Following yesterday’s earnings announcement, our CEO Dave guested on CNBC’s Fast Money to talk about our financial results, airline partnerships, our fuel hedging strategy and more.
January 26, 2012
Reporting Record Revenues!
This morning we’re happy to announce that we were profitable for the third year in a row, with a net income of $86 million in 2011. We also posted a $23 million profit in the fourth quarter — the highest fourth quarter profit in our history!
Join the conference call where we’ll discuss quarterly earnings today, January 26, at 9:30 a.m. Eastern Time. A live broadcast of the conference call will be available via the internet at http://investor.jetblue.com.
Some nuggets about our earnings:
- Net income for the fourth quarter was $23 million, or $0.08 per diluted share. This compares to our fourth quarter 2010 net income of $8 million, or $0.03 per diluted share.
- For the full year 2011, we reported net income of $86 million, or $0.28 per diluted share. This compares to net income of $97 million, or $0.31 per diluted share, for the full year 2010.
- We ended the year with $1.2 billion in cash and short term investments.
- We reported record fourth quarter operating revenues of $1.15 billion. For the full year, operating revenues totaled $4.50 billion, representing an increase of 19.2% over operating revenues of $3.78 billion for the full year 2010.
- For the fourth quarter, revenue passenger miles increased 11.0% year-over-year to 7.75 billion on a capacity increase of 10.5%, resulting in a fourth quarter load factor of 82.2%, an increase of 0.3 points year over year.
- Yield per passenger mile in the fourth quarter was 13.44 cents, up 11.3% compared to the fourth quarter of 2010. Passenger revenue per available seat mile (PRASM) for the fourth quarter 2011 increased 11.8% year over year to 11.05 cents and operating revenue per available seat mile (RASM) increased 10.5% year over year to 12.16 cents.
- Operating expenses for the quarter increased 20.4%, or $180 million, over the prior year period, of which $128 million was due to higher fuel costs. Our operating expense per available seat mile (CASM) for the fourth quarter increased 9.0% year over year to 11.27 cents. Excluding fuel, CASM decreased 1.5% to 6.85 cents.
- We continued to hedge fuel to manage price volatility. Specifically, we hedged approximately 45% of its fuel consumption during the fourth quarter, resulting in a realized fuel price of $3.15 per gallon, a 30% increase over fourth quarter 2010 realized fuel price of $2.42.
- During the fourth quarter, JetBlue generated approximately $114 million of operating cash flow, made debt payments of $65 million and had capital expenditures of $169 million. For the full year, JetBlue generated operating cash flow of $614 million and had capital expenditures of $524 million, resulting in free cash flow of $90 million.
- For the first quarter of 2012, CASM is expected to increase between 2.0% and 4.0% over the year-ago period. Excluding fuel, CASM in the first quarter is expected to range between a decrease of 0.5% and an increase of 1.5% year over year.ASM for the full year is expected to
- Capacity is expected to increase between 9.5% and 11.5% in the first quarter and to increase between 5.5% and 7.5% for the full year
January 25, 2012
Baring Government Taxes In Our Fares
JetBlue has never had any “hidden fees,” what you see is what you get! The only difference is that government taxes and fees are now included in all advertised fares, and all airlines and ticket agents are required to comply.
Why do fares appear higher than they did yesterday?
In accordance with recent Department of Transportation (DOT) mandates, all JetBlue flight fares and Getaways vacation package prices displayed on jetblue.com or in any other JetBlue advertisements, promotions or published listings now include all government taxes and fees applicable to airfare. This new DOT requirement applies to all U.S. and foreign air carriers, ticket agents, and tour operators that advertise in the United States for air transportation or for tours with air transportation within, to or from the United States.
Additionally, TrueBlue Award Flight point fares now display the number of points required and the taxes/fees required for redemption of Award Travel on that flight.
Why do your fares appear higher than other airlines?
We rolled out these changes in advance of the official January 26 DOT deadline, so it’s possible that some airlines have not yet implemented them. You can still find the best fares on jetblue.com!
What else is new?
You’ll now have 24 hours from the time of booking to cancel your flight reservation for a refund without being charged a cancellation fee if your flight reservation was made 7 days or more prior to the flight’s departure date. You’ll be able to perform this cancellation on jetblue.com or by calling our customer support line at 1-800-JetBlue.
What do I need to know as a consumer?
Aside from understanding that you’ll see pricing that includes government taxes and fees, you will continue to enjoy the same great service from us (and remember that first bag always flies free on JetBlue and complimentary snacks and drinks are unlimited)!
January 24, 2012
Changes To Our Eat Up! Boxed Meals
Nutella lovers rejoice — we’re rolling out new and improved meal boxes! The new meal boxes feature a refreshed selection of products, including ginger snaps, parmesan peppercorn cheese, and yes, Nutella spread.
The changes include the addition of the new Mix It Up meal box. Our Eat Up selections will now include:
- Beef Up – protein
- Shape Up – Kosher, gluten-free, vegetarian
- Mix It Up – kid friendly (but good for everyone!)
- Cheer up – wine pairing
All four selections will remain $5.99. The boxes themselves are being upgraded, as well. The new boxes are greener, using 30% less cardboard. For those looking for even more entertainment than what we already provide (36 channels of DirecTV on your own seatback screen), each box features a fun word search on the inside cover.
Learn more about the history of our Eat Up! program.
January 23, 2012
A Hawaiian Luau At T5!
