PART II  ITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations Quarterly Results of Operations JETBLUE AIRWAYS CORPORATION  -  2013 Annual Report 31 (3)  Excludes results of operations and employees of LiveTV, LLC, which are unrelated to our airline operations and are immaterial to our consolidated operating results. (2)  During the fourth quarter of 2013 we recorded $3 million in losses related to the early extinguishment of a portion of our long-term debt.  (1)  During the second quarter of 2013, LiveTV recorded a gain of approximately $7 million relating to the sale of the Airfone business. During the fourth quarter of 2013, we recorded net gains  of approximately $2 million related to the sale of three spare aircraft engines. The following table sets forth selected financial data and operating statistics for the four quarters ended December 31, 2013. The information for each  of these quarters is unaudited and has been prepared on the same basis as the audited consolidated financial statements appearing elsewhere in this  Form 10-K. Three Months Ended March 31,  2013 June 30,  2013 September 30,  2013 December 31,  2013 Statements of Operations Data  (dollars in millions) Operating revenues $ 1,299 $ 1,335 $ 1,442 $ 1,365 Operating expenses: Aircraft fuel and related taxes 467 465 501 466 Salaries, wages and benefits 280 279 283 293 Landing fees and other rents 70 80 81 74 Depreciation and amortization 68 71 73 78 Aircraft rent 32 33 32 31 Sales and marketing 50 53 60 60 Maintenance materials and repairs 114 111 109 98 Other operating expenses (1) 159 141 151 150 Total operating expenses 1,240 1,233 1,290 1,250 Operating income 59 102 152 115 Other income (expense) (2) (36) (42) (33) (38) Income before income taxes 23 60 119 77 Income tax expense 9 24 48 30 NET INCOME $ 14 $ 36 $ 71 $ 47 Operating margin 4.5% 7.6% 10.5% 8.4% Pre-tax margin 1.8 % 4.5 % 8.2 % 5.7 % Operating Statistics: Revenue passengers  (thousands) 7,300 7,753 8,059 7,351 Revenue passenger miles  (millions) 8,506 9,115 9,561 8,654 Available seat miles ASM  (millions) 10,140 10,741 11,252 10,691 Load factor 83.9% 84.9% 85.0% 80.9% Aircraft utilization  (hours per day) 11.9 12.2 12.2 11.5 Average fare $ 162.53 $ 157.51 $ 164.02 $ 168.94 Yield per passenger mile  (cents) 13.95 13.40 13.83 14.35 Passenger revenue per ASM  (cents) 11.70 11.37 11.75 11.62 Operating revenue per ASM  (cents) 12.81 12.42 12.82 12.77 Operating expense per ASM  (cents) 12.23 11.48 11.47 11.70 Operating expense per ASM, excluding fuel  (cents) 7.62 7.15 7.02 7.34 Operating expense per ASM, excluding fuel and profit sharing  (cents) 7.62 7.15 6.95 7.30 Airline operating expense per ASM  (cents) (3) 12.06 11.36 11.33 11.52 Departures 66,773 70,722 74,206 70,432 Average stage length  (miles) 1,092 1,088 1,085 1,095 Average number of operating aircraft during period 180.3 183.1 187.1 189.9 Average fuel cost per gallon, including fuel taxes $ 3.29 $ 3.06 $ 3.14 $ 3.10 Fuel gallons consumed  (millions) 142 152 160 150 Full-time equivalent employees at period end (3) 12,385 12,743 12,124 12,647