Jetblue Airways Corporation · NASDAQ:JBLU
Jetblue Airways — Q4 2024 Earnings Presentation
28 slides from Jetblue Airways's earnings presentation, Jan 28, 2025
Slide 1: 4Q24 Earnings Presentation
4Q24 Earnings Presentation January 28, 2025 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: 2024 Recap
2024 Recap Joanna Geraghty Chief Executive Officer 33
Slide 4: 2024 Year in Review
2024 Year in Review Welcomed a new leadership team focused on ensuring a return to sustained profitability Formally announced JetForward to support earnings expansion through four priority moves Made progress on JetForward initiatives, including: • Invested in our operation and improved on-time perf
Slide 5: Announced Majority of JetForward Initiatives in 2024, Turning to Execution in 2025
Announced Majority of JetForward Initiatives in 2024, Turning to Execution in 2025 Four Announced Implemented Illustrative upcoming announcements 2027 Priority Targets Moves Multi-year investment in improving on- time performance ~$100M Reliability Additional TATL Rightsized LGA & redeployed to Refo
Slide 6: Strong 4Q24 Driving Momentum into a Pivotal 2025 for JetBlue
4Q24 Generated adjusted operating margin (1) of 0.8%, over 2 pts better than 4Q23 • 2H24 adjusted operating margin improved significantly from July expectations Investments in reliability showed evidence of continued momentum • Strong 4Q24 Driving Fleet health investments supported ~45% fewer contro
Slide 7: JetForward: Our Path to Sustained Profitability
JetForward: Our Path to Sustained Profitability 2025 Expectations Targeting $800-900M (1) in incremental EBIT (2) through 2027 ✓ Already captured $90M of EBIT target in 2024, expect Unrealized to capture incremental Realized $200M in 2025 ~$175M $800 - $900M ~$400M ✓ Reliability investments continue
Slide 8: Commercial Update and Outlook
Commercial Update and Outlook Marty St. George President 8
Slide 9: Revenue Initiatives Expected to Drive Positive RASM Through 2025
Revenue Initiatives Expected to Drive Positive RASM Through 2025 4Q24 vs. 4Q23(1) 4Q24 Top-Line Outperformance Bolstered by Close-in Demand 1 ASMs 2 Revenue • November and December holiday peaks saw stronger-than-expected close-in demand • Latin, Transatlantic & Transcon flying led unit revenue perf
Slide 10: Revenue Initiatives Contributed to Margin Improvements in 2024
Revenue Initiatives Contributed to Margin Improvements in 2024 $300M Revenue Initiatives – 2024 2024 2024 2024 Capture Target Actual Performance Total ($ millions) Product, • Outperformance led by preferred seating and Blue Basic $450 Merchandising & $175M $260M changes Ancillary $400 $395M $350 Dis
Slide 11: Our Onboard Product Is Evolving to Better Serve Leisure Customers
Our Onboard Product Is Evolving to Better Serve the Full Spectrum of Leisure Customers Illustrative Non-Mint Aircraft Onboard Product Evolution Future Domestic Even Core / Blue Basic State First More Current EvenMore ✓Implemented State Space Core / Blue Basic Optimizing Cabin Space to Deliver the Ex
Slide 12: JetForward is the Right Plan to Drive Revenue Growth and Margin Expansion
Driving 3 - 6% RASM Growth in 2025 JetForward is the Right Plan Further loyalty engagement from new to Drive initiatives Momentum from strong finish in 2024 Revenue Growth and More product choices Margin to drive load and yield improvements Expansion Improving customer satisfaction from operational
Slide 13: Financial Update and Outlook
Financial Update and Outlook Ursula Hurley Chief Financial Officer 13
Slide 14: Continued Focus on Controllable Cost Execution
Continued Focus on Controllable Cost Execution CASM ex-Fuel (1) YoY Growth Met Initial Full-Year Guide Despite Headwinds • Pratt & Whitney (P&W) accounting policy change resulted in 1.0 pt CASM ex-Fuel headwind; 8.0% to intra-year capacity changes drove additional 0.5 pts of unit cost pressure Up Mi
