jetbluefan1
Posts: 2869
Joined: Wed Dec 31, 2003 8:39 am

JetBlue Profits Reported

Thu Jan 29, 2004 9:20 pm

http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20040129005247&newsLang=en

A 13.3% operating margin is decent, I guess. Much better than what other airlines are doing! And 2003 was a very competitive year, but I wonder what 2004 will bring.

Your comments?

JetBluefan1
 
luv2fly
Posts: 11056
Joined: Tue May 13, 2003 2:57 am

RE: JetBlue Profits Reported

Thu Jan 29, 2004 10:54 pm

Here this should help.

http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20040129005247&newsLang=en

Also the day is still early to turn this positive into a negative.

It is good news, and much better than other airlines are reporting these days.




You can cut the irony with a knife
 
deltaffindfw
Posts: 1388
Joined: Tue Sep 02, 2003 7:42 am

RE: JetBlue Profits Reported

Thu Jan 29, 2004 11:02 pm


The key is that it was in line with analyst's expectations ($.17/share). Good news there.
 
JAL777
Posts: 2453
Joined: Wed Jun 04, 2003 10:13 pm

RE: JetBlue Profits Reported

Thu Jan 29, 2004 11:07 pm

Well... no bad news that we haven't heard already. But they need to start cleaning some stuff up over at Terminal 6.
 
richierich
Posts: 3295
Joined: Sat Nov 04, 2000 5:49 am

RE: JetBlue Profits Reported

Thu Jan 29, 2004 11:17 pm

Need to clean up "stuff" at Terminal 6?
What do you mean, JAL777?

I think JetBlue has done wonders with T6. When TWA ran it, it was a hole - I do appreciate TWA had no money for investment into the terminal. T6 looks bright, cheerful, and has gone through significant upgrades to the concessions. Perhaps there is still a way to go, but I think the terminal is perfectly acceptable as is.
None shall pass!!!!
 
JAL777
Posts: 2453
Joined: Wed Jun 04, 2003 10:13 pm

RE: JetBlue Profits Reported

Thu Jan 29, 2004 11:34 pm

I don't mean literally clean anything.  Laugh out loud

I mean... they have some work to do with their business plan. Its obvious that AA and DAL are not going to go away quietly. They are beginning to fight... and while it may ultimately result in massive losses for the two, B6 will suffer in the meantime.

[Edited 2004-01-29 15:35:55]
 
B6FA4ever
Posts: 748
Joined: Sun Aug 24, 2003 6:49 am

RE: JetBlue Profits Reported

Thu Jan 29, 2004 11:57 pm

seems like good news about our Q4 earnings. it will be interesting what '04 will bring for all the airlines. hopefully all good will happen this year.

though i have a question. people speculating on whether B6 will achieve "major" status this year. I know there has to be someting like $1billion earnings. How is that calculated. is that $1B in a fiscal year? total earnings from the begining of operations? Thanx for any info!  Smile/happy/getting dizzy

~B6FA4ever
 
Greg
Posts: 5539
Joined: Sat May 28, 2005 1:11 am

RE: JetBlue Profits Reported

Fri Jan 30, 2004 1:25 am

Earnings per share are down 50%?--and this is good news? It doesn't matter what analysts 'expected'---remember, they also 'expected' UA's bankruptcy.

At least they are pulling in a profit...with respectable cash flow.

Now...if they would just stick with the damn business plan. They are rapidly unravelling their vision that worked so well....

 
mjszanto
Posts: 201
Joined: Thu Dec 18, 2003 7:08 am

RE: JetBlue Profits Reported

Fri Jan 30, 2004 1:33 am

Earnings are up per share, and they had a 3 for 2 splitt, so effectively the shareholders gain is close to the 30% gain in total earnings they reported. I can't believe that you would make the false claim that per share earnings are down 50%.
 
mjszanto
Posts: 201
Joined: Thu Dec 18, 2003 7:08 am

RE: JetBlue Profits Reported

Fri Jan 30, 2004 1:35 am

Speaking of investment in Kennedy, I was thinking that Delta's expansion in Kennedy could in some ways help JetBlue. I know that sounds surprising, but airports today are very much shopping malls, with all kinds of stores, restaurants and services. It seems that the traffic that Delta will bring into Kennedy and the money it invests into the airport, could continue to build up the Kennedy. Although I've been to Kennedy only once, and I'm not sure how linked the terminals are right now.
 
