JetBlue Airways Corp. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>JetBlue Airways Corp. filed its Q1 2024 10-Q, detailing financial performance and debt obligations.</b>

AI Summary

JETBLUE AIRWAYS CORP (JBLU) filed a Quarterly Report (10-Q) with the SEC on April 25, 2024. JetBlue Airways Corp. filed its 10-Q report for the quarterly period ended March 31, 2024. The filing covers the period from January 1, 2024, to March 31, 2024. Key financial data from previous periods, including December 31, 2023, and March 31, 2023, are referenced. The report details various components of stockholders' equity as of different dates. Specific debt instruments, such as fixed-rate enhanced equipment notes and special facility bonds, are listed with their respective maturity dates.

Why It Matters

For investors and stakeholders tracking JETBLUE AIRWAYS CORP, this filing contains several important signals. This 10-Q filing provides a detailed look at JetBlue's financial position and operational performance during the first quarter of 2024, crucial for investors assessing the airline's health. The specific breakdown of debt instruments and equity components offers insights into the company's capital structure and financial risk management.

Risk Assessment

Risk Level: medium — JETBLUE AIRWAYS CORP shows moderate risk based on this filing. The filing is a standard quarterly report, but the airline industry is subject to significant volatility from fuel prices, competition, and economic conditions, which could impact JetBlue's financial stability.

Analyst Insight

Investors should review the detailed financial statements and risk factors in this 10-Q to understand JetBlue's current financial health and future outlook.

Key Numbers

• 2024-03-31 — Period End Date (Quarterly report period)
• 2024-01-01 — Quarter Start Date (Quarterly report period)
• 2023-12-31 — Previous Year End Date (Comparative financial data reference)
• 2023-03-31 — Previous Year Quarter End Date (Comparative financial data reference)

Key Players & Entities

• JETBLUE AIRWAYS CORP (company) — Filer name
• JBLU (company) — Ticker symbol
• 2024-03-31 (date) — Period of report
• 2024-04-25 (date) — Filing date
• LONG ISLAND CITY (location) — Business address city
• NY (location) — Business address state
• 11101 (postal_code) — Business address zip

FAQ

Industry Context

JetBlue Airways operates in the scheduled air transportation industry, a sector highly sensitive to economic conditions, fuel costs, and regulatory changes.

Regulatory Implications

As an airline, JetBlue is subject to regulations from the FAA and other aviation authorities concerning safety, operations, and passenger rights.

What Investors Should Do

1. Analyze JetBlue's revenue and expense trends for Q1 2024.
2. Review the company's debt structure and maturity profile.
3. Assess any new risk factors or updates to existing ones mentioned in the filing.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-04-25: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This filing represents the first quarterly report of 2024, providing updated financial information compared to the previous year's Q1 and the end-of-year 2023 report.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value JBLU The NASDAQ Stock Market

Filing Documents

• jblu-20240331.htm (10-Q) — 1093KB
• a106jblu-airbuspurchaseagr.htm (EX-10.6) — 148KB
• q12024exhibit311.htm (EX-31.1) — 11KB
• q12024exhibit312.htm (EX-31.2) — 12KB
• q12024exhibit32.htm (EX-32) — 8KB
• jblu-20240331_g1.jpg (GRAPHIC) — 14KB
• 0001158463-24-000013.txt (&nbsp;) — 6025KB
• jblu-20240331.xsd (EX-101.SCH) — 50KB
• jblu-20240331_cal.xml (EX-101.CAL) — 81KB
• jblu-20240331_def.xml (EX-101.DEF) — 174KB
• jblu-20240331_lab.xml (EX-101.LAB) — 579KB
• jblu-20240331_pre.xml (EX-101.PRE) — 368KB
• jblu-20240331_htm.xml (XML) — 710KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 5 Consolidated Balance Sheets - March 31, 2024 and December 31, 2023 5 Consolidated Statements of Operations - Three Months Ended March 31, 2024 and 2023 7 Consolidated Statements of Comprehensive Loss - Three Months Ended March 31, 2024 and 2023 8 Condensed Consolidated Statements of Cash Flows - Three Months Ended March 31, 2024 and 2023 9 Consolidated Statements of Stockholders' Equity - Three Months Ended March 31, 2024 and 2023 10 Notes to Condensed Consolidated Financial Statements 11

