Grim View at JetBlue

Revenue rose 34% from a year ago to $446 million, while the operating margin swung to negative 7.1% from positive 3.2% a year earlier. Excluding unusual items, the operating margin for the quarter ended Dec. 31 was negative 4.1%.

Yield per passenger mile was 8.16 cents, up 8.1% from 2004. Operating revenue per available seat mile increased 7.4% year-over-year to 7.02 cents. Available seat miles grew 24.7% to 6.4 billion. Operating expenses jumped 48.3% from the fourth quarter of 2004, and operating expense per ASM increased 18.9% year-over-year to 7.51 cents, including the charges.

During the quarter, JetBlue's realized fuel price was $1.87 a gallon, a 50.3% increase from the fourth quarter of 2004's price of $1.24. Excluding fuel, costs per available seat mile increased 7.9% year over year.

As a result of its fuel-hedging program, JetBlue realized an $11.8 million benefit in the fuel-expense line in the fourth quarter and a $43.1 million benefit for the full year. JetBlue ended the year with $483.8 million in cash and investment securities.

The company said that based on energy prices staying roughly where they are, it expects to post losses for the first quarter and all of 2006. Analysts were looking for a 2-cent first-quarter profit and a 13-cent full-year profit.

Shares of JetBlue were trading at a 52-week low, sinking $1.80, or 13.8%, to $11.24 on volume that was five times the normal level.

In the fourth quarter, JetBlue faced a series of problems, including bad October weather and the late arrival of its first E190s, resulting in tightened schedules. Additionally, as the planes were being put into use, foggy weather strained schedules because JetBlue pilots were required to observe enhanced visibility standards during their first 100 hours flying the aircraft. This year, the 190s are expected to account for 6% of JetBlue's flying.