FA4B6
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B6 Posts 4Q And Full Year Profits For 2006

Tue Jan 30, 2007 10:09 pm

JetBlue Announces Fourth Quarter and Full Year 2006 Results

Low-Fare Airline Achieves 10.2 Percent Operating Margin for Fourth Quarter 2006

NEW YORK, Jan. 30, 2007 (PRIME NEWSWIRE) (PRIMEZONE)
-- JetBlue Airways Corporation (Nasdaq:JBLU) today reported its results for the fourth quarter and full year 2006


Full story: http://www.primenewswire.com/newsroom/news.html?d=112694
"Leap! And the net will appear."
 
EvilForce
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RE: B6 Posts 4Q And Full Year Profits For 2006

Tue Jan 30, 2007 10:45 pm

Wow, good for B6! $64 million in profit for the quarter.
I bought a Venus Fly Trap today and was going to name it "Republican" but the fly trap is beneficial to the environment.
 
AirlineFanatic
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RE: B6 Posts 4Q And Full Year Profits For 2006

Tue Jan 30, 2007 11:26 pm

Glad to see Blue's bold departure from a pure LCC strategy showing result especially for the naysayers who keep narrowing the window of life on JetBlue... seven years next month!
 
WMUPilot
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RE: B6 Posts 4Q And Full Year Profits For 2006

Tue Jan 30, 2007 11:32 pm

Nice to see the numbers are back in the black, even before some crewmembers start taking the R&R. Let's hope we can continue this all the way through 2007!
JetBlue - Bringing humanity back to air travel
 
richierich
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RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 12:25 am

I think that this turnaround will upset many of JetBlue's naysayers, many of whom thought JetBlue wouldn't live to see their fifth birthday. Instead, they are still going strong at their seventh birthday! Good job and congrats on a solid year!

I do caution, however, that this turnaround is not complete and there is still some work to be done. For starters, the profit was pre-tax, meaning there was a post-tax loss (my understanding is that this was very small). A healthy, growing company has to show sustained profitability, and 2007 will be a key year in determining how JetBlue goes forward. I would also like to point out one detraction: JetBlue had to sell aircraft in 2006, although their overall fleet did grow substantially. I'm going to go out on a limb and guess that they can't keep selling off their oldest planes every year just to remain profitable, so perhaps their growth plan was too aggressive after all. And, how will moving to 150-seat A320s affect their future financials?

Well, we can Monday-morning QB these results all we want, especially if you compare them to the rest of the industry. But I think, if nothing else, JetBlue responded very well in the face of adversity and has performed even better than they said they would for 2006. They have proved that they are here for the long-haul (and the short- to medium-haul!) by providing steady, consistent growth over a tumultuous period in their history. It should be an interesting 2007 for them! Congrats again, B6.

I'll finish with what I have been saying about JetBlue's financial performance for at least the past year. Despite their troubles and occasional fumbles, they are in better financial health than most of the other major US carriers. I think this is still very true.
None shall pass!!!!
 
werdywerd
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RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 12:28 am

* Operating revenues for the quarter totaled $633 million, representing growth of 42.1% over operating revenues of $446 million in the fourth quarter of 2005. For the full year, operating revenues totaled $2.26 billion, representing growth of 38.9% over operating revenues of $1.70 billion for the full year 2005.


* Operating income for the quarter was $64 million, resulting in a 10.2% operating margin, compared to an operating loss of $31 million and a negative 7.1% operating margin in the fourth quarter of 2005. For the full year 2006, operating income was $127 million, resulting in an operating margin of 5.4%. This compares with operating income of $48 million and a 2.8% operating margin for the full year 2005.


* Pre-tax income for the quarter was $30 million, compared with a pre-tax loss of $55 million in the year-ago period. For the full year, pre-tax income was $9 million, compared with a pre-tax loss of $24 million for the full year 2005.