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 23

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 36

Controls and Procedures

Item 4. Controls and Procedures 36

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 37

Risk Factors

Item 1A. Risk Factors 37

Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 37

Other Information

Item 5. Other Information 37

Exhibits

Item 6. Exhibits 38 SIGNATURE 39 2 Table of Contents Forward-Looking Information This Quarterly Report on Form 10-Q (the "Report") contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical facts contained in this Report are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "expects," "plans," "intends," "anticipates," "indicates," "remains," "believes," "estimates," "forecast," "guidance," "outlook," "may," "will," "should," "seeks," "goals," "targets" or the negative of these terms or other similar expressions. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed, or assured. Forward-looking statements contained in this Report include, without limitation, statements regarding our outlook and future results of operations and financial position, our business strategy and plans for future operations, our sustainability initiatives, the impact of industry or other macroeconomic trends affecting our business, seasonality, and our expectations regarding the wind-down of our Northeast Alliance with American Airlines Group Inc. (the "NEA") and the related impact on our business, financial condition and results of operations. Forward-looking statements involve risks, uncertainties and assumptions, and are based on informati

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS JETBLUE AIRWAYS CORPORATION CONSOLIDATED BALANCE SHEETS (in millions, except per share data) March 31, 2024 December 31, 2023 (unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,237 $ 1,166 Investment securities 326 401 Receivables, less allowance (2024 - $ 4 ; 2023 - $ 3 ) 362 336 Inventories, less allowance (2024 - $ 37 ; 2023 - $ 35 ) 111 109 Prepaid expenses and other 128 148 Total current assets 2,164 2,160 PROPERTY AND EQUIPMENT Flight equipment 13,050 12,796 Pre-delivery deposits for flight equipment 389 393 Total flight equipment and pre-delivery deposits, gross 13,439 13,189 Less accumulated depreciation 3,974 4,021 Total flight equipment and pre-delivery deposits, net 9,465 9,168 Other property and equipment, gross 1,300 1,310 Less accumulated depreciation 821 803 Total other property and equipment, net 479 507 Total property and equipment, net 9,944 9,675 OPERATING LEASE ASSETS 571 593 OTHER ASSETS Investment securities 145 163 Restricted cash 156 151 Intangible assets, net of accumulated amortization (2024 - $ 534 ; 2023 - $ 518 ) 383 349 Other 358 762 Total other assets 1,042 1,425 TOTAL ASSETS $ 13,721 $ 13,853 See accompanying notes to condensed consolidated financial statements. 5 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS JETBLUE AIRWAYS CORPORATION CONSOLIDATED BALANCE SHEETS (in millions, except per share data) March 31, 2024 December 31, 2023 (unaudited) LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 647 $ 641 Air traffic liability 1,723 1,463 Accrued salaries, wages and benefits 597 591 Other accrued liabilities 613 509 Current operating lease liabilities 112 117 Current maturities of long-term debt and finance lease obligations 330 307 Total current liabilities 4,022 3,628 LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS 4,682 4,409 LONG-TERM OPERATING LEASE LIABILITIES 528 547 DEFERRED TAXES AND OTHER LIABILITIES Deferred income taxes 689 743 Air traffic liability - non-current 743 740 Other 424 449 Total deferred taxes and other liabilities 1,856 1,932 COMMITMENTS AND CONTINGENCIES (Note 6) STOCKHOLDERS' EQUITY Preferred stock, $ 0.01 par value; 25 shares authorized, none issued — — Common stock, $ 0.01 par value; 900 shares authorized, 500 and 499 shares issued and 340 and 339 shares outstanding at March 31, 2024 and December 31, 2023, respectively 5 5 Treasury stock, at cost; 160 and 159 shares at March 31, 2024 and December 31, 2023, respectively ( 2,002 ) ( 1,999 ) Additional paid-in capital 3,233 3,221 Retained earnings 1,398 2,114 Accumulated other comprehensive loss ( 1 ) ( 4 ) Total stockholders' equity 2,633 3,337 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 13,721 $ 13,853 See accompanying notes to condensed consolidated financial statements. 