JetBlue Airlines 2007 Annual Report Download - page 5

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Cost Discipline and Productivity
Despite record high fuel prices, JetBlue delivered solid cost performance and productivity
improvements in 2007. We continue to believe that our ability to deliver exceptional service at low
cost differentiates us from the rest of the industry.
Fuel continues to be our single largest operating cost, but we continue to improve our fuel efficiency.
With an average age of approximately three years, JetBlue operates one of the youngest, more
fuel-efficient and environmentally-friendly fleets in the industry. We have also undertaken a variety of
conservation techniques to help reduce aircraft fuel burn, including single-engine taxi and rapid
deployment of ground power units at our airport gates. In addition, we continue to take a disciplined
approach to fuel hedging. In 2007, we saved about $35 million in fuel costs due to our fuel hedging
program.
We have continued our efforts to increase productivity. Our crewmembers met the challenge of
working smarter and we ended the year with 74 full-time equivalent employees, or FTEs, per aircraft,
compared to 78 at the end of 2006. We expect to continue to invest in technology to improve
productivity. We added new functionality on our website, and our customers can now change their
travel plans online during certain irregular operations. During 2007, our crewmembers were once
again recognized by Airbus as operating the most reliable Airbus A320 fleet in the world with the
prestigious Airbus Award for Operational Excellence – quite an accomplishment considering that
JetBlue is the largest Airbus A320 operator in the world.
We made several positive changes to our compensation program during 2007 to support our goal of
recruiting and retaining the best crewmembers in the industry. We changed our profit sharing program
to guarantee eligible crewmembers a tax-deferred profit-sharing contribution of 5%of their eligible
earnings, and we increased the amount of company match in our 401(k) plan from 3%to 5%. Our
goal continues to be 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 true professionals in their areas
of expertise.
As we grow, we continue to be challenged by our ability to keep our company ‘‘feeling small.’’
Listening to our crewmembers and working together will help us continue to build a secure future. At
JetBlue, we truly believe that our competitive advantage is our culture and we will continue to do
everything we can to further improve our culture across the airline.
A Look Ahead
Thanks to the outstanding efforts of our dedicated crewmembers, we have built a great deal of
positive momentum as we move forward in 2008. While we certainly will face many challenges in the
coming year, we believe our disciplined growth strategy combined with our low cost culture and
outstanding crewmembers position us well.
2008 will be an exciting year for JetBlue – including the opening of a new terminal and a new
advertising campaign – but it will be very challenging as we face higher fuel prices, stiffer competition
and a weakening economy. We believe the combination of our great product, exceptional
crewmembers and our financial discipline is unmatched in the industry, and we are optimistic about
the future.
On behalf of our 12,000 dedicated crewmembers, we thank you for your continued support.
Most Sincerely,
Dave Barger
Chief Executive Officer