Jetblue Airways Corporation · NASDAQ:JBLU
Jetblue Airways — Q4 2021 Earnings Presentation
25 slides from Jetblue Airways's earnings presentation, Jan 27, 2022
Slide 1: 4Q21 Earnings Presentation
4Q21 EARNINGS PRESENTATION JANUARY 27, 2022
Slide 2: Safe Harbor
2 SAFE HARBOR 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 amended, or
Slide 3: 4Q 2021 Earnings Update
3 4Q 2021 EARNINGS UPDATE ROBIN HAYES CHIEF EXECUTIVE OFFICER
Slide 4: Positioning for Long-Term Financial Strength
4 POSITIONING FOR LONG-TERM FINANCIAL STRENGTH FY 2022 OUTLOOK (1) Refer to reconciliations of non-GAAP financial measures in Appendices A & B (2) As of December 31, 2021 • GAAP loss per share of ($0.40); non-GAAP loss per share of ($0.36) (1) • Adjusted EBITDA of $31M (1) versus expected range of (
Slide 5: Paving a Path Towards Value Creation
5 PAVING A PATH TOWARDS VALUE CREATION Pulling unique levers and planning to serve a record number of customers Keeping our relentless focus on costs to deliver sustained profitability Capitalizing on Northeast Alliance to unlock value and promote competition Normalizing aircraft utilization to hist
Slide 6: Accelerating JetBlue Travel Products Revenue Growth
6 Drivers of 2021 Growth Expected drivers of 2022 growth ACCELERATING JETBLUE TRAVEL PRODUCTS REVENUE GROWTH Progress on KPIs 50% commissions revenue growth vs 2019 $45M EBIT in 2021, despite intermittent demand Strong momentum towards $100M EBIT run-rate Accelerated take-rate for each key product c
Slide 7: Leading the Industry in ESG Efforts
7 • Women represent ~40% of our first group of selected Gateway Direct candidates • People of color represent more than 44% of our Gateway Select classes • Crewmembers logged over 40,000 volunteer hours in 2021 • Affirmed commitments to sustainability and diversity at IATA’s Annual General Meeting a
Slide 8: Commercial Update & Outlook
8 COMMERCIAL UPDATE & OUTLOOK JOANNA GERAGHTY PRESIDENT & CHIEF OPERATING OFFICER
Slide 9: Managing Near-Term Volatility; Planning for Strong 2022 Revenue Growth
9 (11.8%) (7.6%) (9.8%) (5.5%) (9.7%) Oct '21 Nov '21 Dec '21 3Q21 4Q21 1Q22* MANAGING NEAR-TERM VOLATILITY; PLANNING FOR STRONG 2022 REVENUE GROWTH VERSUS 2019 • Strong revenue momentum in 4Q21 until Omicron wave − Surge in case counts disproportionately impacted the Northeast and international lei
Slide 10: Remaining Nimble with Capacity While Ramping for Record Year
1 0 (5.4%) (15.2%) 4Q21 FY21 1Q22* FY22* REMAINING NIMBLE WITH CAPACITY WHILE RAMPING FOR RECORD YEAR ASM GROWTH VERSUS 2019 EstimateFlown • 1Q22 and FY22 capacity plan assumes demand regains momentum − Reduced capacity plan by ~5 points for 1Q22 due to Omicron impact − Normalizing aircraft utilizat
Slide 11: Financial Update & Outlook
1 1 FINANCIAL UPDATE & OUTLOOK URSULA HURLEY CHIEF FINANCIAL OFFICER
Slide 12: Summary Financials 4Q 2021
1 2 SUMMARY FINANCIALS 4Q 2021 METRIC 4Q 2021 4Q 2019 Change vs ‘19 Revenue (US$ million) 1,834 2,031 (10%) Operating Expenses (GAAP) 1,953 1,804 8% Operating Expenses (Non-GAAP) (1) 1,945 1,803 8% EBITDA (Adjusted) (US$ million) (1) 31 368 (92%) Earnings/(Loss) per Diluted Share (GAAP) (0.40) 0.56
Slide 13: Prioritizing Cost Control
