10q10k10q10k.net

What changed in JETBLUE AIRWAYS CORP's 10-K — 2024 vs 2025

vs

Paragraph-level year-over-year comparison of JETBLUE AIRWAYS CORP's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+419 added−414 removedSource: 10-K (2026-02-12) vs 10-K (2025-02-14)

Top changes in JETBLUE AIRWAYS CORP's 2025 10-K

419 paragraphs added · 414 removed · 294 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

68 edited+42 added−26 removed43 unchanged
Biggest changeCustomers on select coast-to-coast, Caribbean and Latin American routes and all transatlantic flights have the option to purchase Mint ® , our lie-flat premium service. Each Mint ® seat includes a fully lie-flat bed with our exclusive Tuft & Needle ® sleep experience.
Biggest changeAdditionally in 2025, we enhanced our EvenMore ® offering, with EvenMore ® now selling via global distribution systems, providing customers more opportunities to book our premium economy offering on a single ticket through travel agents and online travel agencies. 8 Table of Contents Customers on select coast-to-coast, Caribbean and Latin American routes and all transatlantic flights have the option to purchase Mint ® , our lie-flat premium service.
Crewmember and Community Programs We are committed to treating our crewmembers and customers with dignity and respect, in line with our mission of bring humanity back to air travel. As such, we support our crewmembers through a number of programs, including a JetBlue scholars program and a crewmember crisis fund.
Crewmember and Community Programs We are committed to treating our crewmembers and customers with dignity and respect, in line with our mission to bring humanity back to air travel. As such, we support our crewmembers through a number of programs, including a JetBlue Scholars program and a crewmember crisis fund.
Beginning in January 2025, EvenMore ® Space was rebranded to EvenMore ® which in addition to giving customers the opportunity to enjoy additional legroom, priority security access, and early boarding, it also includes dedicated overhead bin space, complimentary alcoholic beverages, and premium snack options. Our EvenMore ® experience is available for purchase across our fleet.
Beginning in January 2025, EvenMore ® Space was rebranded to EvenMore ® which, in addition to giving customers the opportunity to enjoy additional legroom, priority security access, and early boarding, also includes dedicated overhead bin space, complimentary alcoholic beverages, and premium snack options. Our EvenMore ® experience is available for purchase across our fleet.
These engines power our Airbus A220 and Airbus A321neo fleets. The powdered metal affects engines manufactured between October 2015 and September 2021. Those engines are now required to be inspected after they have reached a reduced number of cycles dependent on the fleet type.
These engines power our Airbus A220 and Airbus A321neo fleets. The powdered metal affects engines manufactured between October 2015 and September 2021. Those engines are required to be inspected after they have reached a reduced number of cycles dependent on the fleet type.
Our scheduled flights at San Diego airport are in compliance with the noise curfew limits, but we may violate these curfews on occasion when we experience irregular operations. Concern over climate change, including the impact of global warming, has led to significant U.S. and international legislative and regulatory efforts to limit GHG emissions, including our aircraft and ground operations emissions.
Our scheduled flights at San Diego airport are in compliance with the noise curfew limits, but we may violate these curfews on occasion when we experience irregular operations. Historical concern over climate change, including the impact of global warming, has led to U.S. and international legislative and regulatory efforts to limit GHG emissions, including our aircraft and ground operations emissions.
Insurance We carry various types of insurance customary in the airline industry and at amounts deemed adequate to protect us and our property as well as comply with both federal regulations and certain credit and lease agreements. 16 Table of Contents WHERE YOU CAN FIND OTHER INFORMATION Our website is www.jetblue.com .
Insurance We carry various types of insurance customary in the airline industry and at amounts deemed adequate to protect us and our property as well as comply with both federal regulations and certain credit and lease agreements. 17 Table of Contents WHERE YOU CAN FIND OTHER INFORMATION Our website is www.jetblue.com .
We believe our differentiated product and culture combined with our competitive cost structure enables us to compete effectively in the high-value geographies we serve. Looking to the future, we plan to continue to grow in our high-value geographies, invest in industry leading products, and provide award-winning service by our 23,000+ dedicated employees, whom we refer to as crewmembers.
We believe our differentiated product and culture combined with our competitive cost structure enable us to compete effectively in the high-value geographies we serve. Looking to the future, we plan to continue to grow in our high-value geographies, invest in industry-leading products, and provide award-winning service by our 23,000 dedicated employees, whom we refer to as crewmembers.
Our suite of Gateway programs include pilot and maintenance technician development paths to meet any level of experience and a variety of learning styles for both our internal crewmembers and external applicants. We provide professional and leadership development programs to elevate the performance and support the career growth of all interested crewmembers.
