Jetblue Airways Corporation · NASDAQ:JBLU
Jetblue Airways — Hudson Securities Airline Conference 2010
25 slides from Jetblue Airways's conference presentation, Dec 8, 2010
Slide 1: Hudson Securities Airline Conference December 8, 2010
Hudson Securities Airline Conference December 8, 2010
Slide 2: Safe Harbor
Safe Harbor This presentation contains statements of a forward-looking nature which represent our management's beliefs and assumptions concerning future events. Forward-looking statements involve risks, uncertainties and assumptions, and are based on information currently available to us. Actual res
Slide 3: JetBlue Well-Positioned
JetBlue Well-Positioned Focused on maintaining financial strength Seizing network growth opportunities Low cost structure Unique brand & culture
Slide 4: Free Cash Flow Drives Sustainable Growth
Free Cash Flow Drives Sustainable Growth JetBlue Year-End Free Cash Flow ($ Millions)
Slide 5: Continued Aircraft Capex Reduction
($ Millions) Continued Aircraft Capex Reduction
Slide 6: Strong Liquidity Position Among U.S. Carriers
(CHART) Strong Liquidity Position Among U.S. Carriers Cash as % of TTM Revenues As of September 30, 2010 Source: Company 10-Qs and press releases
Slide 7: Manageable Debt Maturities
Manageable Debt Maturities ($ Millions)
Slide 8: Flexible Fleet Order Book - Ability to Moderate or Accelerate Growth
Flexible Fleet Order Book - Ability to Moderate or Accelerate Growth Moderate or Accelerate Growth Moderate or Accelerate Growth Number of Aircraft
Slide 9: 2010 Growth Drivers
2010 Growth Drivers Capacity Reallocation Caribbean Boston Rest of Network +5% +5% (1%) 3Q10 ASMs
Slide 10: Maximizing Revenue in Key Growth Regions
Maximizing Revenue in Key Growth Regions Boston Caribbean & Latin America New York/JFK Building relevance to business & leisure customers Opportunistic in changing competitive landscape Strong Visiting Friends & Relatives (VFR) traffic complements leisure traffic Valuable slot portfolio & new JFK te
Slide 11: Largest Carrier in Boston with Most Departures & Most Destinations Served
Largest Carrier in Boston with Most Departures & Most Destinations Served 1Q07 1Q11E Daily Departures 40 80 Destinations Served 19 39 Gates 6 12
Slide 12: Opportunistic Growth in Caribbean & Latin America
Opportunistic Growth in Caribbean & Latin America
Slide 13: Seizing on Changes in Competitive Landscape in San Juan
Seizing on Changes in Competitive Landscape in San Juan Landscape in San Juan Landscape in San Juan Source: OAG schedules Daily ASMs (Millions)
Slide 14: Leveraging Unique Position as Largest Domestic Carrier at JFK
Leveraging Unique Position as Largest Domestic Carrier at JFK 330 slots 150 daily departures Existing partners: J F K A i r p o r t Largest international US gateway 550 daily departures 60 international flag carriers 25 unaffiliated with alliances
Slide 15: New Customer Service System Drives Revenue Growth
New Customer Service System Drives Revenue Growth Enhanced codeshare and interline opportunities Real time GDS connectivity Improved revenue management capabilities New fare products and offerings aimed at business customers Even More Legroom variable pricing Refundable fares
Slide 16: Increased Relevance to Business Customers
Increased Relevance to Business Customers GDS real-time availability Revamped TrueBlue program Dollar spend-based awards Fare flexibility Refundable fares Corporate contracts Schedule optimization Product enhancements EML pre-boarding
Slide 17: Revenue Environment Has Steadily Improved
Revenue Environment Has Steadily Improved Revenue Environment Has Steadily Improved 3Q09 4Q09 1Q10 2Q10 3Q10 YOY PRASM Change YOY Capacity Change
Slide 18: 4Q10 Revenue Update
4Q10 Revenue Update Original guidance Revised view PRASM change 13 11 RASM change 11 9 12-15% 10-12% Strong November & December revenue performance, even with significant capacity increases Strategy to aggressively hold out for yield during peak travel periods has not materialized as well as expecte
Slide 19: 4Q10 Revenue Guidance Appeared Achievable Based on Booking Curve & Prior Peak Performance
4Q10 Revenue Guidance Appeared Achievable Based on Booking Curve & Prior Peak Performance Peak What we expected... ....what's been happening Strong yields Compressed booking curve Higher LF at expense of yield Close-in bookings not as strong Shoulder Strong yields and LF As expected Florida Limited
Slide 20: Strong Ancillary Revenue Growth
Strong Ancillary Revenue Growth Strong Ancillary Revenue Growth ($ Millions)
Slide 21: Cost Performance Improving
(CHART) Cost Performance Improving 1Q10 2Q10 3Q10 9% 8% 3% YOY Ex-Fuel CASM Change 2 - 4% 4Q10E One-time Sabre expenses have dissipated JFK runway project complete Improving Pilot productivity
Slide 22: Youngest, Most Fuel Efficient Fleet in the U.S.
Youngest, Most Fuel Efficient Fleet in the U.S. (Age in Years) *As of December 31, 2009 Source: Company 10-Ks
Slide 23: A Different Kind of Culture... A Different Kind of Airline
A Different Kind of Culture... A Different Kind of Airline
Slide 24: JetBlue Well-Positioned
JetBlue Well-Positioned Focused on maintaining financial strength Seizing network growth opportunities Low cost structure Unique brand & culture
Slide 25: Slide 25
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