Jetblue Airways Corporation · NASDAQ:JBLU
Jetblue Airways — Q4 2020 Earnings Presentation
25 slides from Jetblue Airways's earnings presentation, Jan 28, 2021
Slide 1: 4Q20 Earnings Presentation
4Q20 EARNINGS PRESENTATION JANUARY 28, 2020 Photo courtesy of Zachary Sheinman
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: 4Q 2020 Earnings Update
4Q 2020 EARNINGS UPDATE ROBIN HAYES CHIEF EXECUTIVE OFFICER 3
Slide 4: Taking Actions to Protect Our Stakeholders
TAKING ACTIONS TO PROTECT OUR STAKEHOLDERS 4Q 2020 BALANCE SHEET 1Q 2021 PLANNING ASSUMPTIONS* • $3.1B of liquidity at 4Q close, equal to 38% of 2019 revenue • EBITDA between ($525M) – ($625M) • All-in cash burn averaged $6.7M/day(2) in 4Q, versus expected • Capacity down at least ~(40%) vs 1Q 2019
Slide 5: Setting the Foundation for Our Recovery
SETTING THE FOUNDATION FOR OUR RECOVERY FINANCIAL GOALS ACTIONS Rebuild Customer • Continuing Safety from the Ground Up program • Partnering with health providers for testing new technologies 1. Reduce Cash Burn Confidence • Focusing on educating customers to facilitate air travel • Supporting cash
Slide 6: Commercial Update & Outlook
COMMERCIAL UPDATE & OUTLOOK JOANNA GERAGHTY PRESIDENT & CHIEF OPERATING OFFICER 6
Slide 7: Demand Challenges Continue; Focus on Long Term Recovery
DEMAND CHALLENGES CONTINUE; FOCUS ON LONG TERM RECOVERY REVENUE YOY/YO2Y GROWTH Actual Estimate • 4Q20 revenue driven by COVID-19 trends, demand improved modestly vs 3Q20 Current planning assumption* − Relatively strong revenue in October; trends stalled in early November, mainly driven by case coun
Slide 8: Expect to Adjust Capacity to Meet Strategic and Financial Goals
EXPECT TO ADJUST CAPACITY TO MEET STRATEGIC AND FINANCIAL GOALS ASM YOY/YO2Y GROWTH • Planning to adjust capacity to improve cash burn Flown Planned − Reacting to demand softness with tactical capacity Current planning assumption* actions in most affected and/or restricted regions − Redeploying airc
Slide 9: Financial Update & Outlook
FINANCIAL UPDATE & OUTLOOK STEVE PRIEST CHIEF FINANCIAL OFFICER 9
Slide 10: Summary Financials 4Q 2020
SUMMARY FINANCIALS 4Q 2020 METRIC 4Q 2020 4Q 2019 Change YoY ASM (millions) 8,480 16,079 (47.3%) RASM (cents) 7.80 12.63 (38.3%) CASM (cents) 13.16 11.22 17.2% CASM ex-Fuel(1) (cents) 12.31 8.31 48.2% Fuel ($/gallon) 1.31 2.07 (36.9%) Earnings/(Loss) per Share (GAAP) (1.34) 0.56 Earnings/(Loss) per
Slide 11: Preserving a Strong Liquidity Position
PRESERVING A STRONG LIQUIDITY POSITION 3,093 714 3,053 (195) (195) (459) (195 (195) ) (100) 9/30/20 Cash From CAPEX Scheduled Debt Equity Offering 12/31/20 Liquidity (1) (1) Operations (2) Payments (3) and Other Liquidity (1) Transactions (1) Cash, cash equivalents and short-term investments (2) Rep
Slide 12: Expect to Continue Disciplined Cost Management to Aid Recovery
EXPECT TO CONTINUE DISCIPLINED COST MANAGEMENT TO AID RECOVERY YOY/YO2Y OPERATING EXPENSES* COST INITIATIVES Actual GAAP Actual Non-GAAP (1) Planned • Continuing to reshape cost structure to protect liquidity and rebuild margins − 4Q20 performance was better than expected, as a result of capacity ac
Slide 13: Setting Foundation for Structurally Better Margins
SETTING FOUNDATION FOR STRUCTURALLY BETTER MARGINS COST PLAN PROGRESSION ACTIONS • Targeting better CASM ex-Fuel than 2019 ~$7.2B** post-pandemic in 2022* ~$0.53B − Assumes capacity in 2022 returns to 2019 levels ~$5.9B** ~$0.55B − Strong focus on fixed cost reduction ~$2.7B • Maintaining and scalin
