Tag Archives: JetBlue Airways

JetBlue announces fourth quarter 2017 financial results

JetBlue's first Embraer 190 logo jet - "Blueprint"

JetBlue Airways Corporation on January 25, 2018 reported its results for the fourth quarter 2017:

  • Operating income of $189 million, a decrease of 36.0% from the fourth quarter of 2016, principally due to higher fuel prices.
  • Pre-tax income of $170 million, a decrease of 38.0% from the fourth quarter of 2016.
  • Fourth quarter net income of $672 million, or $2.08 per diluted share. Adjusted earnings per share of $0.32, which excludes a benefit of $1.76 associated with the revaluation of our deferred tax liabilities to reflect the impact of the enactment of the Tax Cuts and Jobs Act of 2017. This compares to JetBlue’s fourth quarter 2016 net income of$172 million, or $0.50 per diluted share.

Financial Performance

JetBlue reported fourth quarter operating revenues of $1.8 billion. Revenue passenger miles for the fourth quarter increased 3.1% to 11.5 billion on a capacity increase of 5.1%, resulting in a fourth quarter load factor of 83.1%, a 1.6 point decrease year over year.

Yield per passenger mile in the fourth quarter was 13.57 cents, up 2.8% compared to the fourth quarter of 2016. Passenger revenue per available seat mile (PRASM) for the fourth quarter of 2017 increased 0.8% year over year to 11.28 cents and operating revenue per available seat mile (RASM) increased 1.8% year over year to 12.66 cents.

Compared with last year, operating expenses for the quarter increased 16.5%, or $222 million. Interest expense for the quarter declined 12.4%, or $4 million, as JetBlue continued to reduce its debt. JetBlue’s operating expense per available seat mile (CASM) for the fourth quarter increased 10.8% year over year to 11.29 cents. CASM Ex-Fuel1 for the fourth quarter increased 8.1% to 8.63 cents.

“I’d like to thank our 21,000 Crewmembers, who rose to each and every challenge during 2017. Our fourth quarter results were driven by solid demand across our network, our successful ancillary platform and recovery in the Caribbean that exceeded our expectations, following a historic hurricane season. We continue to make progress to achieve our margin commitments and to compete successfully as a low-cost carrier,” said Robin Hayes, JetBlue’s President and CEO.

Fuel Expense and Hedging

In the fourth quarter of 2017 JetBlue had hedges in place for approximately 10% of its fuel consumption. The realized fuel price in the quarter was $1.89 per gallon, a 21.6% increase versus fourth quarter 2016 realized fuel price of $1.56.

JetBlue does not presently have any forward fuel derivative contracts to hedge its fuel consumption. Based on the fuel curve as of January 12th, JetBlue expects an average price per gallon of fuel of $2.16 in the first quarter of 2018, an increase of approximately 28% over the realized fuel price in the first quarter of 2017.

Liquidity and Cash Flow

JetBlue ended the quarter with approximately $693 million in unrestricted cash and short term investments, or about 10% of trailing twelve month revenue. In addition, JetBlue maintains approximately $625 million in undrawn lines of credit.

During the fourth quarter, JetBlue repaid $57 million in regularly scheduled debt and capital lease obligations. JetBlue anticipates paying approximately $59 million in regularly scheduled debt and capital lease obligations in the first quarter and approximately $202 million for the full year 2018.

“In the fourth quarter and 2017 we took actions to navigate a complex external environment, while striving to protect and enhance our margins. These actions included capacity adjustments and redeployments following a challenging summer and to mitigate the impact of hurricanes. We continue to demonstrate our ability to make progress in our commitments to all our stakeholders and to lay the foundation that will ultimately achieve superior margins,” said Steve Priest, JetBlue’s EVP Chief Financial Officer.

First Quarter and Full Year 2018 Outlook

Capacity is expected to increase between 3.5% and 5.5% year over year in the first quarter 2018. For the full year 2018, JetBlue expects capacity to increase between 6.5% and 8.5%.

RASM growth is expected to range between 2.5% and 5.5% for the first quarter 2018 compared to the same period in 2017.

CASM Ex-Fuel is expected to grow between 2.0% and 4.0% for the first quarter of 2018. For the full year 2018, JetBlue expects year over year CASM Ex-Fuel to be between (1.0)% and 1.0%.

