UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): July 24, 2018 JETBLUE AIRWAYS CORPORATION (Exact name of registrant as specified in its charter) Delaware 000-49728 87-0617894 (State or other jurisdiction of incorporation) (Commission File Number) (I.R.S. Employer Identification No.) 27-01 Queens Plaza North, Long Island City, New York 11101 (Address of principal executive offices) (718) 286-7900 (Registrant s telephone number, including area code) N/A (Former name or former address, if changed since last report.) (Zip Code) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934. Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02 Results of Operations and Financial Condition On July 24, 2018 we issued a press release announcing our financial results for the second quarter ended June 30, 2018. A copy of the press release is attached to this report as Exhibit 99.1 and is incorporated herein by reference. The information included under Item 2.02 of this report (including the exhibits) is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Act of 1934, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933. Item 7.01 Regulation FD Disclosure. On July 24, 2018, we provided an update for investors presenting information relating to our financial outlook for the third quarter ending September 30, 2018 and full year 2018, and other information regarding our business. The update and materials to be used in conjunction with the presentation are furnished herewith as Exhibit 99.2 and Exhibit 99.3 and are incorporated herein by reference. The information included under Item 7.01 of this report (including the exhibits) is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Act of 1934, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933. The information furnished in this Item 7.01 shall not be deemed filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing. This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which represent our management's beliefs and assumptions concerning future events. When used in this document and in documents incorporated herein by reference, the words expects, plans, anticipates, indicates, believes, forecast, guidance, outlook, may, will, should, seeks, targets and similar expressions are intended to identify forward-looking statements. Forward-looking statements involve risks, uncertainties and assumptions, and are based on information currently available to us. Actual results may differ materially from those expressed in the forward-looking statements due to many factors, including, without limitation, our extremely competitive industry; volatility in financial and credit markets which could affect our ability to obtain debt and/or lease financing or to raise funds through debt or equity issuances; volatility in fuel prices, maintenance costs and interest rates; our ability to implement our growth strategy; our significant fixed obligations and substantial indebtedness; our ability to attract and retain qualified personnel and maintain our culture as we grow; our reliance on high daily aircraft utilization; our dependence on the New York and Boston metropolitan markets and the effect of increased congestion in these markets; our reliance on automated systems and technology; our being subject to potential unionization, work stoppages, slowdowns or increased labor costs; our reliance on a limited number of suppliers; our presence in some international emerging markets that may experience political or economic instability or may subject us to legal risk; reputational and business risk from information security breaches or cyber-attacks; changes in or additional domestic or foreign government regulation; changes in our industry due to other airlines' financial condition; acts of war or terrorism; global economic conditions or an economic downturn leading to a continuing or accelerated decrease in demand for air travel; the spread of infectious diseases; adverse weather conditions or natural disasters; and external geopolitical events and conditions. It is routine for our internal projections and expectations to change as the year or each quarter in the year progresses, and therefore it should be clearly understood that the internal projections, beliefs and assumptions upon which we base our expectations may change prior to the end of each quarter or year.given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. You should understand that many important factors, in addition to those discussed or incorporated by reference in this press release, could cause our results to differ materially from those expressed in the forward-looking statements. Potential factors that could affect our results include, in addition to others not described in this press release, those described in Item 1A of our 2017 Form 10-K under "Risks Related to JetBlue" and
"Risks Associated with the Airline Industry". In light of these risks and uncertainties, the forward-looking events discussed in this press release might not occur. Item 9.01 Financial Statements and Exhibits (d) Exhibits Exhibit Number Description 99.1 Press Release dated July 24, 2018 of JetBlue Airways Corporation announcing financial results for the second quarter ended June 30, 2018. 99.2 Investor Update dated July 24, 2018 of JetBlue Airways Corporation. 99.3 Earnings Presentation dated July 24, 2018.
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. JETBLUE AIRWAYS CORPORATION (Registrant) /s/ Alexander Chatkewitz Date: July 24, 2018 By: VicePresident,Controller,andChiefAccountingOfficer(PrincipalAccountingOfficer)
JETBLUE ANNOUNCES SECOND QUARTER 2018 RESULTS NEW YORK (July 24, 2018) -- JetBlue Airways Corporation (NASDAQ: JBLU) today reported its results for the second quarter 2018: Reported diluted loss per share of $0.38, inclusive of $319 million pre-tax impairment charge on E190 assets. Excluding this charge, adjusted diluted earnings per share of $0.38 (1). This compares to JetBlue s second quarter 2017 diluted earnings per share of $0.62. Pre-tax loss of $160 million, inclusive of the E190 asset impairment charge. Excluding this charge, adjusted pre-tax income of $159 million (1), a decrease of 51.1% from the second quarter of 2017. Pre-tax margin of (8.3%), inclusive of the E190 asset impairment charge. Excluding this charge, adjusted pre-tax margin of 8.2% (1), a 9.5 point decrease year over year. Highlights from the Second Quarter 2018 Second quarter 2018 revenue per available seat mile (RASM) decreased (1.2)%, year over year, including 2.5 points of negative impact from holiday travel that shifted into the first quarter, as well as lapping a 1.25 point benefit that occurred in second quarter of 2017 from completion factor and co-brand incentive payments. Operating expenses per available seat mile, excluding fuel (CASM ex-fuel) growth of 1.9%, slightly better than the initial guidance range of 2.0% to 4.0%, partially driven by the timing of expenses from the second into the third quarter of 2018 and higher completion factor. JetBlue announced a signed MOU for the purchase of 60 A220 aircraft, starting in 2020 through 2025 and a transition plan for its current E190 fleet. The transaction is expected to mitigate costs increases into the next decade, strengthen JetBlue s network strategy and offer Customers and Crewmembers with a state-of-the art product experience. Key Guidance for the Third Quarter and Full Year 2018: Capacity is expected to increase between 7.5% and 9.5% year over year in the third quarter 2018. For the full year 2018, JetBlue expects capacity to increase between 6.5% and 7.5%, including a 2 point reduction to capacity in the fourth quarter of 2018. RASM growth is expected to range between flat and 3.0% for the third quarter 2018 compared to the same period in 2017. CASM Ex-Fuel is expected to grow between 1.0% and 3.0% for the third quarter of 2018. For the full year 2018, JetBlue expects year over year CASM Ex-Fuel to be between (1.0)% and 1.0%. CASM Ex-Fuel guidance includes accelerated depreciation of approximately $0.4 million per quarter for the balance of 2018, related to the E190 asset impairment. For further details see the latest Investor Update and the Second Quarter 2018 Earnings Presentation available via the internet at http://investor.jetblue.com. JetBlue will conduct a conference call to discuss its quarterly earnings today, July 24, at 10:00 a.m. Eastern Time. A live broadcast of the conference call will also be available via the internet at http://investor.jetblue.com. (1) Note A provides a reconciliation of non-gaap financial measures used in this release and provides the reasons management uses those measures.
