JETBLUE AIRWAYS CORP

Previous wording

Our third quarter 2024 highlights include the following:

Current wording

Our first quarter 2025 highlights include the following:

Previous wording

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

Current wording

•First quarter 2025 system available seat miles ("ASMs" or "capacity")decreased by 4.3% year-over-year.

Previous wording

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

Current wording

•Operating expense for thefirst quarterof 2025 was$2.3 billion, a 21.0% decrease year-over-year.

Previous 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.

Current wording

•Operating expense per available seat mile ("CASM") for thefirst quarter of 2025 decreased by 17.4% year-over-year to 14.83 cents compared to thefirst quarter of 2024.

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 4.8% to 10.62 cents in thethird quarter of 2024 compared to the third 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 8.3% to 11.45 cents in thefirst quarter of 2025 compared to the first quarter of 2024.

Previous 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.

Current wording

JetForward, our strategic framework, is 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 2024 Form 10-K.

Previous 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.

Current wording

On-time performance, as defined by the DOT, is arrival within 14 minutes of scheduled arrival time. In thethree months ended March 31, 2025, our system-wide on-time performance was 75.1% compared to 70.9% for the same period in 2024. Our completion factor was 98.6% for thethree months ended March 31, 2025 compared to 98.7% for the same period in 2024.

Previous wording

We are committed to refocusing our network in 2024 to high-performing leisure, visiting-friends-and-relatives and transcontinental routes in core geographies like New York, New England, Florida, and Puerto Rico.

Current wording

We remain committed to focusing our network in 2025 on high-performing leisure, visiting-friends-and-relatives and transcontinental routes in core geographies like New York, New England, Florida, and Puerto Rico. In 2024, we made a number of network changes, which are expected to ramp up throughout 2025. We have seen initial benefits from these network changes, primarily new BlueCities in the northeast, further reinforcing our decision to pursue growth in core markets loyal to the JetBlue brand.

Previous wording

At September 30, 2024, we had$4.1 billion in liquidity, which included unrestricted cash, cash equivalents, short-term investments, and long-term marketable securities. In addition, we had a $600 million Citibank line of credit.

Current wording

At March 31, 2025, we had$3.8 billion in liquidity, which included unrestricted cash, cash equivalents, short-term investments, and long-term marketable securities. In addition, we had a $600 million Citibank line of credit.

Previous 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.

Current wording

In July 2023, Pratt & Whitney, a division of RTX Corporation, announced the requirement, mandated by the FAA, for removal of certain engines for inspection due to a rare condition involving powdered metal used in the production of certain engine parts on the PW1100G and PW1500G engine types. These engines power our Airbus A321neo and Airbus A220 fleets. The powdered metal affects engines manufactured between October 2015 and September 2021. Those 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 March 31, 2025, we had 11 aircraft grounded due to lack of engine availability. The Company currently expects each removed engine to take approximately 300 days to complete a shop visit and return to a serviceable condition.

Previous wording

Given that we expect to have a certain number of aircraft groundings into 2024 and beyond, we will continue to assess the resulting impact on our future capacity plans. We are currently working with Pratt & Whitney on compensation arrangements.

Current wording

Given that we expect to have a certain number of aircraft groundings through 2025 and beyond, we plan to continue to assess the resulting impact on our future capacity plans. We are currently working with Pratt & Whitney on a resolution and any potential remediation steps remains uncertain.

Previous 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.

Current wording

We reported a net loss of$208 million, operating loss of$174 million and an operating margin of(8.2)% for the three months ended March 31, 2025. This compares to a net loss of $716 million, an operating loss of $719 million and an operating margin of (32.6)% for the three months ended March 31, 2024. Our loss per share was$0.59 for the first quarter of 2025 compared to a loss per share of $2.11 for the same period in 2024. Net loss decreased $508 million year-over-year primarily due to the March 2024 write off of Spirit-related costs for $532 million as a result of the termination of the Merger agreement.

Previous 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.

Current wording

Our reported results for the three months ended March 31, 2025 and 2024 included the effects of special items and certain gains and losses on investments. Adjusting for these items, our adjusted net loss(1) was $209 million, adjusted operating loss(1) was $174 million, adjusted operating margin(1) was (8.2)%, and adjusted loss per share(1) was $0.59 for the three months ended March 31, 2025. This compares to an adjusted net loss(1)of $145 million, adjusted operating loss(1) of $157 million, adjusted operating margin(1)of (7.1)%, and adjusted loss per share(1)of $0.43 for the three months ended March 31, 2024.

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. 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.

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®. Passenger revenue decreased 4.2% for thethree months ended March 31, 2025 compared to the same period in 2024. This was mainly driven by a 4.3% reduction in capacity.

