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JetBlue Announces 2010 Annual Profit

JetBlue Announces 2010 Annual Profit

Old Jan 27, 11, 12:44 pm
  #1  
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JetBlue Announces 2010 Annual Profit

JetBlue Airways Corporation (Nasdaq: JBLU) today reported its results for the fourth quarter and full year 2010:
  • Pre-tax income of $15 million in the fourth quarter. This compares to pre-tax income of $20 million in the year-ago period.
  • For the full year 2010, JetBlue reported pre-tax income of $161 million. This compares to a pre-tax income of $104 million for the full year 2009.
  • Net income for the fourth quarter was $9 million, or $0.03 per diluted share. This compares to JetBlue's fourth quarter 2009 net income of $11 million, or $0.04 per diluted share.
  • For the full year 2010, JetBlue reported net income of $97 million, or $0.31 per diluted share. This compares to net income of $61 million, or $0.21 per diluted share, for the full year 2009.
http://investor.jetblue.com/phoenix....737&highlight=
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Old Jan 28, 11, 9:20 am
  #2  
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A few notes from the earnings call yesterday.
  • B6 realized $85MM in EML sales in 2010. That's roughly $400/flight operated. I'm quite impressed by that number. So is B6, based on their comments on the call, and they expect it to go up in the coming year based on the Sabre switch and the variable pricing they can now offer that was introduced last April.
  • B6 is now the largest carrier in the DR by ASMs and they will hold that position in Puerto Rico this summer when they add SJU-TPA/JAX service.
  • LatAm is going to continue to be a growth focus for the company. Stations there are easy and cheap to set up and profitable even if only 1x daily service.
  • Delivery of 4 new A320s (3/0/0/1) and 4 E190s (1/1/1/1) in 2011 (quarterly net changes).
  • The company has instituted a YQ surcharge for flights in the Caribbean/LatAm. It is $35 each way for Puerto Rico and $45 for all other destinations. I'm not a fan of this at all.
  • One new interline partner is expected in the next month or so. No specifics on who it will be but when pressed they mentioned LAX, BOS, MCO, IAD, JFK as places where the company has good connection options. LAX only connects to transcons so I'm not sure what that's about. That said, VS flies to all those destinations and B6 just moved in MCO in a manner that can help such connections. Plus VS could be losing CO as a partner given the CO/UA merger. I'm betting on VS as the next interline partner.
  • Interline booking will be coming to jetblue.com later this year.
  • Priority screening lines (JFK and elsewhere) is an option for "elites" in the coming months. Might be TB-related or EML or paid or something else, but they are considering it.
  • LiveTV is still waiting to hear what CO/UA are going to do with the mixed fleet in terms of upgrades.
  • Unlikely to see F anytime soon ("The business model we believe is working.").
  • BOS is doing very well as a biz travel site.
  • With regard to the AA/GDS issues B6 is still mostly a direct sales company but they are liking what they are getting out of the GDS integration. Also B6 can offer EML up-sells via the GDS to corporate customers so they do not require direct for those features.
    • "Our share of biz through the GDS channel has significantly grown is still a small slice of the pie. We remain and continue to remain largely a consumer direct business."
    • "We do not have the same skin in the game as some of the more traditional airlines."
    • "We see a strong yield premium from the distrbution that we have added through some of the corporate channels. We still have the capability of adding EML to that channel. We can do that within the GDS infrastructure; we don't need direct connect for that."
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Old Jan 28, 11, 11:52 am
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VS as the next code share

