JetBlue Airways Corporation (NASDAQ:JBLU) Q2 2020 Earnings Conference Call - Final Transcript

Jul 28, 2020 • 10:00 am ET

Previous

JetBlue Airways Corporation (NASDAQ:JBLU) Q2 2020 Earnings Conference Call - Final Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Executive
Steve Priest

coupled with our cost restructuring efforts will help us rebuild our margins.

Moving to Slide 14, in early July, we took delivery of one A321neo taking our fleet to 263 aircraft. We are currently managing the economics of bringing back aircraft into our network and have the ability to start retiring some aircraft early. As we move through recovery, we will continue to evaluate the size and shape of our fleet to support our goals to reduce cash burn and execute our network plans to rebuild our margins.

We expect our total capex for 2020 to be in the range of $800 million to $850 million and we expect to finance the remaining deliveries this year through sale leasebacks. We view our future capex as an investment to rebuild our margins given the economics of adding newer and more fuel-efficient aircraft into our fleet. We are mindful of the financial commitments tied to our current order book and we will continue to revisit our capex forecast as we navigate the crisis.

Moving to Slide 15, at the end of June, our debt to cap ratio was 55%, which reflects our recent financing transactions. Given our current debt level, we anticipate cash, principal and interest payments through the end of 2020 of approximately $130 million per quarter. We remain committed to working again towards reaching investment grade metrics, similar to those that we proudly exhibited not too long ago. Over the next couple of years, we expect to approach our capital structure by balancing our goal of repairing our balance sheet while making accretive investments that create value for our stakeholders.

We remain optimistic about the future of JetBlue. As in past crises, we believe we can emerge stronger as an airline. We certainly have the best crew members in the industry and have brands that customers truly love. We operate in high value geography with a low-cost leisure model that positions us well for future success. On behalf of the JetBlue leadership team, I want to again thank all of our crew members as well as our business partners and our communities for all of their tremendous support during the past few months. We will now take your questions.

Executive
David Fintzen

Thanks everyone. Nora, we're ready for the question-and-answer session with the analysts. Please go ahead with the instructions.