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$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.

Current wording

Other revenue increased$17 million, or 10.9%, primarily due to higher customer spend related to loyalty revenue from the non-transportation elements of the sale of TrueBlue® points. Other revenue also includes revenue from the sale of vacation packages, airport concessions and advertising revenue.

Previous wording

Aircraft fuel decreased by$117 million, or 16.8%, for the three months ended September 30, 2024 compared to the same period in 2023. The average fuel price decreased by 12.2% to $2.67 per gallon and fuel consumption decreased by 5.1%, or 11 million gallons.

Current wording

Aircraft fuel decreased by$114 million, or 18.3%, for the three months ended March 31, 2025 compared to the same period in 2024. The average fuel price decreased by 13.5% to $2.57 per gallon and fuel consumption decreased by 5.6%, or 12 million gallons.

Previous 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.

Current wording

Depreciation and amortization increased by $10 million, or 6.1%, for thethree months ended March 31, 2025 compared to the same period in 2024. This increase was primarily driven by the induction of new aircraft and engines.

Previous 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.

Current wording

Aircraft rent decreased by $8 million, or 29.2%, in the three months ended March 31, 2025 compared to the same period in 2024, as a result of fewer leases for Airbus A320 aircraft and 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 $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.

Current wording

Maintenance, materials and repairs increased by$59 million, or 43.9%, in thethree months ended March 31, 2025 compared to the same period in 2024, primarily due to the timing of Airbus A320 engine repairs and Embraer E190 engine lease return repairs.

Previous wording

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

Current wording

•$15 million relating to voluntary opt-out costs; and

Previous wording

Interest expense increased by $47 million, or 89.0%, for thethree months ended September 30, 2024 compared to the same period in 2023. This increase wasprimarily due to incremental aircraft 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.

Current wording

Interest expense increased by $95 million, for thethree months ended March 31, 2025 compared to the same period in 2024. This increase wasprimarily due to the financing of our TrueBlue® program as well as incremental failed aircraft sale-leaseback transactions and new equipment notes. These increases were partially offset by commitment fees incurred in 2024 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.

Previous wording

Interest income increased by $11 million, or 55.0%, for thethree months ended September 30, 2024 compared to the same period in 2023. This increase wasprimarily driven by an increase in short term investments due to the proceeds received from the TrueBlue® Financings.

Current wording

Interest income increased by $19 million, or 94.1%, for thethree months ended March 31, 2025 compared to the same period in 2024. This increase wasprimarily driven by an increase in short term investments due to the proceeds received from the TrueBlue® Financings.

Previous wording

Gain (loss) on investments, net resulted in$25 million loss for the nine months ended September 30, 2024. This loss primarily relates to a mark-to-market adjustment on our preferred shares of one of our JetBlue Technology Ventures LLC ("JBV") equity investments. For the nine months ended September 30, 2023, gain (loss) on investments resulted in a $6 million gain on certain equity securities.

Current wording

Gain (loss) on investments, net resulted in a$1 million gain for the three months ended March 31, 2025, compared to a $22 million loss for the same period in 2024. The gain in the first quarter of 2025 is primarily related to realized gains on our JetBlue Technology Ventures LLC ("JBV") equity investments. The loss in the first quarter of 2024 is primarily related to a mark-to-market adjustment on our preferred shares of one of our JBV equity investments.

Previous wording

At September 30, 2024, we had unrestricted cash, cash equivalents, short-term investments, and long-term marketable securities of$4.1 billion, which we believe will be sufficient to satisfy our liquidity needs for at least the next twelve months from the date of this Report, and we expect to meet our long-term liquidity needs with our projected cash from operations, available lines of credit and debt financing.

Current wording

At March 31, 2025, we had unrestricted cash, cash equivalents, short-term investments, and long-term marketable securities of$3.8 billion, which we believe will be sufficient to satisfy our liquidity needs for at least the next twelve months from the date of this Report, and we expect to meet our long-term liquidity needs with our projected cash from operations, available lines of credit and debt financing.

Previous wording

We rely primarily on operating cash flows to provide working capital for current and future operations. Cash flows from operating activities were $161 million and $486 million for the nine months ended September 30, 2024 and 2023, respectively. The decrease in operating cash flow is driven by the change in working capital and Spirit merger termination.

Current wording

We rely primarily on operating cash flows to provide working capital for current and future operations. Cash flows from operating activities were $114 million and $204 million for the three months ended March 31, 2025 and 2024, respectively. The decrease in operating cash flow is driven by the net change in working capital.