6 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS JETBLUE AIRWAYS CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in millions, except per share data) Three Months Ended March 31, 2024 2023 OPERATING REVENUES Passenger $ 2,055 $ 2,182 Other 154 146 Total operating revenues 2,209 2,328 OPERATING EXPENSES Aircraft fuel 625 785 Salaries, wages and benefits 823 741 Landing fees and other rents 165 160 Depreciation and amortization 158 151 Aircraft rent 27 32 Sales and marketing 77 76 Maintenance, materials and repairs 132 176 Special items 562 112 Other operating expenses 359 337 Total operating expenses 2,928 2,570 OPERATING LOSS ( 719 ) ( 242 ) OTHER INCOME (EXPENSE) Interest expense ( 53 ) ( 46 ) Interest income 19 12 Capitalized interest 4 5 Gain (loss) on investments, net ( 22 ) 3 Other 4 2 Total other expense ( 48 ) ( 24 ) LOSS BEFORE INCOME TAXES ( 767 ) ( 266 ) Income tax benefit 51 74 NET LOSS $ ( 716 ) $ ( 192 ) LOSS PER COMMON SHARE Basic $ ( 2.11 ) $ ( 0.58 ) Diluted $ ( 2.11 ) $ ( 0.58 ) See accompanying notes to condensed consolidated financial statements. 7 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS JETBLUE AIRWAYS CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited, in millions) Three Months Ended March 31, 2024 2023 NET LOSS $ ( 716 ) $ ( 192 ) Changes in fair value of available-for-sale securities and derivative instruments, net of reclassifications into earnings, net of taxes of $ 0 and $( 1 ) in 2024 and 2023, respectively. 3 ( 5 ) Total other comprehensive income (loss) 3 ( 5 ) COMPREHENSIVE LOSS $ ( 713 ) $ ( 197 ) See accompanying notes to condensed consolidated financial statements. 8 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS JETBLUE AIRWAYS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in millions) Three Months Ended March 31, 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ ( 716 ) $ ( 192 ) Adjustments to reconcile net loss to net cash provided by operating activities: Deferred income taxes ( 54 ) ( 78 ) Depreciation and amortization 158 151 Spirit special items, non cash 450 — Stock-based compensation 12 10 Changes in certain operating assets and liabilities 331 520 Other, net 23 ( 6 ) Net cash provided by operating activities 204 405 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures ( 427 ) ( 172 ) Pre-delivery deposits for flight equipment ( 39 ) — Purchase of held-to-maturity investments — ( 4 ) Proceeds from the maturities of held-to-maturity investments 19 4 Purchase of available-for-sale securities ( 1 ) ( 102 ) Proceeds from the sale of available-for-sale securities 75 267 Payment for Spirit Airlines acquisition ( 22 ) ( 33 ) Other, net ( 4 ) — Net cash used in investing activities ( 399 ) ( 40 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from sale-leaseback transactions 332 38 Repayment of long-term debt and finance lease obligations ( 58 ) ( 109 ) Acquisition of treasury stock ( 3 ) ( 3 ) Net cash provided by (used in) financing activities 271 ( 74 ) INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 76 291 Cash, cash equivalents and restricted cash at beginning of period 1,317 1,188 Cash, cash equivalents and restricted cash at end of period (1) $ 1,393 $ 1,479 SUPPLEMENTAL CASH FLOW INFORMATION Cash payments for interest $ ( 24 ) $ ( 6 ) Cash payments for income taxes, net ( 6 ) — NON-CASH TRANSACTIONS Operating lease assets acquired under operating leases $ 6 $ 4 Flight equipment acquired under finance leases 20 — (1) Reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets.

