JetBlue's Q3 Loss Widens Amid Revenue Dip, Soaring Costs

Ticker: JBLU · Form: 10-Q · Filed: 2025-10-28T00:00:00.000Z

Sentiment: bearish

Topics: Airline Industry, Quarterly Earnings, Operating Loss, Increased Expenses, Revenue Decline, Northeast Alliance, Cash Flow

Related Tickers: JBLU, AAL, SAVE

TL;DR

JetBlue's Q3 results are a red flag; rising costs and falling revenue mean this stock is a short-term sell.

AI Summary

JetBlue Airways Corp (JBLU) reported a net loss of $143 million for the three months ended September 30, 2025, a significant increase from the $60 million net loss in the same period of 2024. For the nine months ended September 30, 2025, the net loss was $425 million, an improvement from the $751 million net loss in the prior year. Total operating revenues decreased to $2,322 million for the quarter, down from $2,365 million in Q3 2024, primarily due to a decline in passenger revenue from $2,198 million to $2,135 million. Operating expenses, however, increased to $2,422 million from $2,403 million year-over-year for the quarter, driven by a substantial rise in maintenance, materials, and repairs to $210 million from $160 million, and higher salaries, wages, and benefits at $865 million compared to $827 million. Interest expense more than doubled to $146 million for the quarter from $100 million in Q3 2024, contributing to a total other expense of $96 million, up from $40 million. The company's cash and cash equivalents increased to $2,410 million as of September 30, 2025, from $1,921 million at December 31, 2024, while total assets slightly decreased to $16,601 million from $16,841 million.

Why It Matters

JetBlue's widening net loss and declining revenue in Q3 2025 signal persistent operational challenges and a tough competitive landscape for investors. Increased maintenance and labor costs, coupled with higher interest expenses, are eroding profitability, which could impact future capital allocation and growth strategies. For employees, continued losses might lead to pressure on compensation or staffing levels. Customers could face higher fares or reduced service as the airline attempts to improve its financial position. In the broader market, JetBlue's struggles highlight the ongoing pressures in the airline industry, particularly for carriers navigating post-pandemic demand shifts and rising operational expenditures, potentially affecting investor sentiment across the sector.

Risk Assessment

Risk Level: high — JetBlue's risk level is high due to a widening net loss of $143 million in Q3 2025, up from $60 million in Q3 2024, coupled with a decrease in total operating revenues to $2,322 million from $2,365 million. The significant increase in interest expense to $146 million from $100 million quarter-over-quarter also indicates growing financial strain and leverage concerns.

Analyst Insight

Investors should consider reducing exposure to JBLU given the widening net loss and increasing operating expenses. Monitor future filings for signs of successful cost control measures and revenue growth initiatives, especially the impact of the Northeast Alliance wind-down.

Financial Highlights

debt To Equity
3.42
revenue
$2,322 million
operating Margin
-4.3%
total Assets
$16,601 million
total Debt
$8,475 million
net Income
$ -143 million
eps
$ -0.39
gross Margin
N/A
cash Position
$2,410 million
revenue Growth
-1.8%

Revenue Breakdown

SegmentRevenueGrowth
Passenger Revenue$2,135 million-2.9%
Other Revenue$187 million+12.0%

Key Numbers

Key Players & Entities

FAQ

What were JetBlue's net losses for Q3 2025 and the nine months ended September 30, 2025?

JetBlue reported a net loss of $143 million for the three months ended September 30, 2025, compared to a $60 million net loss in Q3 2024. For the nine months ended September 30, 2025, the net loss was $425 million, an improvement from the $751 million net loss in the same period of 2024.

How did JetBlue's operating revenues change in Q3 2025 compared to Q3 2024?

JetBlue's total operating revenues decreased to $2,322 million for the three months ended September 30, 2025, down from $2,365 million in Q3 2024. This decline was primarily driven by a reduction in passenger revenue from $2,198 million to $2,135 million.

What were the key drivers behind JetBlue's increased operating expenses in Q3 2025?