* Net income for the quarter was $17 million, representing earnings of $0.10 per diluted share, compared with fourth quarter 2005 net loss of $42 million, or a loss of $0.25 per diluted share. For the full year 2006, net loss totaled $1 million, or $0.00 per diluted share, compared with a net loss of $20 million, or a loss of $0.13 per diluted share, for the full year 2005.
 
ca2ohHP
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RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 12:29 am

Congrats B6...goodluck in 2007.
 
DfwRevolution
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RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 12:38 am

Quoting AirlineFanatic (Reply 2):
Glad to see Blue's bold departure from a pure LCC strategy

Might want to tap the brakes there...

Quoting Richierich (Reply 4):
I think that this turnaround will upset many of JetBlue's naysayers, many of whom thought JetBlue wouldn't live to see their fifth birthday. Instead, they are still going strong at their seventh birthday! Good job and congrats on a solid year!

I am personally very relieved to see B6 getting back on its feet. With any luck, 2007 and 2008 will be strong growth years. A small portion of my stock portfolio depends on it  goodvibes 
 
blrBird
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RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 12:40 am

Congrats and goodluck B6!
from star dust....
 
lowecur
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RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 12:58 am

Of more concern is they missed by a penny, and they are forecasting a loss in the 1st Q (analysts were projecting a profit). I think some of the new cities are not performing as well as they expected, and pricing has shifted some of the former B6 customers to other carriers.

Jetblue has some serious employee issues that will need to be resolved in 2007. Pilot's are unhappy and may vote on a union this year. If that happens, then the domino's will begin to fall with other employee groups. This will put a strain on cash and futher limit Jetblue's growth in the near future. They will probably defer more orders to rein in costs. Lack of profits this year could force the BOD to look at any offers from private equity that will infuse much needed capital and take the pressure off of current mgt to keep shareholders happy. An option that will be reviewed if the above unfolds is a possible merger with F9 (formerly thought to be a problem due to their union membership).

New alliances on merger partners will occur as the DL/US Air possibility sunsets. New alliances will have smaller duplication of routes, and thus will offer fewer assets for purchase by low cost carriers. F9 will look much more palatable as this unfolds.

If the 2nd Q doesn't offer a much improved financial future, then look for the BOD to look seriously at private equity offers.
 
AirlineFanatic
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RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 1:04 am

Quoting DfwRevolution (Reply 7):
Might want to tap the brakes there...

Care to explain why I might want to "tap brakes"?
 
DfwRevolution
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RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 1:23 am

Quoting AirlineFanatic (Reply 10):
Care to explain why I might want to "tap brakes"?

Calling jetBlue a "bold" departure from the typical LCC model (which alone is like saying: normal teenager) is a highly subjective comment. You will find a wide range of opinion regarding what aspects of B6 are "bold," and whether those decisions have been successful.
 
jetBlueNYFL
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RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 1:24 am

Congrats to jetBlue on a very nice turnaround! May their be more blue skies ahead for this great company!

Quoting Lowecur (Reply 9):
Of more concern is they missed by a penny, and they are forecasting a loss in the 1st Q (analysts were projecting a profit). I think some of the new cities are not performing as well as they expected, and pricing has shifted some of the former B6 customers to other carriers.

Most cities take TIME to develop. Year-over-year results are not even available in the newest cities. JetBlue's load factor is not down too much, and as other carriers cut capacity altogether, that proves that some of the "former B6 customers" are not shifting to other carriers.

Quoting Lowecur (Reply 9):
Jetblue has some serious employee issues that will need to be resolved in 2007. Pilot's are unhappy and may vote on a union this year. If that happens, then the domino's will begin to fall with other employee groups. This will put a strain on cash and futher limit Jetblue's growth in the near future.

Serious employee issues? Pleaseeeeeeee. Crewmembers at jetBlue are more than happy...especially now because profit sharing is back again! They work hard, implementing the RTP and it pays off. That simple. JetBlue takes great care of its people, and several unions have already been turned down...most recently the IAM. If only the "serious employee issues" at jetBlue were the same in terms of seriousness at NW, DL, etc....

