JetBlue Announces Fourth Quarter and Full Year 2005 Results


NEW YORK, Feb. 1, 2006 (PRIMEZONE) -- JetBlue Airways Corporation (Nasdaq:JBLU) today reported its results for the fourth quarter and full year 2005:



 -- Net loss for the quarter was $42.4 million, representing a 
    loss per share of $0.25.  These results include $13.0 million 
    in unusual charges consisting of $6.9 million in non-cash stock-
    based compensation expense related to the accelerated vesting 
    of certain employee stock options and a $6.1 million charge for 
    development costs related to a maintenance and inventory tracking 
    system that will not be implemented.  Excluding these two unusual 
    items, the reported net loss would have been $32.0 million, or a 
    loss per diluted share of $0.19 in the fourth quarter.  This 
    compares with fourth quarter 2004 net income of $1.5 million, 
    or $0.01 per diluted share.  For the full year 2005, net loss 
    totaled $20.3 million, or a $0.13 loss per share.  Excluding 
    these two unusual items, the reported net loss would have been 
    $9.8 million, or a loss per diluted share of $0.06 for the full 
    year ended December 31, 2005, compared with net income of $46.2 
    million, or $0.28 per diluted share, for the full year 2004. 

 -- Operating loss for the quarter was $31.5 million, resulting in 
    a negative 7.1% operating margin.  Excluding the impact of the 
    unusual items, the reported operating margin would have been 
    negative 4.1%.  This compares to operating income of $10.8 
    million and a 3.2% operating margin in the fourth quarter of 2004.
    For the full year 2005, operating income was $47.6 million, 
    resulting in an operating margin of 2.8%.  Excluding the impact 
    of the unusual items, operating margin for the full year 2005 
    would have been 3.6%.  This compares with operating income of 
    $110.9 million and an 8.8% operating margin for the full year 
    2004.

 -- Operating revenues for the quarter totaled $446.0 million, 
    representing growth of 34.0% over operating revenues of $332.8 
    million in the fourth quarter of 2004.  For the full year, 
    operating revenues totaled $1.70 billion, representing growth of 
    34.5% over operating revenues of $1.26 billion for the full year 
    2004.

"We are very disappointed in our performance this quarter as we continued to feel the effects of record-high fuel prices and a tough revenue environment, compounded by the impact of Hurricane Wilma and the residual effects of Hurricanes Katrina and Rita," said David Neeleman, JetBlue's Chairman and CEO. "Although we saw a 7.4% increase in revenue per available seat mile (RASM) in the face of 25% capacity growth, it was not nearly enough to offset the impact of high fuel costs."

During the fourth quarter of 2005, JetBlue achieved a completion factor of 98.9% of scheduled flights, compared to 99.9% in 2004. On-time performance, defined by the US Department of Transportation as arrivals within 14 minutes of schedule, was 70.9% in the fourth quarter of 2005 compared to 80.1% for the same period in 2004. For the full year 2005, JetBlue achieved a completion factor of 99.4%, identical to the full year 2004. On-time performance for the full year 2005 was 71.6%, compared to 81.6% for the full year 2004. The Company attained a load factor in the fourth quarter of 2005 of 81.1%, a decrease of 1.8 points on a capacity increase of 24.7% over the fourth quarter of 2004. Load factor for the full year 2005 was 85.2%, an increase of 2.0 points on a capacity increase of 25.3%.

Dave Barger, President and COO, commented, "Our crewmembers performed admirably throughout the difficult environment of 2005. Together, we successfully met the challenges of opening four new cities, connecting many others destinations across our system, adding sixteen new A320s, integrating the E190 aircraft into our fleet as well as commencing construction of our new terminal at JFK and completing construction of two new hangars in addition to our new training facility in Orlando. Looking ahead, we remain focused on improving the company's financial and operating performance."

