Jetblue Airways Corporation · NASDAQ:JBLU
Jetblue Airways — Q3 2022 Earnings Presentation
22 slides from Jetblue Airways's earnings presentation, Oct 25, 2022
Slide 1: 3Q22 Earnings Presentation
3Q22 EARNINGS PRESENTATION OCTOBER 25, 2022 JetBlue flight over Manhattan’s Central Park Photo courtesy of Dave Clark
Slide 2: Safe Harbor
2 SAFE HARBOR This Presentation (or otherwise made by JetBlue or on JetBlue’s behalf) contains 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 amended, or
Slide 3: 3Q 2022 Earnings Update
3 3Q 2022 EARNINGS UPDATE ROBIN HAYES CHIEF EXECUTIVE OFFICER
Slide 4: Creating Value for Customers, Crewmembers, and Owners
4 CREATING VALUE FOR CUSTOMERS, CREWMEMBERS, AND OWNERS FY 2022 OUTLOOK (1) Refer to reconciliations of non-GAAP financial measures in Appendices A & B (2) Liquidity defined as unrestricted cash, cash equivalents, short-term investments and long-term marketable securities (3) As of September 30, 202
Slide 5: Enhancing Our Business for the Long-Term
5 ENHANCING OUR BUSINESS FOR THE LONG-TERM Structurally improving our profitability with strategic initiatives • The Northeast Alliance (NEA) is promoting competition and delivering substantial benefits for consumers traveling to or from New York and Boston with significant growth, new routes, and r
Slide 6: Commercial Update & Outlook
6 COMMERCIAL UPDATE & OUTLOOK JOANNA GERAGHTY PRESIDENT & CHIEF OPERATING OFFICER
Slide 7: Delivering for Our Customers and Building Relevance
7 (0.5%) 3Q22 4Q22* FY22* DELIVERING FOR OUR CUSTOMERS AND BUILDING RELEVANCE ASM GROWTH VERSUS 2019 EstimateFlown • Executing well in a challenging environment − Strong completion factor trends prior to late-September storms − Hurricanes Fiona and Ian impacted flown capacity by ~0.7% points in 3Q22
Slide 8: Carrying Through Strong Revenue Momentum
8 13.5% 23.4% 2Q22 3Q22 4Q22* CARRYING THROUGH STRONG REVENUE MOMENTUM RASM GROWTH VERSUS 2019 • Strong demand trends continue into the fall − Expect strong load factor trends into the fall and well above 2019 levels − Mint revenue continues to outperform rest of system − Contracted corporate revenu
Slide 9: Financial Update & Outlook
9 FINANCIAL UPDATE & OUTLOOK URSULA HURLEY CHIEF FINANCIAL OFFICER
Slide 10: Summary Financials 3Q 2022
1 0 SUMMARY FINANCIALS 3Q 2022 US$ Millions 3Q 2022 3Q 2019 Change vs ‘19 Revenue 2,562 2,086 23% Operating Expenses 2,423 1,839 32% Adjusted Operating Expenses (1) 2,410 1,839 31% Adjusted Pre-Tax Income (Loss) (1) 118 239 (51%) RASM 15.80 12.80 23% CASM ex-Fuel (1) 9.69 8.33 16% Earnings per Dilut
Slide 11: Forging a Strong Cost Trajectory
1 1 (0.5%) 16.3% 32.4% ASM CASM ex-Fuel CASM CASM EX-FUEL VERSUS 2019 COST INITIATIVES Actual 3Q22 Estimate 4Q22* • Planning conservatively given fragile industry operating environment − 3Q22 CASM ex-Fuel in-line with guidance, despite impact from hurricanes − Forecasting ~7% points of sequential CA
Slide 12: Keeping Our Costs Low to Support Margins
1 2 KEEPING OUR COSTS LOW TO SUPPORT MARGINS Network Efficiency Crew Planning End-of-Life Maintenance Optimization Maximizing Asset Productivity Accelerated E190 Transition to A220s $75M $40M - $50M $35M - $50M $45M - $60M $30M - $40M 2024 Savings ~$250M of structural cost savings through 2024 to su
Slide 13: Focusing on Capital Preservation and Maintaining Liquidity
1 3 FOCUSING ON CAPITAL PRESERVATION AND MAINTAINING LIQUIDITY USES OF CASH (1) Refer to reconciliations of non-GAAP financial measures in Appendix B *Denotes guidance • In 4Q22, we expect a sizable cash outflow largely driven by the pre-payment to Spirit shareholders and a step-up in CAPEX • No sig
Slide 14: Summary of Outlook
1 4 SUMMARY OF OUTLOOK METRIC 4Q22 Guidance Available Seat Miles (ASMs) 1% – 4% Yo3 RASM 15% – 19% Yo3 CASM ex-Fuel 8.5% – 10.5% Yo3 Operating Expenses Related to Other Non-Airline Businesses ~$13 million Estimated Fuel Price per Gallon $3.65 Tax Rate ~12% Capital Expenditures ~$420 million Note: Fu
Slide 15: Questions?
1 5 QUESTIONS?
Slide 16: 3Q 2022 Financial Results
1 6 3Q 2022 FINANCIAL RESULTS US$ Millions 3Q 2022 3Q 2019 Change vs ’19 Total operating revenues 2,562 2,086 23% Aircraft fuel and related taxes 825 471 75% Salaries, wages and benefits 675 580 16% Landing fees and other rents 131 125 5% Depreciation and amortization 147 134 10% Aircraft rent 30 26
Slide 17: Non-GAAP Financial Measures
1 7 Non-GAAP Financial Measures JetBlue 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 principles in the
Slide 18: CASM Ex-Fuel
1 8 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,
Slide 19: Operating expense, income before taxes, net income and EPS excluding special items
1 9 Operating expense, (loss) income before taxes, net (loss) income, and (loss) earnings per share, excluding special items and net gain (loss) on investments Our GAAP results in the applicable periods were impacted by charges that are deemed special items. For the three and nine months ended Septe
Slide 20: Appendix B: Calculation of Leverage Ratios
2 0 APPENDIX B: CALCULATION OF LEVERAGE RATIOS 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
Slide 21: Appendix C: Order Book
2 1 Deliveries A220 A321NEO A321NEO LR A320 E190 Total 2022 6 - 3 - - 9 2023 18 6 5 - - 29 Note: Delivery and return assumptions as of October 25, 2022. The above includes an amended agreement and represents the current delivery schedule set forth in our Airbus order book. However, we note that due
Slide 22: Investor Relations Resources
2 2 Spirit Acquisition https://lowfaresgreatservice.com 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