customer demand."

Operational Performance

JetBlue was again awarded highest honors in airline customer satisfaction among low-cost carriers by J.D. Power and Associates. Russ Chew, JetBlue's President and COO, commented, "Despite the difficult industry environment, our crewmembers continue to deliver exceptional customer service and differentiate us from the rest of the industry."

For the second quarter, revenue passenger miles increased 0.3% year-over-year to 6.8 billion on a capacity increase of 3.9%, resulting in a second quarter load factor of 80.6%, a decrease of 2.9 points year over year. Yield per passenger mile in the second quarter was 11.53 cents, up 13.7% compared to the second quarter of 2007. Passenger revenue per available seat mile (PRASM) for the second quarter 2008 increased 9.8% year over year to 9.29 cents and operating revenue per available seat mile (RASM) increased 13.2% year-over-year to 10.24 cents.

JetBlue's operating expense per available seat mile (CASM) for the second quarter increased 22.8% year-over-year to 9.99 cents. Excluding fuel, CASM increased 4.7% to 5.59 cents. During the quarter, JetBlue hedged 47% of its fuel consumption resulting in a realized fuel price of $3.17 per gallon, a 58.5% increase over second quarter 2007 realized fuel price of $2.00. JetBlue realized $59 million in fuel hedging gains during the second quarter. Of this total, $1 million are unrealized gains which relate to fuel hedges for the third quarter 2008 and beyond which were required to be recognized in the second quarter.

Third Quarter and Full Year Outlook

Looking ahead, for the third quarter of 2008, JetBlue expects to report an operating margin between negative one and one percent based on an assumed aircraft fuel cost per gallon of $3.59, net of hedges. Pre-tax margin for the quarter is expected to be between negative six and negative four percent. PRASM is expected to increase between 14 and 16 percent year over year. RASM is expected to increase between 19 and 21 percent year over year. CASM is expected to increase between 33 and 35 percent over the year-ago period. Excluding fuel, CASM in the third quarter is expected to increase between 12 and 14 percent year over year. Capacity is expected to decrease between one and three percent in the third quarter and stage length is expected to decrease roughly two percent over the same period last year.

For the full year 2008, JetBlue expects to report an operating margin between negative one and one percent based on an assumed aircraft fuel cost per gallon of $3.27, net of hedges. Pre-tax margin for the full year is expected to be between negative five and negative three percent. PRASM for the full year is expected to increase between 14 and 16 percent year over year. RASM for the full year is expected to increase between 18 and 20 percent year over year. CASM for the full year is expected to increase between 25 and 27 percent over full year 2007. Excluding fuel, CASM in 2008 is expected to increase between eight and ten percent year over year. Capacity for the full year 2008 is expected to increase between zero and two percent over 2007 and stage length is expected to decrease about one percent over full year 2007.

JetBlue will conduct a conference call to discuss its quarterly earnings today, July 22, at 10:00 a.m. Eastern Time. A live broadcast of the conference call will be available via the internet at http://investor.jetblue.com.

About JetBlue

New York-based JetBlue Airways has created a new airline category based on value, service and style. Known for its award-winning service and free TV as much as its low fares, JetBlue is now pleased to offer customers Lots of Legroom and super-spacious Even More Legroom seats. JetBlue introduced complimentary in-flight e-mail and instant messaging services on aircraft "BetaBlue," a first among U.S. domestic airlines. JetBlue is also America's first and only airline to offer its own Customer Bill of Rights, with meaningful and specific compensation for customers inconvenienced by service disruptions within JetBlue's control. Visit www.jetblue.com/promise for details. JetBlue serves 53 cities with 600 daily flights. With JetBlue, all seats are assigned, all travel is ticketless, all fares are one-way, and an overnight stay is never required. For information or reservations call 1-800-JETBLUE (1-800-538-2583) or visit www.jetblue.com.

The JetBlue logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=795

This press release 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; increases in fuel prices, maintenance costs and interest rates; our ability to implement our growth strategy, including the ability to operate reliably the EMBRAER 190 aircraft and our new terminal at JFK; our significant fixed obligations; our ability to attract and retain qualified personnel and maintain our culture as we grow; our reliance on high daily aircraft utilization; our dependence on the New York metropolitan market and the effect of increased congestion in this market; our reliance on automated systems and technology; our being subject to potential unionization; our reliance on a limited number of suppliers; changes in or additional government regulation; changes in our industry due to other airlines' financial condition; and external geopolitical events and conditions. Further 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 2007 Annual Report on Form 10-K 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 release.



                      JETBLUE AIRWAYS CORPORATION
                 CONSOLIDATED STATEMENTS OF OPERATIONS
           (in millions, except share and per share amounts)
                              (unaudited)

            Three Months Ended            Six Months Ended
                 June 30,                     June 30,
            ------------------ Percent  ------------------ Percent
              2008      2007    Change    2008      2007    Change
            --------  --------  ------  --------  --------  ------
 OPERATING
  REVENUES
  Passenger $    779  $    683   14.1   $  1,527  $  1,247   22.5
  Other           80        47   70.4        148        91   62.0
            --------  --------          --------  --------
   Total
    oper-
    ating
    revenues     859       730   17.7      1,675     1,338   25.2

 OPERATING
  EXPENSES
  Aircraft
   fuel          370       226   63.7        678       416   62.8
  Salaries,
   wages and
   benefits      168       158    6.1        346       322    7.3
  Landing
   fees and
   other
   rents          49        47    4.8        100        92    9.3
  Deprecia-
   tion and
   amortiza-
   tion           46        43    8.3         91        85    7.1
  Aircraft
   rent           32        30    5.2         64        60    6.5
  Sales and
   marketing      41        31   36.7         80        60   35.0
  Maintenance
   materials
   and
   repairs        32        27   16.9         65        53   22.5
  Other
   operating
   expenses      100        95    5.4        213       190   11.6
            --------  --------          --------  --------
   Total
    opera-
    ting
    expenses     838       657   27.6      1,637     1,278    28.0
            --------  --------          --------  --------
 OPERATING
  INCOME          21        73  (71.4)        38        60  (35.6)

  Operating
   margin        2.4%     10.0%  (7.6) pts.  2.3%      4.5%  (2.2) pts.

