Jetblue Airways Corporation · NASDAQ:JBLU
Jetblue Airways — Q1 2021 Earnings Presentation
26 slides from Jetblue Airways's earnings presentation, Apr 27, 2021
Slide 1: 1Q21 Earnings Presentation
1Q21 EARNINGS PRESENTATION APRIL 27, 2021
Slide 2: Safe Harbor
2 SAFE HARBOR Forward-Looking Information 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 Securi
Slide 3: 1Q 2021 Earnings Update
3 1Q 2021 EARNINGS UPDATE ROBIN HAYES CHIEF EXECUTIVE OFFICER
Slide 4: Our ESG Strategy Protects Our Long Term Financial Returns
4 OUR ESG STRATEGY PROTECTS OUR LONG TERM FINANCIAL RETURNS • Making margin-accretive capital investments (A220, A321neo) to increase fuel efficiency • Expanding use of sustainable aviation fuels and integrating lower-carbon emitting technologies across our operation • Achieving domestic carbon neut
Slide 5: Making Progress Towards Earnings Recovery
5 MAKING PROGRESS TOWARDS EARNINGS RECOVERY *As of April 27, 2021; does not constitute guidance OTHER LIQUIDITY ACTIONS (1) Refer to reconciliations of non-GAAP financial measures in Appendices A & B (2) EBITDA includes SW&B paid with PSP funds (3) As of March 31, 2021 • GAAP loss per share of ($0.7
Slide 6: Taking Actions to Rebuild Margins and Repair Balance Sheet
6 TAKING ACTIONS TO REBUILD MARGINS AND REPAIR BALANCE SHEET FOCUS AREAS STRENGTHENING NETWORK DEPLOYING REVENUE INITIATIVES MAINTAINING LOW COST STRUCTURE INVESTING IN MARGIN-ACCRETIVE AIRCRAFT *Assumes capacity in 2022 at 2019 levels. Current planning assumption as of April 27, 2021; does not cons
Slide 7: Commercial Update & Outlook
7 COMMERCIAL UPDATE & OUTLOOK JOANNA GERAGHTY PRESIDENT & CHIEF OPERATING OFFICER
Slide 8: Demand Trends Improving Sequentially
8 -65% -67% -52% -67% -61% Jan '21 Feb '21 Mar '21 4Q20 1Q21* 2Q21* Current planning assumption* DEMAND TRENDS IMPROVING SEQUENTIALLY REVENUE YOY/YO2Y GROWTH • Improving revenue trends during 1Q21 − Revenue declined 61% Yo2Y, following robust acceleration in leisure bookings beginning early February
Slide 9: Capacity Deployment to Capture Improving Revenue Trends
9 -47% -44% -33% -47% -41% -15% Jan '21 Feb '21 Mar '21 4Q20 1Q21* 2Q21* CAPACITY DEPLOYMENT TO CAPTURE IMPROVING REVENUE TRENDS ASM YOY/YO2Y GROWTH PlannedFlown Current planning assumption* *Versus 2019. Current planning assumption as of April 27, 2021; does not constitute guidance • Deploying capa
Slide 10: Financial Update & Outlook
1 0 FINANCIAL UPDATE & OUTLOOK STEVE PRIEST CHIEF FINANCIAL OFFICER
Slide 11: Summary Financials 1Q 2021
1 1 SUMMARY FINANCIALS 1Q 2021 METRIC 1Q 2021 1Q 2019 Change Yo2 Revenue (US$ million) 733 1,871 (61%) Operating Expenses (GAAP) (US$ million) 1,027 1,795 (43%) Operating Expenses (Adjusted) (US$ million) (1) 1,316 1,783 (26%) EBITDA (Adjusted) (US$ million) (1) (458) 212 NM Earnings/(Loss) per Shar
Slide 12: Successfully Managing Costs Despite Higher Fuel Prices
1 2 -43% -26% -8% YOY/YO2Y OPERATING EXPENSES* SUCCESSFULLY MANAGING COSTS DESPITE HIGHER FUEL PRICES COST INITIATIVES PlannedActual GAAP Actual Non-GAAP (1) *Operating expenses include non-cash expenses (e.g., depreciation and amortization) **Versus 2019. Current planning assumption as of April 27,
Slide 13: Targeting 2022 CASM Ex-Fuel Better Than in 2019
1 3 TARGETING 2022 CASM EX-FUEL BETTER THAN IN 2019* INITIATIVES TARGET AREAS / ACTIONS FIXED COSTS Maintain and scale $150 – $200M of fixed cost reductions achieved in 2020 • Automation and process improvement in support functions • IT migration to the cloud, data warehousing • Real Estate footprin