Progress Continues Towards Margin Commitments I d like to thank our 22,000 Crewmembers, for everything they do to deliver an outstanding JetBlue experience to our Customers. Our financial performance was impacted by the holiday calendar, but more importantly, by fuel prices that increased over 40% year over year. The team is focused on mitigating the impact of higher fuel in order to stabilize and improve our margins. We are planning a series of adjustments to both capacity and our ancillary revenue to take effect over the coming months, said Robin Hayes, JetBlue s Chief Executive Officer. I was pleased with our CASM ex-fuel growth coming in below the low-end of our guidance range for the second quarter. Controlling our costs is even more critical amid higher oil prices and we are lowering our annual capacity growth to protect our margins. We are focused on our many building blocks aimed at improving our relative margins. Fleet is one broad example of building blocks that improve margins. We are delighted with the outcome of the E190 fleet review and our selection of the Airbus A220-300. We believe the recent transaction will be ROIC accretive as well as EPS accretive. Our investments in the operation to mitigate ATC challenges are showing signs of positive results as we move through the peak summer season. We look forward to continuing to focus on improving our best in class Customer experience including on time performance and investments in our product, said Joanna Geraghty, JetBlue s President and Chief Operating Officer. Revenue Performance and Outlook Second quarter RASM decrease of (1.2)% was slightly better than expected and within JetBlue s guidance range from early June of (2.5)% to (0.5)%. We continue to target a mid-to-high single digit capacity growth, and are taking a number of actions to adjust to higher oil prices. We are updating our 2018 capacity guidance, including a 2-point reduction to our fourth quarter growth that will run through our schedules over the next few days, said Marty St. George, JetBlue s EVP Commercial and Planning. Looking into the third quarter, we expect year over year RASM growth to be between flat and plus 3 percent. RASM continues to be driven by close-in bookings, and we ve seen strength throughout July. The deceleration in RASM we are seeing in the third quarter is a result of slowing ancillary per Customer trends, driven by a transition to our new Vacations platform that has been more challenging than anticipated. To mitigate the impact, we are moving forward with a series of ancillary adjustments that are independent of the platform change. Cost Performance, Outlook and Balance sheet Second quarter CASM ex-fuel was below the guidance range from April, driven by a solid operational environment and timing of expenses. JetBlue reaffirms its expectation for CASM ex-fuel growth to inflect during the second half of the year. By the end of the quarter we achieved $154 million in 2020 run rate savings as a result of our Structural Cost Program. We continue to expect an inflection in our unit cost trends in the second half as the benefits of the Structural Cost Program build, said Steve Priest, JetBlue s EVP Chief Financial Officer. - 2 -
We are also thrilled about the outcome of the E190 fleet review and our selection of the Airbus A220-300. This aircraft is a perfect fit for our network strategy and Customer Experience, and most importantly for our Owners, it is the ideal aircraft to carry the momentum of our Structural Cost Program well into the next decade. Our strong balance sheet and investment grade metrics allows us to invest in value-accretive projects, such as our recent fleet transaction. Capital Allocation and Liquidity JetBlue ended the quarter with approximately $915 million in unrestricted cash and short term investments, or about 12.6% of trailing twelve month revenue. In addition, JetBlue maintains approximately $625 million in undrawn lines of credit. In its commitment to maintaining a balanced approach to capital allocation, JetBlue executed an additional $125 million in share repurchases during the quarter. During the second quarter, JetBlue repaid $66 million in regularly scheduled debt and capital lease obligations, and raised nearly $280 million in secured aircraft debt. JetBlue anticipates paying approximately $54 million in regularly scheduled debt and capital lease obligations in the third quarter and approximately $212 million for the full year 2018. JetBlue anticipates maintaining a 30-40% adjusted debt to cap range and liquidity between 10% and 12%. Fuel Expense and Hedging The realized fuel price in the quarter was $2.28 per gallon, a 41.7% increase versus second quarter 2017 realized fuel price of $1.61. JetBlue entered into forward fuel derivative contracts to hedge approximately 7% of its fuel consumption during the third quarter of 2018. Based on the fuel curve as of July 13 th, JetBlue expects an average price per gallon of fuel of $2.33 in the third quarter of 2018. About JetBlue JetBlue is New York's Hometown Airline, and a leading carrier in Boston, Fort Lauderdale - Hollywood, Los Angeles (Long Beach), Orlando, and San Juan. JetBlue carries more than 40 million customers a year to 102 cities in the U.S., Caribbean, and Latin America with an average of 1,000 daily flights. For more information please visit www.jetblue.com. Notes (1) Consolidated operating cost per available seat mile, excluding fuel and related taxes, and operating expenses related to other non-airline businesses (CASM Ex-Fuel) is a non-gaap financial measure that we use to measure our core performance. Note A provides a reconciliation of non-gaap financial measures used in this release and provides the reasons management uses those measures. Forward Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which represent our management's beliefs and assumptions concerning future events. When used in this document and in documents incorporated herein by reference, the words