JetBlue Airways Corp. (JBLU, Financial) filed Quarterly Report for the period ended 2009-09-30.
JetBlue Airways is a low-fare low-cost passenger airline which provides high-quality customer service primarily on point-to-point routes and is based in New York's John F. Kennedy International Airport. Jetblue Airways Corp. has a market cap of $1.6 billion; its shares were traded at around $5.32 with a P/E ratio of 35.5 and P/S ratio of 0.5. Jetblue Airways Corp. had an annual average earning growth of 8.5% over the past 5 years.
Aircraft fuel expense decreased 36%, or $385 million, due to a 35% decrease in average fuel cost per gallon, or $370 million after the impact of fuel hedging, and 5 million less gallons of aircraft fuel consumed, resulting in $15 million less fuel expense. We recorded $121 million in fuel hedge losses during the first three quarters of 2009 versus $105 million in fuel hedge gains during the first three quarters of 2008. Our average fuel cost per gallon was $2.00 for the nine months ended September 30, 2009 compared to $3.08 for the same period in 2008. Cost per available seat mile decreased 35% primarily due to the decrease in fuel price.
Interest income and other decreased 84%, or $34 million, primarily due to lower interest rates earned on investments, and lower average cash and investment balances, resulting in $20 million lower interest income. Interest income and other also decreased due to a net $1 million loss related to our auction rate securities and related put option. Our derivative instruments not qualifying for cash flow hedges in 2009 resulted in a loss of $2 million, compared to a $4 million gain in 2008. Additionally, in 2008, accounting ineffectiveness on crude and heating oil derivatives classified as cash flow hedges resulted in a $1 million gain. We are unable to predict what the amount of ineffectiveness will be related to these instruments, or the potential loss of hedge accounting, which is determined on a derivative-by-derivative basis, due to the volatility in the forward markets for these commodities. Interest income and other included $2 million and $9 million in gains on the extinguishment of debt in 2009 and 2008, respectively.
During the nine months ended September 30, 2008, capital expenditures related to our purchase of flight equipment included expenditures of $442 million for 13 aircraft and two spare engines, $45 million for flight equipment deposits and $6 million for spare part purchases. Capital expenditures for other property and equipment, including ground equipment purchases and facilities improvements, were $50 million. Net cash provided by the purchase and sale of available-for-sale securities was $322 million and proceeds from the sale of five aircraft were $164 million. We posted $52 million in restricted cash that
Financing Activities. Financing activities for the nine months ended September 30, 2009 consisted of (1) our issuance of $201 million of 6.75% convertible debentures, raising net proceeds of approximately $197 million, (2) our public offering of approximately 26.5 million shares of common stock for approximately $109 million in net proceeds, (3) our issuance of $143 million in fixed equipment notes to banks and $102 million in floating rate equipment notes to banks secured by three Airbus A320 and six EMBRAER 190 aircraft, (4) paying down a net of $107 million on our lines of credit collateralized by our ARS, (5) scheduled maturities of $110 million of debt and capital lease obligations, (6) the repurchase of $20 million principal amount of 3.75% convertible debentures due 2035 for $20 million, and (7) reimbursement of construction costs incurred for Terminal 5 of $42 million.
Financing activities for the nine months ended September 30, 2008 consisted of (1) the issuance of approximately 42.6 million shares of common stock to Deutsche Lufthansa AG for approximately $301 million, net of transaction costs, (2) our public offering of $201 million aggregate principal amount of 5.5% convertible debentures due 2038, raising net proceeds of approximately $165 million after depositing approximately $32 million to related interest escrow accounts and paying issuance costs, (3) our issuance of $317 million in fixed equipment notes to banks and $92 million in floating rate equipments notes to banks secured by nine Airbus A320 aircraft, four EMBRAER 190 aircraft, and one spare engine, (4) repayment of $175 million principal amount of 3.5% convertible debt issued in 2003, (5) repayment of $104 million of debt in connection with the sale of five aircraft, (6) repurchase of $53 million principal amount of 3.75% convertible debentures due 2035 for $40 million, (7) scheduled maturities of $169 million of debt and capital lease obligations, (8) reimbursement of construction costs incurred for our new terminal at JFK of $104 million, and (9) the sale-leaseback over 18 years of one EMBRAER 190 aircraft for $26 million by a U.S. leasing institution.
Read the The complete ReportJBLU is in the portfolios of Lee Ainslie of Maverick Capital, PRIMECAP Management, Ken Heebner of CAPITAL GROWTH MANAGEMENT LP.
JetBlue Airways is a low-fare low-cost passenger airline which provides high-quality customer service primarily on point-to-point routes and is based in New York's John F. Kennedy International Airport. Jetblue Airways Corp. has a market cap of $1.6 billion; its shares were traded at around $5.32 with a P/E ratio of 35.5 and P/S ratio of 0.5. Jetblue Airways Corp. had an annual average earning growth of 8.5% over the past 5 years.
