JetBlue Airlines 2007 Annual Report Download - page 3

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Dear Fellow Shareholders,
In 2007, JetBlue’s eighth year of operations, we faced significant challenges – from operational issues
at JFK Airport to unprecedented high fuel prices. Yet, despite these challenges, we earned our first
annual profit since 2004.
We believe we are a much stronger, more competitive airline today than we were a year ago. We
made significant operational improvements after the severe ice storm in New York last February,
including strengthening our operations team and making important changes to the way we respond to
weather and other operational irregularities. These changes quickly produced results, and by the
second half of 2007, we improved our Department of Transportation rankings across all applicable
operational metrics. We also became America’s first and only airline to offer its own Customer Bill of
Rights, with meaningful and specific compensation for customers inconvenienced by service
disruptions within JetBlue’s control.
2007 was a year of change for JetBlue, as David Neeleman stepped down as chief executive officer in
May. David founded JetBlue in 1998 with the goal of bringing humanity back to air travel. His vision
has helped transform the airline industry, and we thank him for his great achievements for the
company.
2007 was also a momentum building year for JetBlue. Lufthansa Airlines, one of the most successful
and well-respected airlines in the world, completed its $300 million investment in our company in
January. This investment not only strengthens our financial position; we also believe it is an
affirmation of our business model, and we are very much looking forward to continuing work with
Lufthansa on commercial and other agreements.
The JetBlue Experience
The JetBlue brand is as strong as ever, and we continue to be recognized for our exceptional customer
service. For the sixth year in a row, Condé Nast Traveler readers recognized JetBlue as the ‘‘Best
Domestic Airline’’ in 2007. We also ranked highest among major carriers in Conde Nast Traveler’s
Business Travel awards during 2007. These awards, and many others, are a testament to our dedicated
crewmembers, who continue to do a tremendous job delivering the JetBlue Experience to our
customers.
We also continue to find innovative ways to enhance our product. During 2007, we introduced
complimentary inflight e-mail and instant messaging services on aircraft ‘‘BetaBlue,’’ a first among
U.S. domestic airlines, which was made possible by our wholly owned subsidiary, LiveTV LLC.
LiveTV has provided JetBlue with live television, satellite radio and other services since our first year
of service. LiveTV provides similar services to seven airlines around the world and has become a
leading provider of a wide array of inflight entertainment and connectivity products.
Network Growth
As part of our ongoing strategy of better matching capacity with demand, we slowed our growth
during 2007 by deferring aircraft deliveries from manufacturers, selling three of our older Airbus A320
aircraft, and returning an aircraft prior to its scheduled lease termination date. We believe our more
disciplined fleet growth allows us to better plan for our long-term growth, while maintaining the
flexibility to increase capacity as economic conditions warrant. We were very pleased to take delivery
of our 100th Airbus A320 in March 2007.