Category Archives: JetBlue Airways

JetBlue Airways reports second quarter net income of $152 million

JetBlue Airways Corporation (New York) today reported its results for the second quarter 2015:

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  • Operating income of $282 million in the second quarter. This compares to operating income of $141 million in the second quarter of 2014.
  • Pre-tax income of $250 million in the second quarter. This compares to pre-tax income excluding special items1 of $103 million in the second quarter of 2014. On a GAAP basis, pre-tax income was $345 million in the second quarter of 2014, which included the gain on sale of JetBlue’s wholly-owned subsidiary LiveTV.
  • Net income of $152 million, or $0.44 per diluted share. This compares to JetBlue’s second quarter 2014 net income excluding special items1 of $61 million, or $0.19 per diluted share. On a GAAP basis, JetBlue’s second quarter 2014 net income was $230 million, or $0.68 per diluted share.
    Financial Performance

JetBlue reported record second quarter operating revenues of $1.6 billion. Revenue passenger miles for the second quarter increased 8.7% to 10.5 billion on a capacity increase of 7.5%, resulting in a second quarter load factor of 85.6%, an increase of 1.0 points year over year.

Yield per passenger mile in the second quarter was 14.28 cents, up 0.2% compared to the second quarter of 2014. Passenger revenue per available seat mile (PRASM) for the second quarter 2015 increased 1.4% year over year to 12.22 cents and operating revenue per available seat mile (RASM) increased 0.4% year over year to 13.17 cents.

Operating expenses for the quarter decreased 1.7%, or $22 million, over the prior year period. Interest expense for the quarter declined 15.8%, or $7 million, as JetBlue continues to reduce its debt. JetBlue’s operating expense per available seat mile (CASM) for the second quarter decreased 8.6% year over year to 10.86 cents. Excluding fuel and profit sharing, second quarter CASM2 increased 0.6% to 7.56 cents.

Operational Performance

System on time departures, or D0, improved 1.7 points year-over-year in the second quarter. System arrival performance, or A14, also improved 3.3 points.

“We are very pleased to report strong second quarter results based on solid demand across our network, safe and efficient operations, and good cost control. I would like to thank our 17,000 crewmembers who continue to inspire humanity on a daily basis.” said Robin Hayes, JetBlue’s President and CEO.

Fuel Expense and Hedging

In the second quarter JetBlue had hedges in place for approximately 19% of its fuel consumption. This resulted in a realized fuel price of $2.13 per gallon, a 31% decrease versus second quarter 2014 realized fuel price of $3.09. JetBlue recorded $30 million in losses on fuel hedges settling during the second quarter.

JetBlue has hedged approximately 14% of its third quarter 2015 projected fuel requirements using a combination of jet fuel swaps and collars. Based on the fuel curve as of July 17th, JetBlue expects an average price per gallon of fuel, including the impact of hedges and fuel taxes, of $1.95 in the third quarter. For the fourth quarter, JetBlue has hedged approximately 15% of projected fuel consumption.

Liquidity and Cash Flow

JetBlue ended the quarter with $915 million in unrestricted cash and short term investments, or about 15% of trailing twelve month revenue. In addition, JetBlue maintains approximately $600 million in undrawn lines of credit.

During the second quarter, JetBlue repaid $39 million in regularly scheduled debt and capital lease obligations and prepaid $84 million in additional debt. JetBlue anticipates paying approximately $145 million in regularly scheduled debt and capital lease obligations during the remainder of 2015 and plans to continue to opportunistically prepay other debt. JetBlue expects to pay approximately $54 million in regularly scheduled debt and capital lease obligations in the third quarter of 2015.

In addition, on June 16 JetBlue entered into an Accelerated Share Repurchase program. JetBlue paid $150 million and received 6.1 million shares at the start of the program, with a subsequent adjustment upon close of the transaction. Ultimately, the total shares purchased by JetBlue will be based on the volume weighted average prices of JetBlue’s common stock during the term of the program.