Quoting Lowecur (Reply 9):
They will probably defer more orders to rein in costs. Lack of profits this year could force the BOD to look at any offers from private equity that will infuse much needed capital and take the pressure off of current mgt to keep shareholders happy.

Do you mean sell off more planes or actually defer more orders? JetBlue already adjusted their fleet delivery plans for the Airbus AND Embraer. The company is on very good terms with both manufacturers and I doubt we'll see any more deferrals.

Quoting Lowecur (Reply 9):
An option that will be reviewed if the above unfolds is a possible merger with F9 (formerly thought to be a problem due to their union membership).

Forget unions...the engines on F9's Airbus family do not match those used on jetBlue's A320 aircraft. F9 has a different concept by charging for the TV...

Quoting Lowecur (Reply 9):
If the 2nd Q doesn't offer a much improved financial future, then look for the BOD to look seriously at private equity offers.

MUCH improved financial future? I think that what we learned this morning is in fact much improved compared to one year ago, Things will keep getting better as oil prices are steady and lower, customer loyalty to jetBlue is high and costs are controlled as revenue increases.
jetBlue...Bringing Humanity Back To Air Travel!
 
AirlineFanatic
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RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 2:22 am

Quoting DfwRevolution (Reply 11):
Calling jetBlue a "bold" departure from the typical LCC model (which alone is like saying: normal teenager) is a highly subjective comment. You will find a wide range of opinion regarding what aspects of B6 are "bold," and whether those decisions have been successful.

the comment may be subjective and opinions will always exist about anything that can be debated, but the facts are that B6 does not maintain the typical LCC model - even you can't argue that:

- two fleet types
- range of small, medium and large markets
- passenger conveniences (legroom, tv's, snack service, amenities)

Whether parts of the strategy are successful can be debated but you would first have to define what success is. All in - JetBlue is a major carrier playing a role in the industry PERIOD.
 
lowecur
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RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 2:40 am

Quoting Jetbluenyfl (Reply 12):
Most cities take TIME to develop. Year-over-year results are not even available in the newest cities. JetBlue's load factor is not down too much, and as other carriers cut capacity altogether, that proves that some of the "former B6 customers" are not shifting to other carriers.

Agree, but some new city pairs are not up to 320 projections and will be adjusted to the 190 accordingly.

Quoting Jetbluenyfl (Reply 12):
Serious employee issues? Pleaseeeeeeee. Crewmembers at jetBlue are more than happy...especially now because profit sharing is back again! They work hard, implementing the RTP and it pays off. That simple. JetBlue takes great care of its people, and several unions have already been turned down...most recently the IAM. If only the "serious employee issues" at jetBlue were the same in terms of seriousness at NW, DL, etc....

Last payraise for 190's was divisive. Some 190 pilots were unhappy with small raise, while other 320 pilots felt slighted. Lot's of talk on pilot boards about unionization this year. Could be posturing...time will tell, but if it happens the flood gates could open for other employee groups.

Quoting Jetbluenyfl (Reply 12):
Do you mean sell off more planes or actually defer more orders? JetBlue already adjusted their fleet delivery plans for the Airbus AND Embraer. The company is on very good terms with both manufacturers and I doubt we'll see any more deferrals.

Depends on 2nd and 3rd Q in 2007. If projections don't pan out, then B6 could be forced to trim more costs and reduce further expansion if a private equity buyout is turned down.

Quoting Jetbluenyfl (Reply 12):
Forget unions...the engines on F9's Airbus family do not match those used on jetBlue's A320 aircraft. F9 has a different concept by charging for the TV...

The bigger issue will be the need for a key hub in either the midwest or a bit further west. DIA in spite of it's weather related problems this year is an excellent facility that has reasonable costs. F9 is well established and it's system is complimentary to B6.

Quoting Jetbluenyfl (Reply 12):
MUCH improved financial future? I think that what we learned this morning is in fact much improved compared to one year ago, Things will keep getting better as oil prices are steady and lower, customer loyalty to jetBlue is high and costs are controlled as revenue increases.