 OTHER INCOME
  (EXPENSE)
  Interest
   expense       (53)      (56)  (3.6)      (109)     (108)   1.5
  Capitalized
   interest       14        11   40.3         28        19   50.3
  Interest
   income
   and other       8        15  (43.7)        20        27  (26.4)
            --------  --------          --------  --------
   Total
    other
    income
    (expense)    (31)      (30)   1.9        (61)      (62)  (0.7)
            --------  --------          --------  --------
 INCOME
  (LOSS)
  BEFORE
  INCOME
  TAXES          (10)       43               (23)       (2)

  Pre-tax
   margin       (1.2)%     5.9%  (7.1) pts. (1.4)%    (0.1)% (1.3) pts.

  Income tax
   expense
   (benefit)      (3)       22                (8)       (1)
            --------  --------          --------  --------
 NET INCOME
  (LOSS)    $     (7) $     21          $    (15) $     (1)
            ========  ========          ========  ========
 EARNINGS
  (LOSS)
  PER
  COMMON
  SHARE:
  Basic     $  (0.03) $   0.12          $  (0.07) $  (0.00)
            ========  ========          ========  ========
  Diluted   $  (0.03) $   0.11          $  (0.07) $  (0.00)
            ========  ========          ========  ========
  Weighted
   average
   shares
   outstanding
   (thousands):
   Basic     225,283   179,514           219,850   178,862

   Diluted   225,283   198,585           219,850   178,862


                      JETBLUE AIRWAYS CORPORATION

 COMPARATIVE OPERATING STATISTICS

                 Three Months                Six Months
                    Ended                      Ended
                   June 30,                   June 30,
               --------------- Percent    --------------- Percent
                2008    2007   Change      2008    2007   Change
               ------- ------- -------    ------- ------- ------
 Revenue
  passengers
  (thousands)    5,637   5,587   0.9       11,155  10,678   4.5
 Revenue
  passenger
  miles
  (millions)     6,756   6,736   0.3       13,319  12,678   5.1
 Available
  seat miles
  (ASMs)
  (millions)     8,383   8,066   3.9       16,778  15,436   8.7
 Load factor      80.6%   83.5% (2.9) pts.   79.4%   82.1% (2.7) pts.
 Breakeven load
  factor (a)      84.1%   79.6%  4.5  pts.   83.1%   83.5% (0.4) pts.
 Aircraft
  utilization
  (hours per
  day)            12.6    13.2  (4.2)        12.8    12.9  (1.0)

 Average fare  $138.13 $122.17   13.1     $136.90 $116.74  17.3
 Yield per
  passenger
  mile (cents)   11.53   10.13  13.7        11.47    9.83  16.6
 Passenger
  revenue per
  ASM (cents)     9.29    8.46   9.8         9.10    8.08  12.7
 Operating
  revenue per
  ASM (cents)    10.24    9.05  13.2         9.98    8.67  15.2
 Operating
  expense per
  ASM (cents)     9.99    8.14  22.8         9.75    8.28  17.8
 Operating
  expense per
  ASM, excluding
  fuel (cents)    5.59    5.34   4.7         5.71    5.58   2.3
 Airline
  operating
  expense per
  ASM (cents)
  (a)             9.69    8.07  20.1         9.53    8.21  16.1

 Departures     52,236  49,513   5.5      104,501  96,087   8.8
 Average stage
  length
  (miles)        1,138   1,135   0.3        1,135   1,111   2.1
 Average number
  of operating
  aircraft
  during period  139.6   126.7  10.2        138.0   124.1  11.2
 Average fuel
  cost per
  gallon       $  3.17 $  2.00  58.5      $  2.91 $  1.95  49.5
 Fuel gallons
  consumed
  (millions)       116     113   3.3          233     214   8.9
 Percent of
  sales through
   jetBlue.com
  during period   77.2%   74.0%  3.2  pts.   77.0%   75.2%  1.8  pts.
 Full-time
  equivalent
  employees at
  period end
  (a)                                       9,856   9,421   4.6

 (a) Excludes operating expenses and employees of LiveTV, LLC, which
     are unrelated to our airline operations.


 SELECTED CONSOLIDATED BALANCE SHEET DATA
  (in millions)

                                         June 30,    December 31,
                                           2008         2007
                                         --------    ------------
 Cash and cash equivalents                $  846       $  190
 Total investment securities                 397          644
 Total assets                              6,468        5,598
 Total debt                                3,335        3,048
 Stockholders' equity                      1,378        1,036

CONTACT: JetBlue Airways Corporation
Investor Relations
(718)709-2202
ir@jetblue.com
Corporate Communications
(718) 709-3089
CorporateCommunications@jetblue.com