“We posted another good quarter and continue to make progress strengthening our balance sheet.” said Mark Powers, JetBlue’s Chief Financial Officer. “Looking forward, the execution of the initiatives described at Investor Day last November will increase free cash flow and improve our return on invested capital.”

Third Quarter and Full Year Outlook

CASM excluding fuel and profit sharing is expected to increase between 1.0% and 3.0% in the third quarter 2015 and between zero and 1.5% percent for the full year. This represents a 0.5% reduction to the top end of our CASM excluding fuel and profit sharing guidance range.

Capacity is expected to increase between 8.5% and 10.5% in the third quarter 2015 and between 7.0% and 9.0% for the full year, consistent with prior guidance. At present, we anticipate ending the year at the higher end of our annual capacity guidance.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A321-231 N929JB (msn 6031), operating Mint service, arrives at Los Angeles International Airport (LAX).

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JetBlue to offer free live streaming of Major League Baseball games

JetBlue Airways (New York) on the heals of the Virgin America Wi-Fi announcement, has responded with this announcement in the on-going “Wi-Fi Wars”:

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JetBlue today announced a new partnership with MLBAM, the interactive media and internet company of Major League Baseball, that will give JetBlue customers free in-flight access to MLB.TV – the #1 live streaming sports service – on their laptops and supported smartphones and tablets through the MLB.com At Bat mobile app. The agreement brings free, Internet streaming of live Regular Season baseball games 35,000 feet in the sky for the first time ever, and adds to JetBlue’s expanding catalog of onboard entertainment delivered over Fly-Fi, the industry’s fastest complimentary broadband Internet.

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The airline continues;

All JetBlue customers traveling in the contiguous United States on Fly-Fi equipped aircraft will have complimentary access to MLB.TV, which offers more than 2,500 live and archived games on demand per season. While MLB.TV typically requires a subscription, JetBlue customers will receive free access while in flight through “The Hub,” JetBlue’s Fly-Fi content portal. For the first time ever, customers using Fly-Fi Hub can catch any Regular Season game being played by any of MLB’s 30 teams at any time.

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According to the airline, “With speeds up to 20 mbps per device, Fly-Fi offers a true Internet streaming experience that no other U.S. carrier is capable of providing. MLB.TV becomes the first live sports property to join JetBlue’s robust list of leading brands offering content on JetBlue flights including Amazon Prime streaming entertainment (coming soon), The Wall Street Journal, PBS, NatGeo, Vice, Harper Collins and Time, Inc. among others.”

Unlike other carriers that charge sky high prices for Wi-fi, JetBlue is keeping Fly-Fi free for all customers. Fly-Fi Hub content complements JetBlue’s signature seatback entertainment featuring live DIRECTV® programming and 100+ channels of SiriusXM® radio on every aircraft. JetBlue airs more channels of free sports on-board than any other domestic airline. The line-up includes ESPN, ESPN2, ESPNews, ESPNU, NBC Sports, Fox Sports 1 and NFL Network.

Copyright Photo: Stephen Tornblom/AirlinersGallery.com. Airbus A320-232 N605JB (msn 2368) in the special Boston Red Sox livery is seen taxiing at the New York (JFK) base.

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JetBlue operates its first Cuban charter flight from New York JFK to Havana

JetBlue Airways (New York) yesterday (July 3) operated its first weekly charter flights between New York’s John F. Kennedy International Airport (JFK) and Havana’s José Martí International Airport (HAV). JetBlue becomes the first major U.S. carrier to fly the route since travel restrictions were eased earlier this year.

With the addition of the flights between New York and Havana, JetBlue now operates five weekly round trips to Cuba, including flights from Tampa (TPA) and Fort Lauderdale-Hollywood (FLL) with various charter partners. As the largest U.S. airline to the Caribbean, Cuba will one day play an important role in JetBlue’s overall network in the region.