Jetblue is a highly leveraged company that is in debt up to it's arz. They need a larger cash balance in the coming years to protect their future against an evitable downturn. 2007 is key to whether the plan is viable enough to work towards that end. If things don't improve markedly by 2nd Q, I think the BOD will consider a private equity buy out.
 
J32driver
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RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 2:59 am

Lowecur,

I've watched these boards for years and watched you post longer than I've been around. I'd give a case of beer to know exactly who you are. I don't think you are a flight crew member, but I think despite everything you say, you are on the inside at JetBlue. And fairly high placed too. I don't buy for a second that you are an insurance salesman. Lemme know when you want that beer... we'll meet and I'll give it to you in person.
 
lowecur
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RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 4:05 am

Quoting J32driver (Reply 15):
Lowecur,

I've watched these boards for years and watched you post longer than I've been around. I'd give a case of beer to know exactly who you are. I don't think you are a flight crew member, but I think despite everything you say, you are on the inside at JetBlue. And fairly high placed too. I don't buy for a second that you are an insurance salesman. Lemme know when you want that beer... we'll meet and I'll give it to you in person.

You are wrong. I am just an insurance salesman with an interest in this business. If I were on the inside a B6, Neeleman & Co would have already fereted me out and sent me on my way. My thoughts are just speculation met to trigger discussion, nothing more.
 
WMUPilot
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RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 5:00 am

Quoting Jetbluenyfl (Reply 12):
Serious employee issues? Pleaseeeeeeee. Crewmembers at jetBlue are more than happy...especially now because profit sharing is back again! They work hard, implementing the RTP and it pays off. That simple. JetBlue takes great care of its people, and several unions have already been turned down...most recently the IAM. If only the "serious employee issues" at jetBlue were the same in terms of seriousness at NW, DL, etc....

Actually the pilot and flight attendant groups are very unhappy right now. AFA is poking their head around and seeing what the flight attendants are feeling. I think the company is looking very closely at what they can do to increase moral and stave off another attempt to unionize the 2 work groups. 2007 is a very important year for the company, especially the 1st and possibly the 2nd quarter.
JetBlue - Bringing humanity back to air travel
 
EvilForce
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RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 5:20 am

The fact that a company in the airline industry pulled a profit is nothing short of amazing given oil prices and the state of the industry in 2006. Give kudos where they are due!

F/A's constantly piss and moan no matter what. Every airline has a group of unhappy employees. Heck, every company has a group of unhappy employees. Negative Neds/Nancys will always complain about something.
I bought a Venus Fly Trap today and was going to name it "Republican" but the fly trap is beneficial to the environment.
 
jetbluefan1
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RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 6:46 am

Quoting Lowecur (Reply 9):
Jetblue has some serious employee issues that will need to be resolved in 2007. Pilot's are unhappy and may vote on a union this year.



Quoting Lowecur (Reply 14):
Last payraise for 190's was divisive. Some 190 pilots were unhappy with small raise, while other 320 pilots felt slighted. Lot's of talk on pilot boards about unionization this year. Could be posturing...time will tell, but if it happens the flood gates could open for other employee groups.

I'm pretty sure that pay raises occur every year or so - I saw a scale somewhere. As far as I know, the pay that each crew member receives is in the contract. Flight attendants and csa's get paid an additional 5% each year, and A320 pilots top out at $134/hr I believe. E190 pilots top out in the $110's, but don't quote me on that.

BTW profit sharing was back for the year, which certainly helps morale.

JetBluefan1
 
richierich
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RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 6:51 am

Quoting Lowecur (Reply 16):
I am just an insurance salesman with an interest in this business. If I were on the inside a B6, Neeleman & Co would have already fereted me out and sent me on my way. My thoughts are just speculation met to trigger discussion, nothing more.

Interesting. I don't always agree with your comments, but at least you put some good thought into what you say. Like J32driver, I respect that.

Quoting JetBluefan1 (Reply 19):
BTW profit sharing was back for the year, which certainly helps morale.

But I'm guessing it wasn't much... still something is better than nothing. If I were a B6 crewmember, I'd be happy to get something. A lot of other airline crews will not.
None shall pass!!!!
 
