JETBLUE INVESTOR DAY DECEMBER 13, 2016
SAFE HARBOR 2
WHY INVEST IN JETBLUE? ROBIN HAYES PRESIDENT & CEO !"#$%&'()*+&,& !"#$%&#'( 3
WHY INVEST IN JETBLUE? 4
IMPROVE THE JETBLUE EXPERIENCE 5
FOCUS ON EXECUTION 6
Boston New York LA Basin Orlando Fort Lauderdale San Juan BUILD ON STRENGTH 7
DEVELOPING OUR TOOLKIT MARTY ST. GEORGE EVP COMMERCIAL AND PLANNING 8
WE’RE DELIVERING ON 2014 RETURN INITIATIVES FARE OPTIONS MINT CABIN RESTYLING CREDIT CARDS 9
Opportunity to evolve Fare Options further through pricing and bundled offerings FARE OPTIONS EXCEEDING ORIGINAL EXPECTATIONS FARE OPTIONS EARNINGS BENEFIT 2014 Expectations ($m) Actual (2015) & Current Expectations ($m) $280m+ $260m $200m $100m $65m 2015 2016E 2017E 10
by mid 2019 ~$60m run-rate ~$80m run-rate by 2022 CREDIT CARD ALSO EXCEEDING EXPECTATIONS INCREMENTAL CREDIT CARD EARNINGS BENEFIT 2016E 2017E 2018E 2019E 2020E 2021E 2022E 11
GROWING TRUEBLUE PARTNERSHIPS 12
CAGR = +6% ANCILLARY CONTRIBUTION EXPECTED TO EXCEED $25 PER CUSTOMER IN 2016 ANCILLARY PER CUSTOMER ANCILLARY PER CUSTOMER 2008 2009 2010 2011 2012 2013 2014 2015 2016E 2017E 13
CABIN RESTYLING: EXPANDING NEW CORE PRODUCT TO THE A320 14a
CABIN RESTYLING: EXPANDING NEW CORE PRODUCT TO THE A320 14b
Fall 2017 to take ~36 months Conversions currently expected * Assumes capacity growth, reflecting only A320 fleet modifications and does not include any typical adjustments to fleet utilization or network. to ‘Year 1’ is Expected start CABIN RESTYLING: $100M EARNINGS BENEFIT A320 PROGRAM ADDS TO 2017 A321 BENEFIT ILLUSTRATIVE A320 ASM IMPACT - Y/Y GROWTH* PERCENT OF A320 FLEET CONVERTED PERCENT OF A320 FLEET CONVERTED 100% 5% 4% 80% 3% 60% 2% 1% 40% 0% 20% -1% -2% 0% Year 1 Year 2 Year 3 Year 4 Year 1 Year 2 Year 3 Year 4 15
MINT: SURPRISING & DELIGHTING 16
MINT: ORIGINALLY DESIGNED TO SOLVE A SPECIFIC NETWORK PROBLEM JFK-LAX MARGIN VS. SYSTEM (pre and post Mint Launch) JFK JFK-SFO MARGIN VS. SYSTEM (pre and post Mint Launch) +17 +18 Mint Launch Mint Launch Mint Launch Mint Launch June 2014 TTM June 2015 TTM June 2016 TTM October 2014 TTM October 2015 TTM October 2016 TTM 17
MINT: MARGIN BENEFITS EXTEND BEYOND MINT SEATS MINT: MARGIN BENEFITS EXTEND BEYOND MINT SEATS JFK-LAX FREQUENCY AND MARGIN Core Daily Margin (gap to system) 10 JFK-LAX Mint Launch 7 5 5 Q3 2013 Q3 2014 Q3 2015 Q3 2016 18
MINT: BOSTON MARKETS FOLLOWING NYC SUCCESS BOS MINT ROUTES PERFORMANCE: TTM MARGIN GAP TO SYSTEM )*+,-./012/$31456/ -67+8059/::/78-.41 BOS-SFO Mint Launch BOS-LAX Mint Launch Q2-14 Q1-15 Q4-15 Q3-16 19
MINT: WITH ROOM TO GROW Current BOS SFO JFK LAX 20a
MINT: WITH ROOM TO GROW Current 2017 Start BOS SFO SFO JFK JFK LAX LAX SAN FLL 20b
