Jetblue Airways Corporation · NASDAQ:JBLU
Jetblue Airways — Q3 2019 Earnings Presentation
22 slides from Jetblue Airways's earnings presentation, Oct 22, 2019
Slide 1: 3Q 2019 Earnings Presentation
3Q 2019 EARNINGS PRESENTATION OCTOBER 22, 2019 1
Slide 2: Safe Harbor
SAFE HARBOR Statements in this presentation (or otherwise made by JetBlue or on JetBlue’s behalf) contain various forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as
Slide 3: 3Q 2019 Earnings Update – Robin Hayes, CEO
3Q 2019 EARNINGS UPDATE ROBIN HAYES CHIEF EXECUTIVE OFFICER
Slide 4: Executing Plan to Achieve $2.50 - $3.00 EPS by 2020
EXECUTING PLAN TO ACHIEVE $2.50 - $3.00 EPS BY 2020 PRE-TAX MARGINS JBLU VS PEERS* HIGHLIGHTS / KEY DEVELOPMENTS 3Q 2018 3Q 2019 • Full year 2019 capacity growth expected between 6 and 7% driven by disciplined network expansion, solid operational improvements and GAAP Non-GAAP** Non-GAAP additional
Slide 5: Commercial Update & Outlook – Joanna Geraghty
COMMERCIAL UPDATE & OUTLOOK JOANNA GERAGHTY PRESIDENT & CHIEF OPERATING OFFICER
Slide 6: Capacity Growth: Benefited from an Improving Operation
CAPACITY GROWTH: BENEFITED FROM AN IMPROVING OPERATION ASM YOY GROWTH − Deepening relevance with added transcon frequency − Adding new VFR/leisure markets from JFK: San José, Costa Rica; NYC 3Q capacity at high end of Guayaquil, Ecuador; and Georgetown, Guyana 3 – 5% guidance range, driven Raising 4
Slide 7: Unit Revenue: Domestic Trends Steady; Taking Action on International Pressure
UNIT REVENUE: DOMESTIC TRENDS STEADY; TAKING ACTION TO MANAGE NEAR-TERM INTERNATIONAL PRESSURE RASM YOY GROWTH • 3Q RASM slightly above mid-point of latest guidance range − 3Q domestic RASM growth of ~3%; solid trends, driven by transcon and short-haul business markets − Quarterly performance mainly
Slide 8: Financial Update & Outlook – Steve Priest, CFO
FINANCIAL UPDATE & OUTLOOK STEVE PRIEST CHIEF FINANCIAL OFFICER
Slide 9: Pre-Tax Margin Gaining Traction from Cost Execution
PRE-TAX MARGIN GAINING TRACTION FROM COST EXECUTION RASM CASM & CASM EX-FUEL* PRE-TAX MARGIN* EARNINGS PER SHARE* (US$ cents) (US$ cents) (US$ cents) 3Q 3Q 3Q 3Q 12.91 12.80 0.63 12.41 12.2% 11.4% 0.59 11.29 9.0% 0.42 8.31 8.33 3.4% 0.16 CASM CASM (GAAP) (GAAP) (Non- (Non- CASM CASM (Non- (Non- Ex-F
Slide 10: Unit Costs: Ahead of 2019 CASM Ex-Fuel Goals
UNIT COSTS: AHEAD OF 2019 CASM EX-FUEL GOALS CASM EX-FUEL YOY GROWTH* • 3Q CASM ex-fuel beat guidance range Narrowing 2019 guidance range; solid ‒ 3Q result driven by Structural Cost Program benefits progress driven by Structural Cost continuing to ramp, and positively impacted by timing of initiati
Slide 11: Accretive Fleet Growth and Reinvestment Continues
ACCRETIVE FLEET GROWTH AND REINVESTMENT CONTINUES FLEET* CAPITAL EXPENDITURES Guidance as of 10/22/19 259 253 254 254 1 1 6 35 35 35 35 $1.25 - $1.45b $1.2 - $1.3b 28 28 28 28 130 130 130 130 60 60 60 60 1Q 2019 2Q 2019 3Q 2019 2019E 2019E 2020E E190 A320 A321 HD A321 Mint A321neo HD • One additiona
Slide 12: Balanced Approach to Capital Allocation
BALANCED APPROACH TO CAPITAL ALLOCATION SOURCES / USES OF CASH LEVERAGE RATIOS* (US$ millions) 12/31/2018 9/30/2019 Trailing 12 months as of 9/30/2019 1.57x SOURCES USES Net share Debt 365 331 repurchases raise 1.36x Debt 302 repayments Cash from operations 1,479 1,154 CAPEX and and other other Begi
Slide 13: 2019 Guide Summary
2019 GUIDE SUMMARY CAPACITY RASM CASM EX-FUEL* ALL-IN FUEL PRICE 4Q 2019 FY 2019 4Q 2019 FY 2019 4Q 2019 FY 2019 4Q 2019 FY 2019 4.5 – 6.5% 6.0 – 7.0% (3.5) – (0.5)% N/A (1.0) – 1.0% 0.5 – 1.0% $2.07/gal N/A CAPEX AIRCRAFT CAPEX NON-AIRCRAFT OTHER INCOME / (EXPENSE) JTP / JTV (EXPENSES) 4Q 2019 FY 2
Slide 14: Questions?