For the fourth quarter 2005, operating revenues increased by 34.0% over 2004 to $446.0 million. Revenue passenger miles increased 22.0% from the fourth quarter of 2004 to 5.2 billion. Yield per passenger mile was 8.16 cents, up 8.1% compared to 2004. Operating revenue per available seat mile (RASM) increased 7.4% year-over-year to 7.02 cents. Available seat miles grew 24.7% to 6.4 billion. Operating expenses for the fourth quarter were $477.5 million, up 48.3% from the fourth quarter of 2004. Operating expense per ASM (CASM) for the fourth quarter 2005 increased 18.9% year-over-year to 7.51 cents. This figure includes the impact of the two unusual items discussed above. During the quarter, realized fuel price was $1.87 per gallon, a 50.3% increase over fourth quarter 2004 realized fuel price of $1.24. Excluding fuel, CASM increased 7.9% year over year. As a result of its fuel hedging program, JetBlue realized an $11.8 million benefit in the fuel expense line in the fourth quarter and a $43.1 million benefit for the full year 2005. JetBlue ended the year with $483.8 million in cash and investment securities.

Looking ahead, for the first quarter of 2006, JetBlue expects to report a negative operating margin between 3% and 5% assuming an all in aircraft fuel cost per gallon of $1.92. For the first quarter, CASM is expected to increase between 17% and 19% over the year-ago period, at the assumed $1.92 aircraft fuel cost per gallon. Excluding fuel, CASM in the first quarter is expected to increase between 6% and 8% year over year. Capacity is expected to increase between 27% and 29% over the same period last year. For the full year 2006, JetBlue expects to report an operating margin between 2% and 4% based on an assumed aircraft fuel cost per gallon of $1.98, net of hedges. CASM for the full year is expected to increase between 10% and 12% over full year 2005, at the assumed $1.98 aircraft fuel cost per gallon. Excluding fuel, CASM in 2006 is expected to increase between 4% and 6% year over year. Capacity for the full year 2006 is expected to increase between 28% and 30% over 2005. Based on these assumptions, the company expects to report a net loss for both the first quarter and the full year 2006.

JetBlue will conduct a conference call to discuss its quarterly earnings today, February 1, 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.

About JetBlue

JetBlue Airways is a low-fare airline based in New York City that operates 370 flights daily to 34 destinations. JetBlue offers customers roomy leather seats with 36 channels of free DIRECTV(r) (a) programming, the most live television offered by any airline. On flights longer than two hours, the airline also features a selection of first-run movies and bonus features from FOX InFlight(tm). Customers enjoy brand name snacks and beverages, including freshly brewed Dunkin' Donuts coffee and fine wines selected by JetBlue's "Low Fare Sommelier," Joshua Wesson, founder of Best Cellars. With JetBlue, all seats are assigned, all travel is ticketless, all fares are one-way and an overnight stay is never required. For information or reservations call 1-800-JETBLUE (1-800-538-2583) or visit www.jetblue.com.

(a) DIRECTV(r) service is not available on flights between JFK or Newark and Puerto Rico or the Dominican Republic; however, FOX InFlight(tm) is offered complimentary on these routes. FOX InFlight is a trademark of Twentieth Century Fox Film Corporation. JetBlue's in-flight entertainment is powered by LiveTV, a wholly owned subsidiary of JetBlue.

This press release contains statements of a forward-looking nature which represent our management's beliefs and assumptions concerning future events. Forward-looking statements involve risks, uncertainties and assumptions and are based on information currently available to us. Actual results may differ materially from those expressed in the forward looking statements due to many factors, including without limitation, our extremely competitive industry, our ability to implement our growth strategy including the integration of the EMBRAER 190 aircraft into our operations, our significant fixed obligations, our ability to maintain our culture, our reliance on high daily aircraft utilization, increases in maintenance costs, fuel prices, insurance costs and interest rates, our dependence on the New York market, our reliance on automated systems and technology, our reliance on sole suppliers, additional government regulation and future acts of terrorism or the threat of such acts or escalation of U.S. military involvement overseas. Information concerning these and other factors is contained in the Company's Securities and Exchange Commission filings, including but not limited to, the Company's 2004 Annual Report on Form 10-K/A and Quarterly Reports on Form 10-Q and 10Q/A. We undertake no obligation to update any forward-looking statements to reflect events or circumstances that may arise after the date of this release.

