This morning we’re happy to announce that we were profitable for the third year in a row, with a net income of $86 million in 2011. We also posted a $23 million profit in the fourth quarter — the highest fourth quarter profit in our history!
Join the conference call where we’ll discuss quarterly earnings today, January 26, at 9:30 a.m. Eastern Time. A live broadcast of the conference call will be available via the internet at http://investor.jetblue.com.
Some nuggets about our earnings:
- Net income for the fourth quarter was $23 million, or $0.08 per diluted share. This compares to our fourth quarter 2010 net income of $8 million, or $0.03 per diluted share.
- For the full year 2011, we reported net income of $86 million, or $0.28 per diluted share. This compares to net income of $97 million, or $0.31 per diluted share, for the full year 2010.
- We ended the year with $1.2 billion in cash and short term investments.
- We reported record fourth quarter operating revenues of $1.15 billion. For the full year, operating revenues totaled $4.50 billion, representing an increase of 19.2% over operating revenues of $3.78 billion for the full year 2010.
- For the fourth quarter, revenue passenger miles increased 11.0% year-over-year to 7.75 billion on a capacity increase of 10.5%, resulting in a fourth quarter load factor of 82.2%, an increase of 0.3 points year over year.
- Yield per passenger mile in the fourth quarter was 13.44 cents, up 11.3% compared to the fourth quarter of 2010. Passenger revenue per available seat mile (PRASM) for the fourth quarter 2011 increased 11.8% year over year to 11.05 cents and operating revenue per available seat mile (RASM) increased 10.5% year over year to 12.16 cents.
- Operating expenses for the quarter increased 20.4%, or $180 million, over the prior year period, of which $128 million was due to higher fuel costs. Our operating expense per available seat mile (CASM) for the fourth quarter increased 9.0% year over year to 11.27 cents. Excluding fuel, CASM decreased 1.5% to 6.85 cents.
- We continued to hedge fuel to manage price volatility. Specifically, we hedged approximately 45% of its fuel consumption during the fourth quarter, resulting in a realized fuel price of $3.15 per gallon, a 30% increase over fourth quarter 2010 realized fuel price of $2.42.
- During the fourth quarter, JetBlue generated approximately $114 million of operating cash flow, made debt payments of $65 million and had capital expenditures of $169 million. For the full year, JetBlue generated operating cash flow of $614 million and had capital expenditures of $524 million, resulting in free cash flow of $90 million.
- For the first quarter of 2012, CASM is expected to increase between 2.0% and 4.0% over the year-ago period. Excluding fuel, CASM in the first quarter is expected to range between a decrease of 0.5% and an increase of 1.5% year over year.ASM for the full year is expected to
- Capacity is expected to increase between 9.5% and 11.5% in the first quarter and to increase between 5.5% and 7.5% for the full year