Greg
Posts: 5539
Joined: Sat May 28, 2005 1:11 am

RE: JetBlue Profits Reported

Fri Jan 30, 2004 1:51 am

No....I checked Credit Lyonnais (their Airbus lender)...and they said that earnings per share are down over 50%. I imagine their financiers would know--although they may be talking about equity shares.

Stock price is down too.

I'm aware they stock split.
 
JAL777
Posts: 2453
Joined: Wed Jun 04, 2003 10:13 pm

RE: JetBlue Profits Reported

Fri Jan 30, 2004 1:54 am

http://biz.yahoo.com/djus/040129/0751000859_2.html

Dow Jones Business News
JetBlue Airways 4th-Quarter Net Rose 29%
Thursday January 29, 7:51 am ET


NEW YORK (Dow Jones)--JetBlue Airways Corp. (NasdaqNM:JBLU - News) said Thursday that its fourth-quarter profits rose 29% from year-ago levels in part due to higher passenger revenue.
In a press release, the New York low-cost airline reported net income of $19.5 million, or 17 cents a diluted share, for the period ended Dec. 31, compared with $15.2 million, or 15 cents a diluted share, a year earlier.

Wall Street had expected the carrier to earn 17 cents a share, according to a mean estimate of 12 analysts surveyed by Thomson First Call (News - Websites) .

"We begin 2004 from a strong position characterized by excellent cost control diligence, a healthy balance sheet, and a top rated product offering delivered by dedicated crewmembers," said David Neeleman, JetBlue's chairman and chief executive, in a statement. "These key advantages give us tremendous confidence in our continued growth through what is expected to be a very competitive year."

Revenue rose 40.4% to $262.9 million in the quarter, up from $187.3 million in the prior-year period. Passenger revenue rose 39.8% to $253.7 million.

The airline's fourth-quarter load factor, or percentage of seats filled, was 83.1%, up from 81.8% a year earlier.

JetBlue, which operates a fleet of 55 Airbus A320 aircraft, said it plans to add another 14 A320s to its fleet in 2004. The airline also said it has on order 100 Embraer 190 aircraft, with options for an additional 100 scheduled to begin delivery in mid 2005.

The airline will discuss its fourth-quarter results in more detail on a conference call at 10 a.m. EST today.


JetBlue Airways Corp. - New York
4th Quar Dec. 31:
2003 2002
Revenue $262,944,000 $187,258,000
Net income 19,540,000 15,163,000
Avg shrs (diluted) 112,081,000 102,287,000
Shr earns
Net income .17 .15
Year:
Revenue $998,351,000 $635,191,000
Net income a 103,898,000 54,908,000
Avg shrs (diluted) 107,541,000 97,653,000
Shr earns
Net income a .97 .56

a. Includes $11.5 million of compensation related to the Emergency War Time Supplemental Appropriations Act, which increased earnings by 11 cents a diluted share.

-By Chad Bray; Dow Jones Newswires; 201-938-5400


 
mjszanto
Posts: 201
Joined: Thu Dec 18, 2003 7:08 am

RE: JetBlue Profits Reported

Fri Jan 30, 2004 1:57 am

What are you talking about?

In a press release, the New York low-cost airline reported net income of $19.5 million, or 17 cents a diluted share, for the period ended Dec. 31, compared with $15.2 million, or 15 cents a diluted share, a year earlier.
 