expects, plans, anticipates, indicates, believes, forecast, guidance, outlook, may, will, should, seeks, targets and similar expressions are intended to identify forward-looking statements. Forward-looking statements involve risks, uncertainties and assumptions, and are based on information currently available to us. Actual results may differ materially from those expressed in the forward-looking statements due to many factors, including, without limitation, our extremely competitive industry; volatility in financial and credit markets which could affect our ability to obtain debt and/or lease financing or to raise funds through debt or equity issuances; our significant fixed obligations and substantial indebtedness; volatility in fuel prices, maintenance costs and interest rates; our reliance on high daily aircraft utilization; our ability to implement our growth strategy; our ability to attract and retain qualified personnel and maintain our culture as we grow; our reliance on a limited number of suppliers; our dependence on the New York and Boston metropolitan markets and the effect of increased congestion in these markets; our reliance on automated systems and technology; - 3 -
our being subject to potential unionization, work stoppages, slowdowns or increased labor costs; our presence in some international emerging markets that may experience political or economic instability or may subject us to legal risk; reputational and business risk from information security breaches or cyber-attacks; changes in or additional domestic or foreign government regulation; changes in our industry due to other airlines' financial condition; acts of war or terrorism; global economic conditions or an economic downturn leading to a continuing or accelerated decrease in demand for air travel; the spread of infectious diseases; adverse weather conditions or natural disasters; and external geopolitical events and conditions. It is routine for our internal projections and expectations to change as the year or each quarter in the year progresses, and therefore it should be clearly understood that the internal projections, beliefs and assumptions upon which we base our expectations may change prior to the end of each quarter or year. Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. You should understand that many important factors, in addition to those discussed or incorporated by reference in this press release, could cause our results to differ materially from those expressed in the forward-looking statements. Potential factors that could affect our results include, in addition to others not described in this press release, those described in Item 1A of our 2017 Form 10-K under "Risks Related to JetBlue" and "Risks Associated with the Airline Industry". In light of these risks and uncertainties, the forward-looking events discussed in this press release might not occur. - 4 -
JETBLUE AIRWAYS CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share amounts) (unaudited) Three Months Ended Six Months Ended June 30, Percent June 30, Percent 2018 2017 (1) Change 2018 2017 (1) Change OPERATING REVENUES Passenger $ 1,858 $ 1,766 5.2 $ 3,549 $ 3,322 6.8 Other 70 70 0.2 133 115 15.6 Total operating revenues 1,928 1,836 5.0 3,682 3,437 7.1 OPERATING EXPENSES Aircraft fuel and related taxes 491 325 51.1 908 647 40.2 Salaries, wages and benefits 486 464 4.6 985 931 5.8 Landing fees and other rents 110 101 8.0 209 197 6.2 Depreciation and amortization 120 109 9.6 237 214 10.6 Aircraft rent 23 24 (4.1) 48 50 (4.6) Sales and marketing 75 69 9.7 142 129 10.2 Maintenance, materials and repairs 188 166 13.3 329 318 3.6 Other operating expenses 260 231 12.8 521 461 12.8 Special items 319 n/a 319 n/a Total operating expenses 2,072 1,489 39.1 3,698 2,947 25.4 OPERATING INCOME (144) 347 (141.5) (16) 490 (103.3) Operating margin (7.5) % 18.9 % (26.4) pts. (0.4) % 14.2 % (14.6) pts. OTHER INCOME (EXPENSE) Interest expense (22) (24) (9.6) (44) (49) (11.5) Capitalized interest 3 2 0.5 5 4 (4.3) Interest income and other 3 (2,900.1) 5 2 183.7 Total other income (expense) (16) (22) (25.3) (34) (43) (20.3) (LOSS) INCOME BEFORE INCOME TAXES (160) 325 (149.3) (50) 447 (111.2) Pre-tax margin (8.3) % 17.7 % (26.0) pts. (1.4) % 13.0 % (14.4) pts. Income tax expense (benefit) (40) 118 (134.1) (18) 158 (111.6) NET (LOSS) INCOME $ (120) $ 207 (158.0) $ (32) $ 289 (110.9) EARNINGS PER COMMON SHARE: Basic $ (0.38) $ 0.63 $ (0.10) $ 0.87 Diluted $ (0.38) $ 0.62 $ (0.10) $ 0.86 WEIGHTED AVERAGE SHARES OUTSTANDING: Basic 315.0 330.1 318.0 333.1 Diluted 315.0 331.5 318.0 334.8 (1) Prior period results have been recast to reflect the adoption of ASC 606 RevenuefromContractswithCustomers. - 5 -
JETBLUE AIRWAYS CORPORATION COMPARATIVE OPERATING STATISTICS (unaudited) Three Months Ended Six Months Ended June 30, Percent June 30, Percent 2018 2017 Change 2018 2017 Change Revenue passengers (thousands) 10,923 10,313 5.9 20,804 20,024 3.9 Revenue passenger miles (millions) 13,043 12,133 7.5 24,909 23,532 5.8 Available seat miles (ASMs) (millions) 15,138 14,246 6.3 29,162 27,826 4.8 Load factor 86.2 % 85.2 % 1.0 pts. 85.4 % 84.6 % 0.8 pts. Aircraft utilization (hours per day) 12.1 12.1 11.7 12.0 (2.5) Average fare(2) $ 170.08 $ 171.30 (0.7) $ 170.61 $ 165.93 2.8 Yield per passenger mile (cents) (2) 14.24 14.56 (2.2) 14.25 14.12 0.9 Passenger revenue per ASM (cents) (2) 12.27 12.40 (1.0) 12.17 11.94 1.9 Revenue per ASM (cents) (2) 12.74 12.89 (1.2) 12.63 12.35 2.2 Operating expense per ASM (cents) (2) 13.69 10.46 30.9 12.68 10.59 19.7 Operating expense per ASM, excluding fuel (cents) (1)(2) 8.26 8.11 1.9 8.40 8.20 2.5 Departures 93,688 90,235 3.8 179,734 175,959 2.1 Average stage length (miles) 1,088 1,069 1.8 1,093 1,074 1.8 Average number of operating aircraft during period 245.5 231.8 5.9 244.7 230.4 6.2 Average fuel cost per gallon, including fuel taxes $ 2.28 $ 1.61 41.7 $ 2.19 $ 1.65 32.8 Fuel gallons consumed (millions) 215 202 6.6 414 393 5.5 Average number of full-time equivalent crewmembers 17,677 16,841 5.0 (1) Refer to Note A, Consolidated operating cost per available seat mile, excluding fuel (CASM Ex-Fuel) at the end of our Earnings Release for more information on this non-gaap measure. CASM Ex-Fuel excludes fuel and related taxes, special items, and operating expenses related to other non-airline businesses. (2) Recasted to reflect the adoption of ASC 606 RevenuefromContractswithCustomers. JETBLUE AIRWAYS CORPORATION SELECTED CONSOLIDATED BALANCE SHEET DATA (in millions) June 30, December 31, 2018 2017 (unaudited) Cash and cash equivalents $ 603 $ 303 Total investment securities 314 392 Total assets 9,940 9,781 Total debt 1,358 1,199 Stockholders' equity (1) 4,481 4,732 (1) Prior period results have been recast to reflect the adoption of ASC 606 RevenuefromContractswithCustomers. - 6 -
