JetBlue Airlines 2015 Annual Report Download - page 2

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Dear Fellow Shareholders:
JetBlue delivered record financial results in 2015, demonstrating the power of our differentiated business model.
Some highlights of the year include:
✓ Revenues of over $6.4 billion
✓
Record annual net income of $677 million, marking our seventh consecutive year of profitability. When excluding
the gain from the 2014 sale of LiveTV, year-over-year net income more than doubled.
✓
A strengthened balance sheet; our net-debt-to-EBITDAR ratio improved from 2.5x at year-end 2014 to 1.1x
at year-end 2015
✓
Growth in return on invested capital, ROIC, of more than seven percentage points from 6.3% in 2014 to
13.7% in 2015
We expanded operating and pre-tax margins more than any other major US airline in 2015. Our stock price
increased nearly 43%, significantly outperforming the S&P 500 and the Airline Index.
Unique Culture
JetBlue’s distinctive culture is a key competitive advantage. Our 18,000 crewmembers are highly engaged, proud
to work for JetBlue and provide outstanding customer service on a daily basis. They truly Inspire Humanity.
In 2015, JetBlue was named one of the Top 25 Places to Work in Forbes annual survey and we received
our eleventh consecutive J.D. Power award. In recognition of our strong results in 2015, our crewmembers
deservedly earned record profit sharing of about $150 million.
Industry Leading Product
Our onboard product continues to evolve to enhance customer value and offer a better product than our
competitors at a lower fare. We intend to preserve our product advantage and believe we will continue to
generate a revenue premium to our competitors.
A great example of this differentiated product is Fare Options which launched in June 2015 and provides
our customers the ability to select one of three fares based on what they value most such as checked bags,
TrueBlue bonus points or the flexibility to adjust travel plans. While in its early stages of introduction, it is clear
Fare Options is a better approach than the static fee structure used by some competitors. In 2015, Fare Options
significantly exceeded our expectations and increased operating income by over $80 million. We now believe
we will achieve a $200 million run rate benefit from Fare Options in 2016, one year ahead of our original plan.
Fly-Fi™, our broadband internet product, is another example. Competitors typically charge customers for
slower internet solutions. We adopted a more innovative approach: we are the first US airline to offer free Ka
satellite based on-board wifi at speeds and bandwidth you enjoy on the ground. Our ability to offer Fly-Fi™
for free is made possible by creative content agreements entered in 2015 with partners including Amazon and
MLB. These types of agreements offer an opportunity to monetize our product advantage and cover broadband
costs. Fly-Fi™ is now available on all Airbus A320 and A321 aircraft. Once the installation is complete on the
Embraer E190 fleet later in 2016, we will offer free internet access across our entire fleet.