Jetblue Airways Corporation · NASDAQ:JBLU
Jetblue Airways — IPO Roadshow (August 2020)
36 slides from Jetblue Airways's IPO roadshow presentation, Aug 3, 2020
Slide 1: 2020-1 EETC Investor Presentation
Issuer Free Writing Prospectus Filed pursuant to Rule 433(d) Registration No. 333-230007 August 3, 2020 2020 -1 EETC Investor Presentation August 3, 2020 Issuer Free Writing Prospectus Filed pursuant to Rule 433(d) Registration No. 333-230007 August 3, 2020 2020 -1 EETC Investor Presentation August
Slide 2: Important Disclosures
IMPORTANT DISCLOSURES 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
Slide 3: Table of Contents
TABLE OF CONTENTS I. Update on Recent Events II.Transaction Overview III. Collateral Overview IV. 2Q 2020 Earnings Update 3 TABLE OF CONTENTS I. Update on Recent Events II.Transaction Overview III. Collateral Overview IV. 2Q 2020 Earnings Update 3
Slide 4: I. Update on Recent Events
I. Update on Recent Events I. Update on Recent Events
Slide 5: Proactively Positioning JetBlue to Weather the Storm
PROACTIVELY POSITIONING JETBLUE TO WEATHER THE STORM ROBUST BALANCE SHEET OTHER LIQUIDITY ACTIONS • $3.4B of liquidity at 2Q close, equal to 42% of 2019 revenue • Raised ~$750M through secured term loan and $118M through sale leaseback transactions during 2Q; additional sale (2) • Cash burn at $7.7M
Slide 6: Maintaining a Strong Liquidity Position
MAINTAINING A STRONG LIQUIDITY POSITION 3,434 118 717 936 533 1,799 403 691 550 67 150 78 3/31/20 Cash from CAPEX Debt Barclays Payroll Term Loan Sale Total Drawn (1) (2) Liquidity Ops Payments Point Support After Fees Leaseback Liquidity as Credit (3) (1) Purchase Program Transactions of 6/30/20 Re
Slide 7: Focused on Near and Long Term Recovery Plan
FOCUSED ON NEAR AND LONG TERM RECOVERY PLAN • Balance capacity, aligning variable costs to revenue trends • Support cash generation with tactical network actions 1. Reduce Cash Burn • Reduce working capital and near-term CAPEX • Generate operating cash, working towards positive free cash flow • Redu
Slide 8: 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 9: II. Transaction Overview
II. Transaction Overview II. Transaction Overview
Slide 10: Transaction Overview
TRANSACTION OVERVIEW • JetBlue Airways Corporation (“JetBlue ” or “JBLU”) intends to raise $807,792,000 through the offering of Pass Through Equipment Trust Certificates, Series 2020-1A and 2020-1B (the “Certificates”) − The Class A face amount of $635,462,000 (the “Class A Certificates”) − The Clas
Slide 11: JetBlue Airways Series 2020-1 EETC
JETBLUE AIRWAYS SERIES 2020-1 EETC Class A Certificates Class B Certificates Initial Face Amount $635,462,000 $172,330,000 Ratings (Moody’s / Fitch) A2 / A Baa2 / BBB (1) Initial / Max LTV 59.0% / 59.5% 75.0% / 75.7% (2) Weighted Average Life (Years) 7.7 5.1 Regular Distribution Dates May 15 and Nov
Slide 12: Aircraft Collateral Summary
AIRCRAFT COLLATERAL SUMMARY • JetBlue obtained appraised values for the aircraft from Aviation Specialist Group, Inc. (“ASG”), BK Associates, Inc. (“BK”) and Morten Beyer & Agnew, Inc. (“mba”). (1) Aggregate LMM appraised value is approximately $1.08 billion (1) (2) − LMM of the appraisals indicates
Slide 13: Aircraft Values, Depreciation, & LTV Schedules
AIRCRAFT VALUES, DEPRECIATION, & LTV SCHEDULES Total Aircraft Debt Balance Principal Amortization LTV (1) Date Period Value Class A Class B Class A Class B Class A Class B At Issuance 0.0 $1,077,056,667 $635,462,000 $172,330,000 - - 59.0% 75.0% November 15, 2020 0.2 1,067,116,024 635,462,000 172,330
Slide 14: Key Structural Elements
KEY STRUCTURAL ELEMENTS Classes of Certificates • Each class of Certificates will benefit from a separate liquidity facility covering three consecutive semi-annual interest payments Offered • Same waterfall both before and after an event of default Waterfall • Interest on Eligible Pool Balance of Cl
Slide 15: III. Collateral Overview
III. Collateral Overview III. Collateral Overview
Slide 16: Young, Narrowbody Assets Secure JBLU 2020-1 EETC
YOUNG, NARROWBODY ASSETS SECURE JBLU 2020-1 EETC (2) JBLU 2020-1 JETBLUE FLEET BY AIRCRAFT TYPE Average • The JBLU 2020-1 collateral pool consists entirely of (1) Aircraft Age : narrowbody aircraft that were delivered new to JetBlue 14.8 years between January 2015 and February 2020 130 • Of the 36 a
Slide 17: The Collateral: Airbus A321-200
THE COLLATERAL: AIRBUS A321-200 The Airbus A321-200 has continued the heritage of the A320 family’s “most marketable aircraft” reputation • Recent vintages of the A321-200 have been able to command higher market valuations due to the implementation of certain enhancements − Sharklets improve fuel bu
Slide 18: The Collateral: Airbus A321neo
THE COLLATERAL: AIRBUS A321neo The Airbus A321neo is the most prominent competing narrowbody aircraft to the Boeing 737 Max • Compelling economics and payload/range capability at top of single-aisle market, with fuel burn savings at more than 15% over the Ceo • A321neo ACF with 240 seats now in serv
Slide 19: 2020-1 Position of Collateral in JetBlue's Fleet
2020-1 POSITION OF COLLATERAL IN JETBLUE'S FLEET Strategic Importance to JetBlue A321-231HD (200 Core Seats) A321-231LD (143 Core, 16 Mint Seats) A321-271NX HD (200 Core Seats) • The eight A321-231LD aircraft included in the • The seven A321-271NX HD aircraft included in • The nine A321-231HD aircra
Slide 20: Questions?