The New York-Havana charter service was announced in May shortly after a successful trade mission trip to Cuba with New York Governor Andrew Cuomo. The Governor, joined by JetBlue CEO Robin Hayes and other New York business leaders, led a dialogue to connect Empire State businesses to new opportunities in Cuba.

Cuba Travel Services is offering the flight, operated by JetBlue, on Fridays from New York.

Cuba Travel Services Inc. arranges daily, nonstop public charter flights between the United States and Cuba and is licensed by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) as an authorized Carrier Service Provider specializing in travel to Cuba. They offer full service travel arrangements to individuals, groups, families, educators, students, professionals and organizations, under Specific or General Licenses issued by the Office of Foreign Assets Control.

Copyright Photo: Stephen Tornblom/AirlinersGallery.com. Airbus A320-232 N586JB (msn 2160) in the special “I Love New York” scheme taxies from the gate at John F. Kennedy International Airport (JFK) in New York.

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Happy Fourth of July to all of our U.S. readers

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JetBlue opens the T5 Rooftop Terrace at New York JFK

JetBlue T5 Rooftop (JetBlue)(LRW)

JetBlue Airways (New York) today (July 1) opened the T5® Rooftop at John F. Kennedy (JFK) International Airport, the only post-security outdoor space accessible to all customers at a New York airport. The T5 Rooftop, which includes a green area and kid-friendly and dog-friendly spaces, is open all summer from 6 am to 10 pm for travelers who clear security at JetBlue’s home terminal — T5. This new outdoor park offers customers views of the Manhattan skyline and the historic Eero Saarinen TWA Terminal from an unexpected vantage point — a rooftop at the airport.

The T5 Rooftop, designed by Gensler, perfectly complements the overall design of T5 which emphasizes light and well-being. In addition to spectacular views, outdoor seating and New York-centric food carts, the T5 Rooftop also includes the first post-security dog walk area at JFK. Much like T5, the T5 Rooftop focuses on sustainability, convenience and humanity with features including:

A wood roof deck, aluminum outdoor furniture and planters

Free Wi-Fi

New York-centric food and beverage carts/kiosks featuring Brooklyn’s Blue Marble ice cream and Hebrew National hot dogs

Native plantings including oak leaved hydrangeas, lilyturf and sweetsphire
Sustainable materials.

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JetBlue celebrated the opening of the T5 Rooftop with a Live From T5™ concert featuring Brooklyn-based indie band Mainland, who performed selections from their debut EP, Shiner. JetBlue will host an ongoing Summer Friday series with DJ sets, acoustic performances, food and beverage samplings and other entertainment offerings for customers visiting the outdoor space and traveling through T5 this summer.

JetBlue’s award-winning Live From T5 concert series has served as a platform for emerging artists and top pop acts. Since 2009, the in-terminal concert series has enhanced the JetBlue experience with live entertainment exclusively for customers traveling through T5. These surprise shows have featured performances by an array of artists across musical genres including Goodie Mob, The Wanted, Taylor Swift, Emeli Sande, Jason Derulo, Sarah McLachlan, Daughtry and more.

The T5 Rooftop is the latest enhancement to JetBlue’s award-winning T5, recognized as one of the world’s ten most beautiful airport terminals by Frommer’s. T5 opened in 2008 and an international arrivals hall, dubbed T5 International, opened in November 2014. The T5 Rooftop includes a 4,046 square foot park with landscaped green spaces, seating for 50 people, a 400 square foot kid friendly space and a dedicated 400 square foot dog walk area.

Several JetBlue business partners and contractors collaborated on this project ensuring that the T5 Rooftop matched and enhanced T5’s existing feel and sustainable elements. Project partners collaborated on all aspects including infrastructure and design to construction. Business partners included Gensler, Arup and Turner Construction Company.

Photo: JetBlue Airways.

