Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - JETBLUE AIRWAYS CORP | y05280e8vk.htm |
Exhibit 99.1
Investor Update: October 26, 2011
This investor update provides JetBlue’s investor guidance for the fourth quarter ending
December 31, 2011 and full year 2011.
Recent Announcements
JetBlue has recently announced service between the following new city pair:
| City Pair | Frequency | Start Date | ||
Hartford, CT — West Palm Beach, FL
|
1X Daily | January 12, 2012 |
Capacity
Fourth quarter 2011 available seat miles (ASMs) are estimated to increase 8% to 10%
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:
| Fourth Quarter 2011 | Full Year 2011 | |||||||||||||||
| A320 | E190 | A320 | E190 | |||||||||||||
| 85% | 15% | 86% | 14% | |||||||||||||
Average stage length is projected to be approximately 1,089 miles during the fourth quarter of 2011
versus 1,093 miles during the same prior year period and approximately 1,091 miles for the full
year 2011 versus 1,100 miles for the full year 2010.
Operational Outlook
| Fourth Quarter | Full Year | |||||||
| 2011 | 2011 | |||||||
Operating Expense Year-Over-Year Percentage Change |
||||||||
Unit Operating Expense (CASM) |
11% - 13 | % | 13% - 15 | % | ||||
Unit Operating Expense Excluding Fuel (Ex-Fuel CASM) |
(1)% - 1 | % | 0% - 2 | % | ||||
Fuel Expense |
||||||||
Estimated Consumption (gallons) |
133 million | 526 million | ||||||
Estimated Fuel Price per Gallon, Net of Hedges * |
$ | 3.23 | $ | 3.19 | ||||
*Includes fuel taxes
Other Income (Expense)
JetBlue estimates total Other Income (Expense) to be between ($40) and ($45) million in the fourth quarter and between ($175) and ($185) million for the full year.
JetBlue estimates total Other Income (Expense) to be between ($40) and ($45) million in the fourth quarter and between ($175) and ($185) million for the full year.
Tax Rate
JetBlue expects an annual effective tax rate of approximately 40%. However, the actual tax rate in both fourth quarter and full year 2011 could differ due to the non-deductibility of certain items for tax purposes.
JetBlue expects an annual effective tax rate of approximately 40%. However, the actual tax rate in both fourth 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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Fuel Hedges
As of October 21, 2011 JetBlue’s advanced fuel derivative contracts for the next 12 months are
as follows:
| Estimated | ||||||
| Percentage | ||||||
| Gallons | of Consumption | Price | ||||
| •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 | ||||||
4Q11 |
60 million | 45% | •10% in heat collars with the average cap at $3.30/gal and | |||
| the average put at $2.90/gal | ||||||
| •12% in USGC jet fuel swaps at an average of $3.00/gal | ||||||
| •2% in USGC jet fuel collars with the average cap at | ||||||
| $3.04/gal and the average put at $2.74/gal | ||||||
| •2% 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 | ||||||
| •7% in heat collars with the average cap at $3.31/gal and | ||||||
| the average put at $2.91/gal | ||||||
1Q12 |
31 million | 23% | •7% in USGC jet fuel swaps at an average of $3.03/gal | |||
| •2% in USGC jet fuel collars with the average cap at | ||||||
| $3.04/gal and the average put at $2.74/gal | ||||||
| •2% in crude call options with the average cap at $99/bbl | ||||||
| •4% in crude collars with the average cap at $97/bbl and the | ||||||
| average put at $78/bbl | ||||||
2Q12 |
31 million | 22% | •7% in heat collars with the average cap at $3.27/gal and | |||
| the average put at $2.87/gal | ||||||
| •7% in USGC jet fuel swaps at an average of $3.02/gal | ||||||
| •2% in USGC jet fuel collars with the average cap at | ||||||
| $3.01/gal and the average put at $2.71/gal | ||||||
| •4% in crude collars with the average cap at $97/bbl and | ||||||
| the average put at $78/bbl | ||||||
3Q12 |
28 million | 18% | •6% in heat collars with the average cap at $3.28/gal and | |||
| the average put at $2.88/gal | ||||||
| •6% in USGC jet fuel swaps at an average of $3.05/gal | ||||||
| •2% in USGC jet fuel collars with the average cap at | ||||||
| $3.02/gal and the average put at $2.72/gal |
| Capital Expenditures | ||||||||||||||||
| (In millions) | ||||||||||||||||
| Fourth Quarter 2011 | Full Year 2011 | |||||||||||||||
| Aircraft | Non-aircraft | Aircraft | Non-aircraft | |||||||||||||
| $ | 70 | $ | 50 | $ | 365 | $ | 110 | |||||||||
JetBlue Airways Investor Relations • (718) 709-2202 • ir@jetblue.com
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Aircraft Delivery Schedule
As of September 30, 2011 JetBlue’s fleet was comprised of 119 Airbus A320 aircraft and 48
EMBRAER 190 aircraft. 88 aircraft were on order from Airbus and Embraer, scheduled for delivery
through 2018, with options to acquire 56 additional aircraft. In addition, JetBlue plans to take
delivery of 40 Airbus A320neos between 2018 and 2021.
| Airbus A320 | EMBRAER 190 | |||||||||||||||||||||||
| Aircraft | Mortgage | Lease | Aircraft | Mortgage | Lease | |||||||||||||||||||
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.
In October, JetBlue deferred seven EMBRAER 190 aircraft scheduled for delivery between 2013 and
2014 to 2018. JetBlue also cancelled 12 EMBRAER 190 aircraft scheduled for delivery in 2014, 2017
and 2018. JetBlue’s firm aircraft delivery schedule through 2018 is as follows:
| 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||
Airbus A320 |
7 | 3 | — | — | 3 | 8 | — | |||||||||
Airbus A321 |
— | 4 | 9 | 10 | 7 | — | — | |||||||||
Airbus A320neo |
— | — | — | — | — | — | 10 | |||||||||
EMBRAER 190 |
4 | 2 | 2 | 7 | 8 | 5 | 7 | ** | ||||||||
Total |
11 | 9 | 11 | 17 | 18 | 13 | 17 | |||||||||
**
Subject to payment of a termination fee, JetBlue may cancel prior to July 31, 2012 seven EMBRAER 190 aircraft
scheduled for delivery in 2018.
Share Count
Share count estimates for calculating basic and diluted earnings per share are as follows:
Share count estimates for calculating basic and diluted earnings per share are as follows:
| Fourth Quarter 2011 | ||||||||||||
| Basic Share Count | Diluted Share Count | Interest Add-back | ||||||||||
| Net Income Range | (in millions) | (in millions) | (in millions)*** | |||||||||
Zero — $11 million |
279.7 | 281.5 | $ | — | ||||||||
$11 million — $15 million |
279.7 | 309.0 | $ | 1 | ||||||||
$15 million or greater |
279.7 | 343.6 | $ | 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 |
278.6 | 280.4 | $ | — | ||||||||
$42 million — $57 million |
278.6 | 307.8 | $ | 4 | ||||||||
$57 million or greater |
278.6 | 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 JetBlue’s actual earnings per share will likely be different than those stated above.
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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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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