DfwRevolution
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RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 7:28 am

Quoting AirlineFanatic (Reply 13):
even you can't argue that:

Watch me.

Quoting AirlineFanatic (Reply 13):
- two fleet types

Not the first LCC nor only with multiple fleet types. Both TZ and HP opperated mix fleets of 737, A320, or 757 well before jetBlue.

Quoting AirlineFanatic (Reply 13):
- range of small, medium and large markets

Not the first nor only LCC with this distinction. WN offers service from cities like Los Angles (population 10 million) to Corpus Christi (population 280,000), and they were doing it decades before jetBlue.

Quoting AirlineFanatic (Reply 13):
- passenger conveniences (legroom, tv's, snack service, amenities)

None of which is exclusive to jetBlue or was even introduced by jetBlue first.

Quoting AirlineFanatic (Reply 13):
Whether parts of the strategy are successful can be debated but you would first have to define what success is.

What do you think it means? Playing a "role" in the industry does not make jetBlue successful. United, Delta, and Northwest play roles in the industry without making money.

jetBlue's success needs to come from profitable operations and it is welcome news to a shareholder like myself to see them back on track. Having closely followed jetBlue, I will not hide my opinion that some of those "bold" moves (what, do you work for Ford?) may have contributed to the financial troubles that slowed down the growth of the airline.

Even with all jetBlue's merits, they are still more like any other LCC in North America, than not.
 
Wsan581
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RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 10:28 am

Quoting Lowecur (Reply 9):
Of more concern is they missed by a penny, and they are forecasting a loss in the 1st Q (analysts were projecting a profit).

The loss in Q1 is driven by cost associated wit the 150 seat mod. This is a one time cost, and B6 is predicting a full year profit for 07.
Blue Skies Ahead!!
 
N1120A
Posts: 26467
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RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 10:48 am

Quoting Werdywerd (Reply 5):
For the full year 2006, net loss totaled $1 million, or $0.00 per diluted share

So they actually lost money.

Quoting DfwRevolution (Reply 21):
Los Angles (population 10 million)

More than that.

Quoting DfwRevolution (Reply 21):
Corpus Christi (population 280,000),

Not to mention Jackson, which is about half that size.
Mangeons les French fries, mais surtout pratiquons avec fierte le French kiss
 
lowecur
Posts: 512
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RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 11:32 am

Quoting Wsan581 (Reply 22):
The loss in Q1 is driven by cost associated wit the 150 seat mod. This is a one time cost, and B6 is predicting a full year profit for 07

Didn't listen to the cc, is that what was said? I'm sure there is a significant cost, but one that will be mitigated even is the 1st Q by a reduction of FA's.
 
B6WNQX
Posts: 192
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RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 11:38 am

Quoting Lowecur (Reply 24):
Didn't listen to the cc, is that what was said? I'm sure there is a significant cost, but one that will be mitigated even is the 1st Q by a reduction of FA's.

They said that the mod's will cost about $3M in Q1 but it will have a net effect of about $30M annually (this includes missed revenue and all costs that were cut because of it, but it does not factor in the possible fare increase of the more generous pitch seats, if any).
 
steeler83
Posts: 7391
Joined: Sat Feb 25, 2006 2:06 pm

RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 11:41 am

I think the LFs for PIT-JFK/BOS are finally improving, considering that B6's fares are practically down in the cargo hold at $29 one way. I haven't seen fares that low since I flew on WN PIT-PHL-PIT shortly after they started service more than a year and a half ago, and I though I would never see that again...

