JetBlue Airways Files Q3 2024 10-Q

TL;DR

JetBlue's Q3 2024 10-Q is in. Expect financial and operational updates.

AI Summary

JetBlue Airways Corp. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter. Key financial figures and operational metrics are presented, reflecting the company's ongoing business activities in the scheduled air transportation sector.

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 — Airline industry is subject to significant external factors like fuel prices, competition, and economic conditions.

Key Players & Entities

• JetBlue Airways Corp. (company) — Filer of the 10-Q
• 2024-09-30 (date) — End of reporting period
• 2024-10-29 (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-20240930.htm (10-Q) — 1613KB
• exhibit41-jetbluextrueblue.htm (EX-4.1) — 1345KB
• exhibit103-jetbluercfxseco.htm (EX-10.1) — 49KB
• exhibit102-jbu2011paadt18r.htm (EX-10.2) — 136KB
• exhibit104-jetbluextrueblu.htm (EX-10.4) — 1582KB
• q32024exhibit311.htm (EX-31.1) — 11KB
• q32024exhibit312.htm (EX-31.2) — 12KB
• q32024exhibit32.htm (EX-32) — 8KB
• jblu-20240930_g1.jpg (GRAPHIC) — 14KB
• 0001158463-24-000023.txt ( ) — 10743KB
• jblu-20240930.xsd (EX-101.SCH) — 52KB
• jblu-20240930_cal.xml (EX-101.CAL) — 84KB
• jblu-20240930_def.xml (EX-101.DEF) — 184KB
• jblu-20240930_lab.xml (EX-101.LAB) — 616KB
• jblu-20240930_pre.xml (EX-101.PRE) — 392KB
• jblu-20240930_htm.xml (XML) — 929KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 5 Consolidated Balance Sheets - September 30, 2024 and December 31, 2023 5 Consolidated Statements of Operations - Three and Nine Months Ended September 30, 2024 and 2023 7 Consolidated Statements of Comprehensive Loss - Three and Nine Months Ended September 30, 2024 and 2023 8 Condensed Consolidated Statements of Cash Flows - Nine Months Ended S eptember 30, 2024 and 2023 9 Consolidated Statements of Stockholders' Equity - Three and Nine Months Ended September 30, 2024 and 2023 11 Notes to Condensed Consolidated Financial Statements 12

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 27

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 46

Controls and Procedures

Item 4. Controls and Procedures 46

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 47

Risk Factors

Item 1A. Risk Factors 47

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 47

Other Information

Item 5. Other Information 47

Exhibits

Item 6. Exhibits 48 SIGNATURE 49 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, including our JetForward initiatives, our financing arrangements and potential implications thereof on our business, 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 resul