The JetBlue logo is available at: http://www.primezone.com/newsroom/prs/?pkgid=795



                   JETBLUE AIRWAYS CORPORATION
              CONSOLIDATED STATEMENTS OF OPERATIONS

             (in thousands, except per share amounts)
                            (unaudited)

                                    Three Months Ended
                                       December 31, 
                                ------------------------    Percent
                                   2005          2004       Change
                                ----------    ----------  ----------
 OPERATING REVENUES
  Passenger                     $  420,958    $  319,112     31.9
  Other                             25,034        13,671     83.1
                                ----------    ----------
   Total operating revenues        445,992       332,783     34.0

 OPERATING EXPENSES

  Salaries, wages
    and benefits (a)               115,781        89,377     29.5
  Aircraft fuel                    151,982        80,192     89.5
  Landing fees and other rents      32,084        23,168     38.5
  Depreciation and amortization     34,108        23,350     46.1
  Aircraft rent                     20,082        17,668     13.7
  Sales and marketing               19,749        16,775     17.7
  Maintenance materials
    and repairs                     17,519        12,495     40.2
  Other operating expenses (b)      86,202        58,993     46.1
                                ----------    ----------
   Total operating expenses        477,507       322,018     48.3
                                ----------    ----------

 OPERATING INCOME (LOSS)           (31,515)       10,765   (392.7)

   Operating margin                   (7.1) %       3.2 %   (10.3) pts.

 OTHER INCOME (EXPENSE)

  Interest expense                 (32,126)     (16,966)     89.4
  Capitalized interest               4,386        3,011      45.7
  Interest income and other          4,108        2,483      65.5
                                ----------   ----------
   Total other income
    (expense)                      (23,632)     (11,472)
                                ----------   ----------

 INCOME (LOSS) BEFORE INCOME
  TAXES                            (55,147)        (707)

  Income tax expense
   (benefit)                       (12,719)      (2,235)
                                ----------   ----------

 NET INCOME (LOSS)              $  (42,428)  $    1,528
                                ==========   ==========

 EARNINGS (LOSS) PER COMMON
  SHARE:

  Basic                         $    (0.25)  $     0.01
                                ==========   ==========
  Diluted                       $    (0.25)  $     0.01
                                ==========   ==========
  Weighted average shares
   outstanding:
   Basic                           167,532      155,953
   Diluted                         167,532      166,106



                                  Twelve Months Ended
                                      December 31, 
                                -----------------------    Percent
                                   2005         2004        Change
                                ----------   ----------   ----------

 OPERATING REVENUES
  Passenger                     $1,620,611   $1,219,365      32.9  
  Other                             80,671       45,214      78.4  
                                ----------   ----------
   Total operating revenues      1,701,282    1,264,579      34.5  

 OPERATING EXPENSES
  Salaries, wages 
    and benefits (a)               427,520      337,118      26.8  
  Aircraft fuel                    487,935      255,366      91.1  
  Landing fees and other rents     112,190       91,605      22.5  
  Depreciation and amortization    114,614       76,779      49.3  
  Aircraft rent                     74,236       70,216       5.7   
  Sales and marketing               81,493       63,198      28.9  
  Maintenance materials 
    and repairs                     64,450       44,901      43.5  
  Other operating expenses (b)     291,232      214,509      35.8  
                                ----------   ----------
   Total operating expenses      1,653,670    1,153,692      43.3  
                                ----------   ----------
                                             
 OPERATING INCOME (LOSS)            47,612      110,887     (57.1)
                                                        
  Operating margin                     2.8 %        8.8 %    (6.0) pts.

 OTHER INCOME (EXPENSE)
  Interest expense                (106,512)     (53,478)     99.2 
  Capitalized interest              15,910        8,874      79.3 
  Interest income and other         19,169        8,483     126.0 
                                ----------   ----------
   Total other income (expense)    (71,433)     (36,121)     
                                ----------   ----------
                                                       
 INCOME (LOSS) BEFORE INCOME 
  TAXES                            (23,821)      74,766  
                                                         
  Income tax expense (benefit)      (3,559)      28,532
                                ----------   ----------
                                                         
 NET INCOME (LOSS)              $  (20,262)  $   46,234   
                                ==========   ==========

 EARNINGS (LOSS) PER COMMON 
  SHARE:
  Basic                         $    (0.13)  $     0.30   
                                ==========   ==========
  Diluted                       $    (0.13)  $     0.28  
                                ==========   ==========