I hope this continues for B6; I hope they can make this continue. People have said that going with the E90 would be a mistake. Well, which is a bigger mistake, that, or starting cities like Pittsburgh and Columbus with A320 service? Think about that, the LFs for PIT-JFK and BOS were not even at 40%, and that was with an E90. On top of that, the E90s are not even considered mainline aircraft, so the landing fees for those planes are lower than the A320. Need I go further???
Do not bring stranger girt into your room. The stranger girt is dangerous, it will hurt your life.
 
jetblueatjfk
Posts: 1556
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RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 12:22 pm

Well congrats to B6 for getting further on the road to recovery. From what I see the next 2 years are going to be very important for them. 2007 will have unions coming around and we will see if they can withstand that test (hopefully they do) and they will still be growing fast but with less planes coming in. Hopefully the seat mods will work in their favor and not end up like AA (A while back AA on some planes took out seats and then ended up re-installing them). Then in 2008 they get T5 at JFK, so more JFK expansion would start up and the aircraft delivieries will be speeding up a little also. B6 by then will be much larger and if fuel keeps going down they should be on the right track. =D

B6jfk airplane 
 
Valcory
Posts: 88
Joined: Fri Dec 22, 2006 6:56 pm

RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 12:28 pm

For the full year 2006, net loss totaled $1 million
Where is the profit?
 
jacobin777
Posts: 12262
Joined: Sat Sep 11, 2004 6:29 pm

RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 12:40 pm

Quoting EvilForce (Reply 18):
The fact that a company in the airline industry pulled a profit is nothing short of amazing given oil prices and the state of the industry in 2006. Give kudos where they are due!

Other carriers such as CO, HP/US, UA have also.... Smile

Quoting DfwRevolution (Reply 21):
Not the first LCC nor only with multiple fleet types. Both TZ and HP opperated mix fleets of 737, A320, or 757 well before jetBlue.

..and we know what happened to TZ.... Wink

..though I used to fly with TZ quite a bit many years ago..
"Up the Irons!"
 
jetbluefan1
Posts: 2854
Joined: Wed Dec 31, 2003 8:39 am

RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 1:04 pm

Quoting Lowecur (Reply 24):
I'm sure there is a significant cost, but one that will be mitigated even is the 1st Q by a reduction of FA's.

Only seats have been removed - not the fourth FA. That still needs to be approved by the FAA, which could take a few more months.

Quoting B6WNQX (Reply 25):
They said that the mod's will cost about $3M in Q1 but it will have a net effect of about $30M annually (this includes missed revenue and all costs that were cut because of it, but it does not factor in the possible fare increase of the more generous pitch seats, if any).

Actually, while the cost savings will be $30M annually, once the lost revenue is factored in, those savings turn into $30M over five years. Still, any savings is a good one.

Quoting Valcory (Reply 28):
For the full year 2006, net loss totaled $1 million
Where is the profit?

Pre-tax income was $9M - which is actually the figure that counts when calculating profit sharing and the such. The net loss of $1M is after taxes, which fluctuate drastically from quarter to quarter and year to year.

I was very, very impressed with the $30M pre-tax income and $17M net income for the traditionally weak 4Q. 10% operating margin is very impressive. Overall, good results.

JetBluefan1
 
EvilForce
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RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 1:08 pm

Quoting Jacobin777 (Reply 29):
Other carriers such as CO, HP/US, UA have also....

I agree! They deserve kudos as well. I posted a congrats on the HP/US profit thread. I haven't seen one yet for CO or UA yet.
I bought a Venus Fly Trap today and was going to name it "Republican" but the fly trap is beneficial to the environment.
 
NASBWI
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RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 1:10 pm

Quoting Jacobin777 (Reply 29):
and we know what happened to TZ

Maybe, but can you directly attribute TZ's troubles with their multiple-fleet plan? Or did their problems run much deeper than that? I'd be willing to bet the latter. The operation of one type of aircraft helps with costs, but it doesn't guarantee a profit.
Fierce, Fabulous, and Flawless ;)
 
airplaneboy
Posts: 555
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RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 2:57 pm

Congrats B6!  Smile

Quoting Jetbluenyfl (Reply 12):
F9 has a different concept by charging for the TV...

Hi Jetbluenyfl!  Smile

A recurring topic between F9 and B6 is the issue of B6 offering complimentary DirecTV service on all flights, while F9 charges $5 per segment for all flights (with the exception of international flights, ANC, and LAX-SFO).