Our suite of Gateway programs includes pilot and maintenance technician development paths to meet any level of experience and a variety of learning styles for both our internal crewmembers and external applicants. We provide professional and leadership development programs to elevate the performance and support the career growth of all interested crewmembers.
It can additionally assess civil penalties for such failures as well as institute proceedings for the imposition and collection of monetary fines for the violation of certain FAA regulations. When significant safety issues are involved, it can revoke a U.S. carrier's authority to provide air transportation on an emergency basis, without providing notice and a hearing.
It can additionally assess civil penalties for such failures as well as institute proceedings for the imposition and 15 Table of Contents collection of monetary fines for the violation of certain FAA regulations. When significant safety issues are involved, it can revoke a U.S. carrier's authority to provide air transportation on an emergency basis, without providing notice and a hearing.
The availability of international routes to U.S. airlines is regulated by treaties and related agreements between the U.S. and foreign governments. 15 Table of Contents To the extent we seek to provide air transportation to additional international markets in the future, we would be required to obtain necessary authority from the DOT and the FAA as well as the applicable foreign government.
The availability of international routes to U.S. airlines is regulated by treaties and related agreements between the U.S. and foreign governments. To the extent we seek to provide air transportation to additional international markets in the future, we would be required to obtain necessary authority from the DOT and the FAA as well as the applicable foreign government.
Because of our network strength in leisure destinations, we also sell vacation packages through our wholly owned subsidiary, JetBlue Travel Products, LLC ("JBTP"), which offers one-stop, value-priced vacation services for self-directed packaged travel planning. These packages offer competitive fares for air travel on JetBlue along with a selection of JetBlue-recommended hotels and resorts, car rentals, and local attractions.
Because of our network strength in leisure destinations, we also sell vacation packages through our wholly owned subsidiary, Paisly, LLC ("Paisly") (f/k/a JetBlue Travel Products), which offers one-stop, value-priced vacation services for self-directed packaged travel planning. These packages offer competitive fares for air travel on JetBlue along with a selection of JetBlue-recommended hotels and resorts, car rentals, and local attractions.
We maintain our aircraft and associated maintenance records in accordance with, if not exceeding, FAA regulations. Fleet maintenance work is divided into four categories: line maintenance, heavy maintenance, engine maintenance and component maintenance. The bulk of our line maintenance is handled by JetBlue technicians and inspectors.
We maintain our aircraft and associated maintenance records in accordance with, if not exceeding, FAA regulations. 11 Table of Contents Fleet maintenance work is divided into four categories: line maintenance, heavy maintenance, engine maintenance and component maintenance. The bulk of our line maintenance is handled by JetBlue technicians and inspectors.
Other Regulations - All airlines are subject to certain provisions of the Communications Act of 1934 due to their extensive use of radio and other communication facilities. They are also required to obtain an aeronautical radio license from the Federal Communications Commission ("FCC").
Other Regulations - All airlines are subject to a multitude of federal regulations including certain provisions of the Communications Act of 1934 due to their extensive use of radio and other communication facilities. They are also required to obtain an aeronautical radio license from the Federal Communications Commission ("FCC").
We contract out heavy maintenance as the costs are lower than if we were to perform the tasks internally. 11 Table of Contents Engine maintenance is performed by the original equipment manufacturer of the engines themselves or by their approved network providers.
We contract out heavy maintenance as the costs are lower than if we were to perform the tasks internally. Engine maintenance is performed by the original equipment manufacturer of the engines themselves or by their approved network providers.
ITEM 1. BUSINESS OVERVIEW General JetBlue Airways Corporation is New York's Hometo wn Airline ® . As of December 31, 2024, JetBlue served over 100 destinations across the United States, the Caribbean and Latin America, Canada and Europe. JetBlue was incorporated in Delaware in August 1998 and commenced service on February 11, 2000.
ITEM 1. BUSINESS OVERVIEW General JetBlue Airways Corporation is New York's Hometo wn Airline ® . As of December 31, 2025, JetBlue served 112 destinations across the United States, the Caribbean and Latin America, Canada and Europe. JetBlue was incorporated in Delaware in August 1998 and commenced service on February 11, 2000.
We currently have co-branded loyalty credit cards available to eligible U.S. residents, as well as co-brand agreements in Puerto Rico, the Dominican Republic, and the Caribbean to allow cardholders to earn TrueBlue ® points. Our co-branded credit cards in the United States are issued in partnership with Barclaycard ® on the MasterCard ® network.
We currently have co-branded loyalty credit cards available to eligible U.S. residents, as well as co-brand agreements in the Caribbean to allow cardholders to earn TrueBlue ® points and tiles. Our co-branded credit cards in the United States are issued in partnership with Barclaycard ® on the Mastercard ® network.