We had all-out luau at our home base T5 at JFK this morning (minus the pig spit)! Following our partnership announcement with Hawaiian Airlines, we celebrated with our new partners, fellow crewmembers and customers. The entertainment included hula dancers, ukeleles, a fashion show highlighting our partner’s 80-year history of sharp uniforms, and our CEO Dave (as well as our partner CEO Mark) in Hawaiian shirts and leis. Check out the below photos from the event and visit our Flickr page for more!
Showcasing Hawaiian's uniforms through the decades
Seasoned ukelele player Aidan James performs
Our CEO Dave Barger and Hawaiian's CEO Mark Dunkerly exchange planes
Showing Hawaiian Airline's our ride, onboard JetBlue's A320 aircraft
Gate signage coming soon to T5 (Let the "Hawaii 5-0" jokes commence!)
Also, check out the video recap from today’s festivities!
January 23, 2012
Aloha! Our New Partner: Hawaiian Airlines!
We’re pleased to announce a new interline partnership with Hawaiian Airlines, bringing the beauty of the Aloha State within easy reach of major East Coast markets with new connecting service. We’ll be hosting some fun and merriment to celebrate this momentous occasion at our terminal (T5) at JFK today, so stay tuned for an event recap!
Image courtesy of grantzprice on Flickr
Effective this week, customers can purchase single tickets combining travel on both Hawaiian and JetBlue, allowing for seamless travel between both networks. Connections are available for immediate travel via Los Angeles International Airport (LAX), where Hawaiian offers multiple daily departures.
What’s more, we’ll expand our partnership on June 4, when Hawaiian Airlines flies into New York City with the only nonstop service between Honolulu International Airport and John F. Kennedy International Airport aboard its new Airbus A330 widebody aircraft.
Hawaiian’s schedule between Honolulu and New York:
| Honolulu (HNL) to New York (JFK): | New York (JFK) to Honolulu (HNL): |
| Depart – Arrive | Depart – Arrive |
| 3:05 p.m. – 6:55 a.m. (next day) | 10:00 a.m. – 3:00 p.m. |
| - All times local - | |
New travel options for TrueBlue and HawaiianMiles members
With the launch of this new partnership, members of both frequent flier programs will now be able to earn and redeem loyalty points for travel on either carrier. For example, our TrueBlue members will be able to accrue points on any Hawaiian-operated flight, while HawaiianMiles members will be able to earn miles on any JetBlue-operated flights. Similarly, frequent fliers will be able to redeem their points or miles for travel on either carrier’s network, bringing new, much-requested destinations to our respective loyal members.
January 23, 2012
JetBlue Executive Appointed to U.S. Travel and Tourism Advisory Board
Robin Hayes, our Executive Vice President, Chief Commercial Officer, has been appointed as a member of the 2012-2014 U.S. Travel and Tourism Advisory Board (TTAB). There are 32 newly appointed members – click here for a complete list, and information on the TTAB. Below are photos from the swearing-in ceremony conducted by U.S. Secretary of Commerce John Bryson.
Robin at Magic Kingdom, where President Obama announced the Advisory Board
According to Secretary Bryson, the Board represents the “eyes and ears of our nation’s travel and tourism industry” and he is committed to working with each of the esteemed members to bring more visitors to the U.S.
Robin joined JetBlue in May 2008 and has led numerous initiatives including the current Wi-Fi implementation with ViaSat; growing our network, most recently in Boston and the Caribbean; and the order for our new A321 and A320neo aircraft.
President Obama speaking at the Travel and Toursim announcement at the Magic Kingdom, declaring that "America is open for business." The President spoke about the goal to increase travel and tourism in the U.S.
January 22, 2012
T5 Named One Of The World’s Most Beautiful Airport Terminals!
Frommer’s Travel named T5 as one of the world’s most beautiful airport terminals; ten made the cut including Wellington’s “Rock” terminal (New Zealand), Seoul’s Incheon Airport (South Korea), Reykjavik’s Leif Eriksson Air Terminal (Iceland) and more. Citing our sleek, modern look and impressive food court, Frommer’s notes that we’re one of the few that combine personality, functionality and uniqueness to offer a great travel experience.
January 21, 2012
Porthole Cruise Magazine Award Winner!
Porthole Cruise Magazine recently named us one of their 2012 Editor-in-Chief Award recipients. We won for “Best Domestic Airline,” and our partner, Virgin Atlantic, is the winner of “Best International Airline.” Check out the full list of winners.
January 20, 2012
Fee Waiver for the Northeast
Due to inclement weather impacting the Northeast, we’re waiving change/cancel fees and fare differences for those traveling Saturday, January 21st, 2012, to/from the following cities:
- Boston, MA (BOS)
- Hartford, CT (BDL)
- Newark, NJ (EWR)
- Newburgh, NY (SWF)
- New York, NY (JFK)
- New York, NY (LGA)
- Pittsburgh, PA (PIT)
- Westchester County, NY (HPN)
If you’re traveling to/from the airports listed above, be sure to check the status of your flight online prior to leaving for the airport. Those with web-enabled cell phones and PDAs may check the status of their flight at mobile.jetblue.com.
Flights can be rebooked for travel through Monday, January 23, 2012 by calling 1-800-JETBLUE (538-2583) prior to the departure time of their originally scheduled flight. Cancelled flights may also opt for a refund to the original form of payment by calling 1-800-JETBLUE (538-2583). Original travel must have been booked on or before Friday, January 20, 2012.
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