Total operating expenses for JetBlue increased to $2,422 million in Q3 2025 from $2,403 million in Q3 2024. Key drivers included a significant rise in maintenance, materials, and repairs to $210 million from $160 million, and higher salaries, wages, and benefits, which increased to $865 million from $827 million.

What was the impact of interest expense on JetBlue's Q3 2025 financial results?

Interest expense more than doubled for JetBlue in Q3 2025, reaching $146 million compared to $100 million in Q3 2024. This substantial increase contributed to a total other expense of $96 million, up from $40 million, significantly impacting the company's net loss.

How has JetBlue's cash position changed as of September 30, 2025?

As of September 30, 2025, JetBlue's cash and cash equivalents increased to $2,410 million, up from $1,921 million at December 31, 2024. This represents an increase in liquidity despite the reported net losses.

What is the status of JetBlue's Northeast Alliance (NEA) with American Airlines?

The filing mentions the 'remaining impact of the wind down of our Northeast Alliance ("NEA") with American Airlines Group Inc.' as a factor affecting JetBlue's business, financial condition, and results of operations. This indicates the alliance is being unwound, which is a significant strategic change.

What are some of the forward-looking risks identified by JetBlue in this 10-Q?

JetBlue identified numerous forward-looking risks, including the execution of strategic operating plans, an extremely competitive industry, volatility in fuel prices, increased maintenance costs, risks associated with the NEA wind-down, and potential cybersecurity breaches. These factors could cause actual results to differ materially from expectations.

What is JetBlue's strategy for its customer loyalty program, TrueBlue?

TrueBlue is JetBlue's customer loyalty program designed to reward and recognize customers. Revenue from TrueBlue points earned from ticket purchases is recorded as a reduction to Passenger travel revenue, while revenue from redeemed points and non-air transportation elements is recognized as Loyalty revenue.

How did JetBlue's total assets and liabilities change from December 31, 2024, to September 30, 2025?

JetBlue's total assets slightly decreased to $16,601 million as of September 30, 2025, from $16,841 million at December 31, 2024. Total current liabilities increased to $4,186 million from $3,881 million, while long-term debt and finance lease obligations decreased to $7,772 million from $8,147 million.

What non-cash transactions were significant for JetBlue during the nine months ended September 30, 2025?

Significant non-cash transactions for JetBlue during the nine months ended September 30, 2025, included operating lease assets acquired under operating leases totaling $426 million and flight equipment acquired under finance leases amounting to $259 million.

Risk Factors

Industry Context

The airline industry continues to face volatile operating conditions, with fluctuating fuel prices, labor costs, and passenger demand. Competition remains intense, pressuring airlines to manage costs effectively while investing in fleet modernization and customer experience. Supply chain issues and regulatory changes also pose ongoing challenges.

Regulatory Implications

Airlines are subject to stringent safety and operational regulations from bodies like the FAA. Changes in environmental regulations, such as those related to emissions, could also lead to increased compliance costs. The industry's financial health is also closely monitored by regulatory bodies.

What Investors Should Do

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Key Dates

Glossary

Operating Revenues
The total income generated from the company's primary business activities, such as selling tickets and other services. (A key indicator of business activity and market demand, which has seen a slight decrease for JetBlue.)
Operating Expenses
The costs incurred in the normal course of running the business, excluding interest and taxes. (These costs have increased for JetBlue, driven by maintenance and labor, contributing to the net loss.)
Net Loss
The total expenses exceed total revenues over a specific period, resulting in a negative profit. (JetBlue reported a significant increase in net loss for Q3 2025, indicating deteriorating profitability.)
Cash and cash equivalents
Highly liquid short-term investments that can be readily converted into cash. (JetBlue's cash position has improved, providing a buffer against operational challenges.)
Interest Expense
The cost incurred by a company for borrowed funds. (This expense has more than doubled for JetBlue, significantly impacting its bottom line.)
Maintenance, materials and repairs
Costs associated with keeping aircraft and other assets in good working condition. (A significant driver of increased operating expenses for JetBlue in the current quarter.)

