JetBlue Reports $20 Million Net Profit for Second Quarter

JetBlue Airways Corporation reported operating income for the second quarter at $76 million, resulting in a 9.4 percent operating margin, compared to operating income of $21 million and a 2.4 percent operating margin in the second quarter of 2008.

Pre-tax income for the quarter was $36 million, which included an accounting gain of $6 million related to the valuation of JetBlue’s auction rate securities. Excluding this accounting gain, JetBlue’s pre-tax income for the quarter would have been $30 million.

This compares to a pre-tax loss of $13 million in the second quarter of 2008. Net income for the second quarter was $20 million, or $0.07 per diluted share. Excluding the accounting gain, JetBlue’s net income for the quarter would have been $14 million, or $0.05 per diluted share. This compares to JetBlue’s second quarter 2008 net loss of $9 million, or $0.04 per diluted share.

Yield per passenger mile in the second quarter was 11.02 cents, down 4.4 percent compared to the second quarter of 2008. Passenger revenue per available seat mile (PRASM) for the second quarter 2009 decreased 5.7 percent on a year over year basis to 8.76 cents and operating revenue per available seat mile (RASM) decreased 4.4 percent year-over-year to 9.80 cents.

Operating expenses for the quarter decreased 12.7 percent, or $107 million, over the prior year period. JetBlue’s operating expense per available seat mile (CASM) for the second quarter decreased 11.2 percent year-over-year to 8.88 cents. Excluding fuel, CASM increased 9.6 percent to 6.12 cents.

During the second quarter, approximately 9 percent of JetBlue’s fuel consumption was hedged. As a result, JetBlue’s realized fuel price in the second quarter was $1.97 per gallon, a 37.9 percent decrease over second quarter 2008 realized fuel price of $3.17.

JetBlue realized $42 million in fuel hedging losses during the quarter related to hedge positions it entered into in 2008. JetBlue continued to realize significant cash savings from lower fuel prices during the quarter as a result of restructuring its fuel hedge portfolio last year.