Jetblue 2011 Annual Report

67293 WordsApr 1, 2013270 Pages
2011 Dear Fellow Shareholders, 2011 was a very good year for JetBlue. In addition to running a great operation, we continued to successfully execute our network strategy in key markets while maintaining a low cost advantage. These actions resulted in record revenues and one of the most profitable years in our Company’s history. Despite higher fuel expense of nearly $550 million compared to 2010, we delivered four quarters of profitability and finished the year with $86 million of net income and an operating margin of 7.1%. Additionally, we ended the year with $1.2 billion in cash and short-term investments – among the best liquidity positions in the industry – and achieved a third consecutive year of positive free cash flow. Throughout 2011, we maintained our focus on profitable growth by leveraging the three main building blocks of our business model, which we refer to as offerings, culture and foundation. Offerings Products & Services: JetBlue’s success depends on running a safe, reliable, customer-focused operation. We believe the JetBlue Experience, which includes more legroom than any other domestic airline’s coach product and free DIRECTV and Sirius XM Radio, to be the best in the industry. Our customers are willing to pay for products and services which enhance their travel experience and complement the superior core of the JetBlue Experience. We continued to improve the travel experience for our customers in 2011: We re-branded our popular Even More Legroom offering, now known as Even More Space, to include extra legroom plus early boarding and early access to overhead bin space. Customer response to Even More Space has continued to exceed expectations, driving more than $120 million of incremental revenue in 2011. Additionally, we introduced Even More Speed, which offers customers the option to enjoy an expedited security experience in select JetBlue

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