QUESTIONS?
Slide 15: Appendix A: Non-GAAP Financial Measures
APPENDIX A Non-GAAP Financial Measures JetBlue sometimes uses non-GAAP measures that are derived from the consolidated financial statements, but that are not presented in accordance with generally accepted accounting principles in the U.S., or GAAP. We believe these non-GAAP measures provide a meani
Slide 16: 3Q 2019 Financial Results
3Q 2019 FINANCIAL RESULTS US$ Millions 3Q 2019 3Q 2018 Var % Total Operating Revenues 2,086 2,008 4 Aircraft fuel and related taxes 471 515 (9) Salaries, wages and benefits 580 515 13 Landing fees and other rents 125 123 1 Depreciation and amortization 134 120 12 Aircraft rent 26 28 (6) Sales and ma
Slide 17: Consolidated CASM Ex-Fuel Reconciliation
Consolidated operating cost per available seat mile, excluding fuel and related taxes, and certain non-airline operating expenses, and special items (“CASM Ex-Fuel”) Operating expenses per available seat mile, or CASM, is a common metric used in the airline industry. We exclude aircraft fuel and rel
Slide 18: Operating Expense, Income before Taxes, Net Income and EPS Excluding Special Items
Operating Expense, Income before Taxes, Net Income and Earnings per Share, excluding special items, gain on equity method investments, and impact of tax reform Our GAAP results in the applicable periods were impacted by the following: (a) the 2017 tax reform, (b) a gain on equity method investments,
Slide 19: Appendix B: Calculation of Leverage Ratios
APPENDIX B: CALCULATION OF LEVERAGE RATIOS NON-GAAP FINANCIAL MEASURE ADJUSTED DEBT TO CAPITALIZATION RATIO (in millions) (unaudited) LOCATION September 30, 2019 December 31, 2018 Long-term debt and finance lease obligations $ 1,320 $ 1,361 Current maturities of long-term debt and finance leases 316
Slide 20: Adjusted Debt to EBITDAR Ratio
NON-GAAP FINANCIAL MEASURE ADJUSTED DEBT TO EBITDAR RATIO (in millions) (unaudited) Trailing Twelve Months Trailing Twelve Months September 30, 2019 December 31, 2018 DOCUMENT Long-term debt and finance lease obligations LOCATION$ 1,320 $ 1,361 Current maturities of long-term debt and finance leases
Slide 21: Appendix C: Anticipated Aircraft Delivery Schedule
APPENDIX C: ANTICIPATED AIRCRAFT DELIVERY SCHEDULE CURRENT AIRBUS ORDERS A220 A321neo Total 2019* - 11* 11* 2020 1 14 15 2021 6 17 23 2022 8 15 23 2023 19 14 33 2024 22 12 34 2025 12 - 12 2026 2 - 2 Total 70 83 153 Delivery schedule as of October 22, 2019 * 13 aircraft were contractually scheduled f
Slide 22: Appendix D: Relevant JetBlue Materials
APPENDIX D: RELEVANT JETBLUE MATERIALS www.investor.jetblue.com/investor-relations DOCUMENT LOCATION Investor Presentations http://blueir.investproductions.com/investor-relations/events-and-presentations/presentations Earnings Releases http://blueir.investproductions.com/investor-relations/financial