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS JETBLUE AIRWAYS CORPORATION CONSOLIDATED BALANCE SHEETS (in millions, except per share data) September 30, 2024 December 31, 2023 (unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 2,594 $ 1,166 Investment securities 1,414 401 Receivables, less allowance (2024 - $ 7 ; 2023 - $ 3 ) 282 336 Inventories, less allowance (2024 - $ 41 ; 2023 - $ 35 ) 140 109 Prepaid expenses and other 125 148 Total current assets 4,555 2,160 PROPERTY AND EQUIPMENT Flight equipment 13,816 12,796 Pre-delivery deposits for flight equipment 280 393 Total flight equipment and pre-delivery deposits, gross 14,096 13,189 Less accumulated depreciation 4,167 4,021 Total flight equipment and pre-delivery deposits, net 9,929 9,168 Other property and equipment, gross 1,323 1,310 Less accumulated depreciation 856 803 Total other property and equipment, net 467 507 Total property and equipment, net 10,396 9,675 OPERATING LEASE ASSETS 555 593 OTHER ASSETS Investment securities 94 163 Restricted cash and cash equivalents 207 151 Intangible assets, net of accumulated amortization (2024 - $ 570 ; 2023 - $ 518 ) 394 349 Other 426 762 Total other assets 1,121 1,425 TOTAL ASSETS $ 16,627 $ 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) September 30, 2024 December 31, 2023 (unaudited) LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 612 $ 641 Air traffic liability 1,503 1,463 Accrued salaries, wages and benefits 650 591 Other accrued liabilities 528 509 Current operating lease liabilities 99 117 Current maturities of long-term debt and finance lease obligations 363 307 Total current liabilities 3,755 3,628 LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS 7,868 4,409 LONG-TERM OPERATING LEASE LIABILITIES 511 547 DEFERRED TAXES AND OTHER LIABILITIES Deferred income taxes 674 743 Air traffic liability - non-current 760 740 Other 415 449 Total deferred taxes and other liabilities 1,849 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 September 30, 2024 and December 31, 2023, respectively 5 5 Treasury stock, at cost; 160 and 159 shares at September 30, 2024 and December 31, 2023, respectively ( 2,004 ) ( 1,999 ) Additional paid-in capital 3,283 3,221 Retained earnings 1,363 2,114 Accumulated other comprehensive loss ( 3 ) ( 4 ) Total stockholders' equity 2,644 3,337 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 16,627 $ 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 OPERATING REVENUES Passenger $ 2,198 $ 2,201 $ 6,518 $ 6,842 Other 167 152 484 448 Total operating revenues 2,365 2,353 7,002 7,290 OPERATING EXPENSES Aircraft fuel 584 701 1,835 2,108 Salaries, wages and benefits 827 790 2,434 2,304 Landing fees and other rents 176 176 518 499 Depreciation and amortization 165 155 487 462 Aircraft rent 21 33 73 99 Sales and marketing 81 80 245 237 Maintenance, materials and repairs 160 168 442 512 Special items 27 33 590 168 Other operating expenses 362 373 1,078 1,064 Total operating expenses 2,403 2,509 7,702 7,453 OPERATING LOSS ( 38 ) ( 156 ) ( 700 ) ( 163 ) OTHER INCOME (EXPENSE) Interest expense ( 100 ) ( 53 ) ( 215 ) ( 145 ) Interest income 30 19 66 50 Capitalized interest 3 5 12 14 Gain (loss) on investments, net ( 2 ) — ( 25 ) 6 Gain on debt extinguishments 22 — 22 — Other 7 11 26 14 Total other expense ( 40 ) ( 18 ) ( 114 ) ( 61 ) LOSS BEFORE INCOME TAXES ( 78 ) ( 174 ) ( 814 ) ( 224 ) Income tax benefit 18 21 63 17 NET LOSS $ ( 60 ) $ ( 153 ) $ ( 751 ) $ ( 207 ) LOSS PER COMMON SHARE Basic $ ( 0.17 ) $ ( 0.46 ) $ ( 2.18 ) $ ( 0.63 ) Diluted $ ( 0.17 ) $ ( 0.46 ) $ ( 2.18 ) $ ( 0.63 ) 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 September 30, 2024 2023 NET LOSS $ ( 60 ) $ ( 153 ) Changes in fair value of available-for-sale securities and derivative instruments, net of reclassifications into earnings, net of taxes of $( 1 ) and $ 4 in 2024 and 2023, respectively. ( 2 ) 10 Total other comprehensive income (loss) ( 2 ) 10 COMPREHENSIVE LOSS $ ( 62 ) $ ( 143 ) Nine Months Ended September 30, 2024 2023 NET LOSS $ ( 751 ) $ ( 207 ) Changes in fair value of available-for-sale securities and derivative instruments, net of reclassifications into earnings, net of taxes of $ 0 and $ 3 in 2024 and 2023, respectively. 1 4 Total other comprehensive income 1 4 COMPREHENSIVE LOSS $ ( 750 ) $ ( 203 ) 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) Nine Months Ended September 30, 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ ( 751 ) $ ( 207 ) Adjustments to reconcile net loss to net cash provided by operating activities: Deferred income taxes ( 69 ) ( 20 ) Depreciation and amortization 487 462 Spirit special items, non-cash 450 — Gain on debt extinguishments ( 22 ) — Stock-based compensation 30 31 Changes in certain operating assets and liabilities 49 230 Other, net ( 13 ) ( 10 ) Net cash provided by operating activities 161 486 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures ( 1,127 ) ( 750 ) Pre-delivery deposits for flight equipment ( 75 ) ( 23 ) Purchase of held-to-maturity investments ( 499 ) ( 64 ) Proceeds from the maturities of held-to-maturity investments 559 9 Purchase of available-for-sale securities ( 1,311 ) ( 435 ) Proceeds from the sale of available-for-sale securities 309 437 Payment for Spirit Airlines acquisition ( 22 ) ( 98 ) Proceeds from the sale of assets 8 — Other, net ( 7 ) ( 3 ) Net cash used in investing activities ( 2,165 ) ( 927 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of long-term debt, net of issuance costs 3,486 78 Proceeds from sale-leaseback transactions 607 523 Proceeds from issuance of common stock 31 31 Repayment of long-term debt and finance lease obligations ( 631 ) ( 254 ) Acquisition of treasury stock ( 5 ) ( 3 ) Net cash provided by financing activities 3,488 375 INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS 1,484 ( 66 ) Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period 1,317 1,188 Cash, cash equivalents, and restricted cash and restricted cash equivalents at end of period (1) $ 2,801 $ 1,122 SUPPLEMENTAL CASH FLOW INFORMATION Cash payments for interest, net