Year-Over-Year Comparison

Compared to the prior year's comparable period (Q3 2024), JetBlue Airways Corp. has experienced a worsening financial performance. Total operating revenues declined by 1.8% to $2,322 million, primarily due to a drop in passenger revenue. Conversely, total operating expenses rose by 0.8% to $2,422 million, driven by substantial increases in maintenance, materials, and repairs, as well as higher salaries, wages, and benefits. This combination of lower revenue and higher costs led to a significant increase in the net loss to $143 million from $60 million in Q3 2024. Interest expense also more than doubled, further exacerbating the net loss. While cash and cash equivalents have increased, the overall profitability trend is bearish.

Filing Stats: 4,753 words · 19 min read · ~16 pages · Grade level 19.6 · Accepted 2025-10-28 07:13:32

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 5 Consolidated Balance Sheets - September 30, 2025 and December 31, 2024 5 Consolidated Statements of Operations - Three and Nine Months Ended September 30, 2025 and 2024 7 Consolidated Statements of Comprehensive Loss - Three and Nine Months Ended September 30, 2025 and 2024 8 Condensed Consolidated Statements of Cash Flows - Nine Months Ended September 30, 2025 and 2024 9 Consolidated Statements of Stockholders' Equity - Three and Nine Months Ended September 30, 2025 and 2024 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 44

Controls and Procedures

Item 4. Controls and Procedures 44

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 45

Risk Factors

Item 1A. Risk Factors 45

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 45

Other Information

Item 5. Other Information 45

Exhibits

Item 6. Exhibits 46 SIGNATURE 47 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, such as our JetForward initiatives and its Blue Sky component, 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 remaining impact of the wind down of our Northeast Alliance ("NEA") with American Airlines Group Inc. and the related impact o

