JetBlue Airways: presentation of 1Q22 results (pdf, 1.2 MB), link opens in a new window

PRESENTATION OF 1Q22 RESULTS

APRIL 26, 2022

SAFE HARBOR

This presentation (or otherwise made by JetBlue or on behalf of JetBlue) contains various information– 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 the Exchange Act, which rrepresent the beliefs and assumptions of our management regarding future events. These statements are intended to qualify for the “safe harbor” of liability established by Prof.ivate Securities Litigation Reform Act of 1995. When used in this document and in documents incorporated herein by reference, the words “expects”, “plans”, “anticipates”, “indicates”, “believesare,““forecasts”, “directions”, “outlook”, “may”, “will”, “should”, “seeks”, “targets” and similar expressions are intended to identify– look at the 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 forward-looking statements due to many factors, including, without limitation, coronavirus (“COVID19″), including existing and new variants, and the outbreak of any other similar disease or public diseasehealth threat that affects travel demand or behavior; restrictions on our activities related to funding we have accepted under various federal government support programs such as the Coronavirus Aid, Relief, and Economic Security Act, the Consolidated Appropriations Act, and the American Rescue Plan Act; our substantial fixed obligations and substantial indebtedness; the risk associated with the execution of our short-term and long-term strategic operating plans; the recognition of a significant depreciation of tangible or intangible fixed assets; our extremely competitive industry; financial and credit market volatility which could affect our ability to obtain debt and/or lease financing or raise funds through debt or equity issuances; volatility in fuel prices, maintenance costs and interest rates; our reliance on high daily aircraft utilization; our ability to implement our growth strategy; our ability to attract and retain qualified personnel and maintain our culture as we grow; our dependence on a limited number of suppliers, including for aircraft, engines and aircraft parts and vulnerability to delays from such suppliers; our dependence on the metropolitan markets of New York and Boston and the effect of increased congestion in such markets; our reliance on automated systems and technology; the outcome of the lawsuit brought by the Department of Justice and certain state attorneys general against us regarding our Northeast Alliance with American Airlines, our subject to potential unionization, work stoppages, slowdowns or increased costs labor ; our presence in certain international emerging markets which may experience political or economic instability or which may expose us to legal risk; business and reputational risks related to information security breaches or cyberattacks; changes or additional domestic or foreign governmental regulations, including new or increased tariffs; changes in our industry due to other the financial condition of airlines; acts of war or terrorism; global economic conditions or an economic downturn resulting in continuedcontinuous or accelerated decline in demand for air transport; negative weather conditions or natural disasters; and external geopolitical events and conditions; the outcome of any discussion between JetBlue and Spirit Airlines, Inc. (“Spirit”) regarding a possible transaction, including the possibility that the parties may not agree to proceed with a business combination transaction or that the terms of such transaction will be materially different from those described herein or previously announced; the conditions for the completion of the potential transaction, including obtaining any required shareholder and regulatory approvals, and, in particular, our expectations regarding the likelihood of receiving antitrust clearances; JetBlue’s ability to fund the the potential transaction and the indebtedness that JetBlue expects to incur in connection with the potential transaction; the possibility that JetBlue may not be able to achieve expected synergies and operational efficiencies on schedule or at all and successfully integrate the operations of Spirit with those of JetBlue; and the possibility that such integration is more difficultcult, time-consuming, or costly than anticipated or that operating costs and disruption to business (including, without limitation, disruption of relationships with employees, customers, or suppliers) may be greater than anticipated in reason for the possible transaction. It is common for our internal projections and expectations to change during the year or each quarter of the year, and therefore it should be clearly understood that the the internal projections, beliefs and assumptions on which we base our expectations may change before the end of each quarter or year. Any outlook or forecast contained in this document has been prepared without taking into account or contemplating a possible transaction with Spirit.

Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on such statements. You should understand that many important factors, in addition to those discussed or incorporated by reference in this presentation, could cause our results to differ materially from those expressed in the forward-looking statements. In light of these risks and uncertainties, the forward-looking events discussed in this Presentation may not occur. Our forward-looking statements speak only as of the date of this presentation. Except as required by law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This presentation also includes some “notGAAP Financial Measures” as defined by the Exchange Act and in accordance with RRegulation G. We have included reconciliations of thesenon-GAAP financial measures to the most directly comparable financial measures calculated and provided in accordance with US GAAP in this presentation.

IMPORTANT INFORMATION FOR INVESTORS

Additional information and where to find it

JetBlue has made a proposal for a business combination transaction with Spirit. As part of this proposal and subject to future developments, JetBlue (and, if a negotiated transaction is accepted, Spirit) may file one or more proxy statements or other documents with the Securities and Exchange Commission, or SEC. This communication is not a substitute for any proxy statement or other document that JetBlue and/or Spirit may file with the SEC in connection with the proposed transaction. INVESTORS AND SECURITYHOLDERS OF JETBLUE AND SPIRIT ARE ADVISED TO CAREFULLY READ THE PROXY STATEMENT AND OTHER DOCUMENTS FILED WITH THE SEC IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE POSSIBLE TRANSACTION. Any definitive proxy statements (if any) will be mailed to Spirit shareholders. Investors and security holders of Spirit and JetBlue will be able to obtain free copies of these documents (if any) and other documents filed with the SEC by JetBlue and Spirit through the website operated by the SEC athttp://www.sec.gov.

Participants in the solicitation

This presentation is not a proxy solicitation or a substitute for any proxy statement or other filings with the SEC. Nevertheless, JetBlue and certain of its directors and officers may be considered participants in any solicitation regarding the proposed transaction under SEC rules. Information regarding the interests of such participants in such proxy solicitation and a description of their direct and indirect interests, by holding securities or otherwise, will be included in any proxy statement and other relevant documents to be filed with the SEC. if and when they become available. These documents can be obtained free of charge as described in the previous paragraph.

No offer or solicitation

This presentation does not constitute an offer to sell or the solicitation of an offer to buy securities, and there will be no sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the recording. or qualification under titles. laws of such jurisdiction.

Q1 2022 RESULTS UPDATE

ROBIN HAYES

CHIEF EXECUTIVE OFFICER

PLAN MORE CAREFULLY AND INVEST IN THE OPERATION

APRIL TEMPORARY DISRUPTION

  • Moderation capacity plan begins in March in light of rising fuel environment and to build operational resilience

  • Began to see high pilot attrition, training pressures and challenges from the cumulative impact of irregular operations since the start of the year (IROPS)

  • In April, erratic operations related to unprecedented weather and ATC disruptions exacerbated crew shortages, resulting in a completion factor of approximately 90% in the first three weeks of April versus about 99% historically

  • Improving operational performance at the heart of unit revenue and margin growth

  • Alleviation of CASM pressure through maintenance, rent and landing fees, and discretionary spending cuts

  • Continue to execute on our longer-term strategic initiatives

Despite the impact on the second quarter outlook, the underlying business momentum is very strong

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Harry D. Gonzalez