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS JETBLUE AIRWAYS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in millions) Nine Months Ended September 30, 2024 2023 September 30, 2024 September 30, 2023 Cash and cash equivalents $ 2,594 $ 973 Restricted cash and cash equivalents (2) 207 149 Total cash, cash equivalents, restricted cash, and restricted cash equivalents $ 2,801 $ 1,122 (2) Restricted cash and restricted cash equivalents primarily consists of principal and interest payments held as a reserve associated with the financing of the TrueBlue program , and other letters of credit. 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 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 June 30, 2024 507 $ 5 160 $ ( 2,004 ) $ 3,274 $ 1,423 $ ( 1 ) $ 2,697 Net loss — — — — — ( 60 ) — ( 60 ) Other comprehensive loss — — — — — — ( 2 ) ( 2 ) Stock compensation expense — — — — 9 — — 9 Balance at September 30, 2024 507 $ 5 160 $ ( 2,004 ) $ 3,283 $ 1,363 $ ( 3 ) $ 2,644 Common Stock Issued Shares Amount Treasury Stock Shares Amount Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Balance at June 30, 2023 492 $ 5 159 $ ( 1,998 ) $ 3,183 $ 2,370 $ ( 6 ) $ 3,554 Net loss — — — — — ( 153 ) — ( 153 ) Other comprehensive income — — — — — — 10 10 Stock compensation expense — — — — 9 — — 9 Balance at September 30, 2023 492 $ 5 159 $ ( 1,998 ) $ 3,192 $ 2,217 $ 4 $ 3,420 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 — — — — — ( 751 ) — ( 751 ) Other comprehensive income — — — — — — 1 1 Vesting of restricted stock units 2 — 1 ( 5 ) — — — ( 5 ) Stock compensation expense — — — — 30 — — 30 Stock issued under crewmember stock purchase plan 6 — — — 32 — — 32 Balance at September 30, 2024 507 $ 5 160 $ ( 2,004 ) $ 3,283 $ 1,363 $ ( 3 ) $ 2,644 Common Stock Issued Shares Amount Treasury Stock Shares Amount Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income Total Balance at December 31, 2022 486 $ 5 159 $ ( 1,995 ) $ 3,129 $ 2,424 $ — $ 3,563 Net loss — — — — — ( 207 ) — ( 207 ) Other comprehensive income — — — — — — 4 4 Vesting of restricted stock units 1 — — (

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 period balances 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, ti

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): September 30, 2024 December 31, 2023 Air traffic liability - passenger travel $ 1,137 $ 1,099 Air traffic liability - loyalty program (air transportation) 1,101 1,072 Deferred revenue (1) 427 487 Total $ 2,665 $ 2,658 (1) Deferred revenue is included within other accrued liabilities and other liabilities on our consolidated balance sheets. During the nine months ended September 30, 2024 and 2023, we recognized passenger rev enue o f $ 1.1 billion and $ 1.2 billion, 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 nine months ended September 30, 2024 and 2023 (in million

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS JETBLUE AIRWAYS CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) At September 30, 2024, scheduled maturities of our long-term debt and finance lease obligations were as follows (in millions): Year Total Remainder of 2024 $ 111 2025 341 2026 663 2027 344 2028 444 Thereafter 6,328 Total $ 8,231 The carrying amounts and estimated fair values of our long-term debt, net of debt issuance costs, at September 30, 2024 and December 31, 2023 were as follows (in millions): September 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 463 464 476 474 2019-1 Series A, due through 2028 144 146 149 150 2019-1 Series B, due through 2027 63 76 70 86 2020-1 Series A, due through 2032 486 575 506 597 2020-1 Series B, due through 2028 108 136 117 150 Non-Public Debt Fixed rate equipment notes, due through 2028 239 233 322 305 Floating rate equipment notes, due through 2036 (2) 434 496 109 113 Aircraft sale-leaseback transactions, due through 2036 (2) 2,186 2,455 1,648 1,738 TrueBlue senior secured notes, due through 2031 1,954 2,095 — — TrueBlue senior secured term loan facility, due through 2029 (2) 737 911 — — Unsecured CARES Act Payroll Support Program loan, due through 2030 259 201 259 184 Unsecured Consolidated Appropriations Act Payroll Support Program Extension loan, due through 2031 144 110 144 101 Unsecured American Rescue Plan Act of 2021 Payroll Support

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