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8-K - FORM 8-K - JETBLUE AIRWAYS CORP | y04095e8vk.htm |
Exhibit 99.1
Investor Update |
Investor Update: October 21, 2010
This investor update provides JetBlues investor guidance for the fourth quarter ending
December 31, 2010 and full year 2010.
Recent Announcements
JetBlue has recently announced service between the following new city pairs:
City Pair | Frequency | Start Date | ||
New York, NY (JFK) Providenciales, Turks & Caicos
|
1x Daily | February 17, 2011 | ||
Boston, MA Providenciales, Turks & Caicos
|
Saturdays | February 19, 2011 | ||
Boston, MA Newark, NJ (EWR)
|
4x Daily | May 4, 2011 | ||
San Juan, Puerto Rico Tampa, FL
|
1-2x Daily | May 4, 2011 | ||
San Juan, Puerto Rico Jacksonville, FL
|
1x Daily | May 19, 2011 |
Specific details regarding frequency and start dates can be found on JetBlues web site,
www.jetblue.com.
JetBlue announced the following changes to its aircraft delivery schedule:
Annual Deliveries | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | ||||||||||||||||||
Previous Firm A320 Deliveries |
4 | 11 | 13 | 12 | 15 | | ||||||||||||||||||
Revised Firm A320 Deliveries |
4 | 7 | 7 | 12 | 15 | 10 | ||||||||||||||||||
Net Change |
| (4 | ) | (6 | ) | | | 10 | ||||||||||||||||
Previous Firm E190 Deliveries |
5 | 6 | 7 | 7 | 7 | 8 | ||||||||||||||||||
Revised Firm E190 Deliveries |
5 | 4 | 7 | 7 | 7 | 8 | ||||||||||||||||||
Net Change |
| (2 | ) | | | | |
Capacity
Fourth quarter 2010 available seat miles (ASMs) are estimated to increase 8% to 10%
year-over-year. Full year 2010 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:
Fourth Quarter 2010 | Full Year 2010 | |||||
A320
|
E190 | A320 | E190 | |||
85% | 15% | 86% | 14% |
Average stage length is projected to be approximately 1,093 miles during the fourth quarter of 2010
versus 1,091 miles during the same prior year period and approximately 1,100 miles for the full
year 2010 versus 1,076 miles for the full year 2009.
JetBlue Airways Investor Relations (718) 709-2202 ir@jetblue.com
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Investor Update |
Operational Outlook
Year-Over-Year Percentage Change | ||||||||
Fourth Quarter | Full Year | |||||||
(Per ASM) | 2010 | 2010 | ||||||
Revenue |
||||||||
Passenger Unit Revenue (PRASM) |
12% - 15 | % | 9% - 12 | % | ||||
Operating Unit Revenue (RASM) |
10% - 13 | % | 7% - 10 | % | ||||
Operating Expense |
||||||||
Unit Operating Expense (CASM) |
7% - 9 | % | 7% - 9 | % | ||||
Unit Operating Expense Excluding Fuel (Ex-Fuel CASM) |
2% - 4 | % | 5% - 7 | % |
Fourth Quarter | Full Year | |||||||
2010 | 2010 | |||||||
Fuel Expense |
||||||||
Estimated Consumption (gallons) |
123 million | 490 million | ||||||
Estimated Fuel Price per Gallon, Net of Hedges * |
$ | 2.42 | $ | 2.30 |
* | Includes fuel taxes |
JetBlue estimates total Other Income (Expense) to be between ($40) and ($45) million in the fourth
quarter and between ($170) and ($180) million for the full year. JetBlue expects an annual
effective tax rate of approximately 40%. However, the actual tax rate in both fourth quarter and
full year 2010 could differ due to the non-deductibility of certain items for tax purposes.
Fuel Hedges
As of October 15, 2010 JetBlues advanced fuel derivative contracts for the next 12 months are
as follows:
Estimated Percentage | ||||||||
Gallons | of Consumption | Price | ||||||
4Q10
|
54 million | 43 | % | 19% in heat collars with average cap at $2.43/gal
and average put at $2.03/gal 24% in USGC jet fuel swaps at an average of $2.19/gal |
||||
1Q11
|
28 million | 22 | % | 5% in heat collars with average cap at $2.61/gal and
average put at $2.21/gal 17% in crude call options with average cap at $92/bbl |
||||
2Q11
|
28 million | 21 | % | 21% in crude call options with average cap at $93/bbl | ||||
3Q11
|
23 million | 16 | % | 16% in crude call options with average cap at $93/bbl |
JetBlue Airways Investor Relations (718) 709-2202 ir@jetblue.com
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Investor Update |
Aircraft Delivery Schedule
As of September 30, 2010 JetBlues fleet was comprised of 113 Airbus A320 aircraft and 44
EMBRAER 190 aircraft. 110 aircraft were on order from Airbus and Embraer, scheduled for delivery
through 2018, with options to acquire 76 additional aircraft.
Airbus A320 | EMBRAER 190 | |||||||||||||||||||||||
Aircraft | Mortgage | Lease | Aircraft | Mortgage | Lease | |||||||||||||||||||
4Q10
|
3 | | 3 | 1 | 1 | | ||||||||||||||||||
Total at Year End*
|
116 | 86 | 30 | 45 | 14 | 31 |
* | JetBlue leased two of its owned EMBRAER 190 aircraft to a third party in 2008, which are not included in the table above. |
Capital Expenditures
(In millions)
(In millions)
Fourth Quarter 2010 | Full Year 2010 | |||||
Aircraft | Non-aircraft | Aircraft | Non-aircraft | |||
$45
|
$40 | $205 | $115 |
Share Count
Share count estimates for calculating basic and diluted earnings per share are as follows:
Fourth Quarter 2010 | ||||||||||||
Basic Share Count | Diluted Share Count | Interest Add-back | ||||||||||
Net Income Range | (in millions) | (in millions) | (in millions)** | |||||||||
Zero $11 million |
276.2 | 279.0 | | |||||||||
$11 million $15 million |
276.2 | 306.4 | $ | 1 | ||||||||
$15 million or greater |
276.2 | 347.6 | $ | 3 |
Full Year 2010 | ||||||||||||
Basic Share Count | Diluted Share Count | Interest Add-back | ||||||||||
Net Income Range | (in millions) | (in millions) | (in millions)** | |||||||||
Zero $42 million |
275.3 | 278.0 | | |||||||||
$42 million $57 million |
275.3 | 305.4 | $ | 4 | ||||||||
$57 million or greater |
275.3 | 346.6 | $ | 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 JetBlues 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
managements 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 Companys
Securities and Exchange Commission filings, including but not limited to, the Companys 2009 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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