 

JetBlue Airways ends the “first bag free” era for regular fares, explains its new fee structure

JetBlue Airways (New York) yesterday (June 30) implemented a new fare policy and also ended their “first checked bag free” era for regularly ticketed passengers leaving only Southwest Airlines (Dallas) among U.S. airlines that are not charging for the first checked bag. The goal for the airline is to increase revenue and to offer a varied level of service now embraced by most airlines.

The airline stated:

JetBlue square Tartan logo

“When you book a JetBlue flight, you’ll choose from several fare options — Blue, Blue Plus or Blue Flex — based on what’s most valuable to you, such as number of checked bags, bonus points earned and change/cancel fees. No matter which option you select, you’ll get the award-winning JetBlue experience you know and love — the most legroom in coach*, free snacks and soft drinks, free DIRECTV® and SiriusXM® Radio, fast Fly-Fi® and more! Plus, if you’re flying coast-to-coast, our refreshing take on a premium travel experience is ready to get you there in Mint condition.”

The following fares are applicable for reservations on JetBlue after June 30:

JetBlue fee structure after 6.30.15

The airline continued with their new rules:

TrueBlue Mosaic members. TrueBlue Mosaic members receive free first and second checked bags and any additional bags are $100 each. TrueBlue Mosaic members will not pay the applicable JetBlue change/cancellation fee, only any difference in fare when they change or cancel their JetBlue flight or JetBlue Getaways vacation reservation booked directly with JetBlue. The change/cancel fee will also be waived for any traveler on the same reservation as the Mosaic member; the change/cancel fee for any other traveler not on that same reservation will still apply. TrueBlue Mosaic members will earn an extra three (3) bonus points per dollar spent in addition to the TrueBlue points earned based on the Fare Option selected for flights and six (6) TrueBlue points per dollar spent on JetBlue Getaways. For a list of all of TrueBlue Mosaic benefits click here.

1. For Blue fares, the first checked bag fee is $20 when purchased during web check-in or at a kiosk, or $25 at the check-in counter and the second checked bag is $35. For Blue Plus fares, one checked bag is included and the second checked bag fee is $35. For Blue Flex fares, two checked bags are included. For Blue and Blue Plus fares for flights to or from Santo Domingo, Santiago, Port-au-Prince, Port of Spain, Kingston, Cartagena, Medellín, Bogota, Lima and Mexico City: one checked bag is included and the second checked bag fee is $35. For Mint fares: two checked bags are included. For all fares, any additional bags are $100 each. All bags are subject to size/weight and other restrictions. Other fees apply for oversized or overweight baggage. See http://www.jetblue.com/travel/baggage/.

2. All Members will earn three (3) Points per dollar spent on any individual flight operated by JetBlue.

3. In addition to the base TrueBlue points earned per dollar, if those JetBlue operated flights are booked directly on http://www.jetblue.com, Members can earn bonus points depending on the fare option selected as follows: Members who have purchased a Blue fare can earn an extra three (3) bonus Points per dollar for a total of six (6) Points per dollar, Members who have purchased a Blue Plus fare can earn an extra four (4) bonus Points per dollar for a total of seven (7) Points per dollar and Members who have purchased a Blue Flex fare can earn an extra five (5) bonus Points per dollar for a total of eight (8) Points per dollar. Members who have purchased a Mint fare can earn an extra three (3) bonus Points per dollar, for a total of six (6) Points per dollar. No bonus Points are earned if JetBlue operated flights are booked by phone or otherwise.

4.All reservations made one week or more prior to a flight’s departure may be cancelled without penalty up to 24 hours after the reservation is made. Changes and cancellations made 60 days or more prior to departure date: Blue : $70 per person fee plus difference in fare. Blue Plus: $60 per person fee plus difference in fare. Blue Flex: difference in fare only. Mint: $75 per person plus any difference in fare for changes for non-stop fares under $950 or connecting fares under $1,350. For all other Mint non-refundable fares, no fee only any difference in fare for changes.