Slide 14: Continuing to Invest in Margin Accretive Aircraft
CONTINUING TO INVEST IN MARGIN ACCRETIVE AIRCRAFT REVISED CAPEX FLEET* As of As of As of Actual Planned 12/31/2019 12/31/2020 12/31/2021* (US$ million) 267 282 259 8 1 3 ~1,000 69 76 81 130 130 130 ~295 195 60 60 60 4Q20 1Q21* 2021* 2019 2020 2021* E190 A320 A321 A321LR A220 • 2021 CAPEX expected to
Slide 15: Aim to Maintain Relative Balance Sheet Strength
AIM TO MAINTAIN RELATIVE BALANCE SHEET STRENGTH LEVERAGE CASH REPAYMENTS* DEBT DEBT SERVICE* Principal Interest Adjusted (US$ million) Debt to Cap 93 94 57% 34% 48 32 Dec 31 2019 Dec 31 2020 4Q20 1Q21** *Cash outflows related to debt repayment schedule (principal and • During 4Q20 raised ~$700M from
Slide 16: Questions?
QUESTIONS? 11 66
Slide 17: Appendix A: Non-GAAP Financial Measures
APPENDIX A Non-GAAP Financial Measures JetBlue sometimes uses non-GAAP financial measures in this presentation. Non-GAAP financial measures are financial measures that are derived from the consolidated financial statements, but that are not presented in accordance with generally accepted accounting
Slide 18: 4Q 2020 Financial Results
4Q 2020 FINANCIAL RESULTS US$ Millions 4Q 2020 4Q 2019 Var % Total Operating Revenues 661 2,031 (67.4) Aircraft fuel and related taxes 134 455 (70.5) Salaries, wages and benefits 472 589 (20.0) Landing fees and other rents 100 112 (10.5) Depreciation and amortization 128 140 (8.3) Aircraft rent 25 2
Slide 19: Operating expense per available seat mile, excluding fuel (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 expenses per available seat mile, or CASM, is a common metric used in the airline industry. We exclude aircraft fuel and related taxes, oper
Slide 20: EBITDA and special items reconciliation
Earnings before interest, taxes, depreciation, amortization, and special Items Earnings before interest, taxes, depreciation, and amortization (EBITDA) is a non-GAAP financial measure. We believes this measure allows investors to better understand the financial performance of the company by presenti
Slide 21: Daily cash burn
Daily cash burn We present cash burn because we believe this metric is helpful to investors to evaluate our ability to maintain liquidity and evaluate cash flows from our core operating performance. Our cash burn is calculated as net cash used in operating activities, net cash used in investing acti
Slide 22: Operating expense, income before taxes, net income and EPS excluding special items
NON-GAAP FINANCIAL MEASURE Operating expense, income before taxes, net income and earnings per RECONCILIATION OF OPERATING EXPENSE, INCOME BEFORE TAXES, NET INCOME AND EARNINGS PER SHARE share, excluding special items and gain on equity method investments EXCLUDING SPECIAL ITEMS AND GAIN ON EQUITY M
Slide 23: Appendix B: Calculation of Leverage Ratios
APPENDIX B: CALCULATION OF LEVERAGE RATIOS Adjusted debt to capitalization ratio Adjusted debt to capitalization ratio is a non-GAAP financial metric which we believe is helpful to investors in assessing the company's overall debt profile. Adjusted debt includes aircraft operating lease liabilities,
Slide 24: Appendix C: Contractual Order Book
APPENDIX C: CONTRACTUAL ORDER BOOK A220 A321NEO A321NEO LR Total 2021 7 5 3 15 2022 9 - 3 12 Delivery schedule, as of January 28, 2021 24
Slide 25: 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