Our leadership team communicates on a regular basis with all crewmembers to bolster our culture and to keep them informed about news, strategy updates, and challenges affecting the airline and the industry.
Our leadership team communicates on a regular basis with all crewmembers to bolster our 13 Table of Contents culture and to keep them informed about news, strategy updates, and challenges affecting the airline and the industry.
It is uniquely susceptible to external factors such as fuel costs, downturns in domestic and international economic conditions, weather-related disruptions, air traffic control ("ATC") shortages, the spread of infectious diseases, the impact of airline restructurings or consolidations, and military actions or acts of terrorism.
It is uniquely susceptible to external factors such as fuel costs, downturns in domestic and international economic conditions, weather-related disruptions, air traffic control ("ATC") shortages, reduced or suspended operation of applicable regulatory agencies, the spread of infectious diseases, the impact of airline restructurings or consolidations, and military actions or acts of terrorism.
Labor Unions and Non-Unionized Crewmembers Except for our pilots and inflight crewmembers, our other frontline crewmembers do not have third-party representation. As of December 31, 2024, approximately 51% of our full-time equivalent crewmembers were represented by unions. The following table sets forth our crewmember groups and the status of their respective collective bargaining agreements.
Labor Unions and Non-Unionized Crewmembers Except for our pilots, pilot instructors, and inflight crewmembers, our other frontline crewmembers do not have third-party representation. As of December 31, 2025, approximately 49% of our active full-time equivalent crewmembers were represented by unions. The following table sets forth our crewmember groups and the status of their respective collective bargaining agreements.
The historic distribution of available seat miles ("ASMs"), which we also refer to as capacity, by region for the years ending December 31 was: Capacity Distribution 2024 2023 2022 Transcontinental 27.0 % 29.9 % 30.8 % Caribbean & Latin America (1) 35.9 33.2 32.5 Florida 23.8 23.7 24.6 Other (East, Central, West) 8.0 10.1 10.6 Transatlantic 5.3 3.1 1.5 Total 100.0 % 100.0 % 100.0 % (1) Domestic operations as defined by the U.S.
The historic distribution of available seat miles ("ASMs"), which we also refer to as capacity, by region for the years ending December 31 was: Capacity Distribution 2025 2024 2023 Transcontinental 26.0 % 27.0 % 29.9 % Caribbean & Latin America (1) 36.5 35.9 33.2 Florida 25.4 23.8 23.7 Other (East, Central, West) 7.0 8.0 10.1 Transatlantic 5.1 5.3 3.1 Total 100.0 % 100.0 % 100.0 % (1) Domestic operations as defined by the U.S.
We have and maintain FAA certificates of airworthiness for all of our aircraft and have the necessary FAA authority to fly to all of the destinations we currently serve. Airport Access - Federal regulations, administered by the FAA, manage congestion at three U.S. airports: Ronald Reagan Washington National, LaGuardia, and JFK.
We have and maintain FAA certificates of airworthiness for all of our aircraft and have the necessary FAA authority to fly to all of the destinations we currently serve. Airport Access - Federal regulations, administered by the FAA, manage congestion at four U.S. airports: Ronald Reagan Washington National, LaGuardia, and JFK, with slots, and Newark, with operating authorizations.
Due to the majority of our customers booking travel on our website, we maintain relatively low distribution costs which helps us to offer lower fares to customers. Cust omer Loyalty Program TrueBlue ® is our customer loyalty program designed to reward and recognize loyal customers.
We currently participate in several major GDSs and online travel agents. Due to the majority of our customers booking travel on our website, we maintain relatively low distribution costs which helps us to offer lower fares to customers. Cust omer Loyalty Program TrueBlue ® is our customer loyalty program designed to reward and recognize loyal customers.
Foreign Ownership - Under federal law and DOT regulations, JetBlue must be controlled by U.S. citizens. In this regard, our chief executive officer and at least two-thirds of our Board must be U.S. citizens. Further, no more than 25% of our outstanding common stock may be voted by non-U.S. citizens. We believe we are currently in compliance with these requirements.
In this regard, our chief executive officer and at least two-thirds of our Board must be U.S. citizens. Further, no more than 25% of our outstanding common stock may be voted by non-U.S. citizens. We believe we are currently in compliance with these requirements.
Other Environmental - We are subject to various federal, state and local laws relating to the protection of the environment. This includes the regulation of GHG emissions, the discharge or disposal of materials and chemicals, as well as the regulation of aircraft noise administered by numerous state and federal agencies.
