NEW YORK – JetBlue Airways Corporation today reported its results for the third quarter 2010:
Operating income for the quarter was $140 million, resulting in a 13.6% operating margin. This compares to operating income of $66 million and a 7.7% operating margin in the third quarter of 2009.
Pre-tax income for the quarter was $97 million. This compares to pre-tax income of $23 million in the third quarter of 2009.
Net income for the third quarter was $59 million, or $0.18 per diluted share. This compares to JetBlue’s third quarter 2009 net income of $15 million, or $0.05 per diluted share.
“The third quarter was a remarkable quarter for JetBlue,” said Dave Barger, JetBlue’s CEO. “We reported record revenues and net income for the quarter, reflecting our continued focus on revenue maximization, cost control and network optimization. JetBlue’s financial success is due to the exceptional efforts put forth by all of our outstanding crewmembers, and they should be extremely proud of their performance.”
JetBlue reported third quarter revenue exceeded $1 billion for the first time, up 20.5 percent year-over-year. Revenue passenger miles for the third quarter increased 9.6% to 7.7 billion on an 8.5% increase in capacity, resulting in a third quarter load factor of 84.6%, an increase of 0.9 points year over year.
Yield per passenger mile in the third quarter was 12.10 cents, up 11.4% compared to the third quarter of 2009. Passenger revenue per available seat mile (PRASM) for the third quarter 2010 increased 12.5% year over year to 10.24 cents and operating revenue per available seat mile (RASM) increased 11.1% year-over-year to 11.32 cents.
Operating expenses for the quarter increased 12.9%, or $102 million, over the prior year period, including a non-cash impairment charge of approximately $6 million related to an asset held by LiveTV, JetBlue’s wholly owned subsidiary. JetBlue’s operating expense per available seat mile (CASM) for the third quarter increased 4.1% year-over-year to 9.78 cents. Excluding fuel, CASM increased 3.4% to 6.57 cents.
Brændstofudgifter og afdækning
JetBlue continued to hedge fuel to help manage price volatility. Specifically, JetBlue hedged approximately 49% of its fuel consumption during the third quarter, resulting in a realized fuel price of $2.26 per gallon, a 5.6% increase over third quarter 2009 realized fuel price of $2.14. JetBlue recorded $6 million in losses on fuel hedges that settled during the third quarter.
JetBlue has hedged approximately 43% of its fourth quarter projected fuel requirements with a combination of jet fuel swaps and heating oil collars. JetBlue expects an average price per gallon of fuel, including the impact of hedges and fuel taxes, of $2.42 in the fourth quarter and $2.30 for the full year 2010.
JetBlue ended the third quarter with approximately $1 billion in unrestricted cash and short term investments, one of the strongest liquidity positions in the U.S. airline industry relative to its size. “Our third quarter results and strong liquidity position demonstrate that we are making significant progress towards our goal of achieving sustainable growth supported by cash from operations,” said Ed Barnes, JetBlue’s CFO.
Fourth Quarter and Full Year Outlook
“Looking ahead, we are encouraged by strong revenue trends – particularly in our Boston and Caribbean markets. We expect this revenue momentum to continue into the fourth quarter,” said Barnes.
For the fourth quarter of 2010, PRASM is expected to increase between 12 and 15 percent year over year. RASM is expected to increase between 10 and 13 percent year over year. CASM is expected to increase between seven and nine percent over the year-ago period. Excluding fuel, CASM in the fourth quarter is expected to increase between two and four percent year over year.
PRASM for the full year is expected to increase between nine and 12 percent year over year. RASM is expected to increase between seven and ten percent year over year. CASM for the full year is expected to increase between seven and nine percent over full year 2009. Excluding fuel, CASM in 2010 is expected to increase between five and seven percent year over year.
Capacity is expected to increase between eight and ten percent in the fourth quarter and between six and eight percent for the full year.