Free 7-day Trial
All Articles and Columns »

JetBlue Airways Corp. Reports Operating Results (10-Q/A)

February 07, 2011 | About:
10qk

10qk

18 followers
JetBlue Airways Corp. (JBLU) filed Amended Quarterly Report for the period ended 2010-03-31.

Jetblue Airways Corp. has a market cap of $1.73 billion; its shares were traded at around $5.8 with a P/E ratio of 19.6 and P/S ratio of 0.46. Jetblue Airways Corp. had an annual average earning growth of 6.3% over the past 10 years.Hedge Fund Gurus that owns JBLU: Paul Tudor Jones of The Tudor Group, George Soros of Soros Fund Management LLC, Jim Simons of Renaissance Technologies LLC, Bruce Kovner of Caxton Associates. Mutual Fund and Other Gurus that owns JBLU: Donald Smith of Donald Smith & Co., PRIMECAP Management, Chuck Royce of Royce& Associates.
This is the annual revenues and earnings per share of JBLU over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of JBLU.


Highlight of Business Operations:

Aircraft fuel expense increased 14%, or $32 million, due to an 8% increase in average fuel cost per gallon, or $18 million after the impact of fuel hedging, and an increase of seven million gallons of aircraft fuel consumed, resulting in $14 million in additional fuel expense. We recorded $2 million in effective fuel hedge gains during 2010 versus $56 million in effective fuel hedge losses during 2009. Our average fuel cost per gallon was $2.19 for the first quarter of 2010 compared to $2.03 for the first quarter of 2009. Cost per available seat mile increased 8% primarily due to the increase in fuel price.

At March 31, 2010, we had unrestricted cash and cash equivalents of $829 million and short term investments of $234 million compared to cash and cash equivalents of $896 million and short term investments of $240 million at December 31, 2009. Cash flows from operating activities were $229 million for the three months ended March 31, 2010 compared to $124 million for the three months ended March 31, 2009. The increase in operating cash flows includes the impact of the increase in average fares and the 8% higher price of fuel in 2010 compared to 2009. We rely primarily on operating cash flows to provide working capital. At March 31, 2010, we had one line of credit totaling $63 million, which is secured by our auction rate securities, and was fully drawn as of March 31, 2010.

Investing Activities. During the three months ended March 31, 2010, capital expenditures related to our purchase of flight equipment included expenditures of $5 million for one spare engine, $5 million for flight equipment deposits and $4 million for spare part purchases. Capital expenditures for other property and equipment, including ground equipment purchases and facilities improvements, were $31 million. Investing activities also included the net purchase of $62 million in investment securities.

During the three months ended March 31, 2009, capital expenditures related to our purchase of flight equipment included expenditures of $200 million for seven aircraft and one spare engine, $7 million for flight equipment deposits and $4 million for spare part purchases. Capital expenditures for other property and equipment, including ground equipment purchases and facilities improvements, were $3 million. Proceeds from the sale of two aircraft were $58 million. Investing activities also included $29 million in proceeds from the sale of certain auction rate securities.

Financing Activities. Financing activities for the three months ended March 31, 2010 consisted of (1), the required repurchase of $155 million of our 3.75% convertible debentures due 2035, (2) borrowing a net $7 million on our line of credit collateralized by our ARS, (3) scheduled maturities of $39 million of debt and capital lease obligations, and (4) reimbursement of construction costs incurred for Terminal 5 of $4 million.

Financing activities for the three months ended March 31, 2009 consisted of (1) our issuance of $47 million in fixed rate equipment notes to banks and $102 million in floating rate equipment notes to banks secured by three Airbus A320 aircraft and two EMBRAER 190 aircraft, (2) paying down $38 million on our lines of credit collateralized by our ARS, (3) scheduled maturities of $32 million of debt and capital lease obligations, and (4) reimbursement of construction costs incurred for our new terminal at JFK of $15 million.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 3.2/5 (5 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide