Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - JETBLUE AIRWAYS CORP | y05063e8vk.htm |
Exhibit 99.1
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Investor Update |
Investor Update: July 26, 2011
This investor update provides JetBlue’s investor guidance for the third quarter ending
September 30, 2011 and full year 2011.
Recent Announcements
JetBlue has recently announced service between the following new city pairs:
| City Pair | Frequency | Start Date | ||
White Plains, NY — Nassau, Bahamas*
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1X Daily | November 15, 2011 | ||
New York, NY (JFK) — La Romana, Dominican Republic*
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2X Weekly | November 16, 2011 | ||
New York, NY (JFK) — Liberia, Costa Rica*
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4X Weekly | November 17, 2011 | ||
San Juan, P.R. — St. Thomas, U.S. Virgin Islands
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2X Daily | December 15, 2011 | ||
San Juan, P.R. — St. Croix, U.S. Virgin Islands
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1X Daily | December 15, 2011 | ||
Boston, MA — St. Thomas, U.S. Virgin Islands
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5X Weekly | December 15, 2011 | ||
San Juan, P.R. — Hartford, CT
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1X Daily | January 5, 2012 |
| * | Subject to receipt of government approval |
Specific details regarding frequency and start dates can be found on JetBlue’s web site,
www.jetblue.com.
Capacity
Third quarter 2011 available seat miles (ASMs) are estimated to increase 9% to 11%
year-over-year. Full year 2011 ASMs are estimated to increase 6% to 8% year-over-year.
JetBlue estimates the following distribution as a percentage of total ASMs by aircraft type:
| Third Quarter 2011 | Full Year 2011 | |||||
| A320 | E190 | A320 | E190 | |||
| 87% | 13% | 86% | 14% | |||
Average stage length is projected to be approximately 1,121 miles during the third quarter of 2011
versus 1,103 miles during the same prior year period and approximately 1,095 miles for the full
year 2011 versus 1,100 miles for the full year 2010.
Operational Outlook
| Third Quarter | Full Year | |||||||
| 2011 | 2011 | |||||||
Operating Expense Year-Over-Year Percentage Change |
||||||||
Unit Operating Expense (CASM)
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13% — 15 | % | 14% — 16 | % | ||||
Unit Operating Expense Excluding Fuel (Ex-Fuel CASM)
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(4)% — (2 | )% | 0% — 2 | % | ||||
Fuel Expense |
||||||||
Estimated Consumption (gallons)
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142 million | 527 million | ||||||
Estimated Fuel Price per Gallon, Net of Hedges *
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$ | 3.33 | $ | 3.24 | ||||
* Includes fuel taxes
JetBlue Airways Investor Relations • (718) 709-2202 • ir@jetblue.com
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Investor Update |
Fuel Hedges
As of July 21, 2011 JetBlue’s advanced fuel derivative contracts for the next 12 months are as
follows
| Estimated | ||||||||
| Percentage | ||||||||
| Gallons | of Consumption | Price | ||||||
3Q11
|
67 million | 48 | % | • 18% in crude call options with the average cap at $94/bbl | ||||
| • 9% in crude collars with the average cap at $100/bbl and the average put at $80/bbl | ||||||||
| • 5% in crude 3-way collars with the average purchased call at $100/bbl, the average sold call at $110/bbl and the average put at $83/bbl | ||||||||
| • 9% in heat collars with the average cap at $3.26/gal and the average put at $2.86/gal | ||||||||
| • 7% in USGC jet fuel swaps at an average of $3.03/gal | ||||||||
4Q11
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51 million | 38 | % | • 7% in crude call options with the average cap at $92/bbl | ||||
| • 9% in crude collars with the average cap at $100/bbl and the average put at $81/bbl | ||||||||
| • 5% in crude 3-way collars with the average purchased call at $100/bbl, the average sold call at $110/bbl and the average put at $80/bbl | ||||||||
| • 9% in heat collars with the average cap at $3.30/gal and the average put at $2.90/gal | ||||||||
| • 8% in USGC jet fuel swaps at an average of $3.03/gal | ||||||||
1Q12
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22 million | 18 | % | • 3% in crude call options with the average cap at $99/bbl | ||||
| • 5% in crude collars with the average cap at $98/bbl and the average put at $78/bbl | ||||||||
| • 8% in heat collars with the average cap at $3.31/gal and the average put at $2.91/gal | ||||||||
| • 2% in USGC jet fuel swaps at an average of $3.15/gal | ||||||||
2Q12
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22 million | 16 | % | • 2% in crude call options with the average cap at $99/bbl | ||||
| • 5% in crude collars with the average cap at $97/bbl and the average put at $78/bbl | ||||||||
| • 7% in heat collars with the average cap at $3.27/gal and the average put at $2.87/gal | ||||||||
| • 2% in USGC jet fuel swaps at an average of $3.14/gal | ||||||||
Capital Expenditures
(In millions)
(In millions)
| Third Quarter 2011 | Full Year 2011 | |||||
| Aircraft | Non-aircraft | Aircraft | Non-aircraft | |||
| $85 | $40 | $390 | $115 | |||
JetBlue estimates total Other Income (Expense) to be between ($40) and ($45) million in the third
quarter and between ($160) and ($170) million for the full year.