1 3 (5.4%) 16.3% 14.4% ASM CASM ex-Fuel CASM CASM EX-FUEL VERSUS 2019 COST INITIATIVES Actual 4Q21 Estimate 1Q22* • Confident in plan to maintain competitive cost structure − COVID related crew cancels resulted in higher incremental costs; expect efficiencies going forward as schedule settles into a
Slide 14: Offsetting Headwinds to Drive Lower Unit Costs in FY2022
1 4 OFFSETTING HEADWINDS TO DRIVE LOWER UNIT COSTS IN FY2022 Expected 2022 CASM ex-Fuel versus 2019 ~1-5 pts ~2-4 pts Pilot Contract Productivity and Business Partner Initiatives
Slide 15: Maintaining Relative Balance Sheet Strength
1 5 MAINTAINING RELATIVE BALANCE SHEET STRENGTH LEVERAGE (1) Refer to reconciliations of non-GAAP financial measures in Appendix B Adjusted Debt to Cap (1) • Deleveraging the balance sheet remains a top priority • Measured progress towards investment grade metrics • In 4Q21, paid off $117 million in
Slide 16: Summary of Current Guidance for 1Q 2022
1 6 SUMMARY OF CURRENT GUIDANCE FOR 1Q 2022 METRIC Guidance Available Seat Miles (ASMs) (1%) – 2% Yo3 Revenue (11%) – (16%) Yo3 CASM ex-Fuel 13% – 15% Yo3 Operating Expenses Related to Other Non-Airline Businesses ~$15 million Estimated Fuel Consumption in Gallons ~195 million Estimated Fuel Price p
Slide 17: Questions?
1 7 QUESTIONS?
Slide 18: 4Q 2021 Financial Results
1 8 4Q 2021 FINANCIAL RESULTS US$ Millions 4Q 2021 4Q 2019 Change vs ‘19 Total operating revenues 1,834 2,031 (9.7) Aircraft fuel and related taxes 463 455 1.8 Salaries, wages and benefits 640 589 8.7 Landing fees and other rents 157 112 40.1 Depreciation and amortization 142 140 1.5 Aircraft rent 2
Slide 19: Non-GAAP Financial Measures
1 9 Non-GAAP Financial Measures JetBlue 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 principles in the
Slide 20: CASM Ex-Fuel Reconciliation
2 0 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,
Slide 21: EBITDA Reconciliation
2 1 LOCATION Earnings before interest, taxes, depreciation, amortization, and special Items Earnings before interest, taxes, depreciation, and amortization (EBITDA) is a non-GAAP financial measure. We believes this measure allows investors to better understand the financial performance of the compan
Slide 22: Operating Expense and EPS Excluding Special Items
2 2 Operating expense, income (loss) before taxes, net income (loss) and earnings (loss) per share, excluding special items and gain (loss) on equity investments Our GAAP results in the applicable periods were impacted by credits and charges that were deemed special items. In 2021, special items inc
Slide 23: Appendix B: Calculation of Leverage Ratios
2 3 APPENDIX B: CALCULATION OF LEVERAGE RATIOS LOCATION 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
Slide 24: Appendix C: Contractual Order Book
2 4 Deliveries A220 A321NEO A321NEO LR A320 E190 Total 2022 9 - 3 - - 12 2023 18 6 5 - - 29 Note: Delivery and lease return schedules as of January 27, 2022 APPENDIX C: CONTRACTUAL ORDER BOOK Returns A220 A321NEO A321NEO LR A320 E190 Total 2023 - - - (4) (6) (10)
Slide 25: Document Location
2 5 Investor Presentations http://blueir.investproductions.com/investor-relations/events-and-presentations/presentations Earnings Releases http://blueir.investproductions.com/investor-relations/financial-information/quarterly-results Annual Reports http://blueir.investproductions.com/investor-relati