LiveTV is owned by the same holdings company that owns jetBlue Airways. Frontier, however, must pay a fee (based on load factor) to LiveTV regardless of whether or not anyone purchased the LiveTV service. This fee must be paid for every departure. The $5 charge serves to offset this additional cost to Frontier, while still allowing Frontier Airlines to offer some form of inflight entertainment at an affordable price. Wild Blue Yonder, Frontier's own channel (as well as the map) are always complimentary. Pay-per-view movies are also available on 3 separate channels, with one of them dedicated to Disney movies and shorts for younger audiences.

Cheers!
 
jacobin777
Posts: 12262
Joined: Sat Sep 11, 2004 6:29 pm

RE: B6 Posts 4Q And Full Year Profits For 2006

Wed Jan 31, 2007 10:20 pm

Quoting NASBWI (Reply 32):
Maybe, but can you directly attribute TZ's troubles with their multiple-fleet plan? Or did their problems run much deeper than that? I'd be willing to bet the latter. The operation of one type of aircraft helps with costs, but it doesn't guarantee a profit.

It had more to do with their rapid fleet expansion more than anything else....I was taking the piss about the comment regarding their "multi-fleet"..which really didn't have too much to do with their bankruptcy problems.....though some of those Lockheeds were getting high in the cycles
"Up the Irons!"
 
richierich
Posts: 3282
Joined: Sat Nov 04, 2000 5:49 am

RE: B6 Posts 4Q And Full Year Profits For 2006

Thu Feb 01, 2007 12:15 am

Quoting DfwRevolution (Reply 21):
None of which is exclusive to jetBlue or was even introduced by jetBlue first.

I think the tv's were a first for JetBlue. Or did Legend beat them to it?

Quoting DfwRevolution (Reply 21):
Not the first LCC nor only with multiple fleet types. Both TZ and HP opperated mix fleets of 737, A320, or 757 well before jetBlue.

I know a lot of people that would never have considered HP a LCC.

Quoting Valcory (Reply 28):
For the full year 2006, net loss totaled $1 million
Where is the profit?

Pre-tax profit.
Compared to last year, these numbers are excellent. For an airline that brings in billions of dollars in revenue each year, to end the year with a net loss of only $1M is hardly a big deal. Obviously it means there is still work to be done, but it means that some of the measures taken to 'right the ship' worked. Other factors, such as fuel prices, are beyond the control of the airline at this point, and we all know that this can have as big an effect on profitability in this industry as any other factor.
None shall pass!!!!
 
lowecur
Posts: 512
Joined: Wed Jan 26, 2005 1:18 pm

RE: B6 Posts 4Q And Full Year Profits For 2006

Thu Feb 01, 2007 1:28 am

Jetblue will likely sell or lease an additional 5 320's in 2007. They will take delivery of 12 a/c in 2007, but if they get rid of 5, the net will be 7. I think the caveat will be whether they can get some gates at LAX, and just what happens with consolidation. Otherwise they will slow the growth to 11%.
 
AirlineFanatic
Posts: 212
Joined: Thu Apr 01, 2004 2:21 am

RE: B6 Posts 4Q And Full Year Profits For 2006

Thu Feb 01, 2007 1:53 am

Quoting Lowecur (Reply 36):
They will take delivery of 12 a/c in 2007, but if they get rid of 5, the net will be 7. I think the caveat will be whether they can get some gates at LAX, and just what happens with consolidation. Otherwise they will slow the growth to 11%.

In 2007, they will take delivery of a total of 22 a/c (12 A320 and 10 E190) and they did mention that they can and will sell or lease aircraft if terms are right. Growth is projected at 11-14% inlcuding the loss of ASMs on the A320.
 
F9Animal
Posts: 3644
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RE: B6 Posts 4Q And Full Year Profits For 2006

Thu Feb 01, 2007 2:31 am

OMG!! B6 made money? Oh man! There has to be something wrong with that. It must be an accounting error! Oh no!!!! B6 is shutting down asap! LOL!

Congrats Jetblue! There was no doubt in my mind that they would come out on top!  Smile
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