JetBlue Airways Corporation (New York) today reported its results for the first quarter 2012:
- Operating income for the quarter was $89 million, resulting in a 7.4% operating margin, compared to operating income of $45 million and a 4.4% operating margin in the first quarter of 2011.
- Pre-tax income of $49 million in the first quarter. This compares to pre-tax income of $6 million in the first quarter of 2011.
- Net income for the first quarter was $30 million, or $0.09 per diluted share. This compares to JetBlue’s first quarter 2011 net income of $3 million, or $0.01 per diluted share.
JetBlue reported record first quarter operating revenues of $1.2 billion, an increase of 18.9% versus last year. Revenue passenger miles for the first quarter increased 14.2% to 7.91 billion on a capacity increase of 12.0%, resulting in a first quarter load factor of 82.9%, an increase of 1.5 points year over year.
Yield per passenger mile in the first quarter was 13.86 cents, up 5.9% compared to the first quarter of 2011. Passenger revenue per available seat mile (PRASM) for the first quarter 2012 increased 8.0% year over year to 11.49 cents and operating revenue per available seat mile (RASM) increased 6.1% year over year to 12.62 cents.
Operating expenses for the quarter increased 15.2%, or $147 million, over the prior year period driven primarily by $80 million in additional fuel expense. JetBlue’s operating expense per available seat mile (CASM) for the first quarter increased 2.8% year-over-year to 11.69 cents. Excluding fuel, CASM decreased 1.0% to 7.15 cents.
JetBlue continued to hedge fuel to manage price volatility. Specifically, JetBlue hedged approximately 42% of its fuel consumption during the first quarter, resulting in a realized fuel price of $3.25 per gallon, a 10% increase over first quarter 2011 realized fuel price of $2.94. JetBlue’s fuel expense reflects $9 million in gains on fuel hedges that settled during the first quarter.
JetBlue has hedged approximately 26% of its second quarter projected fuel requirements and 21% of its projected remaining fuel requirements for 2012 using a combination of collars, crude call options, and jet fuel swaps. Based on the fuel curve as of April 20, JetBlue expects an average price per gallon of fuel, including the impact of hedges and fuel taxes, of $3.33 in the second quarter and $3.30 for the full year 2012.
JetBlue ended the first quarter with approximately $1.2 billion in unrestricted cash and short term investments.
Copyright Photo: Eddie Maloney.
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