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JetBlue Airways Corp. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: May 2, 2012 11:03AM
JetBlue Airways Corp. (JBLU) filed Quarterly Report for the period ended 2012-03-31. Jetblue Airways has a market cap of $1.31 billion; its shares were traded at around $4.72 with a P/E ratio of 12.9 and P/S ratio of 0.3. Jetblue Airways had an annual average earning growth of 6.6% over the past 10 years.
Highlight of Business Operations:Amid uncertain economic conditions and continuing pressure from volatile fuel prices, we experienced a relatively strong pricing environment in the first quarter of 2012, which allowed us to fully offset the increased fuel prices with higher revenues driven by a 7% increase in average fares. Despite a 10% increase in average fuel prices compared to the first quarter of 2011, our operating margin in the first quarter of 2012 increased 3.0 points. We believe our network strategy is working, particularly in key markets such as Boston and the Caribbean, which contributed to our successful first quarter results. We believe our growth is being done responsibly, evidenced by the combination of a 12% increase in capacity while yield grew 6% compared to the prior year and load factor increased by 1.5 points. Our overall strategy remains focused on strengthening our culture, offerings, and foundations to improve the JetBlue Experience for our employees, customers, and shareholders.
Our operating revenue per available seat mile for the quarter increased 6% over the same period in 2011. Our average fares for the quarter increased 7% as compared to 2011 to $160, and our load factor increased 1.5 points to 82.9% from a year ago.
We reported net income of $30 million for the three months ended March 31, 2012, compared to $3 million for the three months ended March 31, 2011. Diluted earnings per share were $0.09 for the first quarter of 2012 compared to $0.01 for 2011. Our operating income for the three months ended March 31, 2012 was $89 million compared to $45 million for the same period last year, and our pre-tax margin increased 3.4 points from 2011 to 4.0%.
Operating Revenues. Operating revenues increased 19%, or $191 million, over the same period in 2011, primarily due to a 21%, or $190 million, increase in passenger revenues. The increase in passenger revenues was largely attributable to a 12% increase in capacity along with an 6% increase in yield as compared to the first quarter of 2011. Revenue from our Even More offering increased approximately $11 million.
At March 31, 2012, we had unrestricted cash and cash equivalents of $652 million and short-term investments of $573 million compared to cash and cash equivalents of $673 million and short term investments of $553 million at December 31, 2011. Cash flows from operating activities were $292 million and $231 million for the three months ended March 31, 2012 and 2011, respectively. The increase in operating cash flows reflects the 7% increase in average fares and 12% increase in capacity offset by the 10% higher price of fuel in 2012 compared to 2011. As of March 31, 2012, our unrestricted cash, cash equivalents and short-term investments as a percentage of trailing twelve months revenue was approximately 26%, which we believe is among the best in the industry. We rely primarily on operating cash flows to provide working capital for current and future operations.
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