QUESTIONS? NE6519 am eet. 65555, es ~~ 4 Fetblue.com y.
Slide 21: IV. 2Q 2020 Earnings Update
IV. 2Q 2020 Earnings Update IV. 2Q 2020 Earnings Update
Slide 22: 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% (1) CASM ex-Fuel (cents) 36.95 8.46 336.6% Fuel ($/gallon) 0.96 2.16 (55.4%) Earnings per Share (GAAP) (1.18) 0.59 (1) Earnings per Share (
Slide 23: Managing Short Term Bookings Volatility
MANAGING SHORT TERM BOOKINGS VOLATILITY REVENUE YOY GROWTH • Demand bottomed in mid-April; some improvement Actual Estimate through the end of 2Q started in late May Current planning (1) assumption − 2Q 2020 revenue declined (90%) YoY, driven by acute demand challenges − Small improvement in volumes
Slide 24: Adjusting Capacity to Evolving Demand Trends
ADJUSTING CAPACITY TO EVOLVING DEMAND TRENDS ASM YOY GROWTH • Significant capacity reductions in 2Q in response to Flown Planned lower demand Current planning (1) assumption − 2Q capacity down (85%) YoY; continued to manage scheduled and close-in cancels − Near-term capacity actions aimed at generat
Slide 25: Rebuilding Our Margins Through Cost Execution
REBUILDING OUR MARGINS THROUGH COST EXECUTION YOY OPERATING EXPENSES COST INITIATIVES (1) Planned Actual GAAP Actual Non-GAAP • Aggressive cost reductions and capacity actions in response to changes in demand Current planning (2) assumption ‒ Managing variable and fixed costs in the short term, with
Slide 26: Reducing Our Capital Expenditures
REDUCING OUR CAPITAL EXPENDITURES (2) REVISED CAPEX FLEET Actual Planned (1) As of 12/31/2020 (US$ million) As of 12/31/2019 1 13 6 800 - 850 35 35 28 28 130 130 175 67 60 60 (1) (1) (1) 2Q 3Q* 2020* 2019 2020* E190 A320 A321 HD A321 Mint A321neo HD A220 st • Expect to continue revisiting CAPEX base
Slide 27: Taking Action to Protect Liquidity
TAKING ACTION TO PROTECT LIQUIDITY (1) DEBT REPAYMENTS* LEVERAGE DEBT REPAYMENTS Principal Interest Adjusted (US$ million) (2) Debt to Cap Actuals Planned 55% 44% 34% 102 93 89 78 (3) 44 41 30 19 (1) (1) Dec 31 2019 Mar 31 2020 Jun 30 2020 1Q 2Q 3Q* 4Q* • Raised ~$750M via term loan, exceeding initi
Slide 28: Appendices
Appendices Appendices
Slide 29: Appendix A: Non-GAAP Financial Measures
APPENDIX A Non-GAAP Financial Measures JetBlue sometimes uses non-GAAP financial measures in this presentation. Non-GAAP financial measures are financial measures that are derived from the consolidated financial statements, but that are not presented in accordance with generally accepted accounting
Slide 30: 2Q 2020 Financial Results
2Q 2020 FINANCIAL RESULTS US$ 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 31: CASM Ex-Fuel Reconciliation
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 32: Operating Expenses, Income and EPS excluding special items
Operating Expenses, Operating Income, 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 prio
Slide 33: Monthly Operating Expense, excluding special items
Monthly Operating Expense, 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 as future periods and guidance. In 2020, special
Slide 34: Adjusted Debt to Capitalization Ratio
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, in addition to total debt and finance leas
Slide 35: Appendix B: Contractual Order Book
APPENDIX B: CONTRACTUAL ORDER BOOK A220 A321NEO A321NEO LR Total (1) 2020 1 7 8 2021 7 5 5 17 2022 8 4 3 15 Total 16 12 12 40 Delivery schedule, as of June 30, 2020 (1) Includes 3 deliveries received in 1Q 2020 35 APPENDIX B: CONTRACTUAL ORDER BOOK A220 A321NEO A321NEO LR Total (1) 2020 1 7 8 2021 7
Slide 36: JetBlue
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