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· JetBlue announces deferral of 12 aircraft deliveries previously scheduled from 2007 through 2009 to 2011 through 2012 and the intention to sell at least two, and potentially up to five, existing Airbus A320 aircraft from its current fleet as part of a comprehensive plan to return to profitability.
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JetBlue will reduce capacity in certain trans-continental markets, increase trans-continental flying in higher performing markets and shift flying to shorter haul markets as a result of the high cost of fuel. The ratio of long-haul to non-long-haul flying in summer 2005, as measured by number of flights, was 1.5:1 which will shift to 1.2:1 in summer 2006.

JETBLUE ANNOUNCES FIRST QUARTER RESULTS


Reports First Quarter Net Loss of $32M


Announces Comprehensive Return to Profitability Plan
Including Adjustment to Growth,

A320 Aircraft Deferrals and Sale



New York, (April 25, 2006) – JetBlue Airways Corporation (NASDAQ: JBLU) today reported its results for the first quarter 2006 and announced a comprehensive “Return to Profitability” plan. Details include:



· Net loss for the first quarter was $32 million, representing a loss per diluted share of $0.18, compared to first quarter 2005 net income of $6 million, representing earnings of $0.04 per diluted share.

· Operating loss for the first quarter was $25 million, resulting in a negative 5.2% operating margin, compared to operating income in the first quarter of 2005 of $25 million, resulting in a 6.6% operating margin.

· Operating revenues for the quarter totaled $490 million, representing growth of 31.4% compared to the first quarter of 2005, on 27.2% more capacity.

· JetBlue announces deferral of 12 aircraft deliveries previously scheduled from 2007 through 2009 to 2011 through 2012 and the intention to sell at least two, and potentially up to five, existing Airbus A320 aircraft from its current fleet as part of a comprehensive plan to return to profitability.



“We are disappointed to report our second consecutive quarterly loss,” said David Neeleman, JetBlue’s Chairman and CEO. “As we face what might be the ‘new normal’ for fuel prices, we have developed a comprehensive ‘Return to Profitability’ plan that includes right-sizing capacity, revenue enhancements and cost reductions. We are focusing on diversifying our route network with an emphasis on medium- and short-haul flights, revamping our fare structures to meet the sustained high fuel prices and right-sizing capacity in our trans-continental markets. The first action of this strategy is to adjust our fleet plan by deferring 12 aircraft previously scheduled for delivery in 2007 through 2009 to 2011 through 2012, and seeking a buyer for at least two of our Airbus A320 aircraft currently in revenue service. Taking these actions now allows us to continue to grow at a less accelerated rate, while still preserving our ability to take advantage of market opportunities now and in the future.”



JetBlue achieved a completion factor of 99.0% of scheduled flights in the first quarter, compared to 98.6% in 2005. On-time performance, defined by the U.S. Department of Transportation as arrivals within 14 minutes of schedule, was 70.6% in the first quarter compared to 65.6% in the same period in 2005. The Company attained a load factor in the first quarter of 2006 of 84.2%, a decrease of 1.6 points on a capacity increase of 27.2% over the first quarter of 2005.



Dave Barger, President and COO, commented: “JetBlue’s crewmembers again met the challenges of operating in the congested Northeast airspace, especially given the disruption caused by the blizzard in February. In addition, the performance of our E190 fleet has improved steadily since introducing this new aircraft type in November 2005. With six months of operating experience, E190 reliability is performing within the range of expectations on all our routes, including our initial route between New York’s JFK and Boston’s Logan airport. To further improve system-wide operational performance we revitalized our ‘BlueTurn’ process, designed to obtain better labor efficiencies for our airport crewmembers, while keeping aircraft ground time to an absolute minimum. Our crewmembers’ enthusiasm and commitment to keeping the JetBlue Experience unique for our customers was recognized with the ‘Best Domestic Airline’ by Travel + Leisure’s readers, ‘Passenger Service Award” by Air Transport World Magazine and the #1 ranking in the Wichita State University and University of Nebraska Airline Quality Rating for the third straight year.”



