JetBlue Announces Third Quarter 2003

JetBlue Airways Corporation (NASDAQ: JBLU) today reported its results for the third quarter 2003:

—Operating revenues for the quarter totaled $273.6 million, representing growth of 65.5% over operating revenues of $165.3 million in the third quarter of 2002.

—Operating income in the quarter was $53.8 million, resulting in a 19.7% operating margin. This compares with operating income of $22.5 million and a 13.6% operating margin in the third quarter of 2002.

—Net income for the quarter was $29.0 million, representing earnings of $0.39 per diluted share, compared with third quarter 2002 net income of $12.2 million, or $0.18 per diluted share.
“Our strong financial results this quarter are a result of great customer demand coupled with ongoing cost control diligence,” said David Neeleman, CEO of JetBlue. “As we approach delivery of our 50th aircraft, we are extremely grateful for the support of our crewmembers, customers and stockholders and proud of all we`ve accomplished to-date. At the same time, looking toward the future, we are dedicated to ensuring we have the right people, processes and facilities in place to support our continued plans for steady, controlled expansion.”
During the third quarter of 2003, JetBlue achieved a completion factor of 99.8%. On-time performance, defined by the US Department of Transportation as arrivals within 14 minutes of schedule, was 86.2% in the third quarter of 2003. The Company attained a record quarterly load factor of 87.7%, an improvement of 2.9 points, on a capacity increase of 66.3% over the third quarter of 2002.
“We`re extremely proud of the efforts our crewmembers put forth this quarter to drive these exceptional results”, said Dave Barger, President and COO of JetBlue. “Faced with an incredible challenge - 27 hours of manual operations at JFK as a result of the blackout - our crewmembers showed astonishing dedication, ingenuity and stamina, enabling us to accommodate more than 35,000 customers during that time and keep the operation going against all odds. They are truly the reason that JetBlue continues to be widely embraced by the traveling public.”
For the third quarter 2003, operating revenues increased by 65.5% over 2002 to $273.6 million. Revenue passenger miles increased 72.1% from the third quarter of 2002 to 3.2 billion. Available seat miles grew 66.3% to 3.7 billion. Yield per passenger mile was 8.14 cents, down 4.1% compared to 2002 on a 7.1% increase in average length of haul. Operating revenue per available seat mile (RASM) decreased 0.5% year-over-year to 7.38 cents.
Operating expenses for the third quarter of 2003 were $219.7 million, up 53.9% from the third quarter of 2002. Operating expense per ASM (CASM) for the second quarter decreased 7.7% year-over-year to 5.92 cents on a 3.6% increase in average stage length. During the quarter, realized fuel price was 81 cents per gallon, an 8.7% increase over third quarter 2003 realized fuel price of 75 cents. JetBlue ended the quarter with $600 million in cash and short-term investments.
JetBlue will conduct a conference call to discuss its quarterly earnings today, October 23rd, at 10:00 a.m. EDT. A live broadcast of the conference call will be available via the World Wide Web at http://investor.jetblue.com.
About JetBlue
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JetBlue is a low-fare, low-cost passenger airline, which provides high-quality customer service. JetBlue operates a fleet of 48 new Airbus A320 aircraft and is scheduled to place into service another five A320s by the end of 2003. The airline recently placed an order for 100 EMBRAER 190 aircraft with options for an additional 100. The first EMBRAER 190 is scheduled to be delivered in mid 2005. All JetBlue aircraft feature roomy all-leather seats each equipped with free live satellite television, offering up to 24 channels of DIRECTV(R) Programming at every seat.(1)
Based out of New York City`s John F. Kennedy International Airport, JetBlue currently operates 192 flights a day and serves 22 destinations in 11 states and Puerto Rico and plans to commence service from Boston, Massachusetts beginning January 7, 2004. 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). This press release, as well as past press releases, can be found on www.jetblue.com.
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