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, 2025 December 31, 2024 (unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 2,410 $ 1,921 Investment securities 211 1,689 Receivables, less allowance (2025 - $ 6 ; 2024 - $ 6 ) 348 348 Inventories, less allowance (2025 - $ 50 ; 2024 - $ 43 ) 183 158 Prepaid expenses and other 263 142 Total current assets 3,415 4,258 PROPERTY AND EQUIPMENT Flight equipment 14,559 14,103 Pre-delivery deposits for flight equipment 229 315 Total flight equipment and pre-delivery deposits, gross 14,788 14,418 Less accumulated depreciation 4,310 4,243 Total flight equipment and pre-delivery deposits, net 10,478 10,175 Other property and equipment, gross 1,364 1,342 Less accumulated depreciation 872 861 Total other property and equipment, net 492 481 Total property and equipment, net 10,970 10,656 OPERATING LEASE ASSETS 900 550 OTHER ASSETS Investment securities 272 336 Restricted cash and cash equivalents 239 227 Intangible assets, net of accumulated amortization (2025 - $ 627 ; 2024 - $ 580 ) 413 399 Other 392 415 Total other assets 1,316 1,377 TOTAL ASSETS $ 16,601 $ 16,841 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, 2025 December 31, 2024 (unaudited) LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 589 $ 619 Air traffic liability 1,652 1,572 Accrued salaries, wages and benefits 663 663 Other accrued liabilities 499 542 Current operating lease liabilities 80 93 Current maturities of long-term debt and finance lease obligations 703 392 Total current liabilities 4,186 3,881 LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS 7,772 8,147 LONG-TERM OPERATING LEASE LIABILITIES 868 510 DEFERRED TAXES AND OTHER LIABILITIES Deferred income taxes 486 633 Air traffic liability - non-current 679 653 Other 340 376 Total deferred taxes and other liabilities 1,505 1,662 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, 525 and 513 shares issued and 364 and 353 shares outstanding at September 30, 2025 and December 31, 2024, respectively 5 5 Treasury stock, at cost; 162 and 160 shares at September 30, 2025 and December 31, 2024, respectively ( 2,013 ) ( 2,005 ) Additional paid-in capital 3,382 3,320 Retained earnings 894 1,319 Accumulated other comprehensive income 2 2 Total stockholders' equity 2,270 2,641 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 16,601 $ 16,841 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, 2025 2024 2025 2024 OPERATING REVENUES Passenger $ 2,135 $ 2,198 $ 6,284 $ 6,518 Other 187 167 534 484 Total operating revenues 2,322 2,365 6,818 7,002 OPERATING EXPENSES Aircraft fuel 539 584 1,554 1,835 Salaries, wages and benefits 865 827 2,579 2,434 Landing fees and other rents 179 176 509 518 Depreciation and amortization 173 165 512 487 Aircraft rent 21 21 60 73 Sales and marketing 78 81 225 245 Maintenance, materials and repairs 210 160 598 442 Special items 5 27 29 590 Other operating expenses 352 362 1,020 1,078 Total operating expenses 2,422 2,403 7,086 7,702 OPERATING LOSS ( 100 ) ( 38 ) ( 268 ) ( 700 ) OTHER INCOME (EXPENSE) Interest expense ( 146 ) ( 100 ) ( 441 ) ( 215 ) Interest income 30 30 101 66 Capitalized interest 2 3 8 12 Gain (loss) on investments, net 8 ( 2 ) 12 ( 25 ) Gain on debt extinguishments — 22 — 22 Other 10 7 27 26 Total other expense ( 96 ) ( 40 ) ( 293 ) ( 114 ) LOSS BEFORE INCOME TAXES ( 196 ) ( 78 ) ( 561 ) ( 814 ) Income tax benefit 53 18 136 63 NET LOSS $ ( 143 ) $ ( 60 ) $ ( 425 ) $ ( 751 ) LOSS PER COMMON SHARE Basic $ ( 0.39 ) $ ( 0.17 ) $ ( 1.18 ) $ ( 2.18 ) Diluted $ ( 0.39 ) $ ( 0.17 ) $ ( 1.18 ) $ ( 2.18 ) 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, 2025 2024 NET LOSS $ ( 143 ) $ ( 60 ) 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 2025 and 2024, respectively. ( 5 ) ( 2 ) Total other comprehensive loss ( 5 ) ( 2 ) COMPREHENSIVE LOSS $ ( 148 ) $ ( 62 ) Nine Months Ended September 30, 2025 2024 NET LOSS $ ( 425 ) $ ( 751 ) Changes in fair value of available-for-sale securities and derivative instruments, net of reclassifications into earnings, net of taxes of $ 0 in each 2025 and 2024. — 1 Total other comprehensive income — 1 COMPREHENSIVE LOSS $ ( 425 ) $ ( 750 ) 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, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ ( 425 ) $ ( 751 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Deferred income taxes ( 147 ) ( 69 ) Depreciation and amortization 512 487 Spirit special items, non-cash — 450 Gain on debt extinguishments — ( 22 ) Gain on flight equipment transactions, net ( 74 ) — Stock-based compensation 32 30 Changes in certain operating assets and liabilities ( 29 ) 49 Other, net ( 12 ) ( 13 ) Net cash (used in) provided by operating activities ( 143 ) 161 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures ( 742 ) ( 1,127 ) Pre-delivery deposits for flight equipment ( 35 ) ( 75 ) Purchase of held-to-maturity investments — ( 499 ) Proceeds from the maturities of held-to-maturity investments 74 559 Purchase of available-for-sale securities ( 420 ) ( 1,311 ) Proceeds from the sale of available-for-sale securities 1,895 309 Payment for Spirit Airlines acquisition — ( 22 ) Proceeds from sale-leaseback transactions and sale of flight equipment 190 8 Other, net ( 1 ) ( 7 ) Net cash provided by (used in) investing activities 961 ( 2,165 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of long-term debt, net of issuance costs — 3,486 Proceeds from failed sale-leaseback transactions — 607 Proceeds from issuance of common stock 30 31 Repayment of long-term debt and finance lease obligations ( 339 ) ( 631 ) Acquisition of treasury stock ( 8 ) ( 5 ) Net cash (used in) provided by financing activities ( 317 ) 3,488 INCREASE IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS 501 1,484 Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period 2,148 1,317 Cash, cash equivalents, restricted cash and restricted cas

