Jetblue Airways Corporation · NASDAQ:JBLU
Jetblue Airways — Q2 2024 Earnings Presentation
26 slides from Jetblue Airways's earnings presentation, Jul 30, 2024
Slide 1: 2Q24 Earnings Presentation
2Q24 Earnings Presentation July 30, 2024 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: 2Q24 Earnings and Strategy Update
2Q24 Earnings and Strategy Update Joanna Geraghty Chief Executive Officer 33
Slide 4: Delivered on 2Q Targets, Led by a More Reliable Operation
JetForward | Financial Results & Guidance 2Q24 Outperformed 2Q guidance metrics, demonstrating laser-focus on execution Generated adjusted pre-tax income of $34M and adjusted earnings per share of $0.08 (1) • Year-over-year (YoY) improvements in completion factor (~one pt. better), Delivered on 2Q A
Slide 5: Enhancing Our Strengths to Drive Our Path Forward
JetForward | Financial Results & Guidance Enhancing Our Strengths to Drive Our Path Forward Highly Engaged High-Value Differentiated Low Cost Crewmembers Geography Product & Services Structure & Distinct Culture 5
Slide 6: Our strategy and priority moves
JetForward simply stated is our strategy to: for crewmembers, customers, and owners Our priority moves help get us there a~ > (6 > So 4) 7) <2) ey, \ Reliable and Best East Coast Products and perks Asecure caring service leisure network customers value financial future
Slide 7: Acting With Urgency to Address Headwinds
JetForward | Financial Results & Guidance Acting With Urgency to Address Headwinds Core Strategic Headwinds Solutions Fleet • Grounded aircraft due to Pratt & Whitney (P&W) Pursuing “capital light” levers for growth impeding growth and exacerbating unit cost inflation Balance • Pressured profitabili
Slide 8: JetForward: Our Path to Sustained Profitability
JetForward | Financial Results & Guidance JetForward: Our Path to Sustained Profitability Targeting $800-900M (1) in incremental EBIT (2) from 2025 – 2027 ~$175M $800 - $900M ~$400M ~$175M ~$100M Four EBIT Uplift Priority 2025 - 2027 Moves Reliable & caring Best East Coast Products A secure service
Slide 9: Priority Moves Anchor Our 2024 Strategic Initiatives
JetForward | Financial Results & Guidance Priority Moves Anchor Our 2024 Strategic Initiatives and Path to Sustained Profitability Four Announced Implemented Illustrative upcoming announcements 2027 Priority Targets Moves Multi-year investment in improving on- time performance ~$100M Reliability Rig
Slide 10: Commercial Update and Outlook
Commercial Update and Outlook Marty St. George President 10 10
Slide 11: Expect YoY Unit Revenue Improvement in 2H24
JetForward | Financial Results & Guidance Expect YoY Unit Revenue Improvement in 2H24 2Q24 vs. 2Q23(1) 2Q Revenue Strengthened by Premium Performance 1 2 • Even More Space seating RASM up double digits YoY ASMs Revenue • In-month bookings outperformed expectations • Latin leisure markets continued t
Slide 12: Financial Update and Outlook
Financial Update and Outlook Ursula Hurley Chief Financial Officer 12 12
Slide 13: Focused on Controllable Cost Execution Amidst 2H Headwinds
JetForward | Financial Results & Guidance Focused on Controllable Cost Execution Amidst 2H Headwinds CASM ex-Fuel(1), (2),YoY Growth Operational Execution Supported CASM ex-Fuel Outperformance in 2Q • Two+ point beat of midpoint of revised CASM ex-Fuel guidance range, one point of which is attribute
Slide 14: Journey to Optimize Controllable Costs Has Evolved Over Time
JetForward | Financial Results & Guidance Journey to Optimize Controllable Costs Has Evolved Over Time Targeted Savings Areas of focus Outcome Run-rate savings Structural Cost Program 1.0 $250M - $300M Business partner contracts and agreements were on-track to (2018 – 2020) Original Target exceed
Slide 15: Taking Active Steps to Improve Balance Sheet, while Mitigating Pratt & Whitney Impact
JetForward | Financial Results & Guidance Taking Active Steps to Improve Balance Sheet, while Mitigating Pratt & Whitney Impact to Growth Consideration Fleet Impact Impact Fleet Detail • Average of 11 aircraft on ground in 2024 JetBlue’s contractual aircraft delivery assumption for full Pratt & • Ex
Slide 16: Restoring Balance Sheet Health Through Capital Discipline
JetForward | Financial Results & Guidance Focused on Assets with Highest Return on Invested Capital • Announced deferral of aircraft from Airbus order book, expected to reduce planned capital expenditures by ~$3.0B through 2029 • Shifting 44 total deliveries, all A321neos, from 2025-2029 to 2030 and
Slide 17: Finalized Our Multi-year Strategy, JetForward, Targeting $800M-$900M EBIT Uplift
JetForward | Financial Results & Guidance Finalized Our Multi-year Strategy, JetForward, Targeting $800M - $900M EBIT (1) Uplift 2025 - 2027 JetForward Reliable and caring service Best East Coast leisure network Products and perks customers value A secure financial future $800M – $900M Incremental B
Slide 18: Outlook Summary
JetForward | Financial Results & Guidance Outlook Summary Guidance Estimated 3Q 2024 Estimated FY 2024 Available Seat Miles (ASMs) Year-over-Year (6.0%) – (3.0%) (5.0%) – (2.5%) Previously down low single digits (1) (6.0%) – (4.0%) Revenue Year-over-Year (5.5%) – (1.5%) Previously down low single di
Slide 19: 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 20: Operating expense per available seat mile, excluding fuel (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 21: Reconciliation of operating expense, operating income, pre-tax income and EPS
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 INVESTMENTS income
Slide 22: Reconciliation continued: earnings per share
Operating expense, operating Non-GAAP Financial Measure income (loss), adjusted operating RECONCILIATION OF OPERATING EXPENSE, OPERATING INCOME (LOSS), ADJUSTED OPERATING MARGIN, PRE-TAX INCOME (LOSS), margin, pre-tax income (loss), ADJUSTED PRE-TAX MARGIN, NET INCOME (LOSS), EARNINGS (LOSS) PER SHA
Slide 23: Order Book Updates
Order Book Updates Contractual Delivery Stream As of April 23, 2024 As of July 30, 2024 Difference A220 A321neo Total (1) A220 A321neo Total (1) A220 A321neo Total (2) 2024 20 7 27 20 7 27 - - - 2025 20 5 25 20 4 24 - (1) (1) 2026 20 4 24 20 - 20 - (4) (4) 2027 5 9 14 5 - 5 - (9) (9) 2028 7 16 23 7
Slide 24: Network Detail – Planned BlueCity Closures
Network Detail – Planned BlueCity Closures Announced BlueCity Closures BlueCity Exit Date (1) Burlington (BTV) January 4, 2024 Baltimore-Washington (BWI) April 30, 2024 Kansas City (MCI) June 12, 2024 Bogota (BOG) June 12, 2024 Lima (LIM) June 12, 2024 Quito (UIO) June 12, 2024 Puerto Vallarta (PVR)
Slide 25: Network Detail – Planned Route Exits
Network Detail – Planned Route Exits 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 / DTW) 12-Jun-24 New York L
Slide 26: jetBlue
jetBlue