JetBlue Announces Third Quarter Results

                   JetBlue Announces Third Quarter Results

PR Newswire

NEW YORK, Oct. 25, 2012

NEW YORK, Oct. 25, 2012 /PRNewswire/ --JetBlue Airways Corporation (NASDAQ:
JBLU) today reported its results for the third quarter 2012:

  oOperating income for the quarter was $113 million, resulting in an 8.6%
    operating margin, compared to operating income of $108 million and a 9.0%
    operating margin in the third quarter of 2011.
  oPre-tax income of $73 million in the third quarter. This compares to
    pre-tax income of $56 million in the third quarter of 2011.
  oNet income for the third quarter was $45 million, or $0.14 per diluted
    share. This compares to JetBlue's third quarter 2011 net income of $35
    million, or $0.11 per diluted share.

"We are very pleased to report our tenth consecutive quarter of profitability,
which wouldn't have been possible without the hard work and dedication of our
14,000 crewmembers," said Dave Barger, JetBlue's President and Chief Executive
Officer. "We continue to execute on our profitable growth strategy in Boston
and the Caribbean & Latin America, which drove record revenue performance
during the third quarter. At the same time, a continued focus on cost control
and operational efficiency were critical in delivering these strong results."

Operational Performance

JetBlue reported record operating revenues in the third quarter of $1.3
billion, an increase of 9.4% versus the same period last year. Revenue
passenger miles for the third quarter increased 8.9% to 9.07 billion on a
capacity increase of 8.6%, resulting in a third quarter load factor of 84.8%,
an increase of 0.3 points year over year.

Yield per passenger mile in the third quarter was 13.15 cents, up 0.8%
compared to the third quarter of 2011. Passenger revenue per available seat
mile (PRASM) for the third quarter 2012 increased 1.1% year over year to 11.15
cents and operating revenue per available seat mile (RASM) increased 0.7% year
over year to 12.21 cents.

"We are pleased with our performance during the peak summer travel months and
with our business-focused markets particularly in Boston," said Robin Hayes,
JetBlue's Chief Commercial Officer. "Our crewmembers' hard work and excellent
customer service along with JetBlue's award-winning product made these results
possible."

Operating expenses for the quarter increased 9.8%, or $108 million, over the
prior year period. JetBlue's operating expense per available seat mile (CASM)
for the third quarter increased 1.1% year-over-year to 11.16 cents.

Excluding fuel, CASM increased 3.7% to 6.67 cents, driven primarily by higher
maintenance expense due to the aging of JetBlue's fleet.

Fuel Expense and Hedging

JetBlue continued to hedge fuel to manage price volatility. Specifically,
during the third quarter JetBlue hedged approximately 27% of its fuel
consumption and additionally managed approximately 18% of its fuel consumption
using fixed forward price agreements (FFPs), resulting in a realized fuel
price of $3.17 per gallon, a 2% decrease over third quarter 2011 realized fuel
price of $3.25. JetBlue's fuel expense reflects approximately $2 million in
gains on fuel hedges settling during the third quarter.

JetBlue has hedged approximately 27% of its fourth quarter projected fuel
requirements using a combination of collars, crude call options, and jet fuel
swaps. In addition, JetBlue has managed approximately 19% of its fourth
quarter projected fuel consumption using FFPs. Based on the fuel curve as of
October 19th, JetBlue expects an average price per gallon of fuel, including
the impact of hedges, FFPs and fuel taxes, of $3.25 in the fourth quarter and
$3.22 for the full year 2012.

Balance Sheet Update

JetBlue ended the third quarter with approximately $1.1 billion in
unrestricted cash and short term investments. Since December 31, 2011,
JetBlue has increased the number of unencumbered A320 aircraft to seven and
decreased the total debt balance by approximately $213 million.

"Our liquidity position remains strong, relatively unchanged from year end,
while we reduced our total debt balance and increased the number of
unencumbered aircraft," said Mark Powers, JetBlue's Chief Financial Officer.
"We believe we are on target to continue to generate strong cash from
operations, while making prudent investments in the business and improving
returns for shareholders."

Fourth Quarter and Full Year Outlook

For the fourth quarter of 2012, CASM is expected to increase between 2.0% and
4.0% over the year-ago period. JetBlue expects roughly half of this year over
year increase to be driven by maintenance expense. Excluding fuel, CASM in
the fourth quarter is expected to increase between 2.0% and 4.0% year over
year.