Slide 14: Preserving a Strong Liquidity Position
1 4 (1) Cash, cash equivalents and short-term investments (2) Represents cash from operations excluding PSP 2 funds and change in restricted cash (3) Includes principal and sale-leaseback payments treated as finance leases Note: Rounding may result in immaterial differences PRESERVING A STRONG LIQUI
Slide 15: Continuing to Invest in Margin Accretive Aircraft Fleet
1 5 1Q21 2Q21* 2021* • 2021 CAPEX expected to be ~$1B • Evaluating financing options for future aircraft deliveries • Plan to restrict non-aircraft CAPEX to highest ROI projects with fastest cash payback REVISED CAPEX CONTINUING TO INVEST IN MARGIN ACCRETIVE AIRCRAFT FLEET* PlannedActual (US$ millio
Slide 16: Maintaining Relative Balance Sheet Strength
1 6 MAINTAINING RELATIVE BALANCE SHEET STRENGTH LEVERAGE DEBT REPAYMENTS* (US$ million) *Cash outflows related to debt repayment (principal) as of 3/31/2021 The principal cash payments include sale-leaseback payments treated as finance leases and include repayment of revolving credit facility The in
Slide 17: Summary of Current Planning Assumptions for 2Q 2021
1 7 SUMMARY OF CURRENT PLANNING ASSUMPTIONS FOR 2Q 2021* METRIC Planning Assumption EBITDA (Non-GAAP) ($100) – ($200) million Revenue (30%) – (35%) Yo2 Available Seat Miles (ASMs) ~(15%) Yo2 Operating Expenses ~(8%) Yo2 Operating Expenses Related to Other Non-Airline Businesses ~$11 million Estimate
Slide 18: Questions?
1 8 QUESTIONS?
Slide 19: 1Q 2021 Financial Results
1 9 1Q 2021 FINANCIAL RESULTS US$ Millions 1Q 2021 1Q 2019 Yo2Y % Total operating revenues 733 1,871 (60.9) Aircraft fuel and related taxes 193 437 (55.7) Salaries, wages and benefits 521 575 (9.4) Landing fees and other rents 115 115 (0.4) Depreciation and amortization 125 124 0.4 Aircraft rent 25
Slide 20: Non-GAAP Financial Measures
2 0 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 princip
Slide 21: CASM Ex-Fuel Reconciliation
2 1 LOCATION 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 relate
Slide 22: Adjusted EBITDA Reconciliation
2 2 LOCATION Adjusted Earnings before interest, taxes, depreciation, amortization, and special Items Earnings before interest, taxes, depreciation, and amortization (EBITDA) is a non-GAAP financial measure. We further adjusted EBITDA to account for the impact of special items which are unusual or in
Slide 23: Results Excluding Special Items
2 3 Operating expense, (loss) income before taxes, net (loss) income and (loss) earnings per share, excluding special items Our GAAP results in the applicable periods were impacted by charges that are deemed special items. In the first quarter of 2021, special items include contra-expenses recognize
Slide 24: Appendix B: Calculation of Leverage Ratios
2 4 LOCATION 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
Slide 25: Appendix C: Contractual Order Book
2 5 A220 A321NEO A321NEO LR Total 2021* 7 5 3 15 2022 9 - 3 12 Delivery schedule, as of April 27, 2021 *Includes 3 deliveries received in 1Q21 APPENDIX C: CONTRACTUAL ORDER BOOK
Slide 26: Investor Relations Links
2 6 Investor Presentations http://blueir.investproductions.com/investor-relations/events-and-presentations/presentations Earnings Releases http://blueir.investproductions.com/investor-relations/financial-information/quarterly-results Annual Reports http://blueir.investproductions.com/investor-relati