JetBlue expects an annual effective tax rate of approximately 42%. However, the actual tax rate in
both third quarter and full year 2011 could differ due to the non-deductibility of certain items
for tax purposes.
JetBlue Airways Investor Relations • (718) 709-2202 • ir@jetblue.com
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Investor Update |
Aircraft Delivery Schedule
As of June 30, 2011 JetBlue’s fleet was comprised of 119 Airbus A320 aircraft and 46 EMBRAER
190 aircraft. 102 aircraft were on order from Airbus and Embraer, scheduled for delivery through
2018, with options to acquire 59 additional aircraft. In addition, JetBlue plans to take delivery
of 40 Airbus A320neos between 2017 and 2021.
| Airbus A320 | EMBRAER 190 | |||||||||||||||||||||||
| Aircraft | Mortgage | Lease | Aircraft | Mortgage | Lease | |||||||||||||||||||
3Q11 |
— | — | — | 2 | 2 | — | ||||||||||||||||||
4Q11 |
1 | 1 | — | 1 | 1 | — | ||||||||||||||||||
Total at Year End* |
120 | 90 | 30 | 49 | 19 | 30 | ||||||||||||||||||
| * | JetBlue leased two of its owned EMBRAER 190 aircraft to a third party in 2008, which are not included in the table above. |
Share Count
Share count estimates for calculating basic and diluted earnings per share are as follows:
| Third Quarter 2011 | ||||||||||||
| Basic Share Count | Diluted Share Count | Interest Add-back | ||||||||||
| Net Income Range | (in millions) | (in millions) | (in millions)** | |||||||||
Zero — $11 million |
278.9 | 281.1 | $ | — | ||||||||
$11 million — $15 million |
278.9 | 308.5 | $ | 1 | ||||||||
$15 million or greater |
278.9 | 349.7 | $ | 3 | ||||||||
| Full Year 2011 | ||||||||||||
| Basic Share Count | Diluted Share Count | Interest Add-back | ||||||||||
| Net Income Range | (in millions) | (in millions) | (in millions)** | |||||||||
Zero — $42 million |
278.5 | 280.6 | $ | — | ||||||||
$42 million — $57 million |
278.5 | 308.1 | $ | 4 | ||||||||
$57 million or greater |
278.5 | 349.3 | $ | 12 | ||||||||
| ** | Net of taxes |
These share count estimates assume 20% annual stock price appreciation and are based on several
other assumptions. The number of shares used in JetBlue’s actual earnings per share will likely be
different than those stated above.
JetBlue Airways Investor Relations • (718) 709-2202 • ir@jetblue.com
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Investor Update |
This investor update contains statements of a forward-looking nature which represent our
management’s beliefs and assumptions concerning future events. When used in this document and in
documents incorporated herein by reference, the words “expects,” “plans,” “anticipates,”
“indicates,” “believes,” “forecast,” “guidance,” “outlook,” “may,” “will,” “should,” “seeks,”
“targets” and similar expressions are intended to identify forward-looking statements.
Forward-looking statements involve risks, uncertainties and assumptions, and are based on
information currently available to us. Actual results may differ materially from those expressed in
the forward-looking statements due to many factors, including, without limitation, our extremely
competitive industry; volatility in financial and credit markets which could affect our ability to
obtain debt and/or lease financing or to raise funds through debt or equity issuances; increases in
fuel prices, maintenance costs and interest rates; our ability to implement our growth strategy,
including the ability to operate reliably the EMBRAER 190 aircraft and our new terminal at JFK; our
significant fixed obligations; our ability to attract and retain qualified personnel and maintain
our culture as we grow; our reliance on high daily aircraft utilization; our dependence on the
New York metropolitan market and the effect of increased congestion in this market; our
reliance on automated systems and technology; our being subject to potential unionization; our
reliance on a limited number of suppliers; changes in or additional government regulation; changes
in our industry due to other airlines’ financial condition; a continuance of the economic
recessionary conditions in the U.S. or a further economic downturn leading to a continuing or
accelerated decrease in demand for domestic and business air travel; and external geopolitical
events and conditions. Further information concerning these and other factors is contained in the
Company’s Securities and Exchange Commission filings, including but not limited to, the Company’s
2010 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We undertake no obligation to
update any forward-looking statements to reflect events or circumstances that may arise after the
date of this release.
JetBlue Airways Investor Relations • (718) 709-2202 • ir@jetblue.com
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