Other Environmental - We are subject to various federal, state and local environmental laws, including the regulation of emissions, the discharge or disposal of materials and chemicals, as well as the regulation of aircraft noise administered by numerous state and federal agencies.
Annual international emissions reporting is required via CORSIA as of the 2019 reporting year, and offsetting compliance relative to a predetermined baseline is scheduled to be implemented through multiple phases that began in 2021. ICAO originally defined the baseline as the average emissions from covered flights in 2019 and 2020.
Annual international emissions reporting is required via CORSIA as of the 2019 reporting year, and offsetting compliance relative to a predetermined baseline is scheduled to be implemented through multiple phases that began in 2021.
This includes but is not limited to airworthiness requirements for aircraft, the licensing of pilots, mechanics and dispatchers, and the certification of flight attendants. It requires each airline to obtain an operating certificate authorizing the airline to operate at specific airports using specified equipment.
FAA - The FAA primarily regulates flight operations, in particular, matters affecting air safety. This includes but is not limited to airworthiness requirements for aircraft, the licensing of pilots, mechanics and dispatchers, and the certification of flight attendants. It requires each airline to obtain an operating certificate authorizing the airline to operate at specific airports using specified equipment.
Our historical fuel consumption and costs for the years ended December 31 were: 2024 2023 2022 Gallons consumed (millions) 853 897 842 Total cost (millions) (1) $ 2,343 $ 2,807 $ 3,190 Average price per gallon (1) $ 2.75 $ 3.13 $ 3.79 Percent of operating expenses 23.5 % 28.5 % 33.7 % (1) Total cost and average price per gallon each include the cost of jet fuel, related taxes, into-plane, transportation, airport fuel flowage, and storage fees.
Our historical fuel consumption and costs for the years ended December 31 were: 2025 2024 2023 Gallons consumed (millions) 826 853 897 Total cost (millions) (1) $ 2,057 $ 2,343 $ 2,807 Average price per gallon (1) $ 2.49 $ 2.75 $ 3.13 Fuel efficiency (ASMs per fuel gallon) 79 77 76 Percent of operating expenses 21.8 % 23.5 % 28.5 % (1) Total cost and average price per gallon each include the cost of jet fuel, related taxes, into-plane, transportation, airport fuel flowage, and storage fees.
Additionally, we have slots at other slot-controlled airports governed by unique local ordinances not subject to federal regulation as well as international destinations. Transportation Security Administration and U.S. Customs and Border Protection - The Transportation Security Administration ("TSA"), and the U.S.
Additionally, we have slots at Westchester County Airport, which is governed by unique local ordinances not subject to federal regulation as well as international destinations. Transportation Security Administration and U.S. Customs and Border Protection - The Transportation Security Administration ("TSA") and the U.S.
Crewmember Group Representative Crewmembers (1) Amendable Date (2) Pilots Air Line Pilots Association (ALPA) 4,492 February 1, 2025 Inflight Transport Workers Union (TWU) 5,302 December 13, 2026 (1) Number of active full-time equivalent crewmembers as of December 31, 2024.
Crewmember Group Representative Crewmembers (1) Amendable Date (2) Pilots Air Line Pilots Association (ALPA) 4,251 February 1, 2025 Pilot instructors Transport Workers Union (TWU) 24 N/A Inflight Transport Workers Union (TWU) 5,369 December 13, 2026 (1) Number of active full-time equivalent crewmembers as of December 31, 2025.
The majority of our flights touch at least one of our six focus cities: Focus City Nonstop Routes Served JetBlue Seats Offered (1) New York metropolitan area (2) 130 14 % Boston 75 25 % San Juan 18 26 % Fort Lauderdale-Hollywood 43 19 % Orlando 28 10 % Los Angeles 18 3 % (1) Reflects JetBlue's seat share in each focus city which includes regional jet flying compared to the industry as a whole.
The majority of our flights touch at least one of our six focus cities: Focus City Nonstop Routes Served (2) JetBlue Seat Share (1) New York metropolitan area (3) 118 13 % Boston 78 26 % San Juan 18 29 % Fort Lauderdale-Hollywood 49 20 % Orlando 27 10 % Los Angeles 6 3 % (1) Reflects JetBlue's seat share in each focus city as of December 31, 2025, which includes regional jet flying compared to the industry as a whole.
We have fixed price flight hour agreements for the repair, overhaul, modification, and logistics of our Airbus aircraft engines. Component maintenance on equipment such as auxiliary power units, landing gears, pumps, avionic computers, and in-flight entertainment equipment are all performed by a number of different FAA-certified repair stations that are surveilled and approved by JetBlue.
