JetBlue earnings
JetBlue Announces Reduced Third Quarter Profit
JetBlue Airways Corporation today reported a reduced third quarter 2004 profit of $8.4 million, down 71 percent from the $29.0 million profit reported in the third quarter of 2003.
Operating revenue for the quarter totaled $323.2 million, representing growth of 18.1 percent over operating revenues of $273.6 million in the third quarter of 2003. Operating income in the quarter was $23.0 million, resulting in a 7.1 percent operating margin, compared to operating income of $53.8 million and a 19.7 percent operating margin in the third quarter of 2003.
"The combination of a continued weak pricing environment, record high fuel prices and the impact of four major hurricanes in many of our southern markets made for a very challenging quarter," said David Neeleman, JetBlue's Chairman and CEO. "Nonetheless, we are encouraged that the fundamentals of our business continue to be solid: good demand from our loyal customers, exceptional operating performance, and unit cost performance that, on a fuel neutral basis, improved year over year."
For the third quarter 2004, operating revenues increased by 18.1 percent over 2003 to $323.2 million. Revenue passenger miles increased 29.1 percent from the third quarter of 2003 to 4.2 billion. Yield per passenger mile was 7.43 cents, down 8.8 percent compared to 2003 on a 2.7 percent increase in average length of haul. Operating revenue per available seat mile (RASM) decreased 11.4 percent year-over-year to 6.54 cents. Available seat miles grew 33.3 percent to 4.9 billion.
Operating expenses for the third quarter were $300.2 million, up 36.6 percent from the third quarter of 2003. Operating expense per ASM (CASM) for the third quarter 2004 increased 2.5 percent year-over-year to 6.08 cents. During the quarter, fuel price was $1.08 per gallon, a 32.7 percent increase over third quarter 2003 fuel price of $0.81. JetBlue ended the third quarter with $516.7 million in cash and short-term investments.