JETBLUE AIRWAYS CORP

Previous wording

In thesecond quarter of 2024, we generated $25 million innet income. Despite summer challenges from weather and air traffic controller shortages, improvements in our operational metrics drove positive results. In addition, we saw revenue strength in our premium product offerings, with Even More Space seat unit revenue higher than the 2023 period, as well as continued progress on our revenue initiatives. Fuel prices moderated over the quarter and we continued to make progress on our cost savings programs, allowing us to maintain low costs for the quarter.

Current wording

In thethird quarter of 2024, we incurred $60 million innet loss, compared to a net loss of $153 million for the same period in 2023. We continued to progress on our revenue initiatives in the third quarter. We saw revenue strength in our premium product offerings, with Even More Space, preferred seating, and Mint performing well. Also, our Blue Basic carry-on bag changes implemented this quarter, helped bolster our revenue results. In addition, improvements in our operational metrics resulted in greater cost efficiencies. Fuel prices declined over the quarter and we continued to make progress on our cost savings programs, allowing us to maintain low costs for the quarter.

Previous wording

Our second quarter 2024 highlights include the following:

Current wording

Our third quarter 2024 highlights include the following:

Previous wording

•Second quarter 2024 system capacity decreased by 2.7% compared to the second quarter of 2023.

Current wording

•Third quarter 2024 system available seat miles ("ASMs" or "capacity")decreased by 3.6% compared to the third quarter of 2023.

Previous wording

•Systemwide on-time performance for the second quarter 2024 was 74.8% compared to 67.4% for the same period in 2023.

Current wording

•Systemwide on-time performance for the third quarter 2024 was 70.7% compared to 58.5% for the same period in 2023.

Previous wording

•Completion factor increased to 98.8% in the second quarter of 2024 from 97.8% in the same period in 2023.

Current wording

•Completion factor increased to 98.1% in the third quarter of 2024 from 96.3% in the same period in 2023.

Previous wording

•Operating Revenue for the second quarter of 2024 decreased by $182 million year-over-year to $2.4 billion, a 6.9% decrease compared to the second quarter of 2023.

Current wording

•Operating revenue for the third quarter of 2024 was $2.4 billion, an increase of $12 million, or 0.5% compared to the third quarter of 2023.

Previous wording

•Operating expense for thesecond quarterof 2024 was$2.4 billion, a 0.1% decrease year-over-year.

Current wording

•Operating expense for thethird quarterof 2024 was$2.4 billion, a 4.2% decrease year-over-year.

Previous wording

•Operating expense, excluding special items, for the second quarter of 2024 increased 0.9%(1)year-over-year.

Current wording

•Operating expense, excluding special items, for the third quarter of 2024 decreased 4.1%(1)year-over-year.

Previous wording

•Operating expense per available seat mile ("CASM") for thesecond quarter of 2024 increased by 2.6% year-over-year to 14.04 cents compared to thesecond quarter of 2023.

Current wording

•Operating expense per available seat mile ("CASM") for thethird quarter of 2024 decreased by 0.7% year-over-year to 14.35 cents compared to thethird quarter of 2023.

Previous wording

•Our operating expense for thesecond quarter of 2024 and 2023 included the effects of special items. Excluding aircraft fuel, special items, and operating expenses related to our non-airline businesses, our operating expense(1) was $1.7 billion, an increase of 1.0% year-over-year.

Current wording

•Our operating expense for thethird quarter of 2024 and 2023 included the effects of special items. Excluding aircraft fuel, special items, and operating expenses related to our non-airline businesses, our operating expense(1) was$1.8 billion, an increase of 1.1% year-over-year.

Previous wording

•Excluding fuel, special items, and operating expenses related to our non-airline businesses, our cost per available seat mile ("CASM ex-fuel")(1) increased by 3.7% to 10.24 cents in thesecond quarter of 2024 compared to the second quarter of 2023.

Current wording

•Excluding fuel, special items, and operating expenses related to our non-airline businesses, our cost per available seat mile ("CASM ex-fuel")(1) increased by 4.8% to 10.62 cents in thethird quarter of 2024 compared to the third quarter of 2023.

Previous wording

•For the second quarter of 2024 and 2023, our reported earnings per share was $0.07 and $0.41, respectively. Excluding special items, our adjusted earnings per share(1) for the second quarter of 2024 and 2023 was $0.08 and $0.45, respectively.