Component maintenance on equipment such as auxiliary power units, landing gears, pumps, avionic computers, and in-flight entertainment equipment are all performed by a number of different FAA-certified repair stations that are surveilled and approved by JetBlue. Many of our maintenance service agreements are based on a fixed cost per flight hour.
Tiles are earned based on a combination of travel spend and credit card spend. The program is designed to provide TrueBlue ® members many opportunities to get rewarded, even before achieving Mosaic ® status. TrueBlue ® includes four distinct Mosaic levels, each featuring Mosaic Signature Perks and a selection from the Mosaic Perks You Pick ® menu.
The program is designed to provide TrueBlue ® members many opportunities to get rewarded, even before achieving 10 Table of Contents Mosaic ® status. TrueBlue ® includes Perks You Pick ® for non-Mosaic ® TrueBlue ® members, and four distinct Mosaic levels, each featuring Mosaic Signature Perks and a selection from the Mosaic Perks You Pick ® menu.
It has the authority to investigate and institute proceedings to enforce its economic regulations, including its tarmac delay, full fare advertising and fair and deceptive practice regulations, and may assess civil penalties, revoke operating authority, and seek criminal sanctions for various levels and manners of non-compliance. FAA - The FAA primarily regulates flight operations, in particular, matters affecting air safety.
It has the authority to investigate and institute proceedings to enforce its economic regulations, including its tarmac delay, full fare advertising and unfair and deceptive practice regulations, and may assess civil penalties, impose consumer protection remedies, revoke operating authority, and seek criminal sanctions for various levels and manners of non-compliance.
Each of these select Mint ® aircraft also include two front row Mint ® Studios which offer the largest TV on a U.S. airline and an extra seat and space to work, lounge and entertain. Our inflight entertainment system onboard our aircraft includes free live TV on select routes and premium movie channel offerings from JetBlue Features.
Each of these select Mint ® aircraft also includes two front row Mint ® Studios which offer the largest TV on a U.S. airline and an extra seat and space to work, lounge and entertain.
Differentiated Product and Culture Delivering the JetBlue experience to our customers through our differentiated product and culture is core to our mission to bring humanity back to air travel. We look to attract new customers to our brand and provide current customers with a reason to come back by continuing to innovate and evolve the JetBlue experience.
We look to attract new customers to our brand and provide current customers with a reason to come back by continuing to innovate and evolve the JetBlue experience.
Refer to Part I, Item 2 "Properties" for additional information on our fleet. Route Structure JetBlue's point-to-point system is designed to optimize costs as well as accommodate customers' preference for nonstop itineraries. A vast majority of our operations are centered in the heavily populated Northeast corridor of the U.S., which includes the New York and Boston metropolitan areas.
Route Structure JetBlue's point-to-point network is designed to optimize costs as well as accommodate customers' preference for nonstop itineraries. A vast majority of our operations are centered in the heavily populated Northeast corridor of the U.S., which includes the New York and Boston metropolitan areas. This airspace is some of the world's most congested and drives certain operational constraints.
Many of our maintenance service agreements are based on a fixed cost per flight hour. These fixed costs vary based upon the age of the aircraft and other operating factors impacting the related component. Required maintenance not otherwise covered by these agreements is performed on a time and materials basis.
These fixed costs vary based upon the age of the aircraft and other operating factors impacting the related component. Required maintenance not otherwise covered by these agreements is performed on a fixed event price or time and materials cost basis. All other maintenance activities are sub-contracted to qualified maintenance, repair, and overhaul facilities.
In 2024 , we effectively hedged a portion of exposure to price fluctuations by utilizing call spread options with an underlying of jet fuel. As of December 31, 2024, we did not have any outstanding fuel hedging contracts.
In 2024 and 2023, we effectively hedged a portion of exposure to price fluctuations by utilizing call spread options with an underlying of jet fuel.
Aircraft Fuel Aircraft fuel continues to be one of our largest expenses. Price has been extremely volatile due to global economic and geopolitical factors which we can neither control nor accurately predict. Our 2024 fuel consumption decreased by 4.9% due to lower capacity and our average price per gallon decreased 12.1% compared to 2023.
Prices have been extremely volatile due to global economic and geopolitical factors, which we can neither control nor accurately predict. Our 2025 fuel consumption decreased by 3.2% due to lower capacity and increased fuel efficiency, and our average price per gallon decreased 9.3% compared to 2024.
We also operate under specific regulations due to our operations within the high density airspace of the Northeast. Most of our airline operations are regulated by U.S. governmental agencies, including: DOT - The DOT primarily regulates economic issues affecting air service including, but not limited to, certification and fitness, insurance, consumer protection, and competitive practices.