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS JETBLUE AIRWAYS CORPORATION CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited, in millions) Common Stock Issued Shares Amount Treasury Stock Shares Amount Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Balance at December 31, 2023 499 $ 5 159 $ ( 1,999 ) $ 3,221 $ 2,114 $ ( 4 ) $ 3,337 Net loss — — — — — ( 716 ) — ( 716 ) Other comprehensive income — — — — — — 3 3 Vesting of restricted stock units 1 — 1 ( 3 ) — — — ( 3 ) Stock compensation expense — — — — 12 — — 12 Balance at March 31, 2024 500 $ 5 160 $ ( 2,002 ) $ 3,233 $ 1,398 $ ( 1 ) $ 2,633 Common Stock Issued Shares Amount Treasury Stock Shares Amount Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Total Balance at December 31, 2022 486 $ 5 159 $ ( 1,995 ) $ 3,129 $ 2,424 $ — $ 3,563 Net loss — — — — — ( 192 ) — ( 192 ) Other comprehensive loss — — — — — — ( 5 ) ( 5 ) Vesting of restricted stock units 1 — — ( 3 ) — — — ( 3 ) Stock compensation expense — — — — 10 — — 10 Balance at March 31, 2023 487 $ 5 159 $ ( 1,998 ) $ 3,139 $ 2,232 $ ( 5 ) $ 3,373 See accompanying notes to condensed consolidated financial statements. 10 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS JETBLUE AIRWAYS CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 1 - Summary of Significant Accounting Policies Basis of Presentation JetBlue Airways Corporation ("JetBlue") provides air transportation services across the United States, the Caribbean, Latin America, Canada, and Europe. Our condensed consolidated financial statements include the accounts of JetBlue and our subsidiaries which are collectively referred to as "we" or the "Company." All majority-owned subsidiaries are consolidated on a line-by-line basis, with all intercompany transactions and balances being eliminated. These condensed consolidated financial statements and related notes should be read in conjunction with our 2023 audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 Form 10-K"). These condensed consolidated financial statements are unaudited and have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC"). In our opinion, they reflect all adjustments, including normal recurring items, that are necessary to present fairly the results for interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States ("GAAP") have been condensed or omitted as permitted by such rules and regulations; however, we believe that the disclosures included herein are adequate to make the information presented not misleading. We have reclassified certain prior periods to conform to the current period presentation. Unless otherwise noted, all amounts disclosed are stated before consideration of income taxes. Note 2 - Revenue Recognition The Company categorizes revenue recognized from contracts with its customers by revenue source as we believe it best depicts the nature, amount, timing, an

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS JETBLUE AIRWAYS CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Contract Liabilities Our contract liabilities primarily consist of ticket sales for which transportation has not yet been provided, unused credits available to customers, and outstanding loyalty points available for redemption (in millions): March 31, 2024 December 31, 2023 Air traffic liability - passenger travel $ 1,354 $ 1,099 Air traffic liability - loyalty program (air transportation) 1,076 1,072 Deferred revenue (1) 472 487 Total $ 2,902 $ 2,658 (1) Deferred revenue is included within other accrued liabilities and other liabilities on our consolidated balance sheets. During the three months ended March 31, 2024 and 2023, we recognized passenger rev enue o f $ 834 million and $ 858 million, respectively, which was included in passenger travel liability at the beginning of the respective periods. The Company elected the practical expedient that allows entities to not disclose the amount of the remaining transaction price and its expected timing of recognition for passenger tickets if the contract has an original expected duration of one year or less or if certain other conditions are met. We elected to apply this practical expedient to our contract liabilities relating to passenger travel and ancillary services as our tickets or any related passenger credits expire generally one year from the date of booking. TrueBlue points are combined into one homogeneous pool and are not separately identifiable. As such, the revenue is comprised of points that were part of the air traffic liability balance at the beginning of the period as well as points that were issued during the period. The table below presents the activity of the current and non-current air traffic liability for our loyalty program, and includes points earned and sold to participating companies for the three months ended March 31, 2024 and 2023 (in millions): Bala

