Jetblue Airways Corporation · NASDAQ:JBLU
Jetblue Airways — Q3 2020 Earnings Presentation
22 slides from Jetblue Airways's earnings presentation, Oct 27, 2020
Slide 1: 3Q 2020 Earnings Presentation
3Q 2020 EARNINGS PRESENTATION OCTOBER 27, 2020
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: 3Q 2020 Earnings Update
3Q 2020 EARNINGS UPDATE ROBIN HAYES CHIEF EXECUTIVE OFFICER
Slide 4: Taking Actions to Protect Our Stakeholders
TAKING ACTIONS TO PROTECT OUR STAKEHOLDERS 3Q 2020 BALANCE SHEET 4Q 2020 PLANNING ASSUMPTIONS* • $3.1B of liquidity at 3Q close, equal to 38% of 2019 revenue • 4Q capacity down ~(45%) YoY • Cash burn average $6.1M/day(2) in 3Q, lower than expected • 4Q revenue down ~(65%) YoY range of $7-9M; expect
Slide 5: Setting the Foundation for Our Recovery
SETTING THE FOUNDATION FOR OUR RECOVERY FINANCIAL GOALS ACTIONS Rebuild Customer • Safety from the Ground Up program • Partnerships with authorities to implement public health policies 1. Reduce Cash Burn Confidence • Focus on testing/health measures to facilitate air travel • 60+ new routes to supp
Slide 6: Commercial Update & Outlook
COMMERCIAL UPDATE & OUTLOOK JOANNA GERAGHTY PRESIDENT & CHIEF OPERATING OFFICER
Slide 7: Planning for Gradual Improvement in Bookings Through Year End
PLANNING FOR GRADUAL IMPROVEMENT IN BOOKINGS THROUGH YEAR END REVENUE YOY GROWTH Actual Estimate • 3Q revenue driven by leisure/VFR travel, despite headwinds from quarantine measures in place Current planning assumption* − Demand gradually improved throughout August and September − Booking curve rem
Slide 8: Adjusting Capacity to Protect Liquidity
ADJUSTING CAPACITY TO PROTECT LIQUIDITY ASM YOY GROWTH Flown Planned • Adapting capacity in response to fluid demand trends − Refined 3Q capacity resulted in improved load factors Current planning assumption* and increased cash per flight − New markets performing at or above expectations • Planning
Slide 9: Financial Update & Outlook
FINANCIAL UPDATE & OUTLOOK STEVE PRIEST CHIEF FINANCIAL OFFICER
Slide 10: Summary Financials 3Q 2020
SUMMARY FINANCIALS 3Q 2020 METRIC 3Q 2020 3Q 2019 Change YoY ASM (millions) 6,905 16,296 (57.6%) RASM (cents) 7.12 12.80 (44.4%) CASM (cents) 14.60 11.29 29.3% CASM ex-Fuel(1) (cents) 14.64 8.33 75.7% Fuel ($/gallon) 1.23 2.06 (40.4%) Earnings per Share (GAAP) (1.44) 0.63 Earnings per Share(1) (Non-
Slide 11: Maintaining a Strong Liquidity Position
MAINTAINING A STRONG LIQUIDITY POSITION 3,434 426 3,093 162 327 135 114 27 997 913 6/30/20 Adjusted CAPEX Scheduled 364-Term EETC CARES CARES Act Sale 9/30/20 Liquidity(1) Operating Debt Loan Transactions Act Loan Payroll Leaseback Liquidity(1) Activities(2) Payments(3) Prepayment After Fees After F
Slide 12: Managing Costs to Support Cash Positive Flying
MANAGING COSTS TO SUPPORT CASH POSITIVE FLYING YOY OPERATING EXPENSES* COST INITIATIVES Actual GAAP Actual Non-GAAP (1) Planned • Continuing taking tactical capacity and cost actions to drive positive cash flying − Managing day-to-day flying decisions based on breakeven economics • Reshaping cost st
Slide 13: Reducing Our Capital Expenditures
REDUCING OUR CAPITAL EXPENDITURES REVISED CAPEX FLEET* Actual Planned As of 12/31/2019 As of 12/31/2020* (US$ million) 259 267 1 6 13 ~800 35 35 28 28 130 130 162 200 60 60 3Q 4Q* 2020* 2019 2020* E190 A320 A321 HD A321 Mint A321neo HD A220 • Lowered CAPEX for 2020-2022 by ~$2B(1) • In Q3, took deli
Slide 14: Managing Leverage to Preserve Liquidity
MANAGING LEVERAGE TO PRESERVE LIQUIDITY LEVERAGE DEBTREPAYMENTS* DEBT REPAYMENTS* Principal Interest Adjusted (US$ million) Debt to Cap (1) 95 93 55% 58% 44% 50 34% 40 Dec 31 2019 Mar 31 2020 Jun 30 2020 Sep 30 2020 3Q 4Q** *Cash outflows related to debt repayment schedule (principal and • Refinance
Slide 15: Questions?
Questions? 15
Slide 16: 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 17: 3Q 2020 Financial Results
3Q 2020 FINANCIAL RESULTS US$ Millions 3Q 2020 3Q 2019 Var % Total Operating Revenues 492 2,086 (76.4) Aircraft fuel and related taxes 102 471 (78.4) Salaries, wages and benefits 482 580 (16.9) Landing fees and other rents 84 125 (32.7) Depreciation and amortization 127 134 (5.0) Aircraft rent 23 26
Slide 18: CASM Ex-Fuel reconciliation
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 19: Operating Expense, Income before Taxes, Net Income and EPS excluding special items
Operating Expense, Income before Taxes, Net Income and Earnings per Share, excluding special items and gain on equity method investments Our GAAP results in the applicable periods were impacted by charges that are deemed special items, and gain on equity method investments. We believe the impacts of
Slide 20: 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 21: Appendix C: Contractual Order Book
APPENDIX C: CONTRACTUAL ORDER BOOK A220 A321NEO A321NEO LR Total 2020* 1 7 - 8 2021 7 5 3 15 2022 8 - 3 11 Delivery schedule, as of October 27, 2020 *Includes 5 deliveries received in 1Q-3Q 2020 21
Slide 22: 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