Previous Statements by JBLU
» JetBlue Airways Corporation Q1 2010 Earnings Call Transcript
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» JetBlue Q3 2009 Earnings Call Transcript
We also continue to focus on building and maintaining our financial strength, ending the quarter with roughly $1 billion in unrestricted cash and short-term investments or 28% of trailing 12-months revenue, among the best liquidity positions in the industry.All 12,500 JetBlue crew members should be extremely proud of what they accomplished during the quarter especially in light of the challenges of acclimating to our new customer service and reservation systems, Sabre which we began implementing in the first quarter. As the testament to these efforts and the strength of our product and brand, we were recently awarded the highest customer service ranking among low cost carriers by J.D. Power and Associates for the sixth year in a row. Of note, we have the highest score of any North American Airline ranked in the survey. I'd like to take this opportunity to thank our crew members for their tremendous hardwork and dedication. We believe that running a safe, reliable and productive, high quality operation with a strong customer focus is the backbone of our success. Our increasingly loyal customer base helps maximize profitability of our network which we believe in turn enables sustainable growth. To sustain growth, we must make prudent investments in our future. The Sabre platform is allowing us to better scale our business including more seamless integration with airline partners and better connectivity to global distribution systems. While we began to realize some benefits of this more robust system back in February, we continue to see even more revenue growth as we add functionality to the Sabre platform. For example, we recently added several classes to our fare structure, enhancing our pricing and revenue management capabilities. In addition to improved revenue management capabilities, Sabre has enabled us to expand our ancillary revenue initiatives as well. I mentioned last quarter that we had begun adjusting the pricing structure of our Even More Legroom or EML product and now we’re able to offer eleven price points for EML based on customer demand on a particular route rather than length of haul.
This initiative is on track to generate an incremental $10 million in the second half of this year. Improving economic conditions are clearly having a positive impact on demand for air travel, its total revenues were up 16.4% versus last year and unit revenues for the quarter were up 10.4%. Second quarter revenue performance exceeded our expectations as a stronger fare environment contributed to significant year-over-year revenue gains even as capacity increased 5.5% during the quarter.We had an average one-way fare of $139, a 10% improvement over last year reflecting the improving demand environment as well as our ability to attract and retain higher yielding customers. Revenue results demonstrate that our network strategy is working. With a low-cost structure we have continued to successfully expand our network footprint in two important growth regions, Boston and the Caribbean, Latin America. Since 2005, we have increased available seats in Boston by over 300%. We are now the largest carrier in Boston in terms of seats offering 77 daily flights to 33 destinations. As we expand in Boston with new cities and increased frequencies, we’ve become more relevant to business as well as leisure customers. As part of this effort, we plan to begin service from Boston to Sarasota and to Phoenix in the fall further solidifying our position as the largest carrier in Boston. Schedule optimization along with a revamped, more meaningful TrueBlue program have helped us build and grow a loyal base of Boston business customers. We believe we are well positioned as Logan airport’s leading carrier and we expect to continue to benefit from competitive capacity trends. We expect competitive capacity in our Boston markets to be relatively flat year-over-year in the third quarter of 2010. Read the rest of this transcript for free on seekingalpha.com