Previous wording

During the nine months ended September 30, 2024, flight equipment capital expenditures included $992 million related to the purchase of aircraft and spare engines as well as aircraft interior modifications. Flight capital expenditures also included $65 million in spare part purchases. Other property and equipment capital expenditures included ground equipment purchases and facilities improvements for $70 million. Investing activities for the current year period also included $942 million in net purchases of investment securities, $75 million in aircraft pre-delivery deposit payments and $22 million in Spirit shareholder payments.

Current wording

During the three months ended March 31, 2025, flight equipment capital expenditures included $125 million related to the purchase of aircraft and spare engines as well as aircraft interior modifications. Flight capital expenditures also included $20 million in spare part purchases. Other property and equipment capital expenditures included ground equipment purchases and facilities improvements for $31 million. Investing activities for the current year period also included $500 million in net purchases of investment securities, $44 million of proceeds from the sale of assets and sale-leaseback transactions, and $11 million in aircraft pre-delivery deposit payments.

Previous wording

During the nine months ended September 30, 2023, flight equipment capital expenditures included $618 million related to the purchase of aircraft and spare engines as well as aircraft interior modifications. Flight capital expenditures also included $42 million in spare part purchases. Other property and equipment capital expenditures included ground equipment purchases and facilities improvements for $90 million. Investing activities also included $98 million in Spirit shareholder payments, $53 million in net purchases of investment securities and $23 million in aircraft pre-delivery deposit payments.

Current wording

During the three months ended March 31, 2024, flight equipment capital expenditures included $386 million related to the purchase of aircraft and spare engines as well as aircraft interior modifications. Flight capital expenditures also included $20 million in spare part purchases. Other property and equipment capital expenditures included ground equipment purchases and facilities improvements for $21 million. Investing activities also included $93 million in net proceeds from investment securities, $39 million in aircraft pre-delivery deposit payments, and $22 million in Spirit shareholder payments.

Previous wording

Financing activities for the nine months ended September 30, 2024 primarily consisted of $2.8 billion in proceeds from the TrueBlue®Financings, $460 million from the issuance of the 2.50% convertible senior notes, $607 million in proceeds from sale-leaseback transactions, and $350 million in proceeds from the issuance of equipment notes to finance certain aircraft. Additionally, we issued$31 millionof common stock relating to our crewmember stock purchase plan. These proceeds were partially offset by $631 million in payments on our outstanding debt and finance lease obligations, which includes the retirement of a portion of our existing 0.50% convertible senior notes.

Current wording

Financing activities for the three months ended March 31, 2025 primarily consisted of $81 million in payments on our outstanding debt and finance lease obligations.

Previous wording

Financing activities for the nine months ended September 30, 2023 primarily consisted of proceeds from sale-leaseback transactions of $523 million, issuance of$78 million in equipment notes to finance certain aircraft and issuance of common stock of$31 million related to our crewmember stock purchase plan. These proceeds were partially offset by $254 million in payments on our outstanding debt and finance lease obligations.

Current wording

Financing activities for the three months ended March 31, 2024 primarily consisted of proceeds from failed sale-leaseback transactions of $332 million partially offset by $58 million in payments on our outstanding debt and finance lease obligations.

Previous wording

The amounts stated above do not include additional obligations incurred as a result of financing activities executed after September 30, 2024.

Current wording

The amounts stated above do not include additional obligations incurred as a result of financing activities executed after March 31, 2025 except as otherwise noted.

Previous wording

(3) Amounts primarily include non-cancelable commitments for flight equipment maintenance, construction and information technology.

Current wording

(3)Amounts primarily include non-cancelable commitments for flight equipment maintenance, construction and information technology.

Previous wording

In August 2024, JetBlue co-issued with JetBlue Loyalty, LP, the TrueBlue® Notes and TrueBlue® Term Loan Facility. The agreements governing the TrueBlue® Notes and TrueBlue® Term Loan Facility contains affirmative, negative and financial covenants including compliance with certain debt service coverage ratios and minimum liquidity requirements. These agreements also contain events of default, including a cross-default to other material indebtedness.

Current wording

In August 2024, JetBlue co-issued with Loyalty LP, the TrueBlue® Notes and TrueBlue® Term Loan Facility. The agreements governing the TrueBlue® Notes and TrueBlue® Term Loan Facility contains affirmative, negative and financial covenants including compliance with certain debt service coverage ratios and minimum liquidity requirements. These agreements also contain events of default, including a cross-default to other material indebtedness.

Previous wording

We have approximately$59 million of restricted cash pledged under standby letters of credit related to certain leases that will expire at the end of the related lease terms. Approximately 63% of our owned property and equipment and intangible assets at net book value were pledged or committed to be pledged as security under various loan agreements.

