JetBlue Airways Files Q2 2024 10-Q

TL;DR

JetBlue's Q2 2024 10-Q is in: check financials and ops for the latest.

AI Summary

JetBlue Airways Corp. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter of 2024. Key financial figures and operational metrics are presented, reflecting the company's ongoing business activities and strategic initiatives.

Why It Matters

This filing provides investors and analysts with the latest financial and operational data for JetBlue, crucial for understanding the airline's performance and future outlook.

Risk Assessment

Risk Level: medium — A 10-Q filing is a routine financial report, but the airline industry is subject to various economic and operational risks.

Key Players & Entities

• JetBlue Airways Corp. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240730 (date) — Filing date

FAQ

Key Financial Figures

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

Filing Documents

• jblu-20240630.htm (10-Q) — 1479KB
• q22024exhibit311.htm (EX-31.1) — 11KB
• q22024exhibit312.htm (EX-31.2) — 12KB
• q22024exhibit32.htm (EX-32) — 8KB
• jblu-20240630_g1.jpg (GRAPHIC) — 14KB
• 0001158463-24-000019.txt ( ) — 6704KB
• jblu-20240630.xsd (EX-101.SCH) — 50KB
• jblu-20240630_cal.xml (EX-101.CAL) — 83KB
• jblu-20240630_def.xml (EX-101.DEF) — 174KB
• jblu-20240630_lab.xml (EX-101.LAB) — 601KB
• jblu-20240630_pre.xml (EX-101.PRE) — 379KB
• jblu-20240630_htm.xml (XML) — 869KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 5 Consolidated Balance Sheets - June 30, 2024 and December 31, 2023 5 Consolidated Statements of Operations - Three and Six Months Ended June 30, 2024 and 2023 7 Consolidated Statements of Comprehensive Income and Loss - Three and Six Months Ended June 30, 2024 and 2023 8 Condensed Consolidated Statements of Cash Flows - Six Months Ended June 30, 2024 and 2023 9 Consolidated Statements of Stockholders' Equity - Three and Six Months Ended June 30, 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 25