Originally Posted by sbm12 View Post
A few notes from the earnings call yesterday.
  • B6 realized $85MM in EML sales in 2010. That's roughly $400/flight operated. I'm quite impressed by that number. So is B6, based on their comments on the call, and they expect it to go up in the coming year based on the Sabre switch and the variable pricing they can now offer that was introduced last April.
  • B6 is now the largest carrier in the DR by ASMs and they will hold that position in Puerto Rico this summer when they add SJU-TPA/JAX service.
  • LatAm is going to continue to be a growth focus for the company. Stations there are easy and cheap to set up and profitable even if only 1x daily service.
  • Delivery of 4 new A320s (3/0/0/1) and 4 E190s (1/1/1/1) in 2011 (quarterly net changes).
  • The company has instituted a YQ surcharge for flights in the Caribbean/LatAm. It is $35 each way for Puerto Rico and $45 for all other destinations. I'm not a fan of this at all.
  • One new interline partner is expected in the next month or so. No specifics on who it will be but when pressed they mentioned LAX, BOS, MCO, IAD, JFK as places where the company has good connection options. LAX only connects to transcons so I'm not sure what that's about. That said, VS flies to all those destinations and B6 just moved in MCO in a manner that can help such connections. Plus VS could be losing CO as a partner given the CO/UA merger. I'm betting on VS as the next interline partner.
  • Interline booking will be coming to jetblue.com later this year.
  • Priority screening lines (JFK and elsewhere) is an option for "elites" in the coming months. Might be TB-related or EML or paid or something else, but they are considering it.
  • LiveTV is still waiting to hear what CO/UA are going to do with the mixed fleet in terms of upgrades.
  • Unlikely to see F anytime soon ("The business model we believe is working.").
  • BOS is doing very well as a biz travel site.
  • With regard to the AA/GDS issues B6 is still mostly a direct sales company but they are liking what they are getting out of the GDS integration. Also B6 can offer EML up-sells via the GDS to corporate customers so they do not require direct for those features.
    • "Our share of biz through the GDS channel has significantly grown is still a small slice of the pie. We remain and continue to remain largely a consumer direct business."
    • "We do not have the same skin in the game as some of the more traditional airlines."
    • "We see a strong yield premium from the distrbution that we have added through some of the corporate channels. We still have the capability of adding EML to that channel. We can do that within the GDS infrastructure; we don't need direct connect for that."
It would make sense to have VS be the next code share but it would be intersting to see the VX reaction (especially since they have LAX flights also)
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Old Jan 28, 11, 4:49 pm
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Originally Posted by sbm12 View Post
The company has instituted a YQ surcharge for flights in the Caribbean/LatAm. It is $35 each way for Puerto Rico and $45 for all other destinations. I'm not a fan of this at all.
I think you misinterpreted what was said on the call. JetBlue did not institute a YQ to the Caribbean.
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Old Jan 28, 11, 4:56 pm
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Originally Posted by Igotmybigboypantson View Post
I think you misinterpreted what was said on the call. JetBlue did not institute a YQ to the Caribbean.
Are they coding it differently? They very clearly said a "fuel surcharge" several times during the call.
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Old Jan 28, 11, 5:24 pm
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They did file a Q fuel surcharge but not a YQ.
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Old Jan 28, 11, 10:14 pm
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Originally Posted by Igotmybigboypantson View Post
They did file a Q fuel surcharge but not a YQ.
What does this mean? Can you explains to me? Can B6 will orders newest A320NEO or A321NEO?
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Old Jan 29, 11, 8:48 am
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Originally Posted by N830MH View Post
What does this mean? Can you explains to me? Can B6 will orders newest A320NEO or A321NEO?
They still have a lot of A320's and E190's on order. I don't think B6 is looking to amend orders to include a different aircraft or add another variation to the fleet. Remember, the more types of aircrafts you add to your fleet, the more training you have to give your people, the more certifacations they may have to or will have to carry, and it becomes harder to keep things straight during IROPS. All these take away from profitability. Unless the new aircraft can significantly generate more income, it won't be a possibility.
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Old Jan 29, 11, 12:41 pm
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Originally Posted by Seat13c View Post
They still have a lot of A320's and E190's on order. I don't think B6 is looking to amend orders to include a different aircraft or add another variation to the fleet. Remember, the more types of aircrafts you add to your fleet, the more training you have to give your people, the more certifacations they may have to or will have to carry, and it becomes harder to keep things straight during IROPS. All these take away from profitability. Unless the new aircraft can significantly generate more income, it won't be a possibility.
How many A320 & E90 has already on orders?
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Old Jan 30, 11, 6:57 am
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Originally Posted by N830MH View Post
How many A320 & E90 has already on orders?
Ths year I know they're taking delivery of 8 new birds (4 of each). Give me some time before I can dig up the exact number left of those still yet to come.
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Old Jan 30, 11, 7:16 am
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Originally Posted by Seat13c View Post
Ths year I know they're taking delivery of 8 new birds (4 of each). Give me some time before I can dig up the exact number left of those still yet to come.
They're actually taking 5x E90s but also removing one. It is net +4 but 5 will have that new plane smell. My initial details on that were a bit misleading; sorry.
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Old Jan 30, 11, 8:17 am
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Removal of E90

Originally Posted by sbm12 View Post
They're actually taking 5x E90s but also removing one. It is net +4 but 5 will have that new plane smell. My initial details on that were a bit misleading; sorry.
What are they doing with the removal of the E90? Are they selling it or did the lease expire ?
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