JetBlue Announces Tenth Consecutive Quarter of
Profitability
JetBlue Airways Corporation last
week reported its tenth consecutive quarterly profit. Results for
the second quarter 2003 include:
- Operating revenues for the quarter totaled $244.7 million,
representing growth of 63.9% over operating revenues of $149.3
million in the second quarter of 2002.
- Operating income in the quarter was $45.6 million, resulting in
an 18.6% operating margin. This compares with operating income of
$27.7 million and an 18.6% operating margin in the second quarter
of 2002.
- Net income for the quarter was $37.9 million, representing
earnings of $0.55 per diluted share, compared with second quarter
2002 net income of $14.6 million, or $0.22 per diluted share. Net
income reflects our receipt of $22.8 million in compensation
related to the Emergency War Time Supplemental Appropriations Act.
Net of income taxes and profit-sharing, this amounts to $11.5
million, or $0.17 per diluted share.
"This was a great quarter for JetBlue," commented David
Neeleman, chief executive officer. "We continued to demonstrate
excellent cost control and solid operational performance in the
face of strong growth."
During the second quarter of 2003,
JetBlue achieved a completion factor of 99.9% of scheduled flights,
identical to the second quarter of 2002. On-time performance,
defined by the US Department of Transportation as arrivals within
14 minutes of schedule, was 87.4% in the second quarter of 2003
compared to 85.8% for the same period in 2002. The Company attained
a load factor of 85.3%, an improvement of 1.2 points, on a capacity
increase of 69.5% over the second quarter of 2002.
"Without a doubt, JetBlue's success is due to the exceptional
efforts put forth by all of our great crewmembers and their focus
on delivering The JetBlue Experience to our customers," said Dave
Barger, president and chief operating officer.
Wow.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
June 30,
-------------------- Percent
2003
2002 Change
--------- --------- ---------
OPERATING REVENUES
Passenger
$237,037 $144,295
64.3
Other 7,664
5,008 53.0
--------- ---------
Total operating
revenues
244,701
149,303 63.9
OPERATING EXPENSES
Salaries, wages and
benefits 67,827
37,622 80.3
Aircraft
fuel
32,457
16,983 91.1
Sales and
marketing
14,541
11,785 23.4
Landing fees and other rents
16,309
9,681 68.5
Aircraft
rent
14,907
10,298 44.8
Depreciation and amortization
11,471
5,695 101.4
Maintenance materials and
repairs
5,366
1,506 256.4
Other operating
expenses
36,279
28,026 29.4
--------- ---------
Total operating
expenses
199,157
121,596 63.8
--------- ---------
OPERATING
INCOME
45,544
27,707 64.4
Operating
margin
18.6 % 18.6
% - pts.
OTHER INCOME (EXPENSE)
Interest
expense
(6,023)
(4,725) 27.5
Capitalized
interest
1,221
1,435 (14.9)
Interest income and
other
1,948
617 215.7
Emergency War Time compensation
(1) 22,761
-
--------- ---------
Total other income
(expense)
19,907 (2,673)
--------- ---------
INCOME BEFORE INCOME
TAXES
65,451 25,034
161.4
Income tax
expense
27,494 10,448
--------- ---------
NET
INCOME
$37,957
$14,586 160.2
========= =========
For the second quarter 2003, operating revenues increased by
63.9% over 2002 to $244.7 million. Revenue passenger miles
increased 71.9% from the second quarter of 2002 to 2.8 billion.
Available seat miles grew 69.5% to 3.3 billion. Yield per passenger
mile was 8.48 cents, down 4.5% compared to 2002 on a 3.7% increase
in average length of haul. Operating revenue per available seat
mile (RASM) decreased 3.3% year-over-year to 7.47 cents.