Copyright Photo: JetBlue Airways Embraer ERJ 190-100 IGW N304JB (msn 19000257) (Blueprint) FLL (Tony Storck). Image: 940756.

JetBlue Airways aircraft slide show:

 

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JetBlue marks the 100-Day Milestone of its 100x35JetBlue Hurricane Relief Program in Puerto Rico

JetBlue Airways announced the 100-day milestone of its 100x35JetBlue hurricane relief initiative, which launched shortly after Hurricane Maria struck Puerto Rico in September 2017. A nod to the island’s 100×35 mile dimensions, 100x35JetBlue outlined 100 days and 35 ways – and beyond – of caring for Puerto Rico and the Caribbean. JetBlue has completed or launched 34 of the 35 initiatives, and now transitions to initiative #35: developing a long-term plan for supporting Puerto Rico and fostering economic growth.

As the largest airline in Puerto Rico, JetBlue made a commitment to its crewmembers, customers and communities by pledging to assist in the island’s rebuilding and recovery. Puerto Rico is home to nearly 500 JetBlue crewmembers who support the airline’s operations in its focus city of San Juan, as well as in Aguadilla and Ponce.

With the help of crewmembers across JetBlue’s 101-city network, including those in Puerto Rico, as well as partners such as New York Governor Andrew Cuomo, Puerto Rico Governor Ricardo Rosselló, and the Puerto Rico Tourism Company, the airline has spent the past 100 days implementing its plan. The initiative’s pillars included providing free and reduced rate air transportation; charitable fundraising support; donation and delivery of supplies and services to meet the basic needs of the community; overall reconstruction efforts; and activities to restore a sense of normalcy to those most impacted by the storms. At the same time, JetBlue has focused on raising awareness for Puerto Rico to ensure continued focus on the island’s needs.

Some of the actions taken for Puerto Rico in the past 100 days include:

  • Operating over 450 special relief flights for Hurricane Maria recovery efforts
  • Providing more than 1,100 seats to the island for emergency personnel, relief workers, and non-profits at no cost
  • Making a $1 million in-kind contribution commitment to transport relief workers and cargo from New York as part of the Empire State Relief and Recovery efforts
  • Offering reduced fares for customers to/from Puerto Rico, including two free checked bags and waived pet fees, in the immediate aftermath of the storm
  • Sending more than 1.5 million pounds of relief supplies on JetBlue and in partnership with Atlas Air
  • Partnering with celebrities to conduct relief flights to raise awareness for recovery efforts and deliver much-needed supplies
  • Quickly resuming service from all three cities JetBlue serves in Puerto Rico: San Juan (SJU), Aguadilla (BQN) and Ponce (PSE). During 2018, JetBlue plans to operate up to 30 daily roundtrip flights to/from Puerto Rico including 25 in San Juan alone.
  • Continuing to monitor booking trends closely and adjusting flight schedules and seat capacity as demand necessitates.
  • Granting $1.2 million in grants to impacted JetBlue crewmembers in Puerto Rico to get back on their feet through the JetBlue Crewmember Crisis Fund
  • Supporting Puerto Rico Tourism Company’s efforts to promote tourism to the island

“In the aftermath of the hurricanes, our crewmembers rose to the challenge of truly caring for one another and our customers in incredible ways.” said Robin Hayes, President & CEO of JetBlue.

“As Puerto Rico’s largest airline, we have an ability – and a responsibility – to play a significant role in rebuilding the economy by supporting the return of tourism,” Hayes continued. “We’ve already begun planning these initiatives with our partners at the Puerto Rico Tourism Company. We know that Puerto Rico has a bright future, and we pledge to stand alongside the community as the island recovers and thrives.”