For the first quarter, revenue passenger miles increased 24.8% from the first quarter of 2005 to 5.5 billion. Yield per passenger mile was 8.37 cents, up 4.0% compared to 2005. Operating revenue per available seat mile (RASM) increased 3.3% year-over-year to 7.46 cents. Available seat miles grew 27.2% to 6.6 billion. Operating expenses for the first quarter were $515 million, up 48.0% from the first quarter of 2005. Operating expense per ASM (CASM) for the first quarter 2006 increased 16.3% year-over-year to 7.84 cents. During the quarter, realized fuel price was $1.86 per gallon, a 42.5% increase over first quarter 2005 realized fuel price of $1.31 per gallon. Excluding fuel, CASM increased 6.7% year-over-year. JetBlue ended the quarter with $419 million in cash and investment securities.



As part of the Return to Profitability Plan, JetBlue’s leadership team completed an extensive evaluation, which identified opportunities to decrease costs, increase labor efficiencies and improve revenue performance, while keeping the JetBlue Experience unique and continuing to meet customer expectations. Specific initiatives of this plan will be rolled out throughout 2006 and include a variety of revenue enhancement initiatives, more efficient fuel usage and conservation efforts, more rigorous supply chain management and a broad review of all expenses throughout the organization.



As part of the comprehensive plan, JetBlue will reduce capacity in certain trans-continental markets, increase trans-continental flying in higher performing markets and shift flying to shorter haul markets as a result of the high cost of fuel. The ratio of long-haul to non-long-haul flying in summer 2005, as measured by number of flights, was 1.5:1 which will shift to 1.2:1 in summer 2006.

Supporting this initiative, JetBlue introduced new service between the following city pairs since the beginning of the year:

Short-Haul Medium-Haul

Boston – Washington New York/JFK – Austin, TX

New York/JFK– Richmond, VA Boston – Austin, TX

Boston – Richmond, VA Boston – Nassau



JetBlue will continue to focus on adding short and medium-haul flights, including already-announced service:



Long Beach, CA to Sacramento, CA (starts May 3, 2006)
Orlando to San Juan & Aguadilla, PR (starts May 3, 2006)
New York/JFK to Bermuda (starts May 4, 2006)
New York/JFK to Portland, ME (starts May 23, 2006)
New York/JFK to Jacksonville, FL (starts June 15, 2006)
New York/JFK and Boston to Pittsburgh, PA (starts June 30, 2006)
Boston to Buffalo, NY (starts June 30, 2006)
Burbank, CA to Las Vegas, NV (starts June 30, 2006)
New York/JFK to Charlotte, NC (starts July 12, 2006)
New York/JFK to Raleigh-Durham, NC (starts July 20, 2006)


JetBlue will remain flexible and responsive to long-haul opportunities, such as new nonstop service between Burbank, CA and Orlando, FL (beginning June 30, 2006) and Boston to Phoenix, AZ (beginning May 3, 2006).

As part of the airline’s capacity-adjustment plan for 2006, JetBlue intends to sell at least two of its existing Airbus A320 aircraft that are currently in revenue service. JetBlue projects 2006 ASM growth, which had previously been projected at 28-30% over 2005, will be reduced to 20-22% for the full year over 2005.

JetBlue will also defer 12 Airbus A320 aircraft originally scheduled for delivery between 2007-2009 to 2011-2012. To preserve the airline’s ability to take advantage of market opportunities, JetBlue has increased A320 options from two aircraft to four aircraft in both 2009 and 2010. The Embraer E190 delivery schedule remains unchanged.