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS JETBLUE AIRWAYS CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) At March 31, 2024, scheduled maturities of our long-term debt and finance lease obligations were as follows (in millions): Year Total Remainder of 2024 $ 265 2025 302 2026 1,044 2027 297 2028 403 Thereafter 2,701 Total $ 5,012 The carrying amounts and estimated fair values of our long-term debt, net of debt acquisition costs, at March 31, 2024 and December 31, 2023 were as follows (in millions): March 31, 2024 December 31, 2023 Carrying Value Estimated Fair Value (1) Carrying Value Estimated Fair Value Public Debt Fixed rate special facility bonds, due through 2036 $ 42 $ 43 $ 42 $ 43 Fixed rate enhanced equipment notes: 2019-1 Series AA, due through 2032 477 483 476 474 2019-1 Series A, due through 2028 149 151 149 150 2019-1 Series B, due through 2027 70 86 70 86 2020-1 Series A, due through 2032 506 606 506 597 2020-1 Series B, due through 2028 117 150 117 150 Non-Public Debt Fixed rate equipment notes, due through 2028 290 278 322 305 Floating rate equipment notes, due through 2030 (2) 101 106 109 113 Aircraft sale-leaseback transactions, due through 2036 1,962 2,121 1,648 1,738 Unsecured CARES Act Payroll Support Program loan, due through 2030 259 190 259 184 Unsecured Consolidated Appropriations Act Payroll Support Program Extension loan, due through 2031 144 104 144 101 Unsecured American Rescue Plan Act of 2021 Payroll Support loan, due through 2031 132 96 132 93 0.50 % convertible senior notes due through 2026 743 671 742 657 Total (3) $ 4,992 $ 5,085 $ 4,716 $ 4,691 (1) The estimated fair va lues of our publicly held long-term debt are classified as Level 2 in the fair value hierarchy. The fair values of our non-public debt are estimated using a discounted cash flow analysis based on our borrowing rates for instruments with similar terms and therefore classified as Level 3 in the fair value hie

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS JETBLUE AIRWAYS CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) We have financed certain aircraft with Enhanced Equipment Trust Certificates ("EETCs"). One of the benefits of this structure is being able to finance several aircraft at one time, rather than individually. The structure of EETC financing is that we create pass-through trusts in order to issue pass-through certificates. The proceeds from the issuance of these certificates are then used to purchase equipment notes which are issued by us and are secured by our aircraft. These trusts meet the definition of a variable interest entity ("VIE"), as defined in Topic 810, Consolidation of the Financial Accounting Standards Board ("FASB") Codification, and must be considered for consolidation in our financial statements. Our assessment of our EETCs considers both quantitative and qualitative factors including the purpose for which these trusts were established and the nature of the risks in each. The main purpose of the trust structure is to enhance the creditworthiness of our debt obligation through certain bankruptcy protection provisions and liquidity facilities, and also to lower our total borrowing cost. We concluded that we are not the primary beneficiary in these trusts because our involvement in them is limited to principal and interest payments on the related notes, the trusts were not set up to pass along variability created by credit risk to us, and the likelihood of our defaulting on the notes. Therefore, we have not consolidated these trusts in our financial statements. 2024 Sale-Leaseback Transactions During the three months ended March 31, 2024, we entered into $ 332 million of sale-leaseback transactions. These transactions did not qualify as sales for accounting purposes. The assets associated with these transactions remain on our consolidated balance sheets within property and equipment and the related liabilities under the lease a

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