NEW YORK, Feb. 1, 2006 (PRIMEZONE) -- JetBlue Airways Corporation (NasdaqNM:JBLU - News) today reported its results for the fourth quarter and full year 2005:


-- Net loss for the quarter was $42.4 million, representing a
loss per share of $0.25. These results include $13.0 million
in unusual charges consisting of $6.9 million in non-cash stock-
based compensation expense related to the accelerated vesting
of certain employee stock options and a $6.1 million charge for
development costs related to a maintenance and inventory tracking
system that will not be implemented. Excluding these two unusual
items, the reported net loss would have been $32.0 million, or a
loss per diluted share of $0.19 in the fourth quarter. This
compares with fourth quarter 2004 net income of $1.5 million,
or $0.01 per diluted share. For the full year 2005, net loss
totaled $20.3 million, or a $0.13 loss per share. Excluding
these two unusual items, the reported net loss would have been
$9.8 million, or a loss per diluted share of $0.06 for the full
year ended December 31, 2005, compared with net income of $46.2
million, or $0.28 per diluted share, for the full year 2004.

-- Operating loss for the quarter was $31.5 million, resulting in
a negative 7.1% operating margin. Excluding the impact of the
unusual items, the reported operating margin would have been
negative 4.1%. This compares to operating income of $10.8
million and a 3.2% operating margin in the fourth quarter of 2004.
For the full year 2005, operating income was $47.6 million,
resulting in an operating margin of 2.8%. Excluding the impact
of the unusual items, operating margin for the full year 2005
would have been 3.6%. This compares with operating income of
$110.9 million and an 8.8% operating margin for the full year
2004.

-- Operating revenues for the quarter totaled $446.0 million,
representing growth of 34.0% over operating revenues of $332.8
million in the fourth quarter of 2004. For the full year,
operating revenues totaled $1.70 billion, representing growth of
34.5% over operating revenues of $1.26 billion for the full year
2004.

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``We are very disappointed in our performance this quarter as we continued to feel the effects of record-high fuel prices and a tough revenue environment, compounded by the impact of Hurricane Wilma and the residual effects of Hurricanes Katrina and Rita,'' said David Neeleman, JetBlue's Chairman and CEO. ``Although we saw a 7.4% increase in revenue per available seat mile (RASM) in the face of 25% capacity growth, it was not nearly enough to offset the impact of high fuel costs.''

During the fourth quarter of 2005, JetBlue achieved a completion factor of 98.9% of scheduled flights, compared to 99.9% in 2004. On-time performance, defined by the US Department of Transportation as arrivals within 14 minutes of schedule, was 70.9% in the fourth quarter of 2005 compared to 80.1% for the same period in 2004. For the full year 2005, JetBlue achieved a completion factor of 99.4%, identical to the full year 2004. On-time performance for the full year 2005 was 71.6%, compared to 81.6% for the full year 2004. The Company attained a load factor in the fourth quarter of 2005 of 81.1%, a decrease of 1.8 points on a capacity increase of 24.7% over the fourth quarter of 2004. Load factor for the full year 2005 was 85.2%, an increase of 2.0 points on a capacity increase of 25.3%.

Dave Barger, President and COO, commented, ``Our crewmembers performed admirably throughout the difficult environment of 2005. Together, we successfully met the challenges of opening four new cities, connecting many others destinations across our system, adding sixteen new A320s, integrating the E190 aircraft into our fleet as well as commencing construction of our new terminal at JFK and completing construction of two new hangars in addition to our new training facility in Orlando. Looking ahead, we remain focused on improving the company's financial and operating performance.''

For the fourth quarter 2005, operating revenues increased by 34.0% over 2004 to $446.0 million. Revenue passenger miles increased 22.0% from the fourth quarter of 2004 to 5.2 billion. Yield per passenger mile was 8.16 cents, up 8.1% compared to 2004. Operating revenue per available seat mile (RASM) increased 7.4% year-over-year to 7.02 cents. Available seat miles grew 24.7% to 6.4 billion. Operating expenses for the fourth quarter were $477.5 million, up 48.3% from the fourth quarter of 2004. Operating expense per ASM (CASM) for the fourth quarter 2005 increased 18.9% year-over-year to 7.51 cents. This figure includes the impact of the two unusual items discussed above. During the quarter, realized fuel price was $1.87 per gallon, a 50.3% increase over fourth quarter 2004 realized fuel price of $1.24. Excluding fuel, CASM increased 7.9% year over year. As a result of its fuel hedging program, JetBlue realized an $11.8 million benefit in the fuel expense line in the fourth quarter and a $43.1 million benefit for the full year 2005. JetBlue ended the year with $483.8 million in cash and investment securities.

