JetBlue Reports First Profit in the First Quarter Since 2005
JetBlue Airways Corporation reported operating income for the first quarter was $73 million, resulting in a 9.3 percent operating margin, compared to operating income of $17 million and a 2.2 percent operating margin in the first quarter of 2008. Pre-tax income for the quarter was $20 million, which includes a special charge of $8 million related to the valuation of JetBlue’s auction rate securities.
Excluding this special charge, JetBlue’s pre-tax income for the quarter would have been $28 million. This compares to a pre-tax loss of $16 million in the first quarter of 2008.
Net income for the first quarter was $12 million, or $0.05 per diluted share. Excluding the special charge, JetBlue’s net income for the quarter would have been $20 million, or $0.08 per diluted share. This compares to JetBlue’s first quarter 2008 net loss of $10 million, or $0.05 per diluted share.
Operating revenues for the quarter totaled $793 million, representing a decline of 2.9 percent over the first quarter of 2008 driven in part by a 5.4 percent decline in capacity. For the first quarter, revenue passenger miles decreased 8 percent to 6 billion, resulting in a first quarter load factor of 76 percent, a decrease of 2.2 points year over year.
Yield per passenger mile in the first quarter was 11.69 cents, up 2.5 percent compared to the first quarter of 2008. Passenger revenue per available seat mile (PRASM) for the first quarter 2009 remained flat on a year over year basis at 8.89 cents and operating revenue per available seat mile (RASM) increased 2.7 percent year-over-year to 9.98 cents.
Operating expenses for the quarter decreased 9.9 percent, or $79 million, over the prior year period. JetBlue’s operating expense per available seat mile (CASM) for the first quarter decreased 4.8 percent year-over-year to 9.06 cents. Excluding fuel, CASM increased 8.9 percent to 6.36 cents.
JetBlue ended the first quarter with approximately $634 million in cash and cash equivalents. In addition, JetBlue had $221 million of auction rate securities, net of unrealized losses, at the end of the quarter. JetBlue recorded an $8 million accounting charge in the first quarter to reflect a decline in the market value of some of its auction rate securities.
Looking ahead, for the second quarter of 2009, JetBlue expects to report an operating margin between 8 and 10 percent. Pre-tax margin for the quarter is expected to be between 1 and 3 percent. For the full year 2009, JetBlue expects to report an operating margin between 11 and 13 percent. Pre-tax margin for the full year is expected to be between 4 and 6 percent.
