Jetblue Airways Corporation · NASDAQ:JBLU
Jetblue Airways — J.P. Morgan Aviation, Transportation and Industrials Conference 2019
12 slides from Jetblue Airways's conference presentation, Mar 5, 2019
Slide 1: J.P. Morgan Aviation, Transportation and Industrials Conference
J.P. MORGAN AVIATION, TRANSPORTATION AND INDUSTRIALS CONFERENCE MARCH 5, 2019 1
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: Update & Outlook
UPDATE & OUTLOOK ROBIN HAYES CHIEF EXECUTIVE OFFICER
Slide 4: Unit Revenue: Updating 1Q Guidance, Monitoring Close-In Trends
UNIT REVENUE: UPDATING 1Q GUIDANCE, MONITORING CLOSE-IN TRENDS RASM YOY GROWTH • Mid-point of RASM guide lower by 2 points (2.0) – 1.0% − Off-peak pressure from competitive capacity in Florida (3.5) – (1.5)% to Caribbean markets and low tactical walk-up fares in transcon (Boston & New York) (0.75) p
Slide 5: Peak vs Trough RASM Performance Diverging
PEAK VS TROUGH RASM PERFORMANCE DIVERGING RASM YOY GROWTH SIGNIFICANT SLOWDOWN SINCE GUIDE PRELIMINARY VIEW INTO 2Q 1Q RASM Yo2Y* REVENUE BUILD • Current bookings for April peak performing PEAK VS TROUGH better than trough periods ‒ Peak April bookings don’t show a full carry-through of recent troug
Slide 6: Taking Immediate Capacity Actions to Address Near-Term RASM Weakness
TAKING IMMEDIATE CAPACITY ACTIONS TO ADDRESS NEAR-TERM RASM WEAKNESS REDUCING 2019 CAPACITY GROWTH SPECIFIC CAPACITY ACTIONS • Caribbean-specific capacity adjustments, • Reducing 2019 capacity growth by 0.5 pts Low walk- including redeployments up fares • Day of week adjustments targeted at specific
Slide 7: Unit Costs: Maintaining Our 2019 Guide
UNIT COSTS: MAINTAINING OUR 2019 GUIDE CASM EX-FUEL YOY GROWTH* • Maintain 1Q and full year 2019 cost guidance 1.5 – 3.5% ‒ 2019 CASM ex-fuel outlook unchanged ‒ Similar to 2018, plan to mitigate unit cost pressure from capacity reductions throughout 2019 0.0 – 2.0% ‒ 1Q 2019 range between 1.5% to 3
Slide 8: Executing Cost Savings to Support EPS Goals
EXECUTING COST SAVINGS TO SUPPORT EPS GOALS CASM EX-FUEL YOY GROWTH* • Expect to continue making substantial progress in 0.0 – 2.0% cost execution over the coming years ‒ 2018 CASM ex-Fuel included 1.3 points impact of pilot 1.1% contract; expect additional headwind of 3 points during 1H 2019 (2.5)
Slide 9: Remaining Committed to EPS Range of $2.50 to $3.00
REMAINING COMMITTED TO EPS RANGE OF $2.50 TO $3.00 BUILDING BLOCKS RECENT PROGRESS AND KEY ASSUMPTIONS • We continue to expect our base case assumptions • Recent network adds in Boston to strengthen to translate to an EPS range of $2.50 - $3.00 relevance • Recently signed letter of intent with Sabre
Slide 10: 2019 Guide Summary
2019 GUIDE SUMMARY CAPACITY RASM CASM EX-FUEL** ALL-IN FUEL PRICE 1Q 2019 FY 2019* 1Q 2019* FY 2019 1Q 2019 FY 2019 1Q 2019* FY 2019 7.5 – 9.5% 4.5 – 6.5% (3.5) – (1.5)% N/A 1.5 – 3.5% 0.0 – 2.0% $2.08 / gal N/A CAPEX AIRCRAFT CAPEX NON-AIRCRAFT OTHER INCOME / (EXPENSE) JTP / JTV (EXPENSES) 1Q 2019
Slide 11: Slide 11
Slide 12: Appendix: Note on Non-GAAP Financial Measures
APPENDIX: NOTE ON NON-GAAP FINANCIAL MEASURES Consolidated operating cost per available seat mile, excluding fuel and related taxes, certain 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
JetBlue Airways — J.P. Morgan Aviation, Transportation and Industrials Conference 2019 on 6ix