JetBlue Airlines 2006 Annual Report Download - page 46

may not be meaningful. In addition, we expect our operating results to fluctuate significantly from
quarter to quarter in the future as a result of various factors, many of which are outside our control.
Consequently, we believe that quarter-to-quarter comparisons of our operating results may not
necessarily be meaningful and you should not rely on our results for any one quarter as an indication
of our future performance.
Liquidity and Capital Resources
At December 31, 2006, we had cash and cash equivalents of $10 million and investment securities
of $689 million, compared to cash and cash equivalents of $6 million and investment securities of
$478 million at December 31, 2005. The increase in our cash and investment balances during 2006
resulted primarily from proceeds received from several financings of our previously unsecured assets.
We presently have no lines of credit other than two short-term borrowing facilities for certain aircraft
predelivery deposits. At December 31, 2006, we had $39 million in borrowings outstanding under
these facilities.
We rely primarily on cash flows from operations to provide working capital for current and future
operations. Cash flows from operating activities totaled $274 million in 2006, $170 million in 2005 and
$199 million in 2004. The $104 million increase in cash flows from operations in 2006 compared to
2005 was primarily a result of the growth of our business, offset in part by the increase in fuel prices.
Cash flows from operations in 2005 compared to 2004 declined due to 52%higher fuel prices, partially
offset by a 28%increase in revenue passenger miles. Net cash used in investing and financing activities
was $270 million in 2006, $183 million in 2005 and $283 million in 2004.
Investing Activities. During 2006, capital expenditures related to our purchase of flight
equipment included expenditures of $874 million for 30 aircraft and five spare engines, $106 million
for flight equipment deposits and $33 million for spare part purchases. Capital expenditures for other
property and equipment, including ground equipment purchases and facilities improvements, were
$89 million. Net cash used for the purchase of investment securities was $213 million. Other investing
activities included the receipt of $154 million in proceeds from the sale of five Airbus A320 aircraft
and the refund of $19 million in flight equipment deposits related to aircraft delivery deferrals.
During 2005, capital expenditures related to our purchase of flight equipment included
expenditures of $711 million for 17 aircraft and three spare engines, $183 million for flight equipment
deposits and $81 million for spare part purchases. Capital expenditures for other property and
equipment, including ground equipment purchases and facilities improvements, were $125 million. Net
cash used for the purchase of investment securities was $66 million. Additional cash required for
security deposits was $86 million, of which $80 million related to our lease for a new terminal at JFK.
Financing Activities. Financing activities during 2006 consisted primarily of (1) the sale and
leaseback over 18 years of 16 EMBRAER 190 aircraft for $406 million by a U.S. leasing institution,
(2) our issuance of $329 million in fixed rate equipment notes to various European financial
institutions secured by nine Airbus A320 aircraft and one EMBRAER 190 aircraft, (3) our issuance of
$69 million in floating rate equipment notes to various European financial institutions secured by two
Airbus A320 aircraft, (4) our issuance of $223 million in fixed and floating rate debt to various U.S.
and European financial institutions secured by eight Airbus A320 aircraft, five of which were
refinanced, (5) reimbursement of construction costs incurred for our new terminal at JFK of
$179 million, (6) the financing of previously unsecured owned assets for $234 million, (7) scheduled
maturities of $162 million of debt and (8) the repayment of $105 million of debt in connection with
the sale of five Airbus A320 aircraft.
In June 2006, we filed an automatic shelf registration statement with the SEC relating to our sale,
from time to time, in one or more public offerings of debt securities, pass-through certificates,
common stock, preferred stock and/or other securities. The net proceeds of any securities we sell
under this registration statement may be used to fund working capital and capital expenditures,
including the purchase of aircraft and construction of facilities on or near airports. Through
December 31, 2006, we had issued a total of $124 million of pass-through certificates under this
registration statement to finance certain previously purchased aircraft spare parts.
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