JetBlue Airways Corporation (Nasdaq: JBLU), New York`s low-fare airline, today reported its results for the third quarter of 2002:
—Operating revenues for the quarter totaled $165.3 million, representing growth of 100% over operating revenues of $82.6 million in the third quarter of 2001—Operating income was $22.5 million, resulting in a 13.6% operating margin. This represents an improvement of $18.3 million, or 8.5 percentage points, over operating income of $4.2 million and a 5.1% operating margin in the third quarter of 2001—Pretax income was $20.5 million for the quarter compared to $10.1 million in the third quarter of 2001—Net income for the quarter was $12.2 million, or $0.27 per diluted share, compared to third quarter 2001 net income of $10.1 million, or $0.30 per diluted share.
Year-over-year comparisons of both financial and operational performance are affected by the adverse impact of the September 11, 2001 terrorist attacks. During the third quarter of 2002, JetBlue recognized $0.4 million in compensation under the Air Transportation Safety and System Stabilization Act, compared to $6.7 million for the three months ended September 30, 2001. Net income for the third quarter of 2002 includes income taxes at an effective rate of 40.7%, compared to a zero effective tax rate in the third quarter of 2001 due to the reversal of the Company`s deferred tax asset valuation allowance. Additionally, the third quarter 2002 earnings per share reflects an increase in the number of weighted average shares outstanding compared to 2001 as a result of the Company`s capital raising efforts, including its initial public offering in April 2002.
Commenting on third quarter performance, David Neeleman, JetBlue`s chief executive officer stated: “We set out with the goal of bringing humanity back to airline travel and making flying more enjoyable. Our consistent profitability in the face of a challenging industry environment demonstrates that we can do so in a way that offers long-term shareholder value. Our focus remains on driving top-line growth by providing exceptional customer service, while continuing to maximize operating efficiencies as we grow.”
During the third quarter of 2002, JetBlue achieved a completion factor of 99.9% of scheduled flights compared to 99.3% in 2001 and increased its on-time performance, defined as arrivals within 14 minutes of schedule, to 88.5% for the third quarter of 2002 compared to 82.9% for the same period in 2001. The Company also attained a record quarterly load factor of 84.8%, on a capacity increase of 96.9% over the third quarter of 2001 and a 15.3% capacity increase over the second quarter of this year.
Dave Barger, president and chief operating officer, commented, “This was another solid quarter with high-quality, industry-leading operations. Once again, I commend our Crewmembers for their focused execution and outstanding performance.”
Operating revenues increased by $82.7 million over 2001 to $165.3 million. Revenue passenger miles increased 118.6% from the third quarter of 2001 to 1.89 billion. Yield per passenger mile was 8.49 cents, down 8.7% compared to 2001 on a 15.2% increase in average length of haul. Operating revenue per available seat mile (ASM) increased 1.6% year-over-year to 7.42 cents. Available seat miles grew 96.9% to 2.23 billion. Operating expenses for the quarter were $142.8 million, up 82.2% from the third quarter of 2001. Operating expense per ASM (CASM) for the third quarter 2002 decreased 7.5% year-over-year to 6.41 cents. On a fuel neutral basis, CASM for the third quarter 2002 decreased 6.6% over 2001. Sales on jetblue.com reached 65.1% of total sales during the quarter, up 20 points year over year and up 3.8 points compared to the second quarter 2002. JetBlue ended the third quarter with $207.8 million in cash and cash equivalents. JetBlue will conduct a conference call to discuss its quarterly earnings today at 10:00 a.m. Eastern Time. A live broadcast of the conference call will be available via the World Wide Web at http://investor.jetblue.com.
JetBlue is a low-fare, low-cost passenger airline, which provides high-quality customer service. Since launching operations in February 2000, the airline has carried nearly nine million passengers. JetBlue operates a fleet of 32 new Airbus A320 aircraft and is scheduled to place into service another four new A320s by the end of 2002. All JetBlue aircraft are outfitted with roomy all-leather seats each equipped with free live satellite television, offering up to 24 channels of DIRECTV® Programming at every seat.*
From its base at New York City`s John F. Kennedy International Airport, JetBlue flies to: Fort Lauderdale, Fort Myers, Orlando, Tampa and West Palm Beach, FL; Buffalo, Rochester and Syracuse, NY; Long Beach, Oakland and Ontario, CA; Burlington, VT; New Orleans, LA; Denver, CO; Salt Lake City, UT; San Juan, Puerto Rico; and Seattle, WA. The airline plans to launch twice-daily flights between JFK and Las Vegas beginning January 7, 2003. From Washington DC, the airline serves Fort Lauderdale, Long Beach and Oakland. JetBlue also serves Oakland, Las Vegas, NV and Salt Lake City from Long Beach. With JetBlue, all seats are assigned, all travel is ticketless, all fares are one-way, and a Saturday night stay is never required. For more information, schedules and fares, please visit www.jetblue.com or call JetBlue reservations at 1-800-JETBLUE (538-2583).