Jetblue Airways Corporation · NASDAQ:JBLU
Jetblue Airways — Bank of America Merrill Lynch 2015 Transportation Conference
11 slides from Jetblue Airways's conference presentation, May 14, 2015
Slide 1: Bank of America Merrill Lynch 2015 Transportation Conference
1 1 Bank of America Merrill Lynch 2015 Transportation Conference MAY 14, 2015
Slide 2: Safe Harbor
2 2 This presentation contains statements of a forward-looking nature which represent our management's beliefs and assumptions concerning future events. When used in this document, the words “expects,” “plans,” “anticipates,” “indicates,” “believes,” “forecast,” “guidance,” “outlook,” “may,” “will,”
Slide 3: Serving the Underserved
3 3 Differentiated Product & Culture Competitive Costs High Value Geography 1 2 3 SERVING THE UNDERSERVED
Slide 4: Levers for Margin and ROIC Expansion
4 4 LEVERS FOR MARGIN AND ROIC EXPANSION * Run rate incremental operating margin ** Estimated annual YOY CASM-ex increase 2015 – 2017 *** Reduction in non-aircraft capex in 2015 vs. 2014 † Savings through 2018 INITIATIVE CONTRIBUTION REVENUE* Fare Options Cabin Refresh New & ongoing initiatives >$20
Slide 5: Delivering Strong Revenue Results
5 5 DELIVERING STRONG REVENUE RESULTS v 3.0% 9.6% -0.4% 4.5% Capacity PRASM Industry ex-JBLU JBLU PRASM GROWTH IN Q1 2015 – WHILE GROWING FASTER THAN THE INDUSTRY * A4A PRASM and capacity include domestic and Latin A4A PRASM & CAPACITY* (15Q1 vs 14Q1) A4A PRASM & CAPACITY* (2008 – 2014) -0.3% 5.6% 3
Slide 6: Margin Expansion Greater Than Industry
6 6 MARGIN EXPANSION GREATER THAN INDUSTRY* v JBLU IMPROVED Q1 MARGIN YOY WITHOUT THE FUEL TAILWIND * Industry defined as A4A airlines plus SAVE ** Margin expansion expressed in percentage points Q1 OPERATING MARGIN EXPANSION** (2015 vs 2014) JBLU 14% 2% 7% -2% JBLU Industry* ex-JBLU Actual Fuel neu
Slide 7: Driving Returns Through Growth
DRIVING RETURNS THROUGH GROWTH Margin before growth Margin after growth (with estimate) Pre Post Boston Pre Post San Juan Pre To-date Fort Lauderdale Est.
Slide 8: Mint: Solving a Structural Disadvantage
8 8 Q4 2010 Q4 2011 Q4 2012 Q4 2013 Q4 2014 >20% MINT: SOLVING A STRUCTURAL DISADVANTAGE v MINT IS SIGNIFICANTLY IMPROVING TRANSCON PERFORMANCE JFKLAX Q4 RASM Performance
Slide 9: Driving Returns Through Gauge & Density
9 9 DRIVING RETURNS THROUGH GAUGE & DENSITY 2008 2010 2012 2014 2016 2018 NYC PROFIT MARGIN* A320 VS A321HD PERFORMANCE RASM: (3)% CASM: (14)% Margin: ~ +10 pts 2017E * TTM as of 3Q 2014 in JFK, LGA, EWR, HPN Note: HD denotes high-density (190 seat all Core configuration)
Slide 10: Strengthening the Balance Sheet
10 10 STRENGTHENING THE BALANCE SHEET *Adjusted net debt calculated as short-term debt + long-term debt + 7x TTM leases –cash and short-term investments 4.1x 4.0x 3.4x 2.5x YE 2011 YE 2012 YE 2013 YE 2014 Net Debt* / EBITDAR REDUCED LEVERAGE 169 180 194 203 YE 2011 YE 2012 YE 2013 YE 2014 Fleet Size
Slide 11: Questions
jetBlue QUESTIONS
JetBlue Airways — Bank of America Merrill Lynch 2015 Transportation Conference on 6ix