Note A - Non-GAAP Financial Measures JetBlue sometimes uses non-gaap measures that are derived from the Consolidated Financial Statements, but that are not presented in accordance with generally accepted accounting principles ( GAAP ). JetBlue believes these non-gaap measures provide a meaningful comparison of our results to others in the airline industry and our prior year results. Investors should consider these non-gaap financial measures in addition to, and not a substitute for, our results prepared in accordance with GAAP. We believe certain charges included in our operating expenses on a GAAP basis make it difficult to compare our current period results to prior periods as well as future periods and guidance. We believe our special items distort our overall trends and that our metrics and results are enhanced with the presentation of our results excluding the impact of special items. during the periods presented below special items include a non-cash impairment charge related to the Embraer E190 Fleet review as a result of our decision to exit the fleet. The tables below show a reconciliation of non-gaap financial measures used in this press release to the most directly comparable GAAP financial measures. Under the U.S. Securities and Exchange Commission rules, non-gaap financial measures may be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. It should be noted as well that our non-gaap information may be different from the non-gaap information provided by other companies. Consolidated operating cost per available seat mile, excluding fuel and related taxes, and certain non-airline operating expenses ( CASM Ex-Fuel ). CASM is a common metric used in the airline industry. We exclude aircraft fuel and related taxes and operating expenses related to other non-airline business, such as JetBlue Technology Ventures and JetBlue Travel Products, from operating cost per available seat mile to determine CASM Ex-Fuel. We believe CASM Ex-Fuel provides investors the ability to measure financial performance excluding items beyond our control such as fuel costs, which are subject to many economic and political factors beyond our control or not related to the generation of an available seat mile, such as operating expenses related to other non-airline businesses. We believe this measure is more indicative of our ability to manage costs and is more comparable to measures reported by other major airlines. NON-GAAP FINANCIAL MEASURE RECONCILIATION OF OPERATING EXPENSE PER ASM, EXCLUDING FUEL (in millions, per ASM data in cents) (unaudited) Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 $ per ASM $ per ASM $ per ASM $ per ASM Total operating expenses $ 2,038 $ 13.46 $ 1,489 $ 10.46 $ 3,664 $ 12.56 $ 2,947 $ 10.59 Less: Aircraft fuel and related taxes 491 3.24 325 2.28 908 3.11 647 2.33 Other non-airline expenses 11 0.08 9 0.07 20 0.07 18 0.06 Special items $ 285 $ 1.88 $ $ 285 $ 0.98 $ $ Operating expenses, excluding fuel $ 1,251 $ 8.26 $ 1,155 $ 8.11 $ 2,451 $ 8.40 $ 2,282 $ 8.20-7 -
Reported Amounts to Non-GAAP, excluding special items NON-GAAP FINANCIAL MEASURES RECONCILIATION OF OPERATING EXPENSE, INCOME BEFORE TAXES, NET INCOME AND EARNINGS PER SHARE EXCLUDING SPECIAL ITEMS (in millions, except per share amounts) (unaudited) Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Total operating expenses 2,072 $ 1,489 3,698 $ 2,947 Add back: Impairment of long-lived assets 319 319 Total operating expense excluding special items $ 1,753 $ 1,489 $ 3,379 $ 2,947 Operating (loss) income $ (144) $ 347 $ (16) $ 490 Add back: Impairment of long-lived assets 319 319 Operating income excluding special items $ 715 $ 347 $ 303 $ 490 (Loss) income before income taxes $ (160) $ 325 $ (50) $ 447 Add back: Impairment of long-lived assets 319 319 Income before income taxes excluding special items $ 159 $ 325 $ 269 $ 447 Income before income taxes excluding special items $ 159 $ 325 $ 269 $ 447 Less: Income tax expense (benefit) (40) 118 (18) 158 Add back: Income tax related to impairment of long-lived assets 79 79 Net Income excluding special items $ 120 $ 207 $ 208 $ 289 Earnings Per Common Share: Basic $ (0.38) $ 0.63 $ (0.10) $ 0.87 Add back: Special items, net of tax 0.76 0.75 Basic excluding special items $ 0.38 $ 0.63 $ 0.65 $ 0.87 Diluted $ (0.38) $ 0.62 $ (0.10) $ 0.86 Add back: Special items, net of tax 0.76 0.75 Diluted excluding special items $ 0.38 $ 0.62 $ 0.65 $ 0.86 CONTACTS JetBlue Investor Relations Tel: +1 718 709 2202 ir@jetblue.com JetBlue Corporate Communications Tel: +1 718 709 3089 corpcomm@jetblue.com - 8 -