Current wording

•For the third quarter of 2024 and 2023, our reported loss per share was $0.17 and $0.46, respectively. Excluding special items, our adjusted loss per share(1) for the third quarter of 2024 and 2023 was $0.16 and $0.39, respectively.

Previous wording

JetBlue announced JetForward, our strategic framework focused on four priority moves: delivering reliable and caring service, building the best east coast leisure network, offering products and perks customers value, and providing a secure financial future.

Current wording

In July 2024, JetBlue announced JetForward, our strategic framework focused on four priority moves: delivering reliable and caring service, building the best east coast leisure network, offering products and perks customers value, and providing a secure financial future. Our JetForward plan, which is designed to support our long-term profitability goals, reflects various assumptions regarding factors that may impact our operational and financial performance. For further information on potential factors that could affect the success of our strategic initiatives, including JetForward, see our 2023 Form 10-K.

Previous wording

The sections below highlight some of the changes made to support these priority moves.

Current wording

The sections below highlight some additional changes made to support these priority moves during the quarter.

Previous wording

In the first half of 2024, we announced a number of network changes, which included 15 station closures and over 50 market closures and redeploys. Highlights are included below.

Current wording

In the first nine months of 2024, we announced a number of network changes, which included 15 station closures and over 50 route exits.

Previous wording

We continue to make enhancements to our customer experience through increased value of our product offerings. During the quarter, we announced a handful of new products and partnerships such as a new partnership with Viator for our vacations packages, a loyalty partnership with Etihad Airways, and product enhancements to our inflight entertainment experience.

Current wording

During the quarter, we continued to make enhancements to our customer experience by increasing the value of our product offerings and customer experience.

Previous wording

In July 2023, Pratt & Whitney, a division of Raytheon Technologies, announced the requirement, mandated by the Federal Aviation Administration ("FAA"), for removal of certain engines for inspection due to a rare condition in powdered metal used to manufacture certain engine parts on the PW1100G and PW1500G engine types. These engines power our Airbus A220 and Airbus A321neo fleets. The rare condition powdered metal affects engines manufactured between October 2015 and September 2021. Engines are now required to be inspected after they have reached a reduced number of cycles dependent on the fleet type. As a result of these required inspections and other engine reliability deficiencies, as of June 30, 2024, we had 10 aircraft grounded due to lack of engine availability. The Company currently expects each removed engine to take up to 360 days to complete a shop visit and return to a serviceable condition. The Company has had an average of 11 aircraft grounded through June 30, 2024 and we expect this to remain consistent for the balance of the year. We currently expect aircraft out of service in 2025 to be in the mid-to-high teens.

Current wording

In July 2023, Pratt & Whitney, a division of RTX Corporation, announced the requirement, mandated by the Federal Aviation Administration ("FAA"), for removal of certain engines for inspection due to a rare condition in powdered metal used to manufacture certain engine parts on the PW1100G and PW1500G engine types. These engines power our Airbus A220 and Airbus A321neo fleets. The rare condition powdered metal affects engines manufactured between October 2015 and September 2021. Engines are now required to be inspected after they have reached a reduced number of cycles dependent on the fleet type. As a result of these required inspections and other engine reliability deficiencies, as of September 30, 2024, we had 11 aircraft grounded due to lack of engine availability. The Company currently expects each removed engine to take up to 360 days to complete a shop visit and return to a serviceable condition. For the full year ended December 31, 2024, the Company expects an average of 11 aircraft grounded. We currently expect aircraft out of service in 2025 to average in the mid-to-high teens.

Previous wording

We reported net income of$25 million, operating income of$57 million and an operating margin of 2.3% for the three months ended June 30, 2024. This compares to net income of $138 million, an operating income of $235 million and an operating margin of 9.0% for the three months ended June 30, 2023. Our earnings per share was$0.07 for the second quarter of 2024 compared to a earnings per share of $0.41 for the same period in 2023. Net income decreased $113 million year-over-year primarily due to lower revenue driven by lower capacity.

Current wording

We reported net loss of$60 million, operating loss of$38 million and an operating margin of(1.6)% for the three months ended September 30, 2024. This compares to net loss of $153 million, an operating loss of $156 million and an operating margin of (6.6)% for the three months ended September 30, 2023. Our loss per share was$0.17 for the third quarter of 2024 compared to a loss per share of $0.46 for the same period in 2023. Net loss decreased $93 million year-over-year primarily due to lower fuel costs.

