JetBlue Airlines 2009 Annual Report Download - page 2

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Dear Fellow Shareholders,
Despite a very challenging environment, 2009 was a successful year for JetBlue as we reported four
consecutive quarters of profitability – one of only a few U.S. airlines to do so. We generated net income of
$58 million and an operating margin of 8.5% – an improvement of more than $140 million compared to 2008.
We ended the year with over $1 billion in cash and short term investments – one of the strongest liquidity
positions in the U.S. airline industry relative to our revenues. Additionally, JetBlue generated positive free cash
flow for the first time in our history.
These results demonstrate the benefits of our disciplined growth strategy, driving our highest net income since
2003. We remain committed to striving to build long term shareholder value through sustainable growth and
positive free cash flow. This commitment drives our focus on managing capital expenditures, rationalizing
capacity, maximizing revenue and controlling costs while preserving and expanding our unique brand and
culture.
The JetBlue Brand and Culture
We celebrated the 10th anniversary of our first flight on February 11, 2010 – a significant accomplishment
given that few airlines since airline deregulation in 1978 have been able to reach their ten year mark as
healthy, stand-alone enterprises.
We continue to be recognized for exceptional customer service. For the fifth year in a row, JetBlue achieved
the number one customer service ranking among low cost carriers by J.D. Power and Associates. This coveted
award, along with many others received in 2009, serves as a testament to our 12,000 crewmembers and the
strength of our brand.
During 2009, we continued to enhance our customers’ travel experience. We refreshed our food and beverage
selections onboard our aircraft, offering more complimentary snack options. We also began offering free first-
run movies in-flight to customers traveling outside of the continental U.S. We believe our cabin experience,
which includes more legroom than any other domestic airline’s coach product and free DIRECTV and Sirius
XM Radio installed by our LiveTV subsidiary, to be the best in the industry.
JetBlue’s customers and crewmembers enjoyed the first full year in our new Terminal 5 facility at JFK
Airport, our home base of operations. Terminal 5 provides a world-class airport experience that matches our
award-winning experience in the air. We are the largest domestic carrier at JFK, which coupled with our
service to LaGuardia, Newark, Stewart/Newburgh and White Plains, bolsters our position as New York’s true
hometown airline. New York is an important part of our heritage and culture, and we look forward to further
solidifying our commitment to New York by combining our corporate offices into one main support center in
Long Island City, Queens.
Disciplined Growth
In the short span of ten years, JetBlue has grown to serve 23 million customers annually, operate 151 aircraft,
serve 60 cities and achieved annual revenues of $3.3 billion in 2009. As we enter our second decade, we
firmly believe JetBlue has an impressive array of growth opportunities. In contrast to our prior growth, we
believe our future growth should be funded primarily through cash internally generated from operations.
Hence, we have focused on free cash flow, which captures our ability to generate cash from operations and