REGULATION Airlines are heavily regulated, with rules and regulations set by various federal, state, and local agencies. Most of our airline operations are regulated by U.S. governmental agencies, including: DOT - The DOT primarily regulates economic issues affecting air service including, but not limited to, certification and fitness, insurance, consumer protection, and competitive practices.
All six of our focus cities are in regions with a diverse mix of traffic. Leisure traveler focused airlines are often faced with high seasonality. As a result, we continually work to manage our mix of customers to include both business travelers and travelers visiting friends and relatives ("VFR").
Leisure traveler focused airlines are often faced with high seasonality. As a result, we continually work to manage our mix of customers to include both business travelers and travelers visiting friends and relatives ("VFR"). VFR travelers tend to be slightly less seasonal and less susceptible to economic downturns than traditional leisure destination travelers.
For the year ended December 31, 2024, we employed an average of 19,403 active full-time and 3,390 active part-time crewmembers. Our average number of active full-time equivalent crewmembers decreased by 3.9% compared to 2023.
(2) Referred to as mechanics by other airlines. For the year ended December 31, 2025, we employed an average of 18,971 active full-time and 3,116 active part-time crewmembers. Our average number of active full-time equivalent crewmembers decreased by 2.8% compared to 2024.
The JFK lounge is expected to open in late 2025, with the BOS lounge expected to follow shortly thereafter. Network We are a predominately point-to-point system carrier with 96% of our routes touching at least one of our six focus cities: New York, Boston, Fort Lauderdale-Hollywood, Orlando, Los Angeles and San Juan.
Network We are a predominantly point-to-point system carrier with 95% of our routes touching at least one of our six focus cities: the New York metropolitan area, Boston, Fort Lauderdale-Hollywood, Orlando, Los Angeles and San Juan. All six of our focus cities are in regions with a diverse mix of traffic.
The JetBlue scholars' program assists crewmembers in earning an undergraduate degree more cost-effectively through online, self-directed, credit approved courses. Crewmembers may also contribute to or participate in our crewmember crisis fund, which provides assistance to JetBlue crewmembers and their immediate family members with short-term financial support in times of crisis and unexpected emergencies when other resources are not available.
Crewmembers may also contribute to or participate in our crewmember crisis fund, JCCF, a 501(c)(3) non-profit charitable organization, which provides assistance to JetBlue crewmembers and their immediate family members with short-term financial support in times of crisis and unexpected emergencies when other resources are not available.
On July 14, 2022, TWU filed a representation application with the National Mediation Board ("NMB") seeking an election among the 35 pilot instructors ("Flight Instructors"). JetBlue disputed the TWU's application alleging that Flight Instructors do not constitute a craft or class. On October 26, 2023, the NMB notified the participants that it rejected JetBlue's argument and ordered an election.
JetBlue disputed TWU's application alleging that Flight Instructors do not constitute a craft or class. On October 26, 2023, the NMB notified the participants that it rejected JetBlue's argument and ordered an election. The Flight Instructors voted for TWU representation. Contract negotiations for an initial collective bargaining agreement ("CBA") began in April 2024 and are ongoing.
Distribution Our primary and preferred distribution channel to customers is through our website, www.jetblue.com , our lowest cost channel. Our website allows us to more closely control and deliver the JetBlue experience while also offering the full suite of JetBlue Core fare options, EvenMore ® , Mint ® , JetBlue Vacations ® , and other ancillary services.
Our website allows us to more closely control and deliver the JetBlue experience while also offering the full suite of JetBlue Core fare options, EvenMore ® , Mint ® , JetBlue Vacations ® and TrueBlue Travel TM , and other ancillary services. Our participation in global distribution systems ("GDS") supports our profitable growth, particularly in the business market.
(2) Includes JFK, Newark, LaGuardia, and New York's Westchester County Airport. Our peak levels of traffic over the course of the typical year vary by route.
(2) Reflects JetBlue's nonstop routes served in each focus city as of December 31, 2025. (3) Includes JFK, Newark, LaGuardia, Westchester County Airport and Long Island MacArthur Airport. Our peak levels of traffic over the course of the typical year vary by route.
Our Mint ® customers also have access to an assortment of complimentary food, beverages and products including a small-plates menu, artisanal snacks, alcoholic beverages, a blanket, pillows, an amenity kit and headphones. 8 Table of Contents On select transatlantic and coast-to-coast flights we offer a reimagined version of our Mint ® experience with a completely refreshed cabin design featuring private suites with aisle access.
On select transatlantic and coast-to-coast flights, we offer a reimagined version of our Mint ® experience with a completely refreshed cabin design featuring private suites with aisle access.