MINT: WITH ROOM TO GROW Current 2017 Start Announced SEA BOS BOS SFO SFO JFK JFK JFK LAX LAX LAS SAN SAN FLL 20c
WE’RE DELIVERING ON 2014 RETURN INITIATIVES FARE OPTIONS MINT CABIN RESTYLING CREDIT CARDS 21
GROWING OUR NETWORK SCOTT LAURENCE SVP AIRLINE PLANNING 22
APPLYING OUR TOOLKIT 23
Note: ASMs as a percent of total JetBlue network Source: Diio WE’VE DEVELOPED A STRONG, DEFENSIBLE NETWORK… 2007 14% Boston New York 56% 11% LA Basin 8% 6% Orlando Fort Lauderdale 7% San Juan 2% 4% 24a
Note: ASMs as a percent of total JetBlue network Source: Diio WE’VE DEVELOPED A STRONG, DEFENSIBLE NETWORK… 2017 21% Boston 14% New York 42% LA Basin 8% 6% Orlando 8% Fort Lauderdale 15% 7% San Juan 2% 24b
…THAT GENERATES STRONG MARGINS IN EACH FOCUS CITY MARGIN BY FOCUS CITY: THEN AND NOW Q3 2006 TTM Q3 2016 TTM + 34 pts + 24 pts + 15 pts + 24 pts + 28pts + 10 pts New York Boston Fort Lauderdale Orlando San Juan NYC NYC BOS BOS FLL FLL MCO MCO SJU SJU LA Basin 25
Source: US DOT OD1B, T100 DIFFERENTIATED BY OUR FOCUS ON LARGE ‘LOCAL’ MARKETS PERCENT CONNECTING TRAFFIC JBLU “Big 3” LUV 70% 60% 50% 40% 30% 20% 10% 0% System Domestic International 26
slot pairs Frees up 2 JFK slot pair Frees up 1 JFK TOOLKIT ALSO INCLUDES 200-SEAT A321 JFK-MCO JFK-FLL Seats/Day JFK Slots Seats/Day JFK Slots 1,500 10 1,500 10 1,000 1,000 500 5 500 5 2013 2014 2015 2016 2013 2014 2015 2016 27
Source: Diio BOSTON: AMPLE OPPORTUNITY REMAINS SEAT SHARE IN TOP 20 US METRO AREAS #1 seat share carrier #2 seat share carrier #3 seat share carrier 100% 80% 60% 40% 20% 0% 28
BOSTON: MARGINS HAVE IMPROVED AS WE’VE GROWN RELEVANCE BOSTON OPERATING MARGIN VS. SYSTEM $500 $500 15.0 15.0 TTM Profit BOS vs System (ex-BOS) $400 $400 12.0 12.0 $300 $300 9.0 9.0 $200 $200 6.0 6.0 $100 $100 3.0 3.0 0.0 0.0 P&L (M) Gap to System ($100) ($100) (3.0) (3.0) (3.0) ($200) ($200) (6.0) (6.0) (6.0) ($300) ($300) (9.0) (9.0) Q2 08 Q2 09 Q2 10 Q2 11 Q2 12 Q2 13 Q2 14 Q2 15 Q2 16 31 32 35 42 45 48 51 58 61 Nonstop Markets: 29
BOSTON: WE ARE IN 39 OF THE TOP 50 DOMESTIC AND INTERNATIONAL DESTINATIONS 2007 SEA BUF JFK SFO LAS PIT DEN IAD CLT RIC PHX RDU SAN MCO TPA AUS PBI RSW FLL CUN SJU AUA 30a
BOSTON: WE ARE IN 39 OF THE TOP 50 DOMESTIC AND INTERNATIONAL DESTINATIONS 2007 2017E SEA DTW BUF PDX LGA JFK CLE ORD PHL EWR SFO LAS SLC PIT BWI LAX DEN IAD CLT DCA BNA RIC PHX RDU SAN ATL JAX DFW MSY MCO TPA AUS HOU PBI RSW FLL CUN SJU AUA 30b