A320 2007 2008 2009 2010 2011 2012 2013

Firm Orders

Original 17 17 18 18 12 0 0

Adjusted to 12 12 16 18 18 6 0

Change (5) (5) (2) 0 6 6 0



Options

Original 0 2 2 2 9 20 15

Adjusted to 0 2 4 4 6 16 18

Change 0 0 2 2 (3) (4) 3



Looking ahead, for the second quarter of 2006, JetBlue expects to report an operating margin between 4% and 6% assuming an all in aircraft fuel cost per gallon of $2.10. For the second quarter, CASM is expected to increase between 19% and 20% over the year-ago period, at the assumed $2.10 aircraft fuel cost per gallon. Excluding fuel, CASM in the second quarter is expected to increase between 9% and 11% year over year. Capacity is expected to increase between 22% and 24% over the same period last year. For the full year 2006, JetBlue expects to report an operating margin between 3% and 5% based on an assumed aircraft fuel cost per gallon of $2.10, net of hedges. CASM for the full year is expected to increase between 13% and 15% over full year 2005, at the assumed $2.10 aircraft fuel cost per gallon. Excluding fuel, CASM in 2006 is expected to increase between 6% and 8% year over year. Capacity for the full year 2006 is expected to increase between 20% and 22% over 2005. Based on these assumptions, the company expects to report net income in the second quarter and a net loss for the full year 2006

[EB]

Hmmm Hvor dårlig går jetBlue?

[Blubird]

Boblen sprekker vel nødvendigvis ikke fordi man foretar noen markedsmessige tilpasninger? Veksten kan naturlig nok ikke fortsette inn i det evige. Det som blir spennende er å se om de kan sysselsette de 100 E190 de har bestilt.

[Isbamse]

JetBlue får Ryanair-bakrus før Ryanair får det....

Men det er jo ikke veldig overraskende , siden de har satset på å vokse seg så store så fort.

[EB]

Mens AirTran på den andre siden roses for ikke vokse like fort...

[Isbamse]

Originally posted by EB


Mens AirTran på den andre siden roses for ikke vokse like fort...

Hvem roser? Link?

[LN-MOW]

Jeg tror ikke at man skal tolke dette ihjel. jetBlue er i ferd med aa 'vokse opp' og faar de problemene som det trekker med seg. Jeg er imidlertid ikke i tvil om at de vil loese dem etterhvert som de oppstaar. jetBlue har mye penger i banken og en meget dyktig ledelse, to faktorer som andre selskaper ikke har. De har ogsaa en sunn kostnadsstruktur. De vet hva som moeter dem naar det gjelder 'aldringskostnader', men som alle andre er de bekymret over oljeprisene. jetBlue er imidlertid i bedre stand til aa moete disse problemene enn mange av sine konkurrenter.

[Trety]

Etter hva jeg leste i en tråd på Airliners.net her om dagen har også JetBlue satt opp prisene endel uten at paxen har forsvunnet.

[LN-MOW]

Markedet taaler - og har etter min mening forstaalese for en prisoppgang. Imidlertid er konkurransen saa jaevlig toeff i en del markeder at ingen toer - av redsel for aa staa alene. Og prissamarbeid er jo heller ikke lov, selv om det under dagens situasjon kanskje hadde vaert en fordel.
Imidlertid faar ruter som f.eks. Atlanta til Alexandria, Shreveport og Syracuse svi - mine billetter til disse byene ligger paa rundt tusingen.

[LN-MOW]

Markedet reagerer iallefall positivt (USA Today):

Was JetBlue’s quarterly loss good news?

Wall Street seemed to think so, or at least analysts liked the “recovery plan” that JetBlue CEO David Neeleman outlined in conjunction with the loss announcement. That plan -– which includes raising fares and slowing growth –- pushed the airline’s stock to its biggest one-day gain since JetBlue went public four years ago, the Chicago Tribune (free registration) reports. The paper says shares of JetBlue on Tuesday jumped $1.24, or 13.2%, to $10.64, on the Nasdaq stock market following Neeleman’s comments, in which he said that the airline would delay aircraft deliveries, eliminate some cross-country flights and concentrate on higher-return, shorter-haul markets. JetBlue's stock price remained up Wednesday, ending the day with a trading price of $10.72 per share. Neeleman also said the airline will attempt to increase the number of higher-priced tickets on each flight, saying the airline’s current average fares were “not good enough." As part of that JetBlue also raised the maximum fare it will charge on a one-way flight from $349 to $399, according to a Bloomberg News report in the Chicago Tribune (free registration).

[Arrow]

air canada TS og jetblue signerer avtale

Forhåpentligvis, så må de ikke redusere Airbus flåten mer enn det som er annonsert, slik at denne nye kontrakten med ACTS fortsatt kan gjøre nytten sin for sårt trengte midler for ACE Aviation Holdings Inc.