Current wording

We have$59 million of restricted cash pledged under standby letters of credit related to certain leases that will expire at the end of the related lease terms. Approximately 63% of our owned property and equipment and intangible assets at net book value were pledged or committed to be pledged as security under various loan agreements.

Previous wording

(2) Embraer E190 excludes 13 permanently parked owned aircraft and 8 parked aircraft awaiting lease return.

Current wording

(2) Embraer E190 excludes 19 permanently parked owned aircraft and five parked aircraft awaiting lease return.

Previous wording

Of our operating fleet,259 are owned by us, 28 are leased under operating leases, and none are leased under finance leases. Our owned aircraft include aircraft associated with sale-leaseback transactions that did not qualify as sales for accounting purposes. As of September 30, 2024, the average age of our operating fleet was 12.0 years.

Current wording

Of our operating fleet,264 are owned by us, 23 are leased under operating leases, and none are leased under finance leases. Our owned aircraft include aircraft associated with sale-leaseback transactions that did not qualify as sales for accounting purposes. As of March 31, 2025, the average age of our operating fleet was 12 years.

Previous wording

Our firm aircraft orders include the following aircraft(1):

Current wording

Our committed aircraft deliveries include the following aircraft(1):

Previous wording

Committed expenditures for our aircraft and spare engines include estimated amounts for contractual price escalations and pre-delivery deposits. We expect to meet our pre-delivery deposit requirements for our aircraft by paying cash or by using short-term borrowing facilities for deposits generally required six to 24 months prior to delivery. Any pre-delivery deposits paid by the issuance of notes are fully repaid at the time of delivery of the related aircraft.

Current wording

Committed expenditures for our firm aircraft and spare engines include estimated amounts for contractual price escalations and pre-delivery deposits. We expect to meet our pre-delivery deposit requirements for our aircraft by paying cash or by using short-term borrowing facilities for deposits generally required six to 24 months prior to delivery. Any pre-delivery deposits paid by the issuance of notes are fully repaid at the time of delivery of the related aircraft.

Previous wording

Depending on market conditions, we anticipate using a mix of cash and debt financing for aircraft scheduled for delivery in 2024. Although we believe debt and/or lease financing should be available to us, we cannot give any assurance that we will be able to secure financing on attractive terms, if at all. To the extent we cannot secure financing on terms we deem attractive, we may be required to pay in cash, further modify our aircraft acquisition plans, or incur higher than anticipated financing costs.

Current wording

Depending on market conditions, we may use a mix of cash and debt financing for aircraft scheduled for delivery in 2025. Although we believe debt and/or lease financing should be available to us, we cannot give any assurance that we will be able to secure financing on attractive terms, if at all. To the extent we cannot secure financing on terms we deem attractive, we may be required to pay in cash, further modify our aircraft acquisition plans, or incur higher than anticipated financing costs.

Previous wording

We report our financial results in accordance with GAAP; however, we present certain non-GAAP financial measures in this Report. Non-GAAP financial measures are financial measures that are derived from the condensed consolidated financial statements, but that are not presented in accordance with GAAP. We present these non-GAAP financial measures because we believe they provide useful supplemental information that enables a meaningful comparison of our results to others in the airline industry and our prior year results. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, our financial measures prepared in accordance with GAAP. Further, our non-GAAP information may be different from the non-GAAP information provided by other companies. The information below provides an explanation of each non-GAAP financial measure presented in this Report and shows a reconciliation of each such non-GAAP financial measure to its most directly comparable GAAP financial measure.

Current wording

We report our financial results in accordance with GAAP; however, we present certain non-GAAP financial measures in this Report. Non-GAAP financial measures are financial measures that are derived from the condensed consolidated financial statements, but that are not presented in accordance with GAAP. We present these non-GAAP financial measures because we believe they provide useful supplemental information that enables a meaningful comparison of our results to others in the airline industry and our prior year results. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, our financial performance measures prepared in accordance with GAAP. Further, our non-GAAP information may be different from the non-GAAP information provided by other companies. The information below provides an explanation of each non-GAAP financial measure used in this Report and shows a reconciliation of certain non-GAAP financial measure to its most directly comparable GAAP financial measure.

Previous wording

For the three months ended September 30, 2024, special items included union contract costs and voluntary opt-out costs. For the nine months ended September 30, 2024, special items included Spirit-related costs, union contract costs, voluntary opt-out costs, and Embraer E190 fleet transition costs.

Current wording

For the three months ended March 31, 2024, special items included Spirit-related costs, voluntary opt-out costs, and Embraer E190 fleet transition costs.