Jetblue Airways Corporation · NASDAQ:JBLU
Jetblue Airways — Q3 2018 Earnings Presentation
19 slides from Jetblue Airways's earnings presentation, Oct 23, 2018
Slide 1: 3Q 2018 Earnings Presentation
3Q 2018 EARNINGS PRESENTATION OCTOBER 23, 2018 1
Slide 2: Safe Harbor
SAFE HARBOR This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, 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 amended, or the Excha
Slide 3: 3Q 2018 Earnings Update – Robin Hayes, CEO
3Q 2018 EARNINGS UPDATE ROBIN HAYES CEO
Slide 4: Executing our plan to reach $2.50-$3.00 EPS by 2020
EXECUTING OUR PLAN TO REACH $2.50-$3.00 EPS BY 2020 PRE-TAX MARGINS JBLU VS PEERS* KEY INITIATIVES 3Q 2018** TTM** FY 2017** • Capacity adjustments in response to higher oil with previously 13.0% 12.8% announced 2 point reduction in 4Q 2018 11.6% GROWTH • Cautious approach to 2019 capacity; expect A
Slide 5: Commercial Update & Outlook
COMMERCIAL UPDATE & OUTLOOK MARTY ST. GEORGE EVP COMMERCIAL AND PLANNING
Slide 6: Focusing capacity plans on points of strength
FOCUSING CAPACITY PLANS ON POINTS OF STRENGTH ASM YOY GROWTH − Recent network reallocations adding frequencies to leisure and VFR markets from New York City airports NYC − Continuing growth through up-gauging in constrained airports (JFK) − Adding breadth and depth to existing cities; funded through
Slide 7: Unit revenue: strong close to peak season
UNIT REVENUE: STRONG CLOSE TO PEAK SEASON RASM YOY GROWTH • 3Q RASM as expected, strong close-in demand 1.0 – 4.0% − RASM sitting at mid-point of prior guidance of 1-3%, excluding negative impact from severe weather of 0.4 points − Peak season period driven by strong close-in demand across network;
Slide 8: Financial Update & Outlook
FINANCIAL UPDATE & OUTLOOK STEVE PRIEST EVP CHIEF FINANCIAL OFFICER
Slide 9: 3Q 2018 results impacted by higher fuel prices
3Q 2018 RESULTS IMPACTED BY HIGHER FUEL PRICES RASM CASM EX-FUEL* PRE TAX MARGIN* EARNINGS PER SHARE* (US$ cents) (US$ cents) (US$ cents) 12.91 16.3% 12.70 55 43 8.02 8.27 9.0% 16 3.4% (Non (Non(Non- (Non- (GAAP) GAAP) GAAP)GAAP) (GAAP) GAAP) 3Q 2017 3Q 2018 3Q 2017 3Q 2018 3Q 2017 3Q 2018 3Q 2018 3
Slide 10: Unit costs: tracking to full year guidance goals
UNIT COSTS: TRACKING TO FULL YEAR GUIDANCE GOALS CASM EX-FUEL YOY GROWTH* UNDERLYING CASM EX-FUEL YOY GROWTH** Guidance as of 1/25/18 Actuals and Guidance as of 10/23/18 3.2% 1.5% – 3.5% 2.5% 0.0% – 2.0% 0.0% – 2.0% 0.75 – 1.75% 0.6% – 1.6% (3.5) – (1.5)% 3Q 2018 4Q 2018E 2018E 2019E 1H 2018E 2H 201
Slide 11: Accretive fleet growth and reinvestment continues
ACCRETIVE FLEET GROWTH AND REINVESTMENT CONTINUES FLEET* CAPITAL EXPENDITURES Aircraft Non-Aircraft 253 243 245 247 249 35 $1.3 - $1.5b 32 34 34 34 21 21 23 25 28 $1.0 - $1.2b 130 130 130 130 130 $40m - $60m 60 60 60 60 60 $290m - $470m 2017 1Q 2018 2Q 2018 3Q 2018 4Q / 2018E 4Q 2018E 2018E 2019E E1
Slide 12: Balanced approach to capital allocation
BALANCED APPROACH TO CAPITAL ALLOCATION SOURCES / USES OF CASH CAPITAL ALLOCATION FRAMEWORK (US$ millions) General Guidelines SOURCES USES • Strive to maintain investment grade financial metrics Net share Debt 338 540 repurchases • Aim for balanced approach to growth, reinvestment and raise 252 Debt
Slide 13: 2018 Guide Summary
2018 GUIDE SUMMARY CAPACITY RASM CASM EX-FUEL* ALL-IN FUEL PRICE 4Q 2018 FY 2018 4Q 2018 FY 2018 4Q 2018 FY 2018 4Q 2018 FY 2018 7.5 – 9.5% 6.5 – 7.0% 1.0 – 4.0% N/A (3.5) – (1.5)% 0.75 – 1.75% $2.48 / gal N/A CAPEX AIRCRAFT CAPEX NON-AIRCRAFT OTHER INCOME / (EXPENSE) JTP / JTV (EXPENSES) 4Q 2018 FY
Slide 14: Slide 14
Slide 15: Appendix A: 3Q 2018 Financial Results
APPENDIX A: 3Q 2018 FINANCIAL RESULTS US$ Millions 3Q 2018 3Q 2017 Var % Total Operating Revenues 2,008 1,818 10.5 Aircraft fuel and related taxes 515 347 48.4 Salaries, wages and benefits 515 466 10.5 Landing fees and other rents 114 104 9.7 Depreciation and amortization 125 114 10.4 Aircraft rent
Slide 16: Appendix B: Hurricane Impact from 2017
APPENDIX B: HURRICANE IMPACT FROM 2017 3Q 2017 4Q 2017 2017 ASM (2.7%) (2.9%) (1.4%) RASM +0.2 pts (0.7) pts (0.2) pts CASM ex-Fuel +2.6 pts +2.4 pts +1.3 pts Pre-Tax Margin (1.5%) (2.2%) (0.9%) EPS Impact (6c) (9c) (15c) 16
Slide 17: Appendix C: Anticipated Delivery Schedule
APPENDIX C: ANTICIPATED DELIVERY SCHEDULE CURRENT AIRBUS ORDERS A220** A321 CEO/NEO Total 2018 - 3* 3* 2019 - 13 13 2020 5 15 20 2021 4 16 20 2022 8 15 23 2023 19 14 33 2024 22 12 34 2025 2 - 2 Total 60 88 148 Delivery schedule as of October 23rd, 2018 *3 remaining A321 CEO deliveries in 2018 ** Exp
Slide 18: 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
Slide 19: Appendix E: Note on Non-GAAP Financial Measures
APPENDIX E: NOTE ON NON-GAAP FINANCIAL MEASURES Note A within our quarterly earnings release (provided in our Current Report on Form 8-K furnished to the Securities and Exchange Commission on October 23, 2018) provides a reconciliation of non-GAAP financial measures used in this presentation and pro