  Weighted average shares 
   outstanding:
   Basic                           159,889      154,769  
   Diluted                         159,889      166,214     




                    JETBLUE AIRWAYS CORPORATION

 COMPARATIVE OPERATING STATISTICS

                                   Three Months Ended
                                      December 31,   
                                -----------------------     Percent
                                  2005          2004        Change
                                ---------     ---------    ---------

 Revenue passengers             3,850,507     3,178,517       21.1
 Revenue passenger miles (000)  5,157,019     4,226,616       22.0
 Available seat miles (000)     6,356,379     5,095,656       24.7
 Load factor                         81.1 %        82.9 %     (1.8) pts.
 Breakeven load factor (c)           91.0 %        82.7 %      8.3 pts.
 Aircraft utilization (hours 
  per day)                           13.1          13.2       (0.3)


 Average fare                  $   109.33    $   100.40        8.9
 Yield per passenger mile
  (cents)                            8.16          7.55        8.1
 Passenger revenue per
  available seat mile (cents)        6.62          6.26        5.8
 Operating revenue per
  available seat mile (cents)        7.02          6.53        7.4
 Operating expense per
  available seat mile (cents)        7.51          6.32       18.9
 Operating expense per 
  available seat mile, 
  excluding fuel (cents)             5.12          4.75        7.9
 Airline expense per available
  seat mile (cents) (c)              7.43          6.24       19.0

 Departures                        30,886        24,649       25.3
 Average stage length (miles)       1,324         1,325       (0.1)
 Average number of operating
  aircraft during period             85.5          66.5       28.6
 Average fuel cost per gallon  $     1.87    $     1.24       50.3

 Fuel gallons consumed (000)       81,355        64,526       26.1

 Percent of sales through 
  jetBlue.com during period          78.6 %        74.7 %      3.9 pts.



                                    Twelve Months Ended
                                         December 31, 
                                   ----------------------   Percent
                                      2005        2004       Change
                                   ----------  ----------  ----------
 Revenue passengers                14,729,066  11,782,625     25.0
 Revenue passenger miles (000)     20,200,057  15,730,302     28.4
 Available seat miles (000)        23,703,094  18,911,051     25.3
 Load factor                             85.2 %      83.2 %    2.0 pts.
 Breakeven load factor (c)               86.1 %      77.9 %    8.2 pts.
 Aircraft utilization (hours 
  per day)                               13.4        13.4       --

 Average fare                      $   110.03  $   103.49      6.3
 Yield per passenger mile (cents)        8.02        7.75      3.5
 Passenger revenue per available 
  seat mile (cents)                      6.84        6.45      6.0
 Operating revenue per available 
  seat mile (cents)                      7.18        6.69      7.3
 Operating expense per available 
  seat mile (cents)                      6.98        6.10     14.4
 Operating expense per available 
  seat mile, excluding fuel (cents)      4.92        4.75      3.5
 Airline expense per available 
  seat mile (cents) (c)                  6.91        6.04     14.4

 Departures                           112,009      90,532     23.7
 Average stage length (miles)           1,358       1,339      1.4
 Average number of operating 
  aircraft during period                 77.5        60.6     28.0
 Average fuel cost per gallon      $     1.61  $     1.06     52.0
 Fuel gallons consumed (000)          303,035     241,087     25.7
 Percent of sales through 
  jetBlue.com during period              77.5 %      75.4 %    2.1 pts.
 Full-time equivalent employees
  at period end (c)                     8,326       6,413     29.8



 SELECTED CONSOLIDATED BALANCE SHEET DATA
  (in thousands)
                                          December 31,    December 31,
                                              2005            2004
                                          -----------     -----------
 Cash, cash equivalents and 
  investment securities                   $   483,778     $   449,162
 Total assets                               3,892,363       2,796,670
 Total debt                                 2,325,704       1,544,812
 Stockholders' equity                         911,175         754,123




                             JETBLUE AIRWAYS CORPORATION

 NON-GAAP FINANCIAL MEASURES (d)