FFlyer
Posts: 552
Joined: Sat Nov 24, 2001 6:46 am

RE: JetBlue Profits Reported

Fri Jan 30, 2004 2:24 am

Mjszanto; the terminals at JFK at practically not linked at all. There is very little terminal-to-terminal pax connection activity. There is AirTrain, of course, and it might change the situation a little bit. But there is almost no shopping outside the terminal security perimeter (without a valid ticket).
 
richierich
Posts: 3295
Joined: Sat Nov 04, 2000 5:49 am

RE: JetBlue Profits Reported

Fri Jan 30, 2004 3:56 am

Thanks JAL for clearing that up for me before... it takes a while to sink in sometimes!

As for JFK, FFlyer is correct. The terminals are linked by AirTrain, which I hope is better than the old buses, but who knows. But once you get to a new terminal, then what? In some terminals, there are concessions and shops on the street side of the security perimeter, but I think that in most terminals, T6 included, the best stuff is for ticketed passengers only.

Delta's announcement for ramping up at JFK can only hurt JetBlue. But I also think it could make a bad situation even worse for Delta. And what is the deal with Song? Most of the new flights they announced were for the mainline fleet and not for Song, as one might have expected. Is Song a big stinker for them? That would be very embarrasing to cancel Song.

Also, for all the JetBlue naysayers out there, when was the last time DL, UA, AA and others could report profits? I am not talking about Delta's one-time tax exemption that resulted in a profit either. JetBlue has had 12 straight quarters of healthy profit - not bad for an airline that began operations barely 16 quarters ago! When was the last time Delta had 12 quarters in their pockets to rub together?
None shall pass!!!!
 
FLAIRPORT
Posts: 3863
Joined: Thu Oct 26, 2000 10:46 am

RE: JetBlue Profits Reported

Fri Jan 30, 2004 8:31 am

I think the reason for 2 song flights only being added is low PAX and the fact that they barely have enough planes as is that are SONG ONLY!

Plus, DL's coach on transcons are basicly Song without the green!
NEXT FLIGHT: FLL-ATL-HPN on FL
 
Greg
Posts: 5539
Joined: Sat May 28, 2005 1:11 am

RE: JetBlue Profits Reported

Fri Jan 30, 2004 8:39 am

Possibly, they mean if you take away the .11/diluted share for Emerg. Wartime Supplement...the earnings are not very spectacular at all...,.

I'll have to check.
 
ScottB
Posts: 5457
Joined: Fri Jul 28, 2000 1:25 am

RE: JetBlue Profits Reported

Fri Jan 30, 2004 9:00 am

The 4th quarter earnings report (and subsequent analyst conference call) was a mixture of good and bad news for jetBlue. The good news: jetBlue produced a healthy profit and an excellent operating margin (over 13%), met analyst expectations on earnings per share, continued to bring CASM down, and increased load factor. The bad news: jetBlue missed analyst expectations on revenue, saw a significant decline in year-over-year operating margins (vs. 4Q02), had a significant drop in yield (9%) when most other airlines saw increases, posted a significant increase in break-even load factor (to nearly 75%), and warned that operating margins would be lower (to around 9%) for the first quarter.

The company did a good job of holding the line on costs, though it is quite clear that maintenance costs will dramatically increase as Airbus warranties expire and the oldest airframes start to require heavy maintenance. It's also likely that labor costs will gradually increase. These are both largely offset, however, by the company's ability to improve economies of scale with a bigger operation. It's unclear (to me, at least) how much more the company can continue to lower its CASM by increasing stage length as well.

And before you go off on the network carriers, realize that jetBlue's profits largely come from paying its employees far less than the network carriers. jetBlue paid its employees, on average (based on an assumption of an average of 4,700 full-time equivalents in the 4th quarter) $6,500 less in the 4th quarter ($26,000 annualized) than Delta, as an example. With 70,000 employees at Delta, that works out to $455,000,000 in cost; at jetBlue's pay rates, Delta would have had operating income of $89 million for the 4th quarter.
 
jetbluefan1
Posts: 2869
Joined: Wed Dec 31, 2003 8:39 am

RE: JetBlue Profits Reported

Fri Jan 30, 2004 11:07 am

and warned that operating margins would be lower (to around 9%) for the first quarter.

