Exhibit 99.1
Investor Update: July 25, 2012
This investor update provides JetBlue's investor guidance for the third quarter ending September 30, 2012 and full year 2012.
Recent Announcements
JetBlue has recently announced service between the following new city pairs:
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| | | | |
| City Pair | | Frequency | | Start Date |
| New York, NY (JFK) - Cartagena, Colombia* | | 3x Weekly | | November 2, 2012 |
| New York, NY (JFK) - Samaná, Dominican Republic* | | 2x Weekly | | November 14, 2012 |
| New York, NY (JFK) - Grand Cayman, Cayman Islands* | | 3x Weekly | | November 15, 2012 |
| Boston, MA - Grand Cayman, Cayman Islands* | | 1x Weekly | | November 17, 2012 |
| Providence, RI - Orlando, FL | | 2x Daily | | November 29, 2012 |
| Providence, RI - Fort Lauderdale, FL | | 1x Daily | | November 29, 2012 |
* Subject to receipt of government approval
Capacity
Third quarter 2012 available seat miles (ASMs) are estimated to increase 7% to 9% year-over-year. Full year 2012 ASMs are estimated to increase 6.5% to 8.5% year-over-year.
JetBlue estimates the following distribution as a percentage of total ASMs by aircraft type:
|
| | | | | | |
| Third Quarter 2012 | | Full Year 2012 |
| A320 | | E190 | | A320 | | E190 |
| 85% | | 15% | | 85% | | 15% |
Average stage length is projected to be approximately 1,094 miles during the third quarter of 2012 versus 1,108 miles during the same prior year period and approximately 1,086 miles for the full year 2012 versus 1,091 miles for the full year 2011.
Operational Outlook
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| | | |
| | Third Quarter | | Full Year |
| | 2012 | | 2012 |
| Operating Expense Year-Over-Year Percentage Change | | | |
| Unit Operating Expense (CASM) | 1.0% - 3.0% | | 1.0% - 3.0% |
| Unit Operating Expense Excluding Fuel (Ex-Fuel CASM) | 4.5% - 6.5% | | 2.5% - 4.5% |
| Fuel Expense | | | |
| Estimated Consumption (gallons) | 151 million | | 566 million |
| Estimated Fuel Price per Gallon, Net of Hedges * | $3.13 | | $3.18 |
*Includes fuel taxes and fixed forward price agreements
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| | |
JetBlue Airways Investor Relations • (718) 709-2202 • ir@jetblue.com
Other Income (Expense)
JetBlue estimates total Other Income (Expense) to be between ($35) and ($40) million in the third quarter and between ($155) and ($165) million for the full year.
Tax Rate
JetBlue expects an annual effective tax rate of approximately 39%. However, the actual tax rate in both third quarter and full year 2012 could differ due to the non-deductibility of certain items for tax purposes.
Fuel Hedges
As of July 20, 2012 JetBlue’s advanced fuel derivative contracts for the next twelve months are as follows:
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| | | | | | |
| | | Gallons | | Estimated Percentage | | Price |
| | | | of Consumption | |
| 3Q12 | | 40 million | | 27% | | 4% in WTI crude collar with the average cap at $97/bbl and the average at $78/bbl
8% in Brent crude collars with the average cap at $120/bbl and the average put at $108/bbl
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
3% in USGC jet fuel collars with the average cap at $3.09/gal and the average put at $2.76/gal |
| 4Q12 | | 38 million | | 27% | | 4% in WTI crude collars with the average cap at $97/bbl and the average put at $78/bbl
8% in Brent crude collars with the average cap at $119/bbl and the average put at $107/bbl
7% in heat collars with the average cap at $3.29/gal and the average put at $2.89/gal
7% in USGC jet fuel swaps at an average of $3.03/gal
1% in USGC jet fuel collars with the average cap at $3.22/gal and the average put at $2.84/gal |
| 1Q13 | | 11 million | | 8% | | 8% in Brent crude collars with the average cap at $118/bbl and the average put at $106/bbl |
| 2Q13 | | 11 million | | 8% | | 8% in Brent crude collars with the average cap at $116/bbl and the average put at $104/bbl |
In addition to its advanced fuel derivative contracts, JetBlue has entered into fixed forward price agreements for 18% of expected 3Q12 consumption at an average price of $2.94, 19% of expected 4Q12 consumption at an average price of $2.94, 8% of expected 1Q13 consumption at an average price of $3.03, and 8% of expected 2Q13 consumption at an average price of $3.03.
JetBlue Airways Investor Relations • (718) 709-2202 • ir@jetblue.com
Capital Expenditures
(In millions)
|
| | | | | | |
| Third Quarter 2012 | | Full Year 2012 |
| Aircraft | | Non-aircraft | | Aircraft | | Non-aircraft |
| $60 | | $60 | | $450 | | $200 |
| | | | | | | |
Aircraft Delivery Schedule
As of June 30, 2012 JetBlue's fleet was comprised of 123 Airbus A320 aircraft and 52 EMBRAER 190 aircraft. 80 aircraft were on order from Airbus and Embraer, scheduled for delivery through 2018. In addition, JetBlue plans to take delivery of 40 Airbus A320neos between 2018 and 2021.
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| | | | | | | | | | | |
| | | Airbus A320 | | | EMBRAER 190 |
| | Aircraft | | Mortgage | Lease | | Aircraft | | Mortgage | Lease |
| 3Q12 | 1 | | - | - | | - | | - | - |
| 4Q12 | 3 | | - | - | | 1 | | 1 | - |
| Total at Year End | 127 | | 86 | 30 | | 53 | | 23 | 30 |
Share Count
Share count estimates for calculating basic and diluted earnings per share are as follows:
|
| | | | | | |
| | |
Third Quarter 2012 |
| | | Basic Share Count | | Diluted Share Count | | Interest Add-back |
| Net Income Range | | (in millions) | | (in millions) | | (in millions)*** |
| Zero - $11 million | | 282.9 | | 284.6 | | $- |
| $11 million - $15 million | | 282.9 | | 312.1 | | $1 |
| $15 million or greater | | 282.9 | | 345.2 | | $3 |
| | | Full Year 2012 |
| | | Basic Share Count | | Diluted Share Count | | Interest Add-back |
| Net Income Range | | (in millions) | | (in millions) | | (in millions)*** |
| Zero - $44 million | | 282.5 | | 283.9 | | $- |
| $44 million - $60 million | | 282.5 | | 311.4 | | $4 |
| $60 million or greater | | 282.5 | | 344.5 | | $11 |
*** 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
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; increases and volatility in fuel prices, increases in maintenance costs and interest rates; our ability to implement our growth strategy; our significant fixed obligations and substantial indebtedness; 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, work stoppages, slowdowns or increased labor costs; our reliance on a limited number of suppliers; our presence in some international emerging markets that may experience political or economic instability or may subject us to legal risk; reputational and business risk from information security breaches; a negative impact on the JetBlue brand; the long term nature of our fleet order book; changes in or additional government rules, regulations or laws; changes in our industry due to other airlines' financial condition; the impact on our growth because of economic difficulties in Europe through 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 2011 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 update.
JetBlue Airways Investor Relations • (718) 709-2202 • ir@jetblue.com