CASM for the full year is expected to increase between 1.5% and 3.5% over full
year 2011. Excluding fuel, CASM in 2012 is expected to increase between 2.0%
and 4.0% year over year.

Capacity is expected to increase between 5.0% and 7.0% in the fourth quarter
and to increase between 7.0% and 9.0% for the full year.

JetBlue will conduct a conference call to discuss its quarterly earnings
today, October 25, at 10:00 a.m. Eastern Time. A live broadcast of the
conference call will be available via the internet at
http://investor.jetblue.com.

About JetBlue

JetBlue is New York's Hometown Airline(TM) with other focus cities in Boston,
Fort Lauderdale, Los Angeles, Orlando and San Juan. Known for its
award-winning service and free TV as much as its low fares, JetBlue offers the
most legroom in coach of any U.S. airline (based on average fleet-wide seat
pitch) as well as super-spacious Even More Space seats. JetBlue is also
America's first and only airline to offer its own Customer Bill of Rights,
with meaningful and specific compensation for customers inconvenienced by
service disruptions within JetBlue's control. Visit www.jetblue.com/promise
for details. JetBlue serves 71 cities with 700 daily flights and plans to
launch service to Providence, Rhode Island, as well as Cartagena, Colombia;
Grand Cayman, Cayman Islands; and Samana, Dominican Republic this November,
subject to receipt of government approval. JetBlue also plans to launch
service to Charleston, South Carolina in early 2013. With JetBlue, all seats
are assigned, all fares are one-way, and an overnight stay is never required.
For information call +1 800-538-2583 (TTY/TDD +1 800-336-5530) or visit
www.jetblue.com.

Forward Looking Statements

This press release contains statements of a forward-looking nature which
represent our management's beliefs and assumptions concerning future events.
When used in this document and in documents incorporated herein by reference,
the words "expects," "plans," "anticipates," "indicates," "believes,"
"forecast," "guidance," "outlook," "may," "will," "should," "seeks," "targets"
and similar expressions are intended to identify forward-looking statements.
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;
increases and volatility in fuel prices, increases in maintenance costs and
interest rates; our ability to implement our growth strategy; our significant
fixed obligations and substantial indebtedness; our ability to attract and
retain qualified personnel and maintain our culture as we grow; our reliance
on high daily aircraft utilization; our dependence on the New York
metropolitan market and the effect of increased congestion in this market; our
reliance on automated systems and technology; our being subject to potential
unionization, work stoppages, slowdowns or increased labor costs; our reliance
on a limited number of suppliers; our presence in some international emerging
markets that may experience political or economic instability or may subject
us to legal risk; reputational and business risk from information security
breaches; a negative impact on the JetBlue brand; the long term nature of our
fleet order book; changes in or additional government rules, regulations or
laws; changes in our industry due to other airlines' financial condition; the
impact on our growth because of economic difficulties in Europe through a
continuance of the economic recessionary conditions in the U.S. or a further
economic downturn leading to a continuing or accelerated decrease in demand
for domestic and business air travel; and external geopolitical events and
conditions. Further 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 2011 Annual Report on Form 10-K
and Quarterly Reports on Form 10-Q. We undertake no obligation to update any
forward-looking statements to reflect events or circumstances that may arise
after the date of this release.

