Jetblue Airways Corporation · NASDAQ:JBLU
Jetblue Airways — Q1 2020 Earnings Presentation
23 slides from Jetblue Airways's earnings presentation, May 7, 2020
Slide 1: 1Q 2020 Earnings Presentation
1Q 2020 EARNINGS PRESENTATION MAY 7, 2020 1
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: 1Q 2020 Earnings Update
1Q 2020 EARNINGS UPDATE ROBIN HAYES CHIEF EXECUTIVE OFFICER 3
Slide 4: Taking Actions to Protect Our Stakeholders
TAKING ACTIONS TO PROTECT OUR STAKEHOLDERS 1Q 2020 BALANCE SHEET 1Q 2020 EARNINGS • $1.8B of liquidity at 1Q close(1); added net ~$1.3B in April for • 1Q revenue down $283M YoY, a decline mitigated by close-in a total of ~$3.1B or 38% of 2019 revenue capacity cuts in March and a $150M reduction in O
Slide 5: Commercial Update & Outlook
COMMERCIAL UPDATE & OUTLOOK JOANNA GERAGHTY PRESIDENT & CHIEF OPERATING OFFICER 5
Slide 6: Significant Revenue Declines Continue into 2Q
SIGNIFICANT REVENUE DECLINES CONTINUE INTO 2Q REVENUE YOY GROWTH Actual Estimate • Negative demand impact of COVID-19 Current planning assumption* − 1Q 2020 revenue decline, driven by significant impact of 6% 6% cancellations that outpaced new bookings during March • Early look at 2Q 2020 continues
Slide 7: Taking Capacity Actions in Response to Demand
TAKING CAPACITY ACTIONS IN RESPONSE TO DEMAND ASM YOY GROWTH Flown Planned • Adjusting schedules to mitigate cash losses and Current planning assumption* maintain essential travel 5% 6% − Reduced March and April schedules. Continuing to manage close-in cancels as appropriate -4% − Currently planning
Slide 8: Financial Update & Outlook
FINANCIAL UPDATE & OUTLOOK STEVE PRIEST CHIEF FINANCIAL OFFICER 8
Slide 9: Summary Financials 1Q 2020
SUMMARY FINANCIALS 1Q 2020 Metric 1Q 2020 1Q 2019 Change YoY ASM (millions) 14,891 15,437 (3.5%) RASM (cents) 10.67 12.12 (12.0%) CASM (cents) 12.91 11.63 11.0% CASM ex-Fuel(1) (cents) 9.01 8.66 4.0% Fuel ($/gallon) 1.86 2.05 (9.3%) Earnings per Share (GAAP) (0.97) 0.14 Earnings per Share(1) (Non-GA
Slide 10: Successful Liquidity Preservation Actions
SUCCESSFUL LIQUIDITY PRESERVATION ACTIONS 3,070 936 550 1,328 150 118 387 983 372 YE 2019 Debt CAPEX Cash from 364 Term Barclays Credit Payroll Projected Liquidity(1) Payments Ops & Loan After Point Revolver Support Liquidity Other(2) Fees Sales Program(3) as of 4/30/20(1) (1) Cash, cash equivalents
Slide 11: Reducing Fixed and Variable Cost Base
REDUCING FIXED AND VARIABLE COST BASE YOY OPERATING EXPENSES MANAGING FIXED & VARIABLE COSTS Actual GAAP Actual Non-GAAP (1) Planned • Actions taken in 1Q 2020 16% ‒ Implemented aggressive close-in capacity Current planning assumption* reductions for March and April 7% 2% 2% 3% 3% ‒ Eliminated all n
Slide 12: Revised Order Book to Minimize Capital Expenditures
REVISED ORDER BOOK TO MINIMIZE CAPITAL EXPENDITURES REVISED CAPEX FLEET* (US$ million) Actual Planned As of 12/31/2019 As of 12/31/2020* Plan as of 4Q 2019 Current Earnings Presentation Estimate* 1 1.35 – 1.55b 6 13 35 35 28 28 ~ 850 580 130 130 367 ~ 50 60 60 1Q 2Q 2020 2Q* 2020* 2019 2020* E190 A3
Slide 13: Managing Balance Sheet to Preserve Liquidity
MANAGING BALANCE SHEET TO PRESERVE LIQUIDITY LEVERAGE DEBTREPAYMENTS* DEBT REPAYMENTS* Actual Planned Adjusted Adjusted (US$ million) Debt to Cap (1) Debt to EBITDAR (1) 44% 2.9x 34% 121 109 107 108 1.8 x Dec 31 2019 Mar 31 2020 Dec 31 2019 Mar 31 2020 1Q 2Q* 3Q* 4Q* • Raised $1B via 364-term loan i
Slide 14: Questions?
QUESTIONS? 14
Slide 15: Appendix A: Non-GAAP Financial Measures
APPENDIX A Non-GAAP Financial Measures JetBlue sometimes uses non-GAAP financial measures in this presentation. Non-GAAP financial measures are financial measures that are derived from the consolidated financial statements, but that are not presented in accordance with generally accepted accounting
Slide 16: 1Q 2020 Financial Results
1Q 2020 FINANCIAL RESULTS US$ Millions 1Q 2020 1Q 2019 Var % Total Operating Revenues 1,588 1,871 (15.1) Aircraft fuel and related taxes 365 437 (16.4) Salaries, wages and benefits 601 575 4.5 Landing fees and other rents 112 115 (3.3) Depreciation and amortization 139 124 12.0 Aircraft rent 21 25 (
Slide 17: 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 18: 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 Our GAAP results in the applicable periods were impacted by charges that are deemed special items. We believe the impacts of these items make our results difficult to compare to prior periods as well a
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 Our GAAP results in the applicable periods were impacted by charges that are deemed special items. We believe the impacts of these items make our results difficult to compare to prior periods as well a
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: Adjusted Debt to EBITDAR Ratio
Adjusted Debt to Earnings Before Interest, Taxes, Depreciation, Amortization and Rent ("EBITDAR") Ratio Adjusted debt to earnings before interest, taxes, depreciation, amortization and rent ratio, or EBITDAR, is a non-GAAP financial metric which we believe is helpful to investors in assessing the co
Slide 22: Appendix C: Contractual Order Book
APPENDIX C: CONTRACTUAL ORDER BOOK A220 A321NEO A321NEO LR Total 2020* 1 7 8 2021 7 5 5 17 2022 8 7 15 Total 16 12 12 40 Delivery schedule, as of May 7, 2020 *Includes 3 deliveries received in 1Q 2020 22
Slide 23: 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