Jetblue Airways Corporation · NASDAQ:JBLU
Jetblue Airways — Q3 2023 Earnings Presentation
20 slides from Jetblue Airways's earnings presentation, Oct 31, 2023
Slide 1: 3Q23 Earnings Presentation
3Q23 Earnings Presentation October 31, 2023 The image part with relationship ID rId26 was not found in the file. 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: 3Q23 Earnings Update
3Q23 Earnings Update Robin Hayes Chief Executive Officer The image part with relationship ID rId26 was not found in the file. 3
Slide 4: Significant Weather-Related ATC Disruptions
3Q23 Demand remains healthy against a backdrop of elevated industry capacity Significant investments helped operational reliability. However, challenges associated with unusually high convective weather, even throughout September, exacerbated by air traffic control (ATC) staffing, impacted financial
Slide 5: Updating Full Year Expectations to Reflect Current Headwinds
FY23 Current headwinds… … are being proactively mitigated: • Reallocating capacity from underperforming NEA routes to higher Northeast Alliance (NEA) value leisure opportunities Wind Down • Started returning LaGuardia slot pairs to American Airlines in October Updating Full Year Expectations • Conve
Slide 6: JetBlue Remains Positioned for Long-Term Success
JetBlue Remains Positioned for Long-Term Success Transformational Acquisition of Spirit Turbocharges Strategic Plan • Pro-competitive, pro-consumer transaction creates a national low-fare challenger that can bring competitive prices and great service to more customers and more markets High-Value New
Slide 7: Commercial Update and Outlook
Commercial Update and Outlook Joanna Geraghty President & Chief Operating Officer The image part with relationship ID rId26 was not found in the file. 7
Slide 8: Moderating Capacity Expected To Drive Revenue Improvement
Moderating Capacity Expected To Drive Revenue Improvement 3Q23 vs. 3Q22 Actuals Expecting ATC Challenges in Northeast to Dissipate in Winter 7.1% • Unusually high level of convective weather in Northeast in September, exacerbated by ATC staffing shortfalls, drove extended delays and cancellations, n
Slide 9: Financial Update and Outlook
Financial Update and Outlook Ursula Hurley Chief Financial Officer The image part with relationship ID rId26 was not found in the file. 9
Slide 10: Maintaining Focus on Controllable Costs
Maintaining Focus on Controllable Costs Focused on Meeting Cost Targets, Structural Cost Program Savings Accelerate in 2H • Structural Cost Program remains on track to deliver $70M in cost reduction by the CASM (1) end of 2023 and $150-200M through 2024 2Q23ex-Fuel vs. 2Q22 YoY 8.5% to 10.5% • Expec
Slide 11: Focused on Managing Liquidity and Earnings Risk
Focused on Managing Liquidity and Earnings Risk Adjusted Debt to Capital(1)(2) Maintaining a Healthy Liquidity Position • Balance sheet remains among the strongest in the industry 120% 111% • Ended 3Q with $2.1B in liquidity(3) 100% • Executed one-year extension of undrawn $600 million revolving 81%
Slide 12: Outlook Summary
Outlook Summary Guidance 4Q23 FY23 Available Seat Miles (ASMs) 0.5% - 3.5% YoY 5.0% - 7.0% YoY Revenue (10.5%) - (6.5%) YoY 3.0% - 5.0% YoY CASM ex-Fuel(1) 8.5% - 10.5% YoY 4.5% - 5.5% YoY Estimated Fuel Price per Gallon(2)(3) $3.05 - $3.20 $3.02 - $3.07 Interest Expense $60 - $70 million $205 - $21
Slide 13: Well Positioned To Drive Profitable Growth And Expand Margins
Well Positioned To Drive Profitable Growth And Expand Margins Transformational Acquisition of Spirit Turbocharges Strategic Plan Improving Margins in High- Value New York City Area Footprint Diversifying Revenues With Margin-Accretive Initiatives Continued Controllable Cost Execution The ima
Slide 14: 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 15: 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 Expense per Available Seat Mile (“CASM”) is a common metric used in the airline industry. Our CASM for the relevant periods are summarized i
Slide 16: Reconciliation of Operating Expense, Operating Income and Pre-Tax Income
Non-GAAP Financial Measure RECONCILIATION OF OPERATING EXPENSE, OPERATING INCOME (LOSS), ADJUSTED OPERATING MARGIN, PRE-TAX INCOME (LOSS), ADJUSTED PRE-TAX MARGIN, NET INCOME (LOSS), EARNINGS (LOSS) PER SHARE, EXCLUDING SPECIAL ITEMS AND GAIN (LOSS) ON EQUITY INVESTMENTS (unaudited, in millions) Thr
Slide 17: Reconciliation (continued): Earnings Per Share Excluding Special Items
Operating expense, operating income (loss), adjusted operating margin, pre-tax income (loss), adjusted pre-tax margin, net income (loss) and earnings (loss) Non-GAAP Financial Measure per share, excluding special RECONCILIATION OF OPERATING EXPENSE, OPERATING INCOME (LOSS), ADJUSTED OPERATING MARGIN
Slide 18: Appendix B: Calculation of Leverage Ratios
Appendix B: Calculation of Leverage Ratios 1) Debt to Capitalization Ratio Adjusted for Total Operating 2) Debt to Capitalization Ratio Adjusted for Aircraft Leases Operating Leases Adjusted debt to capitalization ratio is a non-GAAP financial metric which we Adjusted debt to capitalization ratio is
Slide 19: Appendix C: Order Book
Appendix C: Order Book Delivery Planning A220 A321neo A321neo LR Total Assumption 2023 10 3 4 17 2024 20 6 2 28 In 2023, 11 aircraft delivered year-to-date with 6 more planned to be delivered by year end. Contractual Returns A320 Embraer E190 Total 2023 1 (1) (6) (7) 2024 (8) (16) (24) Delivery and
Slide 20: The image part with relationship ID rId26 was not found in the file.
The image part with relationship ID rId26 was not found in the file. 20