JetBlue Restates First-Half Results

Low-cost carrier JetBlue Airways Corp. on Wednesday said it will restate earnings higher this year to correct accounting related to airport rent expenses and the way it handles passenger revenue.

The New York-based airline said earnings for the first six months of 2005 will be increased by $300,000, or 1 cent per share. JetBlue has reported earnings of 18 cents per share during the first half.

However, the accounting changes will lower retained earnings of $2.1 million as of Dec. 31, 2004 _ representing 2.7 percent of 2004 profit and 0.8 percent of 2003 profit. JetBlue went public on the Nasdaq Stock Market in 2002.

JetBlue said the restatement will cause 2003 and 2004 earnings to fall by a penny per share for each year. The restatement means 2003 earnings are now 95 cents per share, and 2004 results are 42 cents per share.

JetBlue said it needed to make the accounting adjustments to reflect rent expense under operating leases containing provisions with minimum rent escalation, depreciation expense for leasehold improvements, and the inadvertent recognition of passenger revenue related to unpaid ticket reservations.

Shares of JetBlue closed flat at $18.44 on the Nasdaq.

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