Investor Update Investor Update: July 24, 2018 This update provides JetBlue s investor guidance for the third quarter ending September 30, 2018 and full year 2018. Recent Announcements JetBlue has announced service between the following city pairs: City Pair Frequency Start Date New York (JFK) - Ontario (ONT) 1x Daily September 5, 2018 Boston (BOS) - Burbank (BUR) 1x Daily September 5, 2018 New York (JFK) - Mexico City (MEX) 1x Daily October 25, 2018 Boston (BOS) - Mexico City (MEX) 1x Daily October 25, 2018 Boston (BOS) - Havana (HAV) 1x Weekly November 10, 2018 Long Beach (LGB) - Bozeman (BZN) 2x Weekly Seasonal December 13, 2018 Boston (BOS) - Steamboat Springs (HDN) 2x Weekly Seasonal December 15, 2018 Fort Lauderdale (FLL) - Steamboat Springs (HDN) 1x Weekly Seasonal December 15, 2018 Long Beach (LGB) - Steamboat Springs (HDN) 2x Weekly Seasonal December 15, 2018 Capacity Third quarter 2018 available seat miles (ASMs) are estimated to increase 7.5% to 9.5% year-over-year. Full year 2018 ASMs are estimated to increase 6.5% to 7.5% year-overyear. JetBlue estimates the following distribution as a percentage of total ASMs by aircraft type: Third Quarter 2018 Full Year 2018 A320 A321 All-Core A321 Mint E190 A320 A321 All-Core A321 Mint E190 55% 15% 19% 11% 55% 15% 19% 11% Average stage length is projected to increase year-over-year by approximately 1.8% for the third quarter 2018 and increase by approximately 2.1% for the full year 2018. Operational Outlook Operating Expense Year-Over-Year Percentage Change Third Quarter Full Year 2018 2018 Unit Operating Expense Excluding Fuel (CASM Ex-Fuel) (1) 1.0-3.0% (1.0) - 1.0% Operating Expenses Related to other Non-Airline Businesses (2) (in millions) $9 - $14 $35 - $45% 1 CASM Ex-Fuel excludes fuel and related taxes, special items and operating expenses related to other non-airline expenses. With respect to JetBlue s CASM Ex-Fuel and guidance, JetBlue is not able to provide a reconciliation of the non-gaap financial measure to GAAP because the excluded items have not yet occurred and cannot be reasonably predicted. The reconciling information that is unavailable would include a forward-looking range of financial performance measures beyond our control, such as fuel costs, which are subject to many economic and political factors beyond our control. Beginning with the first quarter of 2018, Operating Expenses Related to other Non-Airline businesses include JetBlue Travel Products and equivalent prior period costs. Full year 2018 CASM Ex-Fuel excludes the non-cash impairment charge related to the Embraer E190 Fleet review as we believe this special item distorts our overall trends. JetBlue Airways Investor Relations (718) 709-2202 ir@jetblue.com 1
Investor Update 2 Operating Expenses Related to other Non-Airline businesses will be excluded from prior periods. As a result, this change has minimal impact on the projected growth rate. Third Quarter Full Year 2018 2018 Fuel Expense Estimated Consumption (gallons) 217 million 845 million Estimated Fuel Price per Gallon, Net of Hedges 1 $2.33 2 ¹Includes fuel taxes. ²JetBlue utilizes the forward Brent crude curve and the forward Brent crude to heating oil crack spread to calculate the unhedged portion of its prompt quarter. As of July 13, 2018, the forward Brent crude per barrel price was $76 and the crack spread averaged $15 per barrel for the third quarter of 2018. Fuel Hedges As of July 13, 2018 JetBlue s advanced fuel derivative contracts are as follows: Gallons Estimated Percentage of Consumption 3Q18 16 million 7.4% 4Q18 16 million 7.5% Price 7.4% in USGC Jet bull call spreads at an average strike price of $2.25/gal x $2.45/gal 7.45% in USGC Jet bull call spreads at an average strike price of $2.25/gal x $2.45/gal Other Income (Expense) JetBlue estimates total Other Income (Expense) to be between ($16) and ($23) million in the third quarter 2018 and between ($65) and ($75) million for the full year 2018. Tax Rate JetBlue expects an effective annual tax rate between 25% and 26%. However, the actual tax rate in the third quarter and full year 2018 could differ due to a number of factors. Capital Expenditures (In millions) Third Quarter 2018 Full Year 2018 Aircraft Non-aircraft Total Aircraft Non-aircraft Total $275 - $310 $35 - $50 $310 - $360 $850 - $1,000 $150 - $200 $1,000 - $1,200 JetBlue Airways Investor Relations (718) 709-2202 ir@jetblue.com 2
Investor Update Aircraft Delivery Schedule As of June 30, 2018 JetBlue s fleet was comprised of 130 Airbus A320 aircraft, 23 Airbus A321 All-Core aircraft, 34 Airbus A321 Mint aircraft, and 60 EMBRAER 190 aircraft, for a total of 247 aircraft. Airbus A320 Airbus A321 EMBRAER 190 Aircraft Mortgage Lease Aircraft Mortgage Lease Aircraft Mortgage Lease 3Q18 2 4Q18 4 Total at Year End 2018 130 36 11 63 8 1 60 29 30 Airbus Order Book As of July 24, 2018 JetBlue's firm Airbus order book: Year Airbus A220 Airbus A321neo Total 2018 6* 6* 2019 13 13 2020 5 15 20 2021 4 16 20 2022 8 15 23 2023 19 14 33 2024 22 12 34 2025 2 2 Total 60 91 151 *6 remaining A321ceo deliveries in 2018 Share Count Share count estimates for calculating basic and diluted earnings per share are as follows: Third Quarter Full Year 2018 2018 Basic Share Count 312.8 million 316.0 million Diluted Share Count 314.5 million 317.6 million These share count estimates do not include any future share repurchases that may occur throughout 2018 under JetBlue's share buyback program. The number of shares used in JetBlue s actual earnings per share will likely be different than those stated above. This Investor Update contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which represent our management's beliefs and assumptions concerning future events. When used in this document and in documents incorporated herein by reference, the words expects, plans, JetBlue Airways Investor Relations (718) 709-2202 ir@jetblue.com 3
