A year that begin with much-publicized operational problems and ended with a fourth-quarter loss still was a positive one for JetBlue Airways, which reported net earnings of $18 million for 2007, reversed from a $1 million loss in the prior year and its first full-year profit since 2004. CEO Dave Barger said he was "delighted" with the result, "especially in light of the operational challenges and record high fuel prices we faced this year. Although soaring fuel prices contributed to our fourth-quarter loss, we believe we are well positioned as we move into 2008 with a strong brand, superior product and solid financial position." JetBlue lost $4 million in the fourth quarter compared to a $17 million profit in the year-ago period. Otherwise the year ended well, with the LCC sealing its $310 million stake sale to Lufthansa (ATWOnline, Jan. 23) and the successful trial of its onboard Internet product (ATWOnline, Dec. 12, 2007). Yesterday its LiveTV subsidiary announced a deal with Continental Airlines (see item below). Full-year revenue climbed 20.2% year-over-year to $2.84 billion against a 19.5% increase in expenses to $2.67 billion. Fuel costs were up 23.6% to $929 million and operating profit rose 32.8% to $169 million from $127 million. JetBlue flew 25.74 billion RPMs, up 10.4%, as capacity climbed 11.6% to 31.9 billion ASMs and load factor slipped 0.9 point to 80.7%. Yield rose 7.4% to 10.24 cents. Operating RASM increased 7.8% to 8.91 cents against a 7.1% lift in CASM to 8.38 cents. CASM excluding fuel was up 5.3% to 5.47 cents. Fourth-quarter revenue rose 16.6% to $739 million and operating income dropped 52.9% to $30 million from $64 million in the final three months of 2006. The carrier expects a 2008 operating margin of 6%-8% based on fuel costs of $2.55 net of hedges. Its 2007 margin was 6%. Passenger RASM is expected to increase 9%-11% from last year's 8.26 cents and CASM is forecast to rise 10%-12% on a 5%-8% lift in capacity. by Brian Straus