I haven't found that written anywhere. Do you have a link where I can find that statement?

The break-even load factor of 74.5% was quite a surprise for me! While still significantly lower than the majors', this is quite an increase over their Q3 break even of 72.9%...

JetBluefan1
 
PVD757
Posts: 3032
Joined: Sun Aug 24, 2003 8:23 pm

RE: JetBlue Profits Reported

Fri Jan 30, 2004 11:14 am

With the DAL anniouncement about additional transcon service from JFK, I think B6 needs to add frequency or they might start to lose some passengers. IFE or not, Delta is offering first class and on a long flight like that, people will be willing to pay for it. As far as costs, I think that DL is more competitive than AA would be.
 
ScottB
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Joined: Fri Jul 28, 2000 1:25 am

RE: JetBlue Profits Reported

Fri Jan 30, 2004 12:13 pm

JetBluefan1-

The comment about the lower first quarter operating margin was not made in the company's press release; David Neeleman stated it in his presentation to the Raymond James Growth Airline Conference -- and I actually misspoke, he said 9-11%. They gave guidance of 13-15% for the full year 2004, but predictions for more than 2 quarters out are pretty unreliable IMHO.
 
richierich
Posts: 3295
Joined: Sat Nov 04, 2000 5:49 am

RE: JetBlue Profits Reported

Fri Jan 30, 2004 11:09 pm

Part of the reason for the increase in break-even load factor is the fact that JetBlue removed the last row of seats from all of their planes. Removing almost 4% of your seats naturally means the break-even load factor must go up.

I think that the earnings call went mostly quite well. JetBlue, like every other airline, has its ups and downs, but I think it has shown that it has significant staying power here in the New York area. Delta and AA's added competitive pressure will no doubt make its presence felt, but I doubt some of the moves made by these giants are sustainable for long. I guess it remains to be seen....
None shall pass!!!!
 
goingboeing
Posts: 4727
Joined: Sat Dec 04, 1999 1:58 am

RE: JetBlue Profits Reported

Fri Jan 30, 2004 11:39 pm

Delta and AA's added competitive pressure will no doubt make its presence felt, but I doubt some of the moves made by these giants are sustainable for long. I guess it remains to be seen....

What JetBlue needs to really be watching are not AA and Delta responses to JetBlue in NYC, but the "tests" they are running in markets that are not served by JetBlue. Delta is testing one class 737-800 service between ATL and KC and ATL and Houston with about 35 inches of seat pitch. Having flown them, they're nice. Delta is also tweaking first class fares - making them pretty desirable for purchase. Bottom line...they are prepping the "non-JetBlue" markets for the introduction of a couple of daily JetBlue flights on 190's...They are taking steps to satisfy their customer base BEFORE JetBlue enters a market, so that when JetBlue does enter the market, those customers will have no compelling reason to change carriers.
 
luv2fly
Posts: 11056
Joined: Tue May 13, 2003 2:57 am

RE: JetBlue Profits Reported

Sat Jan 31, 2004 1:45 am

I have no doubt JetBlue watches what the others are doing, although unlike the others, JetBlue is not out there trying to be all things to all people. Doing the stop gap, knee jerk reactions! Maybe the so called majors should concentrate on offering a consistent product across the board, other than the hit and miss you now experience.
You can cut the irony with a knife
 
artsyman
Posts: 4516
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RE: JetBlue Profits Reported

Sat Jan 31, 2004 2:25 am

The break-even load factor of 74.5% was quite a surprise for me!
****

Continentals breakeven is only 77%. While I say "only" with tongue firmly planted in cheek, I too am surprised at how close they are.

J