Previous wording

Our reported results for the three months ended June 30, 2024 included the effects of special items. Adjusting for these one-time items, our adjusted net income(1) was $26 million, adjusted operating income(1) was $58 million, adjusted operating margin(1) was 2.4%, and adjusted earnings per share(1) was $0.08 for the three months ended June 30, 2024.

Current wording

Our reported results for the three months ended September 30, 2024 included the effects of special items. Adjusting for these one-time items, our adjusted net loss(1) was $54 million, adjusted operating loss(1) was $11 million, adjusted operating margin(1) was (0.4)%, and adjusted loss per share(1) was $0.16 for the three months ended September 30, 2024.

Previous wording

Our reported results for the three months ended June 30, 2023 included the effects of special items. Adjusting for these one-time items, our adjusted net income(1)was $152 million, adjusted operating income(1) was $259 million, adjusted operating margin(1)was 9.9%, and adjusted earnings per share(1)was $0.45 for the three months ended June 30, 2023.

Current wording

Our reported results for the three months ended September 30, 2023 included the effects of special items. Adjusting for these one-time items, our adjusted net loss(1)was $129 million, adjusted operating loss(1) was $123 million, adjusted operating margin(1)was (5.2)%, and adjusted loss per share(1)was $0.39 for the three months ended September 30, 2023.

Previous wording

On-time performance, as defined by the DOT, is arrival within 14 minutes of scheduled arrival time. In the second quarter of 2024, our systemwide on-time performance was 74.8% compared to 67.4% for the same period in 2023. Our completion factor increased to 98.8% in the second quarter of 2024 from 97.8% in the same period in 2023.

Current wording

On-time performance, as defined by the DOT, is arrival within 14 minutes of scheduled arrival time. In the third quarter of 2024, our systemwide on-time performance was 70.7% compared to 58.5% for the same period in 2023. Our completion factor increased to 98.1% in the third quarter of 2024 from 96.3% in the same period in 2023.

Previous wording

Passenger revenue is our primary source of revenue, which includes seat revenue and baggage fees, as well as revenue from our ancillary product offerings such as Even More® Space. The decrease in passenger revenue of $322 million, or 6.9%, for the six months ended June 30, 2024 was due to both a 6.7% decrease in revenue passengers and a 3.6% decrease in yield per passenger mile compared to the same period in 2023.

Current wording

Passenger revenue is our primary source of revenue, which includes seat revenue and baggage fees, as well as revenue from our ancillary product offerings such as Even More® Space. Passenger revenue was flat for thethree months ended September 30, 2024 compared to the same period in 2023. This was mainly driven by a 3.6% reduction in capacity, offset by a 1.9% increase yield per passenger mile.

Previous wording

Other revenue is primarily comprised of the marketing component of the sales of our TrueBlue® points. It also includes revenue from the sale of vacation packages, airport concessions and advertising revenue. The year-over-year increase in other revenue of$13 million, or 9.1%, was principally driven by an increase in TrueBlue® marketing revenue due to higher customer spend as well as an increase in vacation bookings.

Current wording

Other revenue is primarily comprised of the marketing component of the sales of our TrueBlue® points. It also includes revenue from the sale of vacation packages, airport concessions and advertising revenue. The year-over-year increase in other revenue of$15 million, or 9.8%, was principally driven by an increase in TrueBlue® marketing revenue due to higher customer spend as well as an increase in vacation bookings.

Previous wording

Depreciation and amortization increased by $8 million, or 5.3%, for thethree months ended June 30, 2024 compared to the same period in 2023. This increase wasprimarily driven by the induction of new aircraft.

Current wording

Depreciation and amortization increased by $10 million, or 6.4%, for thethree months ended September 30, 2024 compared to the same period in 2023. This increase wasprimarily driven by the induction of new aircraft.

Previous wording

Aircraft rent decreased $9 million, or 25.2%, in the three months ended June 30, 2024 compared to the same period in 2023, as a result of fewer leases for the Airbus A320 aircraft and Embraer E190 aircraft. The Company purchased certain A320 aircraft off lease and certain Embraer E190 aircraft leases reached their lease expiration and were subject to return to the lessor as part of the Company's fleet transition plan.

Current wording

Aircraft rent decreased $12 million, or 37.0%, in the three months ended September 30, 2024 compared to the same period in 2023, as a result of fewer leases for the Airbus A320 aircraft and Embraer E190 aircraft. The Company purchased certain A320 aircraft off lease and certain Embraer E190 aircraft leases reached their lease expiration and were returned to the lessor as part of the Company's fleet transition plan.

