Slide 1: 2Q 2020 Earnings Presentation
2Q 2020 EARNINGS PRESENTATION JULY 28, 2020
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: 2Q 2020 Earnings Update
2Q 2020 EARNINGS UPDATE ROBIN HAYES CHIEF EXECUTIVE OFFICER
Slide 4: Taking Actions to Protect Our Stakeholders
TAKING ACTIONS TO PROTECT OUR STAKEHOLDERS 2Q 2020 BALANCE SHEET 3Q 2020 PLANNING ASSUMPTIONS* • $3.4B of liquidity at 2Q close, equal to 42% of 2019 revenue • Expect 3Q 2020 YoY revenue down ~(80%); recent trends • Cash burn at $7.7M/day(2) by end of 2Q, better than denote high volatility; tracking
Slide 5: Focused on Near and Long Term Recovery Plan
FOCUSED ON NEAR AND LONG TERM RECOVERY PLAN • Balance capacity, aligning variable costs to revenue trends 1. Reduce Cash Burn • Support cash generation with tactical network actions • Reduce working capital and near-term CAPEX • Generate operating cash, working towards positive free cash flow 2. Reb
Slide 6: Commercial Update & Outlook
COMMERCIAL UPDATE & OUTLOOK JOANNA GERAGHTY PRESIDENT & CHIEF OPERATING OFFICER
Slide 7: Executing Strategy to Manage Short Term and Accelerate Recovery
EXECUTING STRATEGY TO MANAGE SHORT TERM AND ACCELERATE RECOVERY Agreement reached with LAWA to grow LAX to 70 daily departures by 2025 SHORT- MEDIUM TERM ACTIONS LONG TERM ACTIONS − Leveraging Newark access to strengthen New York Focus City − Partnering with American Airlines to bring low-fares, inc
Slide 8: Managing Short Term Bookings Volatility
MANAGING SHORT TERM BOOKINGS VOLATILITY REVENUE YOY GROWTH Actual Estimate • Demand bottomed in mid-April; some improvement through 2Q started in late May Current planning assumption* − 2Q 2020 revenue declined (90%) YoY, driven by acute demand challenges − Small improvement in volumes stalled in Ju
Slide 9: Adjusting Capacity to Evolving Demand Trends
ADJUSTING CAPACITY TO EVOLVING DEMAND TRENDS ASM YOY GROWTH Flown Planned • Significant capacity reductions in 2Q in response to lower demand Current planning assumption* − 2Q capacity down (85%) YoY; continued to manage scheduled and close-in cancels − Near-term capacity actions aimed at generating
Slide 10: Financial Update & Outlook
FINANCIAL UPDATE & OUTLOOK STEVE PRIEST CHIEF FINANCIAL OFFICER
Slide 11: Summary Financials 2Q 2020
SUMMARY FINANCIALS 2Q 2020 METRIC 2Q 2020 2Q 2019 Change YoY ASM (millions) 2,413 16,029 (84.9%) RASM (cents) 8.91 13.14 (32.2%) CASM (cents) 25.90 11.58 123.7% CASM ex-Fuel(1) (cents) 36.95 8.46 336.6% Fuel ($/gallon) 0.96 2.16 (55.4%) Earnings per Share (GAAP) (1.18) 0.59 Earnings per Share(1) (No
Slide 12: Maintaining a Strong Liquidity Position
MAINTAINING A STRONG LIQUIDITY POSITION 3,434 118 717 936 533 1,799 403 691 550 67 78 150 3/31/20 Cash from CAPEX Debt Barclays Credit Payroll Term Loan Sale Total Liquidity(1) Ops(2) Payments Point Revolver Support After Fees Leaseback Liquidity as Purchase Program(3) Transactions of 6/30/20(1) (1)
Slide 13: Rebuilding Our Margins Through Cost Execution
REBUILDING OUR MARGINS THROUGH COST EXECUTION YOY OPERATING EXPENSES COST INITIATIVES Actual GAAP Actual Non-GAAP (1) Planned Current planning • Aggressive cost reductions and capacity actions assumption* in response to changes in demand 7% ‒ Managing variable and fixed costs in the short term, -4%
Slide 14: Reducing Our Capital Expenditures
REDUCING OUR CAPITAL EXPENDITURES REVISED CAPEX FLEET* Actual Planned (US$ million) As of 12/31/2019 As of 12/31/2020* 1 6 13 800 - 850 35 35 28 28 130 130 175 67 60 60 2Q 3Q* 2020* 2019 2020* E190 A320 A321 HD A321 Mint A321neo HD A220 • Expect to continue revisiting CAPEX based on recovery • On Ju
Slide 15: Taking Action to Protect Liquidity
TAKING ACTION TO PROTECT LIQUIDITY LEVERAGE DEBTREPAYMENTS* DEBT REPAYMENTS* Principal Interest Adjusted (US$ million) Debt to Cap (1) Actuals Planned 55% 44% 34% 102 93 78 89 (2) 41 44 19 30 Dec 31 2019 Mar 31 2020 Jun 30 2020 1Q 2Q 3Q* 4Q* • Raised ~$750M via term loan, exceeding initial expectati
Slide 16: Questions?
QUESTIONS?
Slide 17: Appendix A
APPENDIX A Non-GAAP Financial Measures JetBlue sometimes uses non-GAAP financial measures in this presentation. Non-GAAP financial measures are financial measures that are derived from the consolidated financial statements, but that are not presented in accordance with generally accepted accounting
Slide 18: 2Q 2020 Financial Results
2Q 2020 FINANCIAL RESULTS US$ Millions 2Q 2020 2Q 2019 Var % Total Operating Revenues 215 2,105 (89.8) Aircraft fuel and related taxes 29 484 (94.0) Salaries, wages and benefits 477 576 (17.1) Landing fees and other rents 62 121 (48.8) Depreciation and amortization 140 127 10.2 Aircraft rent 16 25 (
Slide 19: 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 20: 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 21: 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 22: 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 23: 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 July 28, 2020 *Includes 3 deliveries received in 1Q 2020 23
Slide 24: 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