JETBLUE AIRWAYS CORP

RESULTS OF OPERATIONS

The following discussion is a comparison of the 2024 to 2023 results of operations. Refer to Part II. Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" of the Annual Report on Form 10-K for the year ended December 31, 2023 for detailed discussions comparing the 2023 to 2022 period.

2024 Compared to 2023

Overview

We reported a net loss of $795 million, an operating loss of $684 million and operating margin of (7.4)% for the year ended December 31, 2024. This compares to net loss of $310 million, operating loss of $230 million, and operating margin of (2.4)% for the year ended December 31, 2023. Our loss per share was $2.30 for 2024 compared to a loss per share of $0.93 for 2023.

Our 2024 and 2023 reported results included the effects of special items. Adjusting for these special items, our adjusted net loss(1) was $245 million, adjusted operating loss(1) was $93 million, and our adjusted operating margin(1) was (1.0)% for 2024. This compares to an adjusted net loss(1)of $151 million, adjusted operating loss(1)of $33 million, and an adjusted operating margin(1) of (0.3)% for 2023. Excluding special items, our adjusted loss per share(1) was $0.71 for 2024 compared to an adjusted loss per share of $0.45 for 2023.

Operating Revenues

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, including certain ancillary fees directly related to passenger tickets, is recognized when the transportation is provided. Passenger revenue from unused tickets and passenger credits are recognized in proportion to flown revenue based on estimates of expected expiration or when the likelihood of the customer exercising his or her remaining rights becomes remote. Passenger revenue decreased for 2024 compared to 2023 by $391 million, or 4.3%. This was mainly driven by a 3.5% reduction in capacity.

Other revenue primarily consists of loyalty revenue from the non-transportation elements of the sale of 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 $55 million, or 9.0%, was principally driven by an increase in TrueBlue® non-transportation revenue due to higher customer spend as well as an increase in vacation bookings.

We measure capacity in terms of available seat miles, which represents the number of seats available for passengers multiplied by the number of miles the seats are flown. Yield, or the average amount one passenger pays to fly one mile, is calculated by dividing passenger revenue by revenue passenger miles. We attempt to increase passenger revenue by increasing our yield and also increasing our load factor of flights, when possible. Our objective is to optimize our fare mix to increase our overall revenue per available seat mile while continuing to provide our customers with competitive fares.

(1)Refer to our "Regulation G Reconciliation of Non-GAAP Financial Measures" at the end of this section for more information on this non-GAAP measure. 42

Operating Expenses

(1)Not meaningful or greater than 100% change.

Aircraft Fuel and Related Taxes

Aircraft fuel decreased by $464 million, or 16.5%, in 2024 compared to 2023. The average fuel price decreased 12.1% in 2024 to $2.75 per gallon and fuel consumption decreased by 4.9%, or 44 million gallons.

Salaries, Wages and Benefits

Salaries, wages, and benefits increased $208 million, or 6.8%, in 2024, 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.

Depreciation and Amortization

Depreciation and amortization primarily includes owned and finance leased aircraft and spare engines, in-flight entertainment systems, airport leasehold improvements and software development. Depreciation and amortization increased $34 million, or 5.5%, compared to the 2023 period. This increase was primarily driven by the induction of new aircraft and spare engines.

Aircraft Rent

Aircraft rent decreased $34 million, or 27.2%, in 2024 compared to the 2023 period 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.

Special Items

In 2024, special items included the following:

•$532 million relating to Spirit-related costs;

•$26 million relating to union contract costs;

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

•$15 million relating to Embraer E190 fleet transition costs; and

•$1 million relating to other special items.

In 2023, special items included the following:

•$105 million related to union contract costs; and

•$92 million related to Spirit-related costs.

Other Income (Expense)

(1)Not meaningful or greater than 100% change.

Interest Expense

Interest expense increased by$155 million, or 73.3%, for 2024 compared to the same period in 2023. This increase wasprimarily due to incremental aircraft failed sale-leaseback transactions, new equipment notes, and the financing of our TrueBlue® program. These increases were partially offset by commitment fees incurred in 2023 related to the $3.5 billion Senior Secured Bridge Facility but canceled in March 2024 in connection with the termination of the merger with Spirit.

Interest Income

Interest income increased by$41 million, or 58.1%, for 2024 compared to the same period in 2023. This increase wasprimarily driven by an increase in short term investments from the proceeds received from the TrueBlue® Financings.

Gain (Loss) on Investments, Net

Gain (loss) on investments, net resulted in$27 million loss for 2024. This loss primarily relates to a mark-to-market adjustment on our preferred shares of one of our JetBlue Ventures equity investments. For 2023, gain (loss) on investments resulted in a $9 million gain on certain equity securities.

Gain on Debt Extinguishments

Gain on debt extinguishments was$22 million for 2024. This gain was due to the early retirement on a portion of our 0.50% convertible senior notes, due 2026.

Other

Other income increased by$23 million for 2024 compared to the same period in 2023. This increase is primarily due to income recorded related to our share of equity method investees' financial results.