Although the distribution cost through this channel is higher than through our website, the average fare purchased through a GDS is generally higher and often covers the increased distribution costs. We currently participate in several major GDSs and online travel agents.
We find business customers are more likely to book through a travel agency or a booking product which relies on a GDS platform. Although the distribution cost through this channel is higher than through our website, the average fare purchased through a GDS is generally higher and often covers the increased distribution costs.
Because our network initiatives and growth plans require a low cost platform, we strive to stay focused on our competitive costs, operational excellence, and efficiency improvements. Due to post-pandemic labor shortages and subsequent collective bargaining agreement renewals, labor costs across the industry have increased significantly. As of December 31, 2024, we had an operating fleet of 290 aircraft.
Due to post-pandemic labor shortages and subsequent collective bargaining agreement renewals, labor costs across the industry have increased significantly. As of December 31, 2025, we had an operating fleet of 288 aircraft. Refer to Part I, Item 2 "Properties" for additional information on our fleet.
As a result of these required inspections and other engine reliability deficiencies, as of December 31, 2024 , we had 11 aircraft grounded due to lack of engine availability. The Company currently expects each removed engine to take approximately 360 days to complete a shop visit and return to a serviceable condition.
As a result of these required inspections and other engine durability deficiencies, as of December 31, 2025, we had four aircraft grounded due to lack of engine availability.
OPERATIONS AND COST STRUCTURE Historically, our cost structure has allowed us to price fares lower than many of our competitors. Our cost advantage relative to some of our competitors was due to, among other factors, high aircraft utilization, new and efficient aircraft, relatively low distribution costs, and a productive workforce.
Our cost advantage relative to some of our competitors was due to, among other factors, high aircraft utilization, new and efficient aircraft, relatively low distribution costs, and a productive workforce. Because our network initiatives and growth plans require a low cost platform, we strive to stay focused on our competitive costs, operational excellence, and efficiency improvements.
In the event of a downturn in our business, resulting in a reduction of flying and related work hours, we are obligated 13 Table of Contents to pay these crewmembers a guaranteed level of income and continue their benefits if they do not obtain other aviation employment.
In the event of a downturn in our business, resulting in a reduction of flying and related work hours, we are obligated to pay these crewmembers a guaranteed level of income and continue their benefits if they do not obtain other aviation employment. 14 Table of Contents Our average active full-time equivalent crewmembers for the year ended December 31, 2025 consisted of: Crewmember Group Average full-time equivalent crewmembers Pilots 4,326 Inflight (1) 5,331 Airport operations 3,929 Technicians (2) 1,008 Reservation agents 402 Management and other personnel 4,263 (1) Referred to as flight attendants by other airlines.
Members earn points with JetBlue, JetBlue Vacations ® , Paisly ® by JetBlue and select airline and travel partners. Members can redeem points for any JetBlue-operated flight or flight and hotel package, any time (no blackout dates). Redemption amounts are based on the current price for that trip.
Members earn points with JetBlue, JetBlue Vacations ® , TrueBlue Travel TM , and select airline and travel partners. Members can redeem points for any JetBlue-operated flight, flight and hotel package, as well as car rentals and hotel stays through TrueBlue Travel TM . TrueBlue ® points can be used any time with no blackout dates and they never expire.
We also have co-branded loyalty credit cards issued by Banco Popular de Puerto Rico and MasterCard ® in Puerto Rico, Banco Popular Dominicano and MasterCard ® in the Dominican Republic, and CIBC Caribbean and MasterCard ® in Barbados, Jamaica, Trinidad, the Bahamas, and the Cayman Islands. 10 Table of Contents In 2024, w e also expanded the co-brand portfolio with the announcement of a premium co-branded credit card, which launched in January 2025.
Our co-branded credit cards in the Caribbean are on the Mastercard ® network and are issued by Banco Popular de Puerto Rico in Puerto Rico, Banco Popular Dominicano in the Dominican Republic, and CIBC Caribbean in Barbados, Jamaica, Trinidad, the Bahamas, the Cayman Islands and more countries coming.
Airline Commercial Partnerships Airlines frequently participate in commercial partnerships with other carriers in order to increase customer convenience by providing interline-connectivity, codeshare, complementary flight schedules, frequent flyer program reciprocity, and other joint marketing activities. Our commercial partnerships typically begin as an interline agreement allowing a customer to book a single itinerary with tickets on multiple airlines.
Virgin Islands, but for the purposes of the capacity distribution table above, we have included these locations in the Caribbean and Latin America region. 9 Table of Contents Airline Commercial Partnerships Airlines frequently participate in commercial partnerships with other carriers in order to increase customer convenience by providing interline connectivity, codeshare, complementary flight schedules, frequent flyer program reciprocity, and other joint marketing activities.