                          Three Months Ended      Twelve Months Ended
                          December 31, 2005        December 31, 2005 
                      ------------------------- ------------------------
                           $       Diluted EPS       $       Diluted EPS
                      -----------  -----------  -----------  -----------
                       (thousands)               (thousands)
 Net loss excluding 
  unusual items
  Net loss as 
   reported           $   (42,428) $     (0.25) $   (20,262) $     (0.13)
  Less: unusual 
   items, net of tax
   Acceleration of 
    stock option 
    vesting                 6,792         0.04        6,792         0.04
   Write-off of 
    software 
    development 
    costs                   3,679         0.02        3,679         0.03
                      -----------  -----------  -----------  -----------
  Net loss excluding
   unusual items      $   (31,957) $     (0.19) $    (9,791) $     (0.06)
                      ============ ===========  ===========  ===========


                           $           CASM          $          CASM
                      -----------  -----------  -----------  -----------
                      (thousands)    (cents)    (thousands)    (cents)
 Operating expenses
  excluding unusual
  items
  Operating expenses
   as reported        $   477,507         7.51  $ 1,653,670         6.98
  Less: unusual
   items
   Acceleration of
    stock option
    vesting                (6,943)       (0.11)      (6,943)       (0.03)
   Write-off of
    software
    development
    costs                  (6,099)       (0.09)      (6,099)       (0.03)
                      -----------  -----------  -----------  -----------
                          (13,042)       (0.20)     (13,042)       (0.06)
                      -----------  -----------  -----------  -----------
  Operating
   expenses,
   excluding unusual
   items              $   464,465         7.31  $ 1,640,628         6.92

  Operating margin
   excluding unusual
   items                     (4.1) %                    3.6 %



                           $          CASM           $          CASM
                      -----------  -----------  -----------  -----------
                      (thousands)    (cents)    (thousands)    (cents)
 Fuel neutral 
  operating expenses 
  excluding unusual 
  items
  Operating expenses 
  as reported         $   477,507         7.51  $ 1,653,670         6.98
  Less: Unusual items     (13,042)       (0.20)     (13,042)       (0.06)
        Fuel             (151,982)       (2.39)    (487,935)       (2.06)
  Add:  Aircraft fuel 
         at prior rate    101,106         1.59      320,982         1.36
        Profit sharing 
         impact of 
         lower fuel 
         expense            4,058         0.06       21,470         0.09
                      -----------  -----------  -----------  -----------
  Fuel neutral 
   operating 
   expenses 
   excluding unusual 
   items             $   417,647         6.57  $ 1,495,145         6.31

  Fuel neutral 
   operating margin 
   excluding unusual 
   items                      6.4 %                    12.1 %




 (a) In the fourth quarter of 2005, we recorded $6.9 million in 
     non-cash stock-based compensation expense related to the 
     accelerated vesting of certain employee stock 

 (b) In the fourth quarter of 2005, we recorded a $6.1 million 
     charge for development costs related to a maintenance and 
     inventory tracking system that will not be implemented.

 (c) Excludes operating expenses and employees of LiveTV, LLC, which 
     are unrelated to our airline operations

 (d) In management's view, it is useful for investors to consider 
     separately the impact of certain unusual items on the fourth 
     quarter and full year operating results, specifically our 
     acceleration of stock option vesting and the write-off of 
     software development costs, in order to facilitate investors' 
     understanding of some of the key reasons for period-to-period 
     fluctuations in our operating results and to distinguish between 
     those reasons that relate to our ongoing operations and those 
     that are unusual in nature.  

     Management also believes that comparative analysis of period-to-
     period operating results can be enhanced by also excluding the 
     significant volatility in the price of aircraft fuel, which is 
     subject to many economic and political factors that are beyond 
     our control.  We believe that the presentation of fuel neutral 
     CASM and operating margin non-GAAP financial measures is useful 
     to management and investors because it is more indicative of our 
     ability to manage costs and also assists in understanding the 
     significant impact that fuel prices have had on our operations, 
     along with the two unusual items noted above.    

     Investors should consider these non-GAAP financial measures in 
     addition to, and not as a substitute for, our financial 
     performance measures prepared in accordance with GAAP.


            

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