Jetblue Airways Corporation · NASDAQ:JBLU
Jetblue Airways — Q1 2022 Earnings Presentation
25 slides from Jetblue Airways's earnings presentation, Apr 26, 2022
Slide 1: 1Q22 Earnings Presentation
1Q22 EARNINGS PRESENTATION APRIL 26, 2022
Slide 2: Safe Harbor
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 th
Slide 3: Important Information for Investors
IMPORTANT INFORMATION FOR INVESTORS Additional Information and Where to Find It JetBlue has made a proposal for a business combination transaction with Spirit. In furtherance of this proposal and subject to future developments, JetBlue (and, if a negotiated transaction is agreed to, Spirit) may file
Slide 4: 1Q 2022 Earnings Update
1Q 2022 EARNINGS UPDATE ROBIN HAYES CHIEF EXECUTIVE OFFICER 4
Slide 5: Planning More Conservatively and Investing in the Operation
PLANNING MORE CONSERVATIVELY AND INVESTING IN THE OPERATION TEMPORARY APRIL DISRUPTION ACTION PLAN • Started moderating capacity plan in March in light of rising fuel • Investing significantly to restore operational reliability and environment and to build more operational resilience deliver the Jet
Slide 6: Resetting 2022 Plan to Build Back Margins
RESETTING 2022 PLAN TO BUILD BACK MARGINS 1Q 2022 EARNINGS 2Q 2021 2Q ASSUMPTIONS* 2022 OUTLOOK PLANNING • GAAP loss per share of ($0.79); non-GAAP loss per share of • Capacity between 0% – 3% vs 2Q 2019 ($0.80) (1) • Revenue up between 11% – 16% vs 2Q 2019 • Adjusted Pre-Tax Loss of ($400M) (1) • C
Slide 7: Positioning for Long-Term Earnings Growth
POSITIONING FOR LONG-TERM EARNINGS GROWTH • Operating more service than ever in NYC through Northeast Alliance • Providing customers with value and choice through ancillary strategy COMMERCIAL • Driving value and rewarding loyal customers with TrueBlue • JTP business scaling nicely and contributing
Slide 8: Ensuring Our Long-Term Sustainability
ENSURING OUR LONG-TERM SUSTAINABILITY FOCUS AREAS HIGHLIGHTS / KEY DEVELOPMENTS • Signed new deal with Aemetis for Sustainable Aviation Fuel supply Sustainability • JetBlue Technology Ventures announced investments in Electric Power Systems and Air Company; became a Limited Partner in TPG Rise Clima
Slide 9: Commercial Update & Outlook
COMMERCIAL UPDATE & OUTLOOK JOANNA GERAGHTY PRESIDENT & CHIEF OPERATING OFFICER 9
Slide 10: Resetting 2022 Capacity Plan for Summer Operability and Higher Fuel
RESETTING 2022 CAPACITY PLAN FOR SUMMER OPERABILITY AND HIGHER FUEL ASM GROWTH VERSUS 2019 • Revised growth outlook expected to improve Flown Estimate operational performance − Facing elevated pilot attrition, training pressures, and 11% – 15% cumulative impact of YTD IROPs − Planning more conservat
Slide 11: Accelerating Revenue Momentum
ACCELERATING REVENUE MOMENTUM REVENUE GROWTH VERSUS 2019 • V-shaped recovery from Omicron wave in 1Q22 Actual Estimate − First quarter revenue came in over 6 points higher than originally forecast due to strong demand 11% – 16% − Load factors improved meaningfully from an average of 62% in January t
Slide 12: Financial Update & Outlook
FINANCIAL UPDATE & OUTLOOK URSULA HURLEY CHIEF FINANCIAL OFFICER 12
Slide 13: Summary Financials 1Q 2022
