From: Bill Hough -------------------- JetBlue Profits Soar -------------------- Airline reports 37% increase in fourth-quarter income By Zubin Jelveh STAFF WRITER January 31, 2003 JetBlue Airways Corp., the Forest Hills-based discount air carrier, posted a surge in its fourth-quarter earnings yesterday, continuing to fly in the face of a sharp downturn in the overall industry. The airline's income rose 37 percent in the fourth quarter off a 96 percent increase in revenue. JetBlue earned $15.2 million, or 22 cents per share, for the fourth quarter of 2002, compared with $11.1 million, or 20 cents per share, for the same period in 2001. JetBlue, which gained notice in the struggling industry for offering amenities such as in-flight satellite television, beat Wall Street's expectations. Analysts on average had expected JetBlue to earn 20 cents per share, with estimates ranging from 19 to 21 cents, according to Thomson First Call. Shares of JetBlue rose about 3.22 percent, or 91 cents, closing at $29.16 on the Nasdaq exchange. "I am once again proud to announce that JetBlue delivered a strong performance this quarter, despite continuation of the challenging industry environment in which we operate," chief executive David Neeleman said in a statement. Neeleman attributed the company's performance to a strong customer base, brand recognition and effective cost control measures. Revenue for the quarter climbed from $95.6 million to $187.3 million. The percentage of seats filled for the airline grew from 76.7 percent last year to 81.8 percent. JetBlue, which launched in February 2000, says it has managed to keep its costs low by paying its workers less than most other airlines and by operating only one type of aircraft, Airbus A320s. Ray Neidl of Blaylock & Partners said he saw no reason why JetBlue could not maintain its projected 50 percent per year expansion, even with troubled economic times. "Load factors are extremely high," Neidl said, referring to the amount of people on each JetBlue flight. The carrier may soon face stiffer competition from other airlines, including Song, Delta Airlines' new low-fare offshoot. Song will fly the same popular New York to Florida routes as JetBlue and offer amenities that include personal touch-screen monitors and in-seat Internet connections. Ron Kuhlmann vice president of R2A, a San Francisco-based transportation consulting company, said, "The experience of every airline-within-an-airline venture is that it has failed," pointing to previous ventures by United Airlines, US Airways and Delta. JetBlue officials are undaunted. "Others have tried to mimic the bells and whistles that we offer but have missed the fundamental part of the JetBlue experience, which is the people looking after you," said JetBlue spokesman Gareth Edmondson-Jones. Copyright (c) 2003, Newsday, Inc. -------------------- This article originally appeared at: http://www.newsday.com/business/local/newyork/ny-bzjet313110747jan31,0,6997452.story Visit Newsday online at http://www.newsday.com