Jetblue Airways Corporation · NASDAQ:JBLU
Jetblue Airways — Q2 2023 Earnings Presentation
19 slides from Jetblue Airways's earnings presentation, Aug 1, 2023
Slide 1: 2Q23 Earnings Presentation
2Q23 Earnings Presentation August 1, 2023 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, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of t
Slide 3: 2Q23 Earnings Update
2Q23 Earnings Update Robin Hayes Chief Executive Officer 3
Slide 4: Delivered on H1 Commitments Despite Headwinds
2Q23 Executed on 2Q23 adjusted EPS guidance, demonstrating solid financial execution throughout H1 Delivered all-time record quarterly revenue, with record revenue in every month of the quarter Drove strong operational performance which benefited from significant investments and robust summer prepar
Slide 5: Recalibrating H2 as We Navigate Current Challenges
2H23 Updating full-year earnings outlook …and the following will help to reflect headwinds… address these challenges: Northeast Alliance (NEA) • Reallocating capacity from Wind Down underperforming NEA routes to higher value leisure opportunities. Expect ($0.25) – ($0.20) of FY EPS Impact improvemen
Slide 6: JetBlue Remains Positioned for Long-Term Success and Restoration of Historical Earnings Power
JetBlue Remains Positioned for Long-Term Success and Restoration of Historical Earnings Power Transformational Acquisition of Spirit Turbocharges Strategic Plan • Pro-competitive, pro-consumer transaction creates a national low-fare challenger that can bring competitive prices and great service to m
Slide 7: Commercial Update and Outlook
Commercial Update and Outlook Joanna Geraghty President & Chief Operating Officer 7
Slide 8: All-Time Record Revenue in Q2; Q3 Cycling Against Unprecedented Demand
All-Time Record Revenue in Q2; Q3 Cycling Against Unprecedented Demand in 2022 2Q23 vs.vs. 2Q23 2Q22 Actuals 2Q22 6.7% Healthy Demand for Air Travel Overall 5.8% • Double digit Q2 RASM growth vs. 2019, driven by strength in Guidance Guidance 4.5% to 8.5% peak travel periods and led by Latin leisure,
Slide 9: Financial Update and Outlook
Financial Update and Outlook Ursula Hurley Chief Financial Officer 9
Slide 10: Sixth Consecutive Quarter Meeting or Exceeding Quarterly Cost Expectations
Sixth Consecutive Quarter Meeting or Exceeding Quarterly Cost Expectations Continued Cost Execution • Delivered Q2 CASM ex-Fuel in line with expectations despite increased cost CASM (1) 2Q23ex-Fuel vs. 2Q22 YoY pressures from challenging operational environment 2.5% to 5.5% • Proactive operational i
Slide 11: Focused on Maintaining Strong Balance Sheet
Focused on Maintaining Strong Balance Sheet Adjusted Debt to Capital(1)(2) Maintaining a Healthy Liquidity Position and Comfortable Leverage Profile 120% 114% • Balance sheet remains among the strongest in the industry 100% • Ended Q2 with $2.4B in liquidity(3), or 24% of trailing twelve 84% 85% mon
Slide 12: Targeting Profitable Growth and Margin Expansion
Targeting Profitable Growth and Margin Expansion Guidance 3Q23 FY23 Available Seat Miles (ASMs) 5.5% - 8.5% YoY 5.5% - 8.5% YoY Revenue (8.0%) - (4.0%) YoY 6.0% - 9.0% YoY CASM ex-Fuel(1) 2.5% - 5.5% YoY 1.5% - 4.5% YoY Estimated Fuel Price per Gallon(2)(3) $2.75 - $2.90 $2.85 - $3.05 Interest Expen
Slide 13: Appendix A: Non-GAAP Financial Measures
Appendix A Non-GAAP Financial Measures We report our financial results in accordance with GAAP; however, we present certain non-GAAP financial measures in this Presentation. Non-GAAP financial measures are financial measures that are derived from the condensed consolidated financial statements, but
Slide 14: CASM Ex-Fuel
Operating expense per available seat mile, excluding fuel and related taxes, other non-airline operating expenses, and special items (“CASM Ex-Fuel”) Operating Expense per Available Seat Mile (“CASM”) is a common metric used in the airline industry. Our CASM for the relevant periods are summarized i
Slide 15: Reconciliation of Operating Expense, Operating Income and EPS Excluding Special Items
Non-GAAP Financial Measure RECONCILIATION OF OPERATING EXPENSE, OPERATING INCOME (LOSS), ADJUSTED OPERATING MARGIN, PRE-TAX INCOME Operating expense, operating (LOSS), ADJUSTED PRE-TAX MARGIN, NET INCOME (LOSS), EARNINGS (LOSS) PER SHARE, EXCLUDING SPECIAL ITEMS AND GAIN (LOSS) ON EQUITY INVESTMENTS
Slide 16: Reconciliation of Operating Expense and EPS Excluding Special Items (continued)
Operating expense, operating income (loss), adjusted operating margin, pre-tax income (loss), adjusted pre-tax margin, net income (loss) and earnings (loss) per share, excluding special items and gain (loss) on equity Non-GAAP Financial Measure investments (continued) RECONCILIATION OF OPERATING EXP
Slide 17: Appendix B: Calculation of Leverage Ratios
Appendix B: Calculation of Leverage Ratios 1) Debt to Capitalization Ratio Adjusted for Total Operating 2) Debt to Capitalization Ratio Adjusted for Aircraft Leases Operating Leases Adjusted debt to capitalization ratio is a non-GAAP financial metric which we Adjusted debt to capitalization ratio is
Slide 18: Appendix C: Order Book
Appendix C: Order Book Delivery Planning A220 A321neo A321neo LR Total Assumption 2023 11 4 4 19 In 2023, seven aircraft delivered year-to-date with 12 more planned to be delivered by year end. In 2024, given Airbus delays, our current planning assumption is approximately 30 deliveries. In addition,
Slide 19: jetBlue
jetBlue