Looking ahead, for the first quarter of 2006, JetBlue expects to report a negative operating margin between 3% and 5% assuming an all in aircraft fuel cost per gallon of $1.92. For the first quarter, CASM is expected to increase between 17% and 19% over the year-ago period, at the assumed $1.92 aircraft fuel cost per gallon. Excluding fuel, CASM in the first quarter is expected to increase between 6% and 8% year over year. Capacity is expected to increase between 27% and 29% over the same period last year. For the full year 2006, JetBlue expects to report an operating margin between 2% and 4% based on an assumed aircraft fuel cost per gallon of $1.98, net of hedges. CASM for the full year is expected to increase between 10% and 12% over full year 2005, at the assumed $1.98 aircraft fuel cost per gallon. Excluding fuel, CASM in 2006 is expected to increase between 4% and 6% year over year. Capacity for the full year 2006 is expected to increase between 28% and 30% over 2005. Based on these assumptions, the company expects to report a net loss for both the first quarter and the full year 2006.

JetBlue will conduct a conference call to discuss its quarterly earnings today, February 1, at 10:00 a.m. Eastern Time. A live broadcast of the conference call will be available via the World Wide Web at http://investor.jetblue.com.

About JetBlue

JetBlue Airways is a low-fare airline based in New York City that operates 370 flights daily to 34 destinations. JetBlue offers customers roomy leather seats with 36 channels of free DIRECTV(r) (a) programming, the most live television offered by any airline. On flights longer than two hours, the airline also features a selection of first-run movies and bonus features from FOX InFlight(tm). Customers enjoy brand name snacks and beverages, including freshly brewed Dunkin' Donuts coffee and fine wines selected by JetBlue's ``Low Fare Sommelier,'' Joshua Wesson, founder of Best Cellars. With JetBlue, all seats are assigned, all travel is ticketless, all fares are one-way and an overnight stay is never required. For information or reservations call 1-800-JETBLUE (1-800-538-2583) or visit http://www.jetblue.com.

(a) DIRECTV(r) service is not available on flights between JFK or Newark and Puerto Rico or the Dominican Republic; however, FOX InFlight(tm) is offered complimentary on these routes. FOX InFlight is a trademark of Twentieth Century Fox Film Corporation. JetBlue's in-flight entertainment is powered by LiveTV, a wholly owned subsidiary of JetBlue.

This press release contains statements of a forward-looking nature which represent our management's beliefs and assumptions concerning future events. Forward-looking statements involve risks, uncertainties and assumptions and are based on information currently available to us. Actual results may differ materially from those expressed in the forward looking statements due to many factors, including without limitation, our extremely competitive industry, our ability to implement our growth strategy including the integration of the EMBRAER 190 aircraft into our operations, our significant fixed obligations, our ability to maintain our culture, our reliance on high daily aircraft utilization, increases in maintenance costs, fuel prices, insurance costs and interest rates, our dependence on the New York market, our reliance on automated systems and technology, our reliance on sole suppliers, additional government regulation and future acts of terrorism or the threat of such acts or escalation of U.S. military involvement overseas. Information concerning these and other factors is contained in the Company's Securities and Exchange Commission filings, including but not limited to, the Company's 2004 Annual Report on Form 10-K/A and Quarterly Reports on Form 10-Q and 10Q/A. We undertake no obligation to update any forward-looking statements to reflect events or circumstances that may arise after the date of this release.

The JetBlue logo is available at: http://www.primezone.com/newsroom/prs/?pkgid=795

Not just a loss; a BIG loss.

That's what happens when you add lots of new capacity into an already oversaturated market, driving down fares and yields in the face of much higher costs.

To JetBlue's credit, its average fare and yield were up substantially in 2005, after falling quite a bit over the past 8-10 quarters.

Stock is down more than 13% -- makes my Google loss last night look like nothing!

And they have just been downgraded from 'neutral' to 'sell' by Merrill Lynch. Ouch!!

Sorry, I posted this in the wrong thread within this forum. Should have posted this here:

A Continental sympathizer here, but...

I had a chance to hear from JetBlue management recently, and hear what's going on operationally.

Folks, they really are still trying to get their act together on the fundamentals.

They're getting a new plane every week, and can't manage their introduction to the fleet or optimal scheduling. Worse yet, they're going to logistically uproot their staff.

In today's earnings announcement, Neeleman said they are moving Revenue Management and Scheduling from satellite locations to headquarters:

"Although the discount carrier's average fare rose to $110 in 2005, Mr. Neeleman said JetBlue needs to get $115 to $120 a ticket to be profitable at these fuel prices. To better manage its revenue, the carrier is moving its revenue-management team to headquarters from their offices in Salt Lake City. And the schedule-planning department will decamp from offices in Darien, Conn., to Forest Hills. "We need to do a better job," he said."

These are steps they need to take to grow, but my sense is the growth is coming too fast with the EMBs, and they just can't handle it, so expect more reliability problems for at least the next 3-6 months until the team is settled and cohesive.

Too bad, since they really do have something different going that people like. But when you can't run on time consistently, many people aren't going to wait around no matter how nice. Let's hope fuel stays low enough that the missteps don't kill them before they get a chance to catch up.