Slide 15: Grounded Aircraft Due to P&W GTF Engines Drag on EBIT
Grounded Aircraft Due to P&W GTF Engines are Responsible for a ~2.5pt Drag to EBIT (1) in ‘24, Expected to Increase to ~3pts in ‘25 Estimated 2024 Pratt & Whitney Negative Business Impact (2) Foregone Variable ~$150m Loss of normal variable profit Profit EBIT impact from grounded aircraft In 2024, 1
Slide 16: Prudent Balance Sheet and Liquidity Management
Number One Financial Priority is Achieving Operating Profitability • Guiding to a range of 0.0% – 1.0% adjusted operating margin (1) for 2025, Prudent Balance representing a positive improvement year-over-year • Operating margin headwind from P&W GTF engines expected to increase by 0.5 Sheet and Liq
Slide 17: Taking Active Steps to Improve Balance Sheet, while Mitigating Pratt & Whitney Impact
Taking Active Steps to Improve Balance Sheet, while Mitigating Pratt & Whitney Impact to Growth Consideration Fleet Impact Impact Fleet Detail • Expect grounded aircraft, on average, to be in the mid-to-high teens in 2025 JetBlue’s contractual aircraft delivery assumption for full Pratt & year as of
Slide 18: Outlook Summary
Outlook Summary Guidance Estimated 1Q 2025 Estimated FY 2025 ASMs Year-over-Year (5.0%) – (2.0%) ~Flat RASM Year-over-Year (0.5%) – 3.5% 3.0% – 6.0% CASM ex-Fuel(1) Year-over-Year 8.0% – 10.0% 5.0% – 7.0% Fuel Price per Gallon(2) $2.65 – $2.80 - Adjusted Operating Margin(1) - 0.0% – 1.0% Interest Ex
Slide 19: Appendix
Appendix jetBlue
Slide 20: 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 consolidated financial statements, but that are n
Slide 21: CASM Ex-Fuel
Operating expense per available seat mile, excluding fuel, 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 in the table below
Slide 22: Reconciliation of Operating Expense, Operating Income, Margin, Pre-tax and Net Loss
Non-GAAP Financial Measure RECONCILIATION OF OPERATING EXPENSE, OPERATING INCOME (LOSS), OPERATING MARGIN, PRE-TAX LOSS, PRE-TAX MARGIN, NET LOSS, LOSS PER SHARE, EXCLUDING SPECIAL ITEMS, NET GAIN (LOSS) ON INVESTMENTS, AND GAIN ON DEBT Operating expense, operating EXTINGUISHMENTS (unaudited, in mil
Slide 23: Reconciliation (continued): Loss Per Share
Operating expense, operating Non-GAAP Financial Measure income (loss), operating margin, RECONCILIATION OF OPERATING EXPENSE, OPERATING INCOME (LOSS), OPERATING MARGIN, PRE-TAX LOSS, PRE-TAX MARGIN, NET LOSS, LOSS PER SHARE, EXCLUDING SPECIAL ITEMS, GAIN (LOSS) ON INVESTMENTS AND GAIN ON DEBT pre-ta
Slide 24: Earnings Before Interest and Taxes (EBIT)
Earnings Before Interest and Taxes (EBIT) EBIT is a non-GAAP financial measure that reflects our net loss prior to interest expense, interest income, capitalized interest, and income tax benefit. We believe EBIT is useful for investors because it is an indicator of the company's operating performanc
Slide 25: Network Detail – Focused on Optimizing Network for Profitability
Network Detail – Focused on Optimizing Network for Profitability 2024 Route Exits Los Angeles & Northeast to LGA & EWR Fort Lauderdale Intra-California Midcontinent Optimization Note: Illustrative. 25
Slide 26: Network Detail – Executed Route Exits in 2024 and January 2025
Network Detail – Executed Route Exits in 2024 and January 2025 Route Exits Route Exits Cont. Route Exit Date (1) Route Exit Date (1) Los Angeles / Cancun – (LAX / CUN) 3-Jan-24 Los Angeles / Puerto Vallarta – (LAX / PVR) 12-Jun-24 Newark / Miami – (EWR / MIA) 3-Jan-24 New York JFK / Detroit – (JFK /
Slide 27: Network Detail – Building the Best East Coast Leisure Network
Network Detail – Building the Best East Coast Leisure Network 2024 Route Entries and Additional Frequencies New Route Entrances Additional Frequencies Seasonalizing Mint Fleet EDI DUB LGW AMS CDG Redeploying TATL aircraft in Winter (1) (1) Seasonal transatlantic routes and frequency reductions inclu
Slide 28: jetBlue
jetBlue