Investor Update anticipates, indicates, believes, forecast, guidance, outlook, may, will, should, seeks, targets and similar expressions are intended to identify forward-looking statements. Forward-looking statements involve risks, uncertainties and assumptions, and are based on information currently available to us. Actual results may differ materially from those expressed in the forward-looking statements due to many factors, including, without limitation, our extremely competitive industry; volatility in financial and credit markets which could affect our ability to obtain debt and/or lease financing or to raise funds through debt or equity issuances; our significant fixed obligations and substantial indebtedness; volatility in fuel prices, maintenance costs and interest rates; our reliance on high daily aircraft utilization; our ability to implement our growth strategy; our ability to attract and retain qualified personnel and maintain our culture as we grow; our reliance on a limited number of suppliers; our dependence on the New York and Boston metropolitan markets and the effect of increased congestion in these markets; our reliance on automated systems and technology; our being subject to potential unionization, work stoppages, slowdowns or increased labor costs; our presence in some international emerging markets that may experience political or economic instability or may subject us to legal risk; reputational and business risk from information security breaches or cyber-attacks; changes in or additional domestic or foreign government regulation; changes in our industry due to other airlines' financial condition; acts of war or terrorism; global economic conditions or an economic downturn leading to a continuing or accelerated decrease in demand for air travel; the spread of infectious diseases; adverse weather conditions or natural disasters; and external geopolitical events and conditions. It is routine for our internal projections and expectations to change as the year or each quarter in the year progresses, and therefore it should be clearly understood that the internal projections, beliefs and assumptions upon which we base our expectations may change prior to the end of each quarter or year. Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. You should understand that many important factors, in addition to those discussed or incorporated by reference in this Investor Update, could cause our results to differ materially from those expressed in the forward-looking statements. Potential factors that could affect our results include, in addition to others not described in this Investor Update, those described in Item 1A of our 2017 Form 10-K under "Risks Related to JetBlue" and "Risks Associated with the Airline Industry". In light of these risks and uncertainties, the forward-looking events discussed in this Investor Update might not occur. JetBlue Airways Investor Relations (718) 709-2202 ir@jetblue.com 4
2Q 2018 EARNINGS PRESENTATION JULY 24, 2018 1
SAFE HARBOR This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, which represent our management's beliefs and assumptions concerning future events. When used in this document and in documents incorporated herein by reference, the words expects, plans, anticipates, indicates, believes, forecast, guidance, outlook, may, will, should, seeks, targets and similar expressions are intended to identify forward-looking statements. Forward-looking statements involve risks, uncertainties and assumptions, and are based on information currently available to us. Actual results may differ materially from those expressed in the forward-looking statements due to many factors, including, without limitation, our extremely competitive industry; volatility in financial and credit markets which could affect our ability to obtain debt and/or lease financing or to raise funds through debt or equity issuances; our significant fixed obligations and substantial indebtedness; volatility in fuel prices, maintenance costs and interest rates; our reliance on high daily aircraft utilization; our ability to implement our growth strategy; our ability to attract and retain qualified personnel and maintain our culture as we grow; our reliance on a limited number of suppliers; our dependence on the New York and Boston metropolitan markets and the effect of increased congestion in these markets; our reliance on automated systems and technology; our being subject to potential unionization, work stoppages, slowdowns or increased labor costs; our presence in some international emerging markets that may experience political or economic instability or may subject us to legal risk; reputational and business risk from information security breaches or cyber-attacks; changes in or additional domestic or foreign government regulation; changes in our industry due to other airlines' financial condition; acts of war or terrorism; global economic conditions or an economic downturn leading to a continuing or accelerated decrease in demand for air travel; the spread of infectious diseases; adverse weather conditions or natural disasters; and external geopolitical events and conditions. It is routine for our internal projections and expectations to change as the year or each quarter in the year progresses, and therefore it should be clearly understood that the internal projections, beliefs and assumptions upon which we base our expectations may change prior to the end of each quarter or year. Further information concerning these and other factors is contained in the Company's Securities and Exchange Commission filings, including but not limited to, the Company's 2017 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. In light of these risks and uncertainties, the forward-looking events discussed in this presentation might not occur. We undertake no obligation to update any forward-looking statements to reflect events or circumstances that may arise after the date of this presentation. The following presentation also includes certain non-gaap financial measures as defined in Regulation G under the Securities Exchange Act of 1934. We refer you to the reconciliations made available in our Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K (available on our website at jetblue.com and at sec.gov) and in our second quarter earnings call (furnished on July 24th, 2018), which reconcile the non-gaap financial measures included in the following presentation to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP. 32
2Q 2018 EARNINGS UPDATE ROBIN HAYES CEO