SUMMARY FINANCIALS 1Q 2022 Change vs US$ Millions 1Q 2022 1Q 2019 ‘19 Revenue 1,736 1,871 (7%) Operating Expenses 2,103 1,795 17% Adjusted Operating Expenses (1) 2,103 1,783 18% Adjusted Pre-Tax Income (Loss) (1) (400) 70 NM Earnings / (Loss) per Diluted Share (0.79) 0.14 NM Adjusted Earnings / (Los
Slide 14: Driving a More Efficient Underlying Cost Structure
DRIVING A MORE EFFICIENT UNDERLYING COST STRUCTURE CASM EX-FUEL VERSUS 2019 COST INITIATIVES • Significantly resetting operational plan to support Actual 1Q22 Estimate 2Q22* return to profitability − Adjusting schedules to improve Summer operability 15% – 17% 17.5% − Excluding the operational impact
Slide 15: Updated FY2022 CASM Ex-Fuel Outlook
UPDATED FY2022 CASM EX-FUEL OUTLOOK Expected 2022 CASM ex-Fuel versus 2019 ~1Pt ~3Pts 10% - 15% ~6Pts 1% - 5% 2022 CASM Ex-F Q2-Q4 Capacity Reductions Spring Operational Challenges All Other1 2022 CASM Ex-F (January Earnings Call) & Summer Investments Despite temporary operational headwinds, our und
Slide 16: Remaining Balanced in Capital Allocation
REMAINING BALANCED IN CAPITAL ALLOCATION LEVERAGE SCHEDULED PRINCIPAL PAYMENTS Adjusted Debt to Cap (1) $357 53% 54% $83 $106 Dec 31 2021 Mar 31 2022 1Q22 2Q22 FY22 • Net loss driving modest sequential increase in Adj. Debt to Cap • Making progress in paying down debt • Maintaining relative balance
Slide 17: Summary of Current Guidance for 2Q 2022
SUMMARY OF CURRENT GUIDANCE FOR 2Q 2022 METRIC Guidance Available Seat Miles (ASMs) 0% – 3% Yo3 Revenue 11% – 16% Yo3 CASM ex-Fuel 15% – 17% Yo3 Operating Expenses Related to Other Non-Airline Businesses ~$14 million Estimated Fuel Price per Gallon $3.79 Tax Rate ~28% Capital Expenditures ~$300 mill
Slide 18: Questions?
QUESTIONS? 18
Slide 19: 1Q 2022 Financial Results
1Q 2022 FINANCIAL RESULTS US$ Millions 1Q 2022 1Q 2019 Change vs ‘19 Total operating revenues 1,736 1,871 (7.2) Aircraft fuel and related taxes 571 437 30.5 Salaries, wages and benefits 688 575 19.6 Landing fees and other rents 132 115 14.4 Depreciation and amortization 143 124 15.6 Aircraft rent 26
Slide 20: Appendix A: Non-GAAP Financial Measures
APPENDIX A 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
Slide 21: 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 22: Reconciliation Excluding Special Items and Net Gain on Investments
Operating expense, (loss) income before taxes, net (loss) NON-GAAP FINANCIAL MEASURE RECONCILIATION OF OPERATING EXPENSE, (LOSS) INCOME BEFORE TAXES, income and (loss) earnings per share, excluding special items NET (LOSS) INCOME AND (LOSS) EARNINGS PER SHARE and net gain on investments EXCLUDING SP
Slide 23: 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 measure which we believe is helpful to investors in assessing the company's overall debt profile. Adjusted debt includes aircraft operating lease liabilities
Slide 24: Appendix C: Contractual Order Book
APPENDIX C: CONTRACTUAL ORDER BOOK Deliveries A220 A321NEO A321NEO LR A320 E190 Total 2022 10 - 3 - - 13 2023 21 6 5 - - 32 Returns A220 A321NEO A321NEO LR A320 E190 Total 2023 - - - (4) (6) (10) Note: Delivery and return schedules as of April 26, 2022 24
Slide 25: 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