JetBlue Airways Corporation reported net income for the third quarter was $15 million, or $0.05 per diluted share. Excluding the accounting gain, JetBlue's net income for the quarter would have been $12 million, or $0.04 per diluted share. This compares to JetBlue's third quarter 2008 net loss of $8 million, or $0.03 per diluted share. Operating income for the quarter was $66 million, resulting in a 7.7 percent operating margin, compared to operating income of $22 million and a 2.4 percent operating margin in the third quarter of 2008.

“Despite a tough economic environment, we reported our third consecutive quarterly profit, thanks in large part to the hard work of our dedicated crewmembers,” said Dave Barger, JetBlue's CEO. “The actions we took last year, including restructuring our fuel hedge portfolio, reallocating capacity and selling and deferring aircraft, have led to significantly improved results. While the uncertain economic environment continues to pressure demand for air travel, we have been able to leverage our strong brand and superior product to introduce innovative ways to attract new customers and build customer loyalty.”

Operating revenues for the quarter totaled $854 million, representing a decline of 5.3 percent over the third quarter of 2008. Revenue passenger miles for the third quarter increased 2.6 percent to 7.0 billion on a 2.9 percent increase in capacity, resulting in a third quarter load factor of 83.7%, a decrease of 0.3 points year over year. Yield per passenger mile in the third quarter was 10.87 cents, down 7.7 percent compared to the third quarter of 2008. Passenger revenue per available seat mile (PRASM) for the third quarter 2009 decreased 8 percent on a year over year basis to 9.10 cents and operating revenue per available seat mile (RASM) decreased 8 percent year-over-year to 10.19 cents.

Operating expenses for the quarter decreased 10.5 percent, or $92 million, over the prior year period. JetBlue's operating expense per available seat mile (CASM) for the third quarter decreased 13 percent year-over-year to 9.40 cents. Excluding fuel, CASM increased 8.5 percent to 6.47 cents. JetBlue's fuel expense for the quarter was $148 million lower compared to the same period last year. JetBlue's realized fuel price in the third quarter was $2.07 per gallon, a 39.7 percent decrease over third quarter 2008 realized fuel price of $3.42. JetBlue ended the third quarter with approximately $951 million in cash and cash equivalents.

Looking ahead, for the fourth quarter of 2009, JetBlue said it expects to report an operating margin between 6 and 8 percent. Pre-tax margin for the quarter is expected to be between zero and 2 percent. Excluding fuel, CASM in the fourth quarter is expected to increase between five and seven percent year over year. Capacity is expected to increase between five and seven percent in the fourth quarter and stage length is expected to increase roughly one percent over the same period last year. For the full year 2009, JetBlue expects to report an operating margin between 7 and 9 percent. Pre-tax margin for the full year is expected to be between 2 and 4 percent. PRASM for the full year is expected to decrease between 4 and 7 percent year over year. Excluding fuel, CASM in 2009 is expected to increase between 7 and 9 percent year over year. For more information, visit www.jetblue.com.
 

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