Jetblue Airways Corporation · NASDAQ:JBLU
Jetblue Airways — Corporate Update (July 2018)
13 slides from Jetblue Airways's corporate update, Jul 11, 2018
Slide 1: E190 Replacement & Fleet Update
E190 REPLACEMENT & FLEET UPDATE JULY 11, 2018 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, 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 the Excha
Slide 3: Table of Contents
TABLE OF CONTENTS BACKGROUND E190 TRANSITION PLAN A220 CUSTOMER EXPERIENCE A220 ECONOMICS CAPITAL EXPENDITURE AND TRANSITION COSTS CAPITAL ALLOCATION AND UPDATED ORDER BOOK APPENDIX 3
Slide 4: Background: Why Replace the E190?
BACKGROUND: WHY REPLACE THE E190? CASE FOR REPLACEMENT OPPORTUNITY . Effective in short-haul and business routes; critical . Network strategy requires a smaller gauge aircraft to developing our Boston Focus City than current A320 . A significant portion of markets served by fleet can . Next generati
Slide 5: Transition Plan: Replace E190 Fleet with A220
TRANSITION PLAN: REPLACE E190 FLEET WITH A220 TRANSITION PLAN & FLEET UPDATE A220 DELIVERY TIMING . 60 E190s (30 owned, 30 leased) to be replaced with 60 A220s . Reshaped order book to maintain mid-to-high single digit growth rate into 2020s; retain flexibility to adjust growth if/as needed . A220 d
Slide 6: A220 Improves Customer Experience
A220 IMPROVES CUSTOMER EXPERIENCE NEXT GEN CUSTOMER EXPERIENCE ADDED MISSION CAPABILITY1 1 Airbus advertised range capability 66
Slide 7: A220 Economics Are Compelling: Aircraft Level Financial Benefit
A220 ECONOMICS ARE COMPELLING A220 ECONOMICS – AIRCRAFT LEVEL FINANCIAL BENEFIT 1 . A220 economics vs current E190 fleet E190 SYSTEMA220 CASM (¢) ANTICIPATED . 1 INCREMENTAL 29% lower direct operating cost per seat DIRECT OPERATING COSTS PER SEAT PROFIT PER SHELL2 . Larger aircraft with lower fuel b
Slide 8: A220 Economics Are Compelling: System Level Pro-Forma Benefits
A220 ECONOMICS ARE COMPELLING A220 ECONOMICS – SYSTEM LEVEL PRO-FORMA UNIT COST, MARGIN AND EPS BENEFITS ON 2018 BASE1 . A220 best overall replacement option for SYSTEM CASM (¢) SYSTEMSYSTEM PRE TAXCASM MARGIN (¢) SYSTEM EPS JetBlue . Offers highest profitability among next generation platforms -5.3
Slide 9: Capital Expenditure and Transition Costs
CAPITAL EXPENDITURE AND TRANSITION COSTS CAPEX THROUGH 2020 TRANSITION COSTS (US$ million) $1.2bn ~$1.2bn* 2018 2019 2020 2021-2025** Cash costs $1.0 – $1.2bn One-time costs $90-110* Ongoing (transition costs)1 $5-15 $15-25 $35-45 $80-115 Total $95-125 $15-25 $35-45 $80-115 1 Ramp-up costs (pilot tr
Slide 10: Capital Allocation and Updated Order Book
CAPITAL ALLOCATION AND UPDATED ORDER BOOK . No change to balance sheet strategy UPDATED AIRBUS ORDER BOOK1 • Focus on maintaining investment grade A220 A321 CEO*/NEO Total financial metrics XXX 2018 - 6* 6* . Liquidity to remain between 10-12%; adjusted 2019 - 13 13 debt/cap ratio between 30-40% 202
Slide 11: Slide 11
Slide 12: Appendix A: Note on Non-GAAP Financial Measures
APPENDIX A: NOTE ON NON-GAAP FINANCIAL MEASURES Consolidated operating cost per available seat mile, excludes fuel and related taxes, and operating expenses related to other non-airline businesses (CASM Ex-Fuel) is a non-GAAP financial measure that we use to measure our core performance. Note A with
Slide 13: Appendix B: Anticipated Delivery Schedule
APPENDIX B: ANTICIPATED DELIVERY SCHEDULE PRIOR CURRENT E190 A320 NEO A321 CEO/NEO Total A220 A321 CEO/NEO Total 2018 - - 6* 6* - 6* 6* 2019 - - 13 13 - 13 13 2020 10 6 7 23 5 15 20 2021 7 16 4 27 4 16 20 2022 7 3 17 27 8 15 23 2023 - - 14 14 19 14 33 2024 - - 5 5 22 12 34 2025 - - - - 2 - 2 Total1