JETBLUE AIRWAYS CORP

RESULTS OF OPERATIONS

The following discussion is a comparison of the 2025 to 2024 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, 2024 for detailed discussions comparing the 2024 to 2023 period.

2025 Compared to 2024

Overview

We reported a net loss of $602 million, an operating loss of $368 million and operating margin of (4.1)% for the year ended December 31, 2025. This compares to net loss of $795 million, operating loss of $684 million, and operating margin of (7.4)% for the year ended December 31, 2024. Our loss per share was $1.66 for 2025 compared to a loss per share of $2.30 for 2024.

Our 2025 and 2024 reported results included the effects of special items. Adjusting for these special items, our adjusted net loss(1) was $593 million, adjusted operating loss(1) was $338 million, and our adjusted operating margin(1) was (3.7)% for 2025. This compares to an adjusted net loss(1)of $245 million, adjusted operating loss(1)of $93 million, and an adjusted operating margin(1) of (1.0)% for 2024. Excluding special items, our adjusted loss per share(1) was $1.64 for 2025 compared to an adjusted loss per share of $0.71 for 2024.

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 EvenMore®. 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 2025 compared to 2024 by $281 million, or 3.3%. This was mainly driven by a 1.6% reduction in capacity and a 2.9% reduction in revenue passengers.

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, advertising revenue and lounge revenue. The year-over-year increase in other revenue of $64 million, or 9.6%, was principally driven by an increase in TrueBlue® non-transportation revenue due to higher customer spend.

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.

Operating Expenses

Aircraft Fuel and Related Taxes

Aircraft fuel decreased by $286 million, or 12.2%, in 2025 compared to 2024. The average fuel price decreased 9.3% in 2025 to $2.49 per gallon and fuel consumption decreased by 3.2%, or 27 million gallons.

Salaries, Wages and Benefits

Salaries, wages, and benefits increased by $190 million, or 5.8%, in 2025, driven by wage rate increases. The wage rate increases were primarily driven by a pilot union contract wage rate increase of 9% effective August 2024.

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 $33 million, or 5.0%, compared to the 2024 period. This increase was primarily driven by the induction of new aircraft and spare engines, partially offset by the retirement of the Embraer E190 fleet as part of the Company's fleet transition plan.

Aircraft Rent

Aircraft rent decreased by $18 million, or 19.1%, in 2025 compared to 2024 primarily as a result of fewer leases for Airbus A320 aircraft and Embraer E190 aircraft. As part of the Company's fleet transition plan, certain Embraer E190 aircraft leases reached their lease expiration and were returned to the lessor. The decrease was partially offset by an increase in the number of leased engines.

Sales and Marketing

Sales and marketing decreased by$23 million, or 7.0%, in 2025 compared to 2024, primarily due to lower credit card fees as a result of the reduction in passenger revenue.

Maintenance, Materials and Repairs

Maintenance, materials and repairs increased by $163 million, or 26.0%, in 2025 compared to 2024 primarily due to the timing and cost of Airbus A320 engine repairs.

Special Items

In 2025, special items included the following:

•$28 million relating to severance expenses; and

•$2 million relating to other 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 severance expenses;

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

•$1 million relating to other special items.

Other Income (Expense)

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

Interest Expense

Interest expense increased by$223 million, or 60.8%, for 2025 compared to the same period in 2024. This increase wasprimarily due to the financing of our TrueBlue® program, the issuance of new equipment notes in 2024, and additional finance lease obligations.

Interest Income

Interest income increased by$16 million, or 14.4%, for 2025 compared to the same period in 2024. This increase wasprimarily driven by an increase in interest related to short-term investments from the proceeds received from the TrueBlue® Financings.

Gain (Loss) on Investments, Net

Gain (loss) on investments, net resulted in$18 million gain for 2025. This gain primarily relates to realized gains from maturities of available-for-sale securities. For 2024, gain (loss) on investments resulted in a $27 million loss primarily relating to a mark-to-market adjustment on our preferred shares of one of our JetBlue Ventures equity investments.

Gain on Debt Extinguishments

We did not record any gain or loss on debt extinguishments in 2025. 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.