Highlight of Business Operations:
Aircraft fuel expense decreased 38%, or $148 million, due to a 40% decrease in average fuel cost per gallon, or $160 million after the impact of fuel hedging, offset by an increase of 4 million gallons of aircraft fuel consumed, resulting in $12 million more in fuel expense. We recorded $23 million in effective fuel hedge losses during the third quarter of 2009 versus $22 million in effective fuel hedge gains during the third quarter of 2008. Our average fuel cost per gallon was $2.07 for the third quarter of 2009 compared to $3.42 for the third quarter of 2008.Aircraft fuel expense decreased 36%, or $385 million, due to a 35% decrease in average fuel cost per gallon, or $370 million after the impact of fuel hedging, and 5 million less gallons of aircraft fuel consumed, resulting in $15 million less fuel expense. We recorded $121 million in fuel hedge losses during the first three quarters of 2009 versus $105 million in fuel hedge gains during the first three quarters of 2008. Our average fuel cost per gallon was $2.00 for the nine months ended September 30, 2009 compared to $3.08 for the same period in 2008. Cost per available seat mile decreased 35% primarily due to the decrease in fuel price.
Interest income and other decreased 84%, or $34 million, primarily due to lower interest rates earned on investments, and lower average cash and investment balances, resulting in $20 million lower interest income. Interest income and other also decreased due to a net $1 million loss related to our auction rate securities and related put option. Our derivative instruments not qualifying for cash flow hedges in 2009 resulted in a loss of $2 million, compared to a $4 million gain in 2008. Additionally, in 2008, accounting ineffectiveness on crude and heating oil derivatives classified as cash flow hedges resulted in a $1 million gain. We are unable to predict what the amount of ineffectiveness will be related to these instruments, or the potential loss of hedge accounting, which is determined on a derivative-by-derivative basis, due to the volatility in the forward markets for these commodities. Interest income and other included $2 million and $9 million in gains on the extinguishment of debt in 2009 and 2008, respectively.
During the nine months ended September 30, 2008, capital expenditures related to our purchase of flight equipment included expenditures of $442 million for 13 aircraft and two spare engines, $45 million for flight equipment deposits and $6 million for spare part purchases. Capital expenditures for other property and equipment, including ground equipment purchases and facilities improvements, were $50 million. Net cash provided by the purchase and sale of available-for-sale securities was $322 million and proceeds from the sale of five aircraft were $164 million. We posted $52 million in restricted cash that
Financing Activities. Financing activities for the nine months ended September 30, 2009 consisted of (1) our issuance of $201 million of 6.75% convertible debentures, raising net proceeds of approximately $197 million, (2) our public offering of approximately 26.5 million shares of common stock for approximately $109 million in net proceeds, (3) our issuance of $143 million in fixed equipment notes to banks and $102 million in floating rate equipment notes to banks secured by three Airbus A320 and six EMBRAER 190 aircraft, (4) paying down a net of $107 million on our lines of credit collateralized by our ARS, (5) scheduled maturities of $110 million of debt and capital lease obligations, (6) the repurchase of $20 million principal amount of 3.75% convertible debentures due 2035 for $20 million, and (7) reimbursement of construction costs incurred for Terminal 5 of $42 million.
Financing activities for the nine months ended September 30, 2008 consisted of (1) the issuance of approximately 42.6 million shares of common stock to Deutsche Lufthansa AG for approximately $301 million, net of transaction costs, (2) our public offering of $201 million aggregate principal amount of 5.5% convertible debentures due 2038, raising net proceeds of approximately $165 million after depositing approximately $32 million to related interest escrow accounts and paying issuance costs, (3) our issuance of $317 million in fixed equipment notes to banks and $92 million in floating rate equipments notes to banks secured by nine Airbus A320 aircraft, four EMBRAER 190 aircraft, and one spare engine, (4) repayment of $175 million principal amount of 3.5% convertible debt issued in 2003, (5) repayment of $104 million of debt in connection with the sale of five aircraft, (6) repurchase of $53 million principal amount of 3.75% convertible debentures due 2035 for $40 million, (7) scheduled maturities of $169 million of debt and capital lease obligations, (8) reimbursement of construction costs incurred for our new terminal at JFK of $104 million, and (9) the sale-leaseback over 18 years of one EMBRAER 190 aircraft for $26 million by a U.S. leasing institution.
Read the The complete ReportJBLU is in the portfolios of Lee Ainslie of Maverick Capital, PRIMECAP Management, Ken Heebner of CAPITAL GROWTH MANAGEMENT LP.