Changes and cancellations made less than 60 days from departure date:

A) for Blue fares under $100, $70 per person plus difference in fare; for Blue fares between $100 and $149.99, $90 per person plus difference in fare; and for Blue fares of $150 or more, $135 per person plus difference in fare;

B) for Blue Plus fares under $100, $60 per person plus difference in fare; for Blue Plus fares between $100 and $149.99, $80 per person plus difference in fare; and for Blue Plus fares of $150 or more, $120 per person plus difference in fare; and

C) for Blue Flex fares, difference in fare only.

D) For Mint fares, for non-stop under $950 and for connecting fares under $1,350, the fee is $150 per person plus difference in fare; for all other Mint fares, difference in fare only.
Additional Change/Cancellation Terms (all fares): For changes, any applicable fare difference will be charged in addition to the change fee and are subject to availability. Cancellations are for a JetBlue flight credit only, valid for a JetBlue flight within 1 year from the date of cancellation. If you do not change/cancel before scheduled departure and you “no show” all money for reservation is forfeited.

5. Available at select airports only and Even More Speed price varies based on airport location.

6. Most legroom in coach based on average fleet-wide seat pitch of U.S. airlines.

7. Fly-Fi® is available on most flights, with more installations underway. Fly-Fi® is not available on flights operating outside of the continental U.S. For flights originating outside of the continental U.S., Fly-Fi® will be available once the aircraft returns to the coverage area.

8. DIRECTV® service is not available on flights outside the continental U.S.; however, where applicable, movies from JetBlue Features are offered complimentary on these routes.

9. Sirius XM Radio® service is not available on flights outside the continental U.S.; however, where applicable, movies from JetBlue Features are offered complimentary on these routes.

10. JetBlue Features premium entertainment on flights longer than two hours.

*Based on average fleet-wide seat pitch for U.S. airlines.

**EatUp® is available on flights longer than two hours. EatUp® Café is available only on flights between New York or Boston and Los Angeles, Long Beach or San Francisco. Available on flights scheduled to depart before 8:59 PM local time.

Top Copyright Photo: Tony Storck/AirlinersGallery.com. Airbus A320-232 N565JB (msn 2031) in the Tartan tail design arrives at Fort Lauderdale-Hollywood International Airport (FLL).

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JetBlue to introduce Mint service at Boston, will also add Boston-Nashville

JetBlue Airways (New York), already the largest airline in Boston, has announced plans to enhance service at Logan International Airport.

JetBlue Mint logo

As part of the expansion, JetBlue will introduce Mint service to San Francisco and Los Angeles. JetBlue will also add Nashville as its 60th nonstop destination from Boston and will increase service frequency on more than a dozen existing routes to U.S. and Caribbean destinations.

 

Mint service will take off between Boston and San Francisco beginning in March 2016 with up to three daily roundtrips. Mint service to Los Angeles is set to begin in fall 2016 with up to three daily roundtrips.

Additionally, JetBlue will offer Mint seasonal service to the Caribbean beginning in March 2016 with a weekly Saturday roundtrip between Boston and Barbados, one of the airline’s most luxurious leisure destinations.

All customers traveling on the additional flights will benefit from JetBlue’s new Airbus A321 aircraft (above).

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JetBlue also announced its intent to serve Nashville International Airport (BNA) from Boston with two daily roundtrips.

JetBlue also plans to launch daily nonstop service from Nashville to its Fort Lauderdale-Hollywood focus city. Service will begin in spring 2016.

All flights to Nashville will be operated on JetBlue’s Airbus A320 aircraft.

In addition, JetBlue will soon offer even more flights from Boston to 12 cities in its route network.

In January 2016, JetBlue will offer an average of 118 daily departures in its winter schedule with even more frequencies in the peak travel season – up to 140 daily departures in summer 2016. This is up from 54 average daily departures in 2008 when the airline began to significantly grow its presence in Boston.

The increase comes from a series of added flights on existing routes. Many of the flight frequency additions will be to JetBlue’s Florida and Caribbean focus cities and to other popular destinations in these regions. Additional flights are being added to the following destinations in the U.S. JetBlue network:

Additional daily flights between Boston and:

Orlando, Ft, Lauderdale, Tampa, San Juan, Raleigh/Durham, New York (JFK) and Cleveland

Additional weekend flights between Boston and:

Barbados (d), Aruba, Cancun, Turks and Caicos, Punta Cana, St. Maarten and Liberia, Costa Rica.

JetBlue has helped connect more international carriers in Boston through agreements with 15 carriers. El Al to Tel Aviv and Hainan Airlines to Shanghai are two of the newest routes. Emirates also plans to introduce a second daily flight to Dubai this fall.

Over the last three years JetBlue has attracted five new international partners to Boston including El Al, Emirates, Hainan Airlines, Qatar Airways and Turkish Airlines.

JetBlue’s impressive list of airline partnerships grew from its very first agreement with Massachusetts-based Cape Air in 2007. Cape Air is one of the largest independent regional carriers in the U.S. and enhances the JetBlue network with easy connections from San Juan and Boston to destinations in Cape Cod and the Caribbean.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A321-231 N934JB (msn 6130) in the Prism livery departs from Los Angeles International Airport.

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DHL delivers the first A321 aircraft components for Airbus to Mobile, Alabama

DHL transport first A320 to Mobile

DHL Global Forwarding, Americas, has issued this statement:

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DHL Global Forwarding, the specialist for air and ocean freight at Deutsche Post DHL Group, shipped the first aircraft components to the newly built U.S. assembly plant in Mobile, Alabama from the Hamburg Finkenwerder Airbus plant in Germany. DHL Industrial Projects developed a multimodal transport concept for the European aircraft manufacturer. From the beginning of June 2015, large components of A320 family as well as 1,000 sea freight containers and additional air freight shipments, also including hazardous goods, crossed the Atlantic. Arriving into port on June 17, DHL transported the aircraft components within a total transit time of 29 days which was of critical importance since configuration and control of the final assembly processes at Airbus depended upon it.Airbus logo (large)

“Our Industrial Projects team created a plan, developed a concept and helped Airbus transport their aircraft components efficiently, effectively, and with no issues.”

“In order to successfully transport highly sensitive cargo, especially across great distances, it is critical to have a solutions-driven team of experts in place,” said Brian Lindholm, global head of business development, DHL Global Forwarding Industrial Projects. “Our Industrial Projects team created a plan, developed a concept and helped Airbus transport their aircraft components efficiently, effectively, and with no issues.”

The five different aircraft components with a maximum weight of thirty tonnes per section were transported on board a chartered ship using special sea transport frames and secured on roll trailers with twist locks. After arriving at the Port of Mobile and clearing Customs, the aircraft components were then loaded onto heavy-duty trailers with special cranes which will be transported a few miles to the new Airbus U.S. assembly plant in Mobile on Sunday, June 21.

For air freight shipments, both LD3 containers and consolidated shipments were used. Special legally required procedures were used for securing and transporting hazardous goods.

After the aircraft components are delivered, the sea transport frames and the air freight containers will be prepared for their return to Finkenwerder.

This is the first time DHL transports major components for Airbus.

DHL is part of Deutsche Post DHL Group.

Top Photo: DHL/Business Wire. The fuselage component for new Airbus A321-231 (msn 6512) for JetBlue Airways was delivered to Mobile, Alabama from Hamburg, Germany. Members of DHL Global Forwarding, Airbus, the International Longshoremen’s Association (Local 14010) and AMP Terminal employees pose in front of the fuselage of the first Airbus A320 aircraft to be assembled at the Airbus U.S. Manufacturing Facility in Mobile, Alabama.