Jetblue Financials

JetBlue Airways Corporation, or JetBlue, is a major low-cost passenger airline that provides high-quality customer service at low fares primarily on point-to-point routes. As of February 14, 2006, we operated a total of 369 daily flights. We focus on serving markets that previously were underserved and/or large metropolitan areas that have had high average fares. We currently serve 34 destinations in 15 states, Puerto Rico, the Dominican Republic and The Bahamas. We intend to maintain a disciplined growth strategy by increasing frequency on our existing routes, connecting new city pairs and entering new markets. For the year ended December 31, 2005, JetBlue was the 9th largest passenger carrier in the United States based on revenue passenger miles.

We had a net loss of $20 million and net income of $46 million for the years ended December 31, 2005 and 2004, respectively. We generated operating margins of 2.8% and 8.8% in 2005 and 2004, respectively, which were higher than most other major U.S. airlines, according to reports by those airlines. This was our first loss since our first year of operations in 2000 and primarily resulted from the inability to raise fares to fully recover the increased cost of record high fuel prices. Our load factor (the percentage of aircraft seating capacity actually utilized) of 85.2% during 2005 was higher than that reported by any of the other major U.S. airlines, whose weighted average load factor was 78.0%. In 2005, we demonstrated our commitment to customer service by attaining the highest completion factor amongst all major U.S. airlines. We are committed to operating our scheduled flights whenever possible; however, this philosophy, along with operating at three of the most congested and delay-prone domestic airports, contributed to a 71.4% on-time performance in 2005, which was lower than all but one major U.S. airline.

We are scheduled to add 96 new Airbus A320 aircraft and 92 EMBRAER 190 aircraft to our current operating fleet of 87 Airbus A320 and nine EMBRAER 190 aircraft by the end of 2011. We have an experienced management team and a strong company culture with a productive and incentivized workforce that strives to offer high-quality