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 41

Controls and Procedures

Item 4. Controls and Procedures 41

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 42

Risk Factors

Item 1A. Risk Factors 42

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 42

Other Information

Item 5. Other Information 42

Exhibits

Item 6. Exhibits 43 SIGNATURE 44 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) June 30, 2024 December 31, 2023 (unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,312 $ 1,166 Investment securities 184 401 Receivables, less allowance (2024 - $ 8 ; 2023 - $ 3 ) 336 336 Inventories, less allowance (2024 - $ 39 ; 2023 - $ 35 ) 130 109 Prepaid expenses and other 122 148 Total current assets 2,084 2,160 PROPERTY AND EQUIPMENT Flight equipment 13,533 12,796 Pre-delivery deposits for flight equipment 360 393 Total flight equipment and pre-delivery deposits, gross 13,893 13,189 Less accumulated depreciation 4,065 4,021 Total flight equipment and pre-delivery deposits, net 9,828 9,168 Other property and equipment, gross 1,307 1,310 Less accumulated depreciation 839 803 Total other property and equipment, net 468 507 Total property and equipment, net 10,296 9,675 OPERATING LEASE ASSETS 571 593 OTHER ASSETS Investment securities 104 163 Restricted cash 134 151 Intangible assets, net of accumulated amortization (2024 - $ 552 ; 2023 - $ 518 ) 388 349 Other 416 762 Total other assets 1,042 1,425 TOTAL ASSETS $ 13,993 $ 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) June 30, 2024 December 31, 2023 (unaudited) LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 660 $ 641 Air traffic liability 1,614 1,463 Accrued salaries, wages and benefits 586 591 Other accrued liabilities 577 509 Current operating lease liabilities 103 117 Current maturities of long-term debt and finance lease obligations 354 307 Total current liabilities 3,894 3,628 LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS 5,016 4,409 LONG-TERM OPERATING LEASE LIABILITIES 532 547 DEFERRED TAXES AND OTHER LIABILITIES Deferred income taxes 694 743 Air traffic liability - non-current 740 740 Other 420 449 Total deferred taxes and other liabilities 1,854 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, 507 and 499 shares issued and 347 and 339 shares outstanding at June 30, 2024 and December 31, 2023, respectively 5 5 Treasury stock, at cost; 160 and 159 shares at June 30, 2024 and December 31, 2023, respectively ( 2,004 ) ( 1,999 ) Additional paid-in capital 3,274 3,221 Retained earnings 1,423 2,114 Accumulated other comprehensive loss ( 1 ) ( 4 ) Total stockholders' equity 2,697 3,337 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 13,993 $ 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 OPERATING REVENUES Passenger $ 2,265 $ 2,460 $ 4,319 $ 4,641 Other 163 150 318 296 Total operating revenues 2,428 2,610 4,637 4,937 OPERATING EXPENSES Aircraft fuel 626 621 1,251 1,406 Salaries, wages and benefits 784 772 1,607 1,514 Landing fees and other rents 177 163 341 323 Depreciation and amortization 163 155 322 306 Aircraft rent 25 34 52 66 Sales and marketing 87 82 164 157 Maintenance, materials and repairs 150 170 283 345 Special items 1 24 563 136 Other operating expenses 358 354 717 691 Total operating expenses 2,371 2,375 5,300 4,944 OPERATING INCOME (LOSS) 57 235 ( 663 ) ( 7 ) OTHER INCOME (EXPENSE) Interest expense ( 63 ) ( 47 ) ( 115 ) ( 93 ) Interest income 18 18 37 30 Capitalized interest 4 5 8 10 Gain (loss) on investments, net ( 2 ) 4 ( 23 ) 7 Other 17 1 20 3 Total other expense ( 26 ) ( 19 ) ( 73 ) ( 43 ) INCOME (LOSS) BEFORE INCOME TAXES 31 216 ( 736 ) ( 50 ) Income tax benefit (expense) ( 6 ) ( 78 ) 45 ( 4 ) NET INCOME (LOSS) $ 25 $ 138 $ ( 691 ) $ ( 54 ) EARNINGS (LOSS) PER COMMON SHARE Basic $ 0.07 $ 0.41 $ ( 2.02 ) $ ( 0.16 ) Diluted $ 0.07 $ 0.41 $ ( 2.02 ) $ ( 0.16 ) 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 INCOME (LOSS) (unaudited, in millions) Three Months Ended June 30, 2024 2023 NET INCOME $ 25 $ 138 Changes in fair value of available-for-sale securities and derivative instruments, net of reclassifications into earnings, net of taxes of $ 1 and $( 1 ) in 2024 and 2023, respectively. — ( 1 ) Total other comprehensive income (loss) — ( 1 ) COMPREHENSIVE INCOME $ 25 $ 137 Six Months Ended June 30, 2024 2023 NET LOSS $ ( 691 ) $ ( 54 ) Changes in fair value of available-for-sale securities and derivative instruments, net of reclassifications into earnings, net of taxes of $ 1 and $( 2 ) in 2024 and 2023, respectively. 3 ( 6 ) Total other comprehensive income (loss) 3 ( 6 ) COMPREHENSIVE LOSS $ ( 688 ) $ ( 60 ) 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) Six Months Ended June 30, 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ ( 691 ) $ ( 54 ) Adjustments to reconcile net loss to net cash provided by operating activities: Deferred income taxes ( 49 ) 4 Depreciation and amortization 322 306 Spirit special items, non-cash 450 — Stock-based compensation 21 22 Changes in certain operating assets and liabilities 134 386 Other, net 3 ( 1 ) Net cash provided by operating activities 190 663 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures ( 854 ) ( 439 ) Pre-delivery deposits for flight equipment ( 63 ) ( 18 ) Purchase of held-to-maturity investments — ( 37 ) Proceeds from the maturities of held-to-maturity investments 36 7 Purchase of available-for-sale securities ( 1 ) ( 155 ) Proceeds from the sale of available-for-sale securities 242 333 Payment for Spirit Airlines acquisition ( 22 ) ( 66 ) Other, net ( 6 ) — Net cash used in investing activities ( 668 ) ( 375 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of long-term debt 281 78 Proceeds from sale-leaseback transactions 470 228 Proceeds from issuance of common stock 31 31 Repayment of long-term debt and finance lease obligations ( 166 ) ( 200 ) Acquisition of treasury stock ( 5 ) ( 3 ) Other, net ( 4 ) — Net cash provided by financing activities 607 134 INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 129 422 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) $ 1,446 $ 1,610 SUPPLEMENTAL CASH FLOW INFORMATION Cash payments for interest $ ( 84 ) $ ( 32 ) Cash proceeds (payments) for income taxes, net ( 4 ) 52 NON-CASH TRANSACTIONS Operating lease assets acquired under operating leases $ 32 $ 14 Flight equipment acquired under finance leases 71 —