BOSTON: WE ARE IN 39 OF THE TOP 50 DOMESTIC AND INTERNATIONAL DESTINATIONS INTERNATIONAL DESTINATIONS 2007 2007 2017E Not Currently KEF Served DUB LHR SEA SEA CDG MKE YYZ DTW DTW BUF BUF MSP PDX PDX LGA LGA JFK JFK CMH CLE CLE ORD ORD PHL PHL EWR EWR IND SFO SFO LAS LAS SLC SLC PIT PIT BWI BWI MCI STL LAX LAX DEN DEN IAD IAD IAD IAD CLT CLT DCA DCA DCA BNA BNA RIC RIC PHX PHX RDU RDU SAN SAN ATL ATL JAX JAX DFW DFW MSY MSY MCO MCO TPA TPA AUS AUS HOU HOU PBI PBI RSW RSW FLL FLL CUN CUN SJU SJU AUA AUA 30c
Source: Diio SOUTH FLORIDA: AN UNDERSERVED MARKET SEAT SHARE IN TOP 20 US METRO AREAS #1 seat share carrier #2 seat share carrier #3 seat share carrier 100% 80% 60% 40% 20% 0% 31
Note: Stage adjusted. Unshaded area reflects estimated ancillary revenue. Source: US DOT OD1B, T100, Form 41 for YE2Q16 FORT LAUDERDALE: WE GENERATE A STRONG REVENUE PREMIUM WITH A LOCAL FOCUS RASM (top 3 carriers) PERCENT LOCAL TRAFFIC (top 3 carriers) 13.00 100% 80% 11.00 60% 9.00 82% 40% 75% 74% 7.00 20% 39% 0% 5.00 B6 B6 WN WN NK NK AA (MIA) AA (MIA) B6 B6 WN WN NK NK JBLU LUV SAVE JBLU LUV SAVE AAL (MIA) 32
Boston Margins vs. Industry Ft. Lauderdale Margins vs. Industry Source: Company reports FORT LAUDERDALE: MARGINS AS EXPECTED FOR THIS STAGE OF DEVELOPMENT FT. LAUDERDALE VS. BOSTON MARGINS BY QUARTER 10 5 Margin Pts vs Industry 0 -5 -10 1 4 7 10 13 16 19 22 25 28 31 34 Growth Program Age (Quarters) 33
SOUTH FLORIDA: WE ARE IN 29 OF THE TOP 50 DOMESTIC AND INTERNATIONAL DESTINATIONS 2007 BUF JFK LGA HPN EWR 34a
SOUTH FLORIDA: WE ARE IN 29 OF THE TOP 50 DOMESTIC AND INTERNATIONAL DESTINATIONS 2017E 2007 BOS DTW BUF JFK PVD LGA CLE ORD PHL BDL SFO HPN PIT BOG EWR LAS LAX BWI DCA BNA LIM RDU MSY NAS CUN PAP MEX SJU SDQ 34b
SOUTH FLORIDA: WE ARE IN 29 OF THE TOP 50 DOMESTIC AND INTERNATIONAL DESTINATIONS DESTINATIONS DESTINATIONS Not Currently Served 2017E 2007 LHR MAD YUL YYZ SEA BOS BOS DTW DTW BUF BUF MSP CCS LGAJFK LGAJFK JFK JFK PVD PVD LGA CLE CLE ORD ORD PTY PHL PHL BDL BDL SFO SFO HPN HPN PIT PIT BOG BOG EWR EWR EWR EWR LAS LAS LAX LAX CVG BWI BWI BWI ACY DEN DCA DCA BNA BNA STL LIM LIM LIM LIM CLT RDU RDU PHX MSY MSY GRU ATL SCL DFW TPA EZE HOU NAS NAS CUN CUN PAP PAP MEX MEX SJU SJU SDQ SDQ 34c
2017 CAPACITY GUIDANCE ASMs Region % of Total Capacity Low High Transcon 30% 11.5% 13.5% Latin 29% 4.5% 6.5% Florida 28% 4.5% 6.5% East 6% 17.5% 19.5% Central 4% 4.5% 6.5% West 3% 15.5% 17.5% System 6.5% 8.5% 35
APPLYING OUR TOOLKIT 36
QUESTIONS 37
BREAK 38
IMPROVING THE JETBLUE EXPERIENCE JOANNA GERAGHTY EVP CUSTOMER EXPERIENCE JEFF MARTIN EVP OPERATIONS !"#$%&'()*+&,& !"#$%&#'( 39
Source: DOT OD1B, T100 PRODUCT & SERVICE MATTER NPS VS. RELATIVE REVENUE PERFORMANCE REVENUE PREMIUM 40
INVESTMENTS ALLOW US TO FOCUS ON CUSTOMER EXPERIENCE 41
IMPROVING OPERATIONAL PROCESS TO MATCH PRODUCT AND FLEET EVOLUTION JBLU 42
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