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 June 30, 2025 525 $ 5 162 $ ( 2,013 ) $ 3,372 $ 1,037 $ 7 $ 2,408 Net loss — — — — — ( 143 ) — ( 143 ) Other comprehensive loss — — — — — — ( 5 ) ( 5 ) Stock compensation expense — — — — 10 — — 10 Balance at September 30, 2025 525 $ 5 162 $ ( 2,013 ) $ 3,382 $ 894 $ 2 $ 2,270 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 Total Balance at December 31, 2024 513 $ 5 160 $ ( 2,005 ) $ 3,320 $ 1,319 $ 2 $ 2,641 Net loss — — — — — ( 425 ) — ( 425 ) Vesting of restricted stock units 4 — 2 ( 8 ) — — — ( 8 ) Stock compensation expense — — — — 32 — — 32 Stock issued under crewmember stock purchase plan 8 — — — 30 — — 30 Balance at September 30, 2025 525 $ 5 162 $ ( 2,013 ) $ 3,382 $ 894 $ 2 $ 2,270 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 — —

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, Latin America, the Caribbean, 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 2024 audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2024 (the "2024 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. 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, and uncertainty of our revenue and cash flow. The following table provides revenue recognized

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, 2025 December 31, 2024 Air traffic liability - passenger travel $ 1,129 $ 1,073 Air traffic liability - loyalty program (air transportation) 1,180 1,125 Deferred revenue - passenger travel and loyalty program travel (1) 345 389 Deferred revenue - other (2) 22 27 Total $ 2,676 $ 2,614 (1) Included within other accrued liabilities and other liabilities on our consolidated balance sheets. (2) Included within air traffic liability on our consolidated balance sheets. During the nine months ended September 30, 2025 and 2024, we recognized passenger revenue o f $ 1.1 billion each, 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 p

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, 2025, scheduled maturities of our long-term debt and finance lease obligations, net of debt issuance costs, for the next five years were as follows (in millions): Year Total Remainder of 2025 $ 116 2026 707 2027 405 2028 509 2029 1,760 Thereafter 4,978 Total $ 8,475 Long-term debt and finance lease obligations at September 30, 2025 and December 31, 2024 consisted of the following (in millions): September 30, 2025 December 31, 2024 Secured Debt Fixed rate special facility bonds, due through 2036 $ 43 $ 43 Fixed rate enhanced equipment notes: 2019-1 Series AA, due through 2032 438 452 2019-1 Series A, due through 2028 137 141 2019-1 Series B, due through 2027 51 58 2020-1 Series A, due through 2032 448 469 2020-1 Series B, due through 2028 91 100 Fixed rate equipment notes, due through 2028 138 219 Floating rate equipment notes, due through 2036 (1) 690 742 Aircraft failed sale-leaseback trans actions, due through 2036 (1) 2,133 2,221 TrueBlue senior secured notes, due through 2031 1,989 1,988 TrueBlue senior secured term loan facility, due through 2029 (1) 746 749 Finance leases 317 116 Unsecured Debt Unsecured CARES Act Payroll Support Program loan, due through 2030 259 259 Unsecured Consolidated Appropriations Act Payroll Support Program Extension loan, due through 2031 144 144 Unsecured American Rescue Plan Act of 2021 Payroll Support loan, due through 2031 132 132 0.50 % convertible senior notes, due through 2026 325 325 2.50 % convertible senior notes, due through 2029 460 460 Total debt and finance lease obligations $ 8,541 $ 8,618 Less: Debt issuance costs ( 66 ) ( 79 ) Less: Current maturities ( 703 ) ( 392 ) Long-term debt and finance lease obligation

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