Three Kings Day Celebrations

JetBlue’s 100-day milestone coincided with Three Kings Day, an important holiday and tradition in Hispanic and Puerto Rican culture that caps off the Christmas holiday season. The airline commemorated the start of its long-term initiatives by celebrating events on the island with crewmembers, their families and the community. Three Kings Day and holiday season initiatives included:

  • Donation of 1,200 toys to Puerto Rico’s First Lady’s event, Gran Fiesta de Reyes
  • Donation of formula, diapers and other essential supplies to the Puerto Rico Tourism Company (PRTC) for distribution at their San Jorge’s Children Hospital event
  • Title sponsorship of Promesa de Reyes, which included the distribution of about 3,500 toys to children in five different communities on the island with the help of professional baseball players
  • Three Kings Day celebration with JetBlue senior leader to distribute gifts and toys to crewmembers and their families
  • Hosting Thanksgiving and Christmas / Noche Buena meals for the community, crewmembers, and partners throughout the season

All images by JetBlue.

JetBlue celebrates the New Year with new growth in Florida and Caribbean strongholds

JetBlue Airways Airbus A320-232 N775JB (msn 3800) (JetBlue Honors Our Veterans - Vets in Blue) FLL (Jay Selman). Image: 402719.

JetBlue Airways (New York) on January 9, 2018 announced it is adding even more travel choices in its Fort Lauderdale-Hollywood focus city in 2018 with new service between South Florida and two top Caribbean markets: Santiago, Dominican Republic’s Cibao International Airport (STI) and Grand Cayman’s Owen Roberts International Airport (GCM).

Flights between Fort Lauderdale/Hollywood and Santiago, D.R. will operate once daily roundtrip beginning June 14, 2018, subject to government approval.

The route boosts JetBlue service in the Dominican Republic, where it operates more daily flights than any other carrier. The airline, which first started flying to the Dominican Republic in 2004 with service to Santiago, now serves five airports in the country – La Romana, Puerto Plata, Punta Cana, Santiago and Santo Domingo. The latest new route will link Santiago with a fifth U.S. city nonstop and offer customers even more connecting opportunities throughout the growing JetBlue network.

Daily Schedule between Fort Lauderdale-Hollywood (FLL) and Santiago (STI)

Beginning June 14, 2018

FLL-STI Flight #345 STI-FLL Flight #344
8:30 a.m. – 10:35 a.m. 11:35 a.m. – 1:50 p.m.

JetBlue will operate the new Santiago flights using its spacious 150-seat Airbus A320 aircraft.

Additionally, JetBlue intends to operate new nonstop flights between Fort Lauderdale/Hollywood and Grand Cayman’s Owen Roberts International Airport (GCM) once daily beginning in October 2018, subject to government approval, with seats set to go on sale in the coming weeks. The new flights boost the airline’s presence in the island destination with a new link to South Florida. JetBlue already flies between Grand Cayman and New York’s John F. Kennedy International Airport (JFK) and seasonally to Boston Logan International Airport (BOS).

The new routes also advance JetBlue’s position as the top airline at Fort Lauderdale-Hollywood, where the airline plans to operate 140 daily flights in the coming years. Fort Lauderdale-Hollywood is one of JetBlue’s fast-growing focus cities, serving customers throughout South Florida and offering a fast and convenient alternative for Miami-Dade travelers. The airline also recently expanded its operation to two new gates in Terminal 3 and began utilizing Terminal 1 for additional international arrivals to help support future growth.

Santiago and Grand Cayman become the 58th and 59th nonstop destination offered from Fort Lauderdale-Hollywoodand will open up a variety of new connecting opportunities between the Caribbean destinations and U.S. cities such as Washington, D.C., Philadelphia, Atlanta and multiple west coast markets.

Copyright Photo: JetBlue Airways Airbus A320-232 N775JB (msn 3800) (JetBlue Honors Our Veterans – Vets in Blue) FLL (Jay Selman). Image: 402719.

JetBlue Airways aircraft slide show:

Routes from Fort Lauderdale/Hollywood:

Is JetBlue considering adding some Airbus A321LR aircraft to fly to Ireland?

JetBlue Airways Airbus A321-231 WL N947JB (msn 6448) (Prism) LAX (Michael B. Ing). Image: 936368.

JetBlue Airways (New York), according to the Irish Independent, is considering switching some of its Airbus A321 orders to the longer-range A321LR models in order to fly nonstop to Ireland.

Aer Lingus, which is already a partner, has ordered the LR type. Both partners could be transatlantic competitors in the future.

Read the full article: CLICK HERE

Copyright Photo: JetBlue Airways Airbus A321-231 WL N947JB (msn 6448) (Prism) LAX (Michael B. Ing). Image: 936368.

