JetBlue Airlines 2006 Annual Report Download - page 3

Dear Fellow Shareholders,
We faced great challenges in 2006, but consistent with the JetBlue spirit, we quickly identified and
implemented solutions while staying true to our core values and original mission of bringing humanity
back to air travel.
Against the backdrop of a difficult industry environment, we began 2006 by reporting our second
consecutive quarterly loss in the first quarter. With record high fuel prices no longer an anomaly and a
competitive landscape that continued to be occupied by competitors able to reduce costs under
bankruptcy protection, we realized that we needed to make permanent adjustments to our business
plan. We developed a comprehensive plan we called ‘‘Return to Profitability’’ that included improved
capacity management, revenue optimization, cost reductions and our continued focus on delivering
The JetBlue Experience on every flight. Due to the hard work and dedication of our 11,000
crewmembers, this plan produced immediate and, we believe, sustainable results, positioning JetBlue
to essentially break even for the year – a positive swing in our pre-tax income of more than
$55 million in the final nine months of the year. Our Return to Profitability plan renewed our
long-term focus on low cost carrier spending habits while right-sizing a sustainable growth rate.
The JetBlue Experience
It is the dedication and spirit of our crewmembers, living our core values of Safety, Caring, Integrity,
Fun and Passion, that distinguishes us and strengthens our brand. Our crewmembers are the reason
that Condé Nast, for the fifth year in a row, named JetBlue best domestic airline in 2006. We also
continue to find innovative ways to enhance our product. For example, we modified our Airbus A320
interiors by removing one row of seats and increasing the legroom onboard to at least 36 inches in
rows 1-11 and at least 34 inches in rows 12-25. JetBlue now has the most coach legroom, based on
average fleet-wide seat pitch for U.S. airlines. We believe our cabin experience, which includes
satellite television and radio installed by our LiveTV subsidiary, to be ‘‘best in coach class’’ across the
industry.
We deliver what we believe is superior customer service, resulting in high customer loyalty. When we
fail to meet our customers’ expectations, especially through potentially avoidable service lapses, a
meaningful response to our customers becomes critical. On February 14, 2007, an ice storm settled
over New York. Our intention was to fly our customers to their Presidents’ Day Weekend
destinations, and we relied on weather forecasts that predicted the poor weather conditions would
improve throughout the day. Unfortunately, that did not occur and, as a result, many customers and
crewmembers were negatively impacted. In response to these service disruptions, we implemented
several improvements to our operational approach and introduced the JetBlue Customer Bill of
Rights. We believe our Customer Bill of Rights provides meaningful and relevant compensation for
customers who experience avoidable inconveniences. As important, this Bill of Rights publicly
commits us to perform to high service standards and holds us accountable.
As we grow, we continue to be challenged by our ability to keep our company ‘‘feeling small’’ and
‘‘scaling our culture.’’ Our goal is to recruit and retain the best people in the industry as our success,
in great part, depends on crewmembers who enjoy working at JetBlue and who are proud of the job
they do. Listening to our crewmembers and working together will help us build and maintain a secure
future. At JetBlue, we truly believe that our competitive advantage is our culture and we will continue
to do all that is possible to protect, preserve and further improve our culture across our airline.