JETBLUE AIRWAYS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except share and per share amounts)
(unaudited)
              Three Months                      Nine Months Ended
              Ended
              September 30,       Percent       September 30,       Percent
              2012      2011      Change        2012      2011      Change
OPERATING
REVENUES
 Passenger    $         $         9.8           $         $         13.9
              1,194    1,087                  3,461    3,039
 Other        114       108       5.2           327       319       2.5
   Total
   operating  1,308     1,195     9.4           3,788     3,358     12.8
   revenues
OPERATING
EXPENSES
 Aircraft
 fuel and     481       454       5.9           1,364     1,246     9.5
 related
 taxes
 Salaries,
 wages and    262       236       11.2          782       706       10.8
 benefits
 Landing fees
 and other    73        65        11.4          211       185       13.8
 rents
 Depreciation
 and          66        57        16.0          190       171       11.0
 amortization
 Aircraft     32        32        (1.1)         98        102       (3.1)
 rent
 Sales and    51        49        4.3           152       145       4.5
 marketing
 Maintenance
 materials    85        59        44.4          258       165       56.4
 and repairs
 Other
 operating    145       135       6.8           401       399       0.3
 expenses
   Total
   operating  1,195     1,087     9.8           3,456     3,119     10.8
   expenses
OPERATING     113       108       5.0           332       239       39.0
INCOME
 Operating    8.6     % 9.0     % (0.4)   pts.  8.8     % 7.1     % 1.7     pts.
 margin
OTHER INCOME
(EXPENSE)
 Interest     (44)      (45)      (1.2)         (133)     (133)     -
 expense
 Capitalized  2         1         51.6          6         3         55.1
 interest
 Interest
 income and   2         (8)       (126.5)       3         (4)       (172.0)
 other
   Total
   other      (40)      (52)      (22.7)        (124)     (134)     (7.3)
   income
   (expense)
INCOME BEFORE 73        56                      208       105
INCOME TAXES
 Pre-tax      5.6     % 4.6     % 1.0     pts.  5.5     % 3.1     % 2.4     pts.
 margin
 Income tax   28        21                      81        42
 expense
NET INCOME    $      $                    $       $   
              45        35                      127       63
EARNINGS PER
COMMON SHARE:
 Basic        $        $                      $        $ 
              0.16     0.12                   0.45     0.23
 Diluted      $        $                      $        $ 
              0.14     0.11                   0.39     0.21
 Weighted
 average
 shares
 outstanding
 (thousands):
   Basic      282,880   279,099                 282,196   278,280
   Diluted    344,792   346,253                 343,804   347,680



JETBLUE AIRWAYS CORPORATION
COMPARATIVE OPERATING STATISTICS
                     Three Months Ended                  Nine Months Ended
                     September 30,          Percent       September 30,       Percent
                     2012        2011       Change        2012      2011      Change
 Revenue passengers  7,747       7,016      10.4          21,938    19,677    11.5
 (thousands)
 Revenue passenger   9,075       8,332      8.9           25,480    22,948    11.0
 miles (millions)
 Available seat
 miles (ASMs)        10,704      9,855      8.6           30,201    27,807    8.6
 (millions)
 Load factor         84.8      % 84.5     % 0.3     pts.  84.4    % 82.5    % 1.9     pts.
 Aircraft
 utilization (hours  12.4        12.0       2.8           11.9      11.7      1.7
 per day)
                     $       $                     $      $   
 Average fare                           (0.5)                       2.1
                     154.04     154.88                  157.73   154.44
 Yield per passenger 13.15       13.04      0.8           13.58     13.24     2.6
 mile (cents)
 Passenger revenue   11.15       11.03      1.1           11.46     10.93     4.8
 per ASM (cents)
 Operating revenue   12.21       12.12      0.7           12.54     12.08     3.8
 per ASM (cents)
 Operating expense   11.16       11.03      1.1           11.44     11.22     2.0
 per ASM (cents)
 Operating expense
 per ASM, excluding  6.67        6.43       3.7           6.93      6.74      2.8
 fuel (cents)
 Airline operating
 expense per ASM     10.99       10.88      1.0           11.30     11.04     2.3
 (cents) (a)
 Departures          69,925      63,099     10.8          199,538   181,437   10.0
 Average stage       1,094       1,108      (1.3)         1,084     1,092     (0.7)
 length (miles)
 Average number of
 operating aircraft  175.0       165.8      5.6           172.6     163.9     5.3
 during period
                     $       $                     $      $   
 Average fuel cost                  (2.4)                     1.1
 per gallon          3.17        3.25                            3.18
                                                          3.21
 Fuel gallons        152         139        8.5           425       392       8.3
 consumed (millions)
 Full-time
 equivalent                                               11,797    11,443    3.1
 employees at period
 end (a)
 (a) Excludes operating expenses and employees of LiveTV, LLC, which are unrelated to our
     airline operations.
SELECTED CONSOLIDATED BALANCE SHEET DATA
 (in
 millions)
                     September   December
                     30,         31,
                     2012        2011
       Cash and cash $       $   
       equivalents             
                     542        673
       Total
       investment    672         591
       securities
       Total assets  7,141       7,071
       Total debt    2,923       3,136
       Stockholders' 1,903       1,757
       equity

SOURCE JetBlue Airways Corporation

Website: http://investor.jetblue.com
Contact: Investor Relations, +1-718-709-2202, ir@jetblue.com; Corporate
Communications, +1-718-709-3089, CorporateCommunications@jetblue.com
 
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