JetBlue aircraft slide show:

All JetBlue crewmembers to receive a $1,000 bonus

JetBlue's 2017 version of the New York Jets logo jet

Following the lead of American and Southwest, JetBlue has joined the ranks of those U.S. airlines offering a $1000 bonus to its employees. Here is the announcement:

On January 4, 2018 the JetBlue Senior Leadership Team shared the following note regarding the airline’s plan to distribute $1,000 to all of its 21,000 crewmembers, excluding CEO and executive vice presidents, following recent tax reform legislation:

Dear Crewmembers,

You’ve likely seen the news about U.S. tax reform. We believe these tax changes will be positive for our company, and provide us the opportunity to do good things for our Crewmembers, Customers and shareholders.

When tax reform looked like a real possibility late last year, we formed a team to think through what it could mean for each of these important groups. Many ideas are on the table but we believe our Crewmembers should be the first to benefit.With that in mind, we are excited to announce we will be paying every Crewmember employed as of December 31, 2017, a $1,000 bonus by the end of February!

Crewmembers like you are the heart of JetBlue and the reason we have become one of the most awarded airlines (and brands) in the world. We’re delighted we’re able to offer this extra thank you for your incredible efforts. In the months ahead, we look forward to working with our Values Committees and directly with you on other ideas for how we can use tax reform benefits to make JetBlue even stronger.

As a smaller airline competing against four very large competitors it is vital we continue to run a sustainable and profitable company. With over 50% of Crewmembers also being shareholders, we understand the importance of retaining investors’ confidence in our company better than anyone else.

Ultimately, we will continue to succeed because we have the best Crewmembers in the business. All 21,217 of us are continuing to do something that is truly unique in our industry by genuinely caring for each other, our Customers and our shareholders.

Finally, the new year has barely begun and we are already in our first winter irregular operation. We know today’s weather presents demanding operating conditions. As we manage through the storm, let’s remind ourselves of our #1 value – Safety. Every Crewmember is empowered to call a safety time-out if needed. This is ultimately the most important responsibility any of us have.

We’re looking forward to a great 2018 here at JetBlue. Thanks for being part of it.

Best wishes,

Robin Hayes
President & CEO

Mike Elliott
EVP People

Joanna Geraghty
EVP Customer Experience

James Hnat
EVP General Counsel

Jeffrey Martin
EVP Operations

Steve Priest
EVP Chief Financial Officer

Marty St George
EVP Commercial

Eash Sundaram
EVP Chief Digital and Technology Officer

Top Copyright Photo: JetBlue Airways Airbus A320-232 N746JB (msn 3622) (New York Jets) LGB (Michael B. Ing). Image: 940445.

JetBlue aircraft slide show:

JetBlue Airbus A320 skids off an icy taxiway at Boston after landing

JetBlue Airways’ flight 50 from Savannah, GA to Boston on Monday night, December 25, 2017. The Airbus A320 skidded off an icy taxiway after landing while taxiing to the terminal. There were no injuries.

Top Photo from social media: Photo by Brian Heacox.

JetBlue expands in Worcester with daily New York-JFK nonstop flights

JetBlue Airways Embraer ERJ 190-100 IGW N329JB (msn 19000433) (Barcode) FLL (Brian McDonough). Image: 908032.

JetBlue Airways has announced it is further expanding its presence in New England by launching daily nonstop service between Worcester Regional Airport (ORH) and New York’s John F. Kennedy International Airport (JFK) beginning May 3, 2018.

JetBlue is the only commercial airline to serve Worcester. The airline’s New York service builds on existing nonstop flights between Worcester and Fort Lauderdale-Hollywood International Airport (FLL) and Orlando International Airport (MCO), which launched in November 2013.

Schedule Between Worcester (ORH) and New York-JFK (JFK)
Beginning May 3, 2018

ORH-JFK Flight #671 JFK-ORH Flight #676
6:04 a.m. – 7:00 a.m.

10:45 p.m. – 11:50 p.m.

JetBlue will serve the route with its Embraer 190 aircraft.

Copyright Photo: JetBlue Airways Embraer ERJ 190-100 IGW N329JB (msn 19000433) (Barcode) FLL (Brian McDonough). Image: 908032.