Previous wording

For the three months ended June 30, 2024, special items included$1 million relating to voluntary opt-out costs.

Current wording

•$1 million relating to voluntary opt-out costs.

Previous wording

Six Months Ended June 30, 2024 vs. 2023

Current wording

Nine Months Ended September 30, 2024 vs. 2023

Previous wording

We reported a net loss of$691 million, an operating loss of $663 million and an operating margin of (14.3)% for the six months ended June 30, 2024. This compares to a net loss of $54 million, an operating loss of $7 million and an operating margin of (0.1)% for the six months ended June 30, 2023. Loss per share was$2.02 for the six months ended June 30, 2024 compared to a loss per share of $0.16 for the same period in 2023.

Current wording

We reported a net loss of$751 million, an operating loss of $700 million and an operating margin of (10.0)% for the nine months ended September 30, 2024. This compares to a net loss of $207 million, an operating loss of $163 million and an operating margin of (2.2)% for the nine months ended September 30, 2023. Loss per share was$2.18 for the nine months ended September 30, 2024 compared to a loss per share of $0.63 for the same period in 2023.

Previous wording

Our reported results for the six months ended June 30, 2024 included the effects of special items and certain gains and losses on investments. Adjusted for these items, our adjusted net loss(1) was$119 million, adjusted operating loss(1) was $100 million, adjusted operating margin(1) was (2.2)%, and adjusted loss per share(1) was $0.35 for the six months ended June 30, 2024.

Current wording

Our reported results for the nine months ended September 30, 2024 included the effects of special items and certain gains and losses on investments. Adjusted for these items, our adjusted net loss(1) was $173 million, adjusted operating loss(1) was $110 million, adjusted operating margin(1) was (1.6)%, and adjusted loss per share(1) was $0.50 for the nine months ended September 30, 2024.

Previous wording

Our reported results for the six months ended June 30, 2023 included the effects of special items and certain gains and losses on investments. Adjusting for these items, our adjusted net income(1) was $29 million, adjusted operating income(1) was $129 million, adjusted operating margin(1) was 2.6%, and adjusted earnings per share(1) was $0.10 for the six months ended June 30, 2023.

Current wording

Our reported results for the nine months ended September 30, 2023 included the effects of special items and certain gains and losses on investments. Adjusting for these items, our adjusted net loss(1) was $74 million, adjusted operating income(1) was $5 million, adjusted operating margin(1) was 0.1%, and adjusted loss per share(1) was $0.22 for the nine months ended September 30, 2023.

Previous wording

Passenger revenue is our primary source of revenue, which includes seat revenue and baggage fees, as well as revenue from our ancillary product offerings such as Even More® Space. The decrease in passenger revenue of$195 million, or 7.9%, for the three months ended June 30, 2024, compared to the same period in 2023, was due to both a 7.4% decrease in revenue passengers and a 4.0% decrease in yield per passenger mile.

Current wording

Passenger revenue is our primary source of revenue, which includes seat revenue and baggage fees, as well as revenue from our ancillary product offerings such as Even More® Space. The decrease in passenger revenue of $324 million, or 4.7%, for the nine months ended September 30, 2024 compared to the same period in 2023 is due to a 3.0% reduction in capacity and a 1.8% decrease in yield per passenger mile.

Previous wording

Other revenue is primarily comprised of the marketing component of the sales of our TrueBlue® points. It also includes revenue from the sale of vacation packages, airport concessions and advertising revenue. The year-over-year increase in other revenue of $22 million, or 7.3%, was principally driven by an increase in TrueBlue® marketing revenue due to higher customer spend as well as an increase in our vacation bookings.

Current wording

Other revenue is primarily comprised of the marketing component of the sales of our TrueBlue® points. It also includes revenue from the sale of vacation packages, airport concessions and advertising revenue. The year-over-year increase in other revenue of $36 million, or 8.2%, was principally driven by an increase in TrueBlue® marketing revenue due to higher customer spend as well as an increase in our vacation bookings.

Previous wording

Aircraft fuel decreased by $155 million, or 11.0%, for the six months ended June 30, 2024 compared to the same period in 2023. The average fuel price for the six months ended June 30, 2024 decreased by 7.3% to $2.92 per gallon and fuel consumption decreased by 4.0%, or 17 million gallons.

Current wording

Aircraft fuel decreased by $273 million, or 12.9%, for the nine months ended September 30, 2024 compared to the same period in 2023. The average fuel price for the nine months ended September 30, 2024 decreased by 9.0% to $2.83 per gallon and fuel consumption decreased by 4.4%, or 30 million gallons.