WORKING TOWARDS SUPERIOR MARGINS IN CHANGING LANDSCAPE PRE-TAX MARGINS JBLU VS PEERS* KEY INITIATIVES 2Q 2018 FY 2017** TTM** Reducing 4Q capacity growth by 2 points 13.0% Factoring higher fuel prices in preliminary capacity planning for 2019 12.4% 12.8% GROWTH Focus on strengthening relevance in primary Focus Cities 10.2% 10.5% 8.2% Making good progress in all four pillars of Structural Cost Program (Non- (Non- (Non- Support center organizational review GAAP) GAAP) GAAP) COSTS Completed A320 heavy maintenance RFP as we continue to safely STRUCTURAL STRUCTURAL maintain our aircraft in the most cost effective way (GAAP) Ancillary growth per customer impacted in 3Q by platform conversion; adjusting ancillary revenue initiatives in coming months -8.3% Replacing E190 fleet by 2025 to enhance earnings power and Peers Peers Peers COMMERCIAL returns and carry cost momentum into the next decade *Average of peer set (AAL, ALK, DAL, LUV, SAVE, UAL), consensus, guidance and reported results **Pre-Tax Margins for FY 2017 under new accounting standards for Revenue from Contracts with Customers (Topic 606), where available; includes $22.8m in one-time tax bonus and impact of Hurricanes in 2017 Superior Margins defined as the simple average of LUV, SAVE, ALK 44 Refer to GAAP vs non-gaap reconciliation in Appendix section
COMMERCIAL UPDATE & OUTLOOK MARTY ST. GEORGE EVP COMMERCIAL AND PLANNING
MANAGING CAPACITY TO SUPPORT MARGIN COMMITMENTS SCHEDULED ASM* YOY GROWTH Completion factor better than planned from operational improvements, lack of northeast runway construction and OTP initiatives NYC Flown guidance 7.5-9.5% Growing through up-gauging in constrained airports (JFK) 6.5-7.5% Flown Strengthening business franchise (Minneapolis started 2Q 2018) ASMs BOS Similar to NYC, leisure market up-gauging, including restyled A320s 6.5% 6.3%* 5.6% 5.7% RASM growth continues to outperform system 5.7% 4.5%* FLL Network growth continues via added frequencies and destinations Transcon franchise performing well, both Mint and non-mint markets Reducing Long Beach intra-west flying, redeploying into Transcon MINT / TCON / MINT routes starting this Fall Continues to show strength in VFR and inbound leisure markets; 2017 2Q 2018 3Q 2018E 2018E RASM growth above system average *Shaded bars denote schedules as per DIIO. Data for 4Q17 corresponds to schedule pre-hurricanes LATIN Refer to Appendix for hurricane impact Capacity adjustments in San Juan due to slowing RASM; Haiti Dotted boxes denote guidance Green dotted lines denote flown ASMs accounts for approximately 1% of seat miles in 3Q 66
UNIT REVENUE: STRONG FIRST HALF; TAKING ACTION IN 2H RASM YOY GROWTH 2Q RASM as expected, solid close-in demand continues Broad close-in strength in Florida and Latin markets 3.75 point headwind from calendar placement and comps 1Q/2Q 2018 RASM 6.1% impacted by Holiday Customer compensation lower than 2Q 2017 from operational placement and one-time tailwinds in Q2 2017 investments; Even More and fees contributed to 2Q 2018 3Q RASM slowing driven by ancillary 0 3% Close-in demand remains strong in peaks 2.2% 0.2 point tougher comp from 3Q 2017 hurricane RASM impact 1 point impact in 3Q from ancillary platform conversion Taking actions to address trends Reducing 4Q capacity growth by 2 points -1.2% Making additional ancillary changes over coming weeks 1Q 2018 2Q 2018 1H 2018 3Q 2018E 77
FINANCIAL UPDATE & OUTLOOK STEVE PRIEST EVP CHIEF FINANCIAL OFFICER
2Q 2018 RESULTS IMPACTED BY HIGHER FUEL PRICES AND CALENDAR RASM CASM EX-FUEL* PRE TAX MARGIN* EARNINGS PER SHARE* (US$ cents) (US$ cents) (US$ cents) 12.89 12.74 17.7% 62 8.26 38 8.2% 8.11 (Non (Non GAAP) GAAP) 2Q 2017 2Q 2018 2Q 2017 2Q 2018 2Q 2017 2Q 2018 2Q 2018 2Q 2017 2Q 2018 2Q 2018 (GAAP) (Adj) (GAAP) (Adj) *Refer to GAAP vs non-gaap reconciliation in Appendix section -8.3% (38) Revenue growth impacted by Benefit from higher Non-GAAP margin largely Non GAAP EPS impacted by higher calendar than planned completion factor impacted by 42% higher fuel fuel price and calendar; partially Positive ancillary revenues Positive impact of expenses prices and holiday calendar offset by lower tax rate and share trajectory in 2Q 2018 shifting from 2Q to 3Q 2018 placement repurchases GAAP margin impacted by GAAP EPS impacted by 99 impairment of E190 fleet E190 fleet impairment
UNIT COSTS: MANAGING HEADWINDS TO ACHIEVE COST GOALS CASM EX-FUEL YOY GROWTH* 2Q CASM ex-fuel better than 2 to 4% guidance 2 4% Strong focus on cost management; timing of expenses shifted to later in the year, equal to ~0.5 pts 3.1% 1 3% Better than planned completion factor and improved operation positively impacted cost performance by ~0.5 pts 1.9% 3Q and Full Year 2018 cost guidance 3Q 2018 range between 1% to 3%, driven by expected increases in Business Partner spend, ~1pt from expense timing from 1Q and 2Q, and capacity reductions Continue to expect full year 2018 CASM ex-fuel growth between (1%) and 1% driven by ongoing cost controls and progress in Structural Cost program (1) 1% Accelerated depreciation from E190 impairment adds approximately $350K per quarter 1Q 2018 2Q 2018 3Q 2018E 2018E Note: The estimates above do not include the potential outcome of a pilot deal 10 *Refer to GAAP vs non-gaap reconciliation in Appendix section
EXPECT CASM EX-FUEL INFLECTION DURING 2H 2018 CASMCASM EXEX--FUELFUEL YOY YOY GROWTH* GROWTH CASM ex-fuel growth negative by 2H 2018 (Year over 2 Year growth) (Year over Year growth) 1H growth of 2.5%, on lower end of 2-4% guidance despite low 1Q completion factor 2H expected to decline (3.5%)-(1.5%), including storm 7.0% *CASM ex-fuel 0 to 2% by 6.4% impact and one-time Crewmember bonus (2017) 2H 2018, ex-impact of hurricanes and tax reform 3.5-5.5% 2H 2018 CASM ex-fuel trends lower as Structural bonus Cost Program benefits ramp up 2 4% Tech Ops unit costs still expected to decline 2.5% Unit labor costs flat 0 2%* 2019 & 2020 to see further CASM ex-fuel benefits (3.5) (1.5)% Structural Cost Program savings ramping up Added seats from restyle program impacting 2019 / 2020 (0.5) - 1.5% *CASM ex-fuel including impact of hurricanes and tax reform bonus in FY 2017 Note: The estimates above do not include the potential outcome of a pilot deal Refer to GAAP vs non-gaap reconciliation in Appendix section 1Q 2018 2Q 2018 3Q 2018E 4Q 2018E 1H 2018 2H 2018 1114
