Jetblue Post $3 million profit
04-21-2011, 05:10 AM
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Jetblue Post $3 million profit
NEW YORK, April 21, 2011 /PRNewswire via COMTEX/ --
JetBlue Airways Corporation (NASDAQ: JBLU) today reported its results for the first quarter 2011:
* Operating income for the quarter was $45 million, resulting in a 4.4% operating margin, compared to operating income of $43 million and a 4.9% operating margin in the first quarter of 2010.
* Pre-tax income of $6 million in the first quarter. This compares to a pre-tax loss of $1 million in the first quarter of 2010.
* Net income for the first quarter was $3 million, or $0.01 per diluted share. This compares to JetBlue's first quarter 2010 net loss of $1 million, or $0.00 per diluted share.
"Despite significantly higher fuel prices, we are pleased to report a profit in the first quarter," said Dave Barger, JetBlue's President and Chief Executive Officer. "Our first quarter results demonstrate the success of our Boston and Caribbean network which continue to deliver strong revenue performance and the focus brought by our 13,000 crewmembers to deliver a great JetBlue Experience."
Operational Performance
JetBlue reported record first quarter operating revenues of $1 billion. Revenue passenger miles for the first quarter increased 7% to 6.92 billion on a capacity increase of 1%, resulting in a first quarter load factor of 81.4%, an increase of 4.6 points year over year.
Yield per passenger mile in the first quarter was 13.08 cents, up 7.7% compared to the first quarter of 2010. Passenger revenue per available seat mile (PRASM) for the first quarter 2011 increased 14.1% year-over-year to 10.64 cents and operating revenue per available seat mile (RASM) increased 15.1% year-over-year to 11.89 cents.
Operating expenses for the quarter increased 16.8%, or $139 million, over the prior year period. JetBlue's operating expense per available seat mile (CASM) for the first quarter increased 15.6% year-over-year to 11.37 cents. Excluding fuel, CASM increased 6.1% to 7.22 cents. These non-fuel unit costs were negatively impacted by storm-related flight cancellations that occurred in January and February.
Fuel Expense and Hedging
While fuel prices increased during the quarter, JetBlue continued to hedge to manage price volatility. Specifically, JetBlue hedged approximately 37% of its fuel consumption during the first quarter, resulting in a realized fuel price of $2.94 per gallon, a 34.5% increase over first quarter 2010 realized fuel price of $2.19. JetBlue recorded $2 million in gains on fuel hedges that settled during the first quarter.
JetBlue has hedged approximately 43% of its second quarter projected fuel requirements and 35% of its remaining 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 April 15, JetBlue expects an average price per gallon of fuel, including the impact of hedges and fuel taxes, of $3.37 in the second quarter and $3.32 for the full year 2011.
Balance Sheet Update
JetBlue ended the first quarter with approximately $1.1 billion in unrestricted cash and short term investments.
"With our continued focus on maintaining and building financial strength, we believe we are well positioned in today's volatile fuel environment," said Ed Barnes, JetBlue's Chief Financial Officer. "Our healthy operating cash flow allows us to continue to make investments in the business which better position us relative to the competition."
Second Quarter and Full Year Outlook
For the second quarter of 2011, CASM is expected to increase between 18 and 20 percent over the year-ago period. Excluding fuel, CASM in the second quarter is expected to increase between three and five percent year over year.
CASM for the full year is expected to increase between 15 and 17 percent over full year 2010. Excluding fuel, CASM in 2011 is expected to range from zero to positive two percent year over year.
Capacity is expected to increase between seven and nine percent in the second quarter and to increase between six and eight percent for the full year.
JetBlue will conduct a conference call to discuss its quarterly earnings today, April 21, at 9:30 a.m. Eastern Time. A live broadcast of the conference call will be available via the internet at JetBlue Airways - Shareholder Information.
JetBlue Airways Corporation (NASDAQ: JBLU) today reported its results for the first quarter 2011:
* Operating income for the quarter was $45 million, resulting in a 4.4% operating margin, compared to operating income of $43 million and a 4.9% operating margin in the first quarter of 2010.
* Pre-tax income of $6 million in the first quarter. This compares to a pre-tax loss of $1 million in the first quarter of 2010.
* Net income for the first quarter was $3 million, or $0.01 per diluted share. This compares to JetBlue's first quarter 2010 net loss of $1 million, or $0.00 per diluted share.
"Despite significantly higher fuel prices, we are pleased to report a profit in the first quarter," said Dave Barger, JetBlue's President and Chief Executive Officer. "Our first quarter results demonstrate the success of our Boston and Caribbean network which continue to deliver strong revenue performance and the focus brought by our 13,000 crewmembers to deliver a great JetBlue Experience."
Operational Performance
JetBlue reported record first quarter operating revenues of $1 billion. Revenue passenger miles for the first quarter increased 7% to 6.92 billion on a capacity increase of 1%, resulting in a first quarter load factor of 81.4%, an increase of 4.6 points year over year.
Yield per passenger mile in the first quarter was 13.08 cents, up 7.7% compared to the first quarter of 2010. Passenger revenue per available seat mile (PRASM) for the first quarter 2011 increased 14.1% year-over-year to 10.64 cents and operating revenue per available seat mile (RASM) increased 15.1% year-over-year to 11.89 cents.
Operating expenses for the quarter increased 16.8%, or $139 million, over the prior year period. JetBlue's operating expense per available seat mile (CASM) for the first quarter increased 15.6% year-over-year to 11.37 cents. Excluding fuel, CASM increased 6.1% to 7.22 cents. These non-fuel unit costs were negatively impacted by storm-related flight cancellations that occurred in January and February.
Fuel Expense and Hedging
While fuel prices increased during the quarter, JetBlue continued to hedge to manage price volatility. Specifically, JetBlue hedged approximately 37% of its fuel consumption during the first quarter, resulting in a realized fuel price of $2.94 per gallon, a 34.5% increase over first quarter 2010 realized fuel price of $2.19. JetBlue recorded $2 million in gains on fuel hedges that settled during the first quarter.
JetBlue has hedged approximately 43% of its second quarter projected fuel requirements and 35% of its remaining 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 April 15, JetBlue expects an average price per gallon of fuel, including the impact of hedges and fuel taxes, of $3.37 in the second quarter and $3.32 for the full year 2011.
Balance Sheet Update
JetBlue ended the first quarter with approximately $1.1 billion in unrestricted cash and short term investments.
"With our continued focus on maintaining and building financial strength, we believe we are well positioned in today's volatile fuel environment," said Ed Barnes, JetBlue's Chief Financial Officer. "Our healthy operating cash flow allows us to continue to make investments in the business which better position us relative to the competition."
Second Quarter and Full Year Outlook
For the second quarter of 2011, CASM is expected to increase between 18 and 20 percent over the year-ago period. Excluding fuel, CASM in the second quarter is expected to increase between three and five percent year over year.
CASM for the full year is expected to increase between 15 and 17 percent over full year 2010. Excluding fuel, CASM in 2011 is expected to range from zero to positive two percent year over year.
Capacity is expected to increase between seven and nine percent in the second quarter and to increase between six and eight percent for the full year.
JetBlue will conduct a conference call to discuss its quarterly earnings today, April 21, at 9:30 a.m. Eastern Time. A live broadcast of the conference call will be available via the internet at JetBlue Airways - Shareholder Information.
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