Previous wording

Salaries, wages and benefits increased by $93 million, or 6.2%, for the six months ended June 30, 2024 compared to the same period in 2023, driven primarily by wage rate increases. The wage rate increases were primarily due to the new pilot union contract effective March 1, 2023, which included an initial pay rate increase of 14% and an additional 3% pay rate increase in August 2023.

Current wording

Salaries, wages and benefits increased by $130 million, or 5.7%, for the nine months ended September 30, 2024 compared to the same period in 2023, driven by wage rate increases. The wage rate increases were primarily due to the new pilot union contract effective March 1, 2023, which included an initial pay rate increase of 14% and additional pay rate increases of 3% and 9% in August 2023 and August 2024, respectively.

Previous wording

Depreciation and amortization increased by $16 million, or 5.0%, for the six months ended June 30, 2024 compared to the same period in 2023. This increase wasprimarily driven by the induction of new aircraft.

Current wording

Depreciation and amortization increased by $25 million, or 5.5%, for the nine months ended September 30, 2024 compared to the same period in 2023. This increase wasprimarily driven by the induction of new aircraft.

Previous wording

Aircraft rent decreased $14 million, or 20.8%, in thesix months ended June 30, 2024 compared to the same period in 2023 as a result of fewer leases for the Airbus A320 aircraft and the Embraer E190 aircraft. The Company purchased certain Airbus A320 aircraft off lease and certain Embraer E190 aircraft leases reached their lease expiration and were subject to return to the lessor as part of the Company's fleet transition plan.

Current wording

Aircraft rent decreased $26 million, or 26.2%, in thenine months ended September 30, 2024 compared to the same period in 2023 as a result of fewer leases for the Airbus A320 aircraft and the Embraer E190 aircraft. The Company purchased certain Airbus A320 aircraft off lease and certain Embraer E190 aircraft leases reached their lease expiration and were returned to the lessor as part of the Company's fleet transition plan.

Previous wording

Maintenance, materials and repairs decreased $62 million, or 18.0%, for the six months ended June 30, 2024 compared to the same period in 2023 primarily due to a lower volume of Airbus A320 engine repairs and the termination of the Embraer E190 flight-hour engine services agreement.

Current wording

Maintenance, materials and repairs decreased $70 million, or 13.7%, for the nine months ended September 30, 2024 compared to the same period in 2023 primarily due to a lower volume of Airbus A320 engine repairs and the termination of the Embraer E190 flight-hour engine services agreement.

Previous wording

•$16 million relating to voluntary opt-out costs; and

Current wording

•$17 million relating to voluntary opt-out costs; and

Previous wording

The following table sets forth our operating statistics for the three and six months ended June 30, 2024 and 2023:

Current wording

The following table sets forth our operating statistics for the three and nine months ended September 30, 2024 and 2023:

Previous wording

We expect our operating results to significantly fluctuate from quarter-to-quarter in the future as a result of various factors, many of which are outside of our control. For example, air traffic controller shortages in the Northeast and Florida continue to cause disruptions in the industry, resulting in the FAA waiving the minimum usage requirement and permitting us to voluntarily turn in up to 10% of our slots in the New York area to help protect our operations. Even with a reduced number of flights, we experienced and continue to expect challenges in the operating environment. Consequently, we believe quarter-to-quarter comparisons of our operating results may not necessarily be meaningful; you should not rely on our results for any one quarter as an indication of our future performance. Except for uncertainty related to the cost of aircraft fuel, we expect our expenses to continue to increase as we acquire additional aircraft and as our fleet ages.

Current wording

We expect our operating results to significantly fluctuate from quarter-to-quarter in the future due to factors such as economic conditions, weather events, cost of aircraft fuel, and various other factors, many of which are outside of our control. As an example, air traffic controller shortages in the Northeast and Florida continue to cause disruptions in the industry, resulting in the FAA waiving the minimum usage requirement and permitting us to voluntarily turn in up to 10% of our slots in the New York area to help protect our operations. Even with a reduced number of flights, we experienced and continue to expect challenges in the operating environment. Consequently, we believe quarter-to-quarter comparisons of our operating results may not necessarily be meaningful; you should not rely on our results for any one quarter as an indication of our future performance. Except for uncertainty related to the cost of aircraft fuel, we expect our expenses to continue to increase as we acquire additional aircraft and as our fleet ages.