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JetBlue Announces 2010 Annual Profit
JetBlue Reports Record Fourth Quarter and Full Year Revenues

NEW YORK, Jan. 27, 2011 /PRNewswire via COMTEX/ --

JetBlue Airways Corporation (Nasdaq: JBLU) today reported its results for the fourth quarter and full year 2010:

  • Pre-tax income of $15 million in the fourth quarter. This compares to pre-tax income of $20 million in the year-ago period.
  • For the full year 2010, JetBlue reported pre-tax income of $161 million. This compares to a pre-tax income of $104 million for the full year 2009.
  • Net income for the fourth quarter was $9 million, or $0.03 per diluted share. This compares to JetBlue's fourth quarter 2009 net income of $11 million, or $0.04 per diluted share.
  • For the full year 2010, JetBlue reported net income of $97 million, or $0.31 per diluted share. This compares to net income of $61 million, or $0.21 per diluted share, for the full year 2009.

"Clearly, 2010 was an excellent year for JetBlue," said Dave Barger, JetBlue's CEO. "Thanks to the hard work and dedication of our outstanding crewmembers, we successfully transitioned to a new customer service and reservations system, strengthened our network in key markets such as Boston and the Caribbean, and created new revenue opportunities through airline partnerships and other product enhancements. As we look ahead into 2011, we believe we are taking the right steps to continue to strengthen our airline and improve our competitive position."

Operational Performance

JetBlue reported record fourth quarter operating revenues of $940 million despite severe weather in the Northeast, which reduced revenue by an estimated $30 million. For the full year, operating revenues totaled $3.78 billion, representing an increase of 14.8% over operating revenues of $3.29 billion for the full year 2009.

For the fourth quarter, revenue passenger miles increased 10.1% year-over-year to 6.98 billion on a capacity increase of 6.8%, resulting in a fourth quarter load factor of 81.9%, an increase of 2.5 points year over year.

Yield per passenger mile in the fourth quarter was 12.11 cents, up 4.1% compared to the fourth quarter of 2009. Passenger revenue per available seat mile (PRASM) for the fourth quarter 2010 increased 7.4% year-over-year to 9.91 cents and operating revenue per available seat mile (RASM) increased 5.9% year-over-year to 11.03 cents.

Operating expenses for the quarter increased 14.9%, or $115 million, over the prior year period. JetBlue's operating expense per available seat mile (CASM) for the fourth quarter increased 7.6% year-over-year to 10.34 cents. Excluding fuel, CASM increased 3.6% to 6.95 cents.

Fuel Expense and Hedging

JetBlue hedged approximately 45% of its fuel consumption during the fourth quarter, resulting in a realized fuel price of $2.42 per gallon, a 16% increase over fourth quarter 2009 realized fuel price of $2.08. JetBlue recorded $3 million in gains on fuel hedges that settled during the fourth quarter.

JetBlue has hedged approximately 37% of its first quarter projected fuel requirements and 32% of its full year 2011 projected fuel requirements using a combination of crude call options and collars, jet fuel swaps and heating oil collars. Based on the fuel curve as of January 21, JetBlue expects an average price per gallon of fuel, including the impact of hedges and fuel taxes, of $2.84 in the first quarter and $2.89 for the full year 2011.

Balance Sheet Update

JetBlue ended the year with approximately $1 billion in unrestricted cash and short term investments.

"During 2010, we made several strategic investments in our infrastructure and network while maintaining one of the best liquidity positions in the U.S. airline industry relative to our size," said Ed Barnes, JetBlue's CFO. "We believe our strong financial foundation coupled with a continued focus on improving our balance sheet and managing costs position us for continued success in 2011 and beyond."

First Quarter and Full Year Outlook

For the first quarter of 2011, CASM is expected to increase between 11 and 13 percent over the year-ago period. Excluding fuel, CASM in the first quarter is expected to increase between three and five percent year over year.

CASM for the full year is expected to increase between eight and ten percent over full year 2010. Excluding fuel, CASM in 2011 is expected to range from negative one and positive two percent year over year.

Capacity is expected to increase between one and three percent in the first quarter and to increase between seven and nine percent for the full year.

JetBlue will conduct a conference call to discuss its quarterly earnings today, January 27, 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. In 2010, the carrier ranked "Highest in Customer Satisfaction Among Low-Cost Carriers in North America" by J.D. Power and Associates, a customer satisfaction recognition received for the sixth year in a row. Known for its award-winning service and free TV as much as its low fares, JetBlue offers the most legroom in coach of any U.S. airline (based on average fleet-wide seat pitch) and super-spacious Even More Legroom seats. 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 63 cities with 600 daily flights. Later this year JetBlue plans to introduce service to Providenciales, Turks & Caicos; Anchorage, Alaska; and Martha's Vineyard, Mass. With JetBlue, all seats are assigned, all fares are one-way, and an overnight stay is never required. For information or reservations call 1-800-JET-BLUE (1-800-538-2583), TTY/TDD 1-800-336-5530 or visit www.jetblue.com.