STRUCTURAL COST PROGRESS CONTINUES SAVINGS CATEGORY PROGRESS KEY MILESTONES OPPORTUNITY Signed contract for heavy maintenance of A320s; advancing RFP for v2500 engine maintenance Tech Ops Signed enhanced LLP engine coverage to drive savings outside of A220 fleet transaction Continued renegotiations with Business Partners to generate run rate savings Corporate Corporate organizational review to realign support center functions Airport real estate footprint optimization to lower support function costs Airports Continued progress on deploying self-service check-in kiosk, targeting 24 lobbies by year end Enhanced online functionality to channel shift Customers to self-serve Distribution Implemented multi-channel Customer service tool by partnering with Gladly TOTAL: $250 $300M 2020 SAVINGS ACHIEVED: $154M *Green shading is category cost savings status in progress or completed 12
ACCRETIVE FLEET GROWTH AND REINVESTMENT CONTINUES FLEET* CAPITAL EXPENDITURES Aircraft Non-Aircraft 243 245 247 249 253 $150m - $200m ~$1.2b 35 32 34 34 34 21 21 23 25 28 $850m - $1bn 130 130 130 130 130 $35m - $50m $275m - $310m 60 60 60 60 60 2017 1Q 2018 2Q 2018 3Q 2018E 2018E 3Q 2018E 2018E 2017-2020E E190 A320 A321 HD A321 Mint *Refer to aircraft delivery book in Appendix section Guidance as of 07/24/18 13
BALANCED APPROACH TO CAPITAL ALLOCATION SOURCES / USES OF CASH CAPITAL ALLOCATION FRAMEWORK (US$ millions) General Guidelines SOURCES USES Maintain investment grade financial metrics Debt Net share 279 343 raise Repurchases Balanced approach to growth, reinvestment and capital 234 Debt return to shareholders repayments E190 transition among best and highest use of capital Cash from 1,375 operations CAPEX Support EPS growth via share repurchases 1,024 Priorities Beginning End cash and Investments in fleet to support organic growth and improve cash and 550 603 equivalents equivalents returns (e.g., cabin restyling, E190 transition and lease buy-outs) TTM 2Q 2018 TTM 2Q 2018 Return-accretive non-aircraft CAPEX to support margin commitments and structural cost savings 1414
2018 GUIDE SUMMARY CAPACITY RASM CASM EX-FUEL* ALL-IN FUEL PRICE 3Q 2018 FY 2018 3Q 2018 FY 2018 3Q 2018 FY 2018 3Q 2018 FY 2018 7.5 9.5% 6.5 7.5% 0 3% N/A 1 3% (1) 1% $2.33 / gal N/A CAPEX AIRCRAFT CAPEX NON-AIRCRAFT OTHER INCOME / (EXPENSE) JBTP / JTV (EXPENSES) 3Q 2018 FY 2018 3Q 2018 FY 2018 3Q 2018 FY 2018 3Q 2018 FY 2018 $275-310m $850m - 1bn $35 50m $150 200m ($16) (23)m ($65) (75)m ($9) (14)m ($35) (45)m *The estimates above do not include the potential outcome of a pilot deal Also excludes impact from E190 impairment 15
APPENDIX A: 2Q 2018 FINANCIAL RESULTS US$ millions 2Q 2018 2Q 2017 Var % Total Operating Revenues 1,928 1,836 5.0 Aircraft fuel and related taxes 491 325 51.1 Salaries, wages and benefits 486 464 4.6 Landing fees and other rents 110 101 8.0 Depreciation and amortization 120 109 9.6 Aircraft rent 23 24 (4.1) Sales and marketing 75 69 9.7 Maintenance, materials and repairs 188 166 13.3 Other operating expenses 260 231 12.8 Special items 319 - n/a Operating Income (144) 347 (141.5) Other Income (Expense) (16) (22) (25.3) Income (loss) before taxes (160) 325 (149.3) Income tax expense (benefit) (40) 118 (134.1) NET INCOME (LOSS) (120) 207 (158.0) *Adjusted for impairment Pre-Tax Margin (8.3%) 17.7% (26.0) pts of long-lived assets. Earnings per Share (EPS) $(0.38) $0.62 Refer to GAAP vs non- Pre-Tax Margin* 8.2% 17.7% (9.5) pts GAAP reconciliation in Appendix section Earnings per Share (EPS)* $0.38 $0.62 17
APPENDIX B: ANTICIPATED DELIVERY SCHEDULE PRIOR CURRENT AIRBUS ORDERS E190 A320 NEO A321 CEO/NEO Total A220 A321 CEO/NEO Total 2018 - - 6* 6* - 6* 6* 2019 - - 13 13-13 13 2020 10 6 7 23 5 15 20 2021 7 16 4 27 4 16 20 2022 7 3 17 27 8 15 23 2023 - - 14 14 19 14 33 2024 - - 5 5 22 12 34 2025 - - - - 2-2 Total 24 25 66 115 60 91 151 Delivery schedule as of July 24, 2018 * 6 remaining A321 CEO deliveries in 2018 18
APPENDIX C: HURRICANE IMPACT FROM 2017 3Q 2017 4Q 2017 2017 ASM (2.7%) (2.9%) (1.4%) RASM +0.2 pts (0.7) pts (0.2) pts CASM ex-fuel +2.6 pts +2.4 pts +1.3 pts Pre-Tax Margin (1.5%) (2.2%) (0.9%) EPS Impact (6c) (9c) (15c) 19
APPENDIX D: E190 IMPAIRMENT AND TRANSITION COSTS TRANSITION COSTS (US$ million) 2018 2019 2020 2021-2025** Cash costs One-time costs $90-110* Ongoing (transition costs)1 $5-15 $15-25 $35-45 $80-115 Total $95-125 $15-25 $35-45 $80-115 Non-cash costs 2018 2019 2020 2021-2024** E190 value adjustment $319 E190 accelerated depreciation $0.7 $1.4 $1.4 $5.6 Total $319.7 $1.4 $1.4 $5.6 1 Ramp-up costs (pilot training and equipment, transition expenses) * One-time costs ** Total amount for the period. Fleet transition adds accelerated depreciation and transition costs through mid-2020s. Headwind on 2017-2020 CASM ex-fuel CAGR of approximately 25 basis points from incremental cash operating costs 20
APPENDIX E: RELEVANT JETBLUE MATERIALS www.investor.jetblue.com/investor-relations DOCUMENT LOCATION Investor Presentations http://blueir.investproductions.com/investor-relations/events-and-presentations/presentations Earnings Releases http://blueir.investproductions.com/investor-relations/financial-information/quarterly-results Annual Reports http://blueir.investproductions.com/investor-relations/financial-information/reports/annual-reports SEC Filings http://blueir.investproductions.com/investor-relations/financial-information/sec-filings Proxy Statements http://blueir.investproductions.com/investor-relations/financial-information/reports/proxy-statements Investor Updates http://blueir.investproductions.com/investor-relations/financial-information/investor-updates Traffic Reports http://blueir.investproductions.com/investor-relations/financial-information/traffic-releases ESG Reports* http://blueir.investproductions.com/investor-relations/financial-information/reports/sustainable-accounting-standards-board-reports * Environmental, Social, and Governance Reports 21