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 Loss Total Balance at March 31, 2024 500 $ 5 160 $ ( 2,002 ) $ 3,233 $ 1,398 $ ( 1 ) $ 2,633 Net income — — — — — 25 — 25 Vesting of restricted stock units 1 — — ( 2 ) — — — ( 2 ) Stock compensation expense — — — — 9 — — 9 Stock issued under crewmember stock purchase plan 6 — — — 32 — — 32 Balance at June 30, 2024 507 $ 5 160 $ ( 2,004 ) $ 3,274 $ 1,423 $ ( 1 ) $ 2,697 Common Stock Issued Shares Amount Treasury Stock Shares Amount Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Loss Total Balance at March 31, 2023 487 $ 5 159 $ ( 1,998 ) $ 3,139 $ 2,232 $ ( 5 ) $ 3,373 Net income — — — — — 138 — 138 Other comprehensive loss — — — — — — ( 1 ) ( 1 ) Vesting of restricted stock units — — — — — — — — Stock compensation expense — — — — 12 — — 12 Stock issued under crewmember stock purchase plan 5 — — — 32 — — 32 Balance at June 30, 2023 492 $ 5 159 $ ( 1,998 ) $ 3,183 $ 2,370 $ ( 6 ) $ 3,554 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 — — — — — ( 691 ) — ( 691 ) Other comprehensive income — — — — — — 3 3 Vesting of restricted stock units 2 — 1 ( 5 ) — — — ( 5 ) Stock compensation expense — — — — 21 — — 21 Stock issued under crewmember stock purchase plan 6 — — — 32 — — 32 Balance at June 30, 2024 507 $ 5 160 $ ( 2,004 ) $ 3,274 $ 1,423 $ ( 1 ) $ 2,697 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, 2

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): June 30, 2024 December 31, 2023 Air traffic liability - passenger travel $ 1,248 $ 1,099 Air traffic liability - loyalty program (air transportation) 1,072 1,072 Deferred revenue (1) 452 487 Total $ 2,772 $ 2,658 (1) Deferred revenue is included within other accrued liabilities and other liabilities on our consolidated balance sheets. We recognized passenger rev enue o f $ 1.1 billion for each of the six months ended June 30, 2024 and 2023, 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 six months ended June 30, 2024 and 2023 (in millions): Balance at December 31, 2023 $ 1,072 T

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS JETBLUE AIRWAYS CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) At June 30, 2024, scheduled maturities of our long-term debt and finance lease obligations were as follows (in millions): Year Total Remainder of 2024 $ 173 2025 333 2026 1,080 2027 335 2028 436 Thereafter 3,013 Total $ 5,370 The carrying amounts and estimated fair values of our long-term debt, net of debt acquisition costs, at June 30, 2024 and December 31, 2023 were as follows (in millions): June 30, 2024 December 31, 2023 Carrying Value Estimated Fair Value (1) Carrying Value Estimated Fair Value (1) 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 463 474 476 474 2019-1 Series A, due through 2028 144 148 149 150 2019-1 Series B, due through 2027 63 78 70 86 2020-1 Series A, due through 2032 485 587 506 597 2020-1 Series B, due through 2028 108 138 117 150 Non-Public Debt Fixed rate equipment notes, due through 2028 267 258 322 305 Floating rate equipment notes, due through 2036 (2) 375 435 109 113 Aircraft sale-leaseback transactions, due through 2036 2,075 2,274 1,648 1,738 Unsecured CARES Act Payroll Support Program loan, due through 2030 259 194 259 184 Unsecured Consolidated Appropriations Act Payroll Support Program Extension loan, due through 2031 144 107 144 101 Unsecured American Rescue Plan Act of 2021 Payroll Support loan, due through 2031 132 98 132 93 0.50 % convertible senior notes due through 2026 744 682 742 657 Total (3) $ 5,301 $ 5,516 $ 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 hi

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 bein

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