This press release contains statements of a forward-looking nature which represent our management's beliefs and assumptions concerning future events. When used in this document and in documents incorporated herein by reference, the words "expects," "plans," "anticipates," "indicates," "believes," "forecast," "guidance," "outlook," "may," "will," "should," "seeks," "targets" and similar expressions are intended to identify forward-looking statements. 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; volatility in financial and credit markets which could affect our ability to obtain debt and/or lease financing or to raise funds through debt or equity issuances; 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; a continuance of the economic recessionary conditions in the U.S. or a further economic downturn leading to a continuing or accelerated decrease in demand for domestic and business air travel; and external geopolitical events and conditions. Further information concerning these and other factors is contained in JetBlue's Securities and Exchange Commission filings, including but not limited to, JetBlue's Annual Report on Form 10-K for the year ended December 31, 2009, Quarterly Reports on Form 10-Q for the quarters ended March 31, June 30 and September 30, 2010 and Current Report on Form 8-K filed on January 18, 2011. 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





Twelve Months Ended







December 31,


Percent



December 31,


Percent





2010 (a)


2009


Change



2010


2009


Change


















OPERATING REVENUES















Passenger

$ 845


$ 738


14.7



$ 3,412


$ 2,934


16.3



Other

95


95


0.7



367


358


2.6




Total operating revenues

940


833


13.1



3,779


3,292


14.8


















OPERATING EXPENSES















Aircraft fuel and related taxes

290


232


24.8



1,115


945


18.0



Salaries, wages and benefits

227


200


13.4



891


776


14.8



Landing fees and other rents

55


53


2.9



228


213


6.7



Depreciation and amortization

55


58


(6.7)



220


228


(3.7)



Aircraft rent

33


31


7.5



126


126


0.3



Sales and marketing

49


38


31.4



179


151


19.0



Maintenance materials and repairs

48


38


27.7



172


149


15.4



Other operating expenses

126


118


6.5



515


419


22.8




Total operating expenses

883


768


14.9



3,446


3,007


14.6


















OPERATING INCOME

57


65


(8.9)



333


285


17.4



















Operating margin

6.2

%

7.7

%

(1.5)

pts.


8.8

%

8.6

%

0.2

pts.

















OTHER INCOME (EXPENSE)















Interest expense

(45)


(50)


(8.0)



(180)


(198)


(9.2)



Capitalized interest

1


1


(34.5)



4


7


(45.9)



Interest income and other

2


4


(48.8)



4


10


(62.4)




Total other income (expense)

(42)


(45)


(4.0)



(172)


(181)


(4.8)


















INCOME BEFORE INCOME TAXES

15


20





161


104





















Pre-tax margin

1.7

%

2.4

%

(0.7)

pts.


4.3

%

3.2

%

1.1

pts.


















Income tax expense

6


9





64


43




















NET INCOME

$ 9


$ 11





$ 97


$ 61




















EARNINGS PER COMMON SHARE:































Basic

$ 0.03


$ 0.04





$ 0.36


$ 0.24





















Diluted

$ 0.03


$ 0.04





$ 0.31


$ 0.21





















Weighted average shares outstanding (thousands):
















Basic

276,415


273,120





275,364


260,486






















Diluted

306,673


303,532





346,580


332,063




















(a) On January 18, 2011, JetBlue Airways Corporation filed a Current Report on Form 8-K with the U.S. Securities and Exchange Commission, describing an error in its previous accounting for certain points and awards that had expired under its former customer loyalty program, TrueBlue. Passenger revenue for the fourth quarter of 2010 reflects $6 million related to these expirations. A portion of this amount may be recorded in passenger revenue in previous periods of 2010.

JETBLUE AIRWAYS CORPORATION























































COMPARATIVE OPERATING STATISTICS
























Three Months Ended





Twelve Months Ended









December 31,


Percent



December 31,


Percent







2010 (a)


2009


Change



2010


2009


Change





















Revenue passengers (thousands)

6,039


5,457


10.7



24,254


22,450


8.0



Revenue passenger miles (millions)

6,984


6,343


10.1



28,279


25,955


9.0



Available seat miles (ASMs) (millions)

8,530


7,988


6.8



34,744


32,558


6.7



Load factor

81.9

%

79.4

%

2.5

pts.


81.4

%

79.7

%

1.7

pts.


Aircraft utilization (hours per day)

11.0


10.8


1.8



11.6


11.5


1.1





















Average fare

$ 140.01


$ 135.14


3.6



$ 140.69


$ 130.67


7.7



Yield per passenger mile (cents)

12.11


11.63


4.1



12.07


11.30


6.8



Passenger revenue per ASM (cents)

9.91


9.23


7.4



9.82


9.01


9.0



Operating revenue per ASM (cents)

11.03


10.42


5.9



10.88


10.11


7.6



Operating expense per ASM (cents)

10.34


9.62


7.6



9.92


9.24


7.4



Operating expense per ASM, excluding fuel (cents)

6.95


6.71


3.6



6.71


6.33


5.9



Airline operating expense per ASM (cents) (a)

10.15


9.35


8.6



9.71


8.99


8.0





















Departures

55,997


52,207


7.3



225,501


215,526


4.6



Average stage length (miles)

1,093


1,091


0.1



1,100


1,076


2.2



Average number of operating aircraft during period

158.4


151.0


4.9



153.5


148.0


3.7



Average fuel cost per gallon

$ 2.42


$ 2.08


16.0



$ 2.29


$ 2.08


10.3



Fuel gallons consumed (millions)

119


112


7.6



486


455


7.0



Full-time equivalent employees at period end (b)








11,121


10,704


3.9




















(a) On January 18, 2011, JetBlue Airways Corporation filed a Current Report on Form 8-K with the U.S. Securities and Exchange Commission, describing an error in its previous accounting for certain points and awards that had expired under its former customer loyalty program, TrueBlue. Passenger revenue for the fourth quarter of 2010 reflects $6 million related to these expirations. A portion of this amount may be recorded in passenger revenue in previous periods of 2010.


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









SELECTED CONSOLIDATED BALANCE SHEET DATA


(in millions)

















December 31,


December 31,






2010


2009













Cash and cash equivalents

$ 465


$ 896





Total investment securities

628


246





Total assets

6,593


6,549





Total debt

3,033


3,304





Stockholders' equity

1,654


1,546

SOURCE JetBlue Airways Corporation