In 2024, we announced plans to launch a domestic first-class experience across our non-Mint ® fleet. This will offer an additional option for customers seeking a premium travel experience. We also announced plans for the opening of airport lounges at John F. Kennedy International Airport ("JFK") Terminal 5 and Boston Logan International Airport ("BOS") Terminal C.
In 2024, we announced plans to launch a domestic first-class experience across our non-Mint ® fleet to offer an additional option for customers seeking a premium travel experience. The first-class experience is expected to roll out on a portion of our fleet in 2026 with the majority planned to be completed by the end of 2027.
JBV invests in and partners with early-stage startups with goals of improving the travel, hospitality, and transportation industries. As of December 31, 2024 and 2023, our JBV equity investments had an aggregate carrying value of $84 million and $96 million, respectively included in other assets on the consolidated balance sheets.
As of December 31, 2025 and 2024, our JBV equity investments had an aggregate carrying value of $89 million and $84 million, respectively, included in other assets on the consolidated balance sheets. In May 2025, as part of efforts to return focus to our core business, SKY Leasing ("SKY"), a leading aviation investment manager, acquired certain assets of JBV.
We have various agreements with other loyalty partners, including financial institutions, hotels, and car rental companies, that allow their customers to earn TrueBlue ® points through participation in our partners' programs. We intend to continue to develop the footprint of our co-branded credit cards and pursue other loyalty partnerships in the future.
In January 2025, we launched a premium co-branded credit card, which provides cardholders with incremental benefits such as lounge access, priority boarding, TrueBlue Travel TM statement credits, and more. We have various agreements with other loyalty partners, including financial institutions, hotels, car rental companies and other airlines, that allow their customers to earn TrueBlue ® points across programs.
Financial Health In 2024, we completed our structural cost program to set the foundation for continued cost control through our strategic operating plan, JetForward . We remain focused on maintaining a healthy liquidity balance, ending the year with $3.9 billion of cash and cash equivalents, short term investments and long-term marketable securities.
We remain focused on maintaining a healthy liquidity balance, ending the year with $2.5 billion of cash and cash equivalents, short-term investments and long-term marketable securities. The net book value of our assets pledged, or committed to be pledged, as security under various financing arrangements remained the same for 2025 and 2024 at $7.3 billion.
The Flight Instructors voted for TWU representation. Contract negotiations for an initial collective bargaining agreement ("CBA") began in April 2024 and are ongoing. We have individual employment agreements with each of our non-unionized FAA licensed crewmembers which consist of dispatchers, technicians, inspectors, and air traffic controllers.
The NMB reviewed IAM's submission and determined IAM failed to show it had the required amount of authorization cards to hold an election. We have individual employment agreements with each of our non-unionized FAA licensed crewmembers which consist of dispatchers, technicians, inspectors, and air traffic controllers.
On their day of travel, customers have a simplified airport experience with single check-in and bag drop.
Our commercial partnerships typically begin as an interline agreement allowing a customer to book a single itinerary with tickets on multiple airlines. On their day of travel, customers have a simplified airport experience with single check-in and bag drop. Blue Sky In May 2025, we announced a collaboration with United Airlines, referred to as Blue Sky.
We believe this brand has evolved into an important and valuable asset which identifies us as a safe, reliable, and high value airline. Similarly, we believe customer awareness of our brand has contributed to the success of our marketing efforts. It enables us to promote ourselves as a preferred marketing partner with companies across many different industries.
Strong customer awareness and affinity for our brand are integral to the success of our marketing efforts, and enables us to promote ourselves as a preferred marketing partner with companies across many different industries. We market our services through an integrated mix of channels, including digital advertising, social media platforms, search and performance marketing, and strategic brand partnerships.
As of December 31, 2024, we serv ed 105 destinations ("BlueCities") in 28 states , the District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Island s, and 31 countries in the Caribbean and Latin America, Canada and Europe. We group our capacity distribution based upon geographical regions rather than on mileage or a length-of-haul basis.
Understanding the purpose of our customers' travel helps us optimize destinations, strengthen our network, and increase revenue. As of December 31, 2025, we served 112 destinations ("BlueCities") in 29 states, the District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Canada, and 30 countries in the Caribbean and Latin America, and Europe.
Sustainability JetBlue aims to mitigate risks to promote the long-term sustainability of our business. Customers, crewmembers and our community are key to JetBlue's sustainability strategy. We are focused on decarbonizing our operations to mitigate the various risks posed to our company. We have integrated science-based environmental risks and opportunities into broader business goals and decision-making processes.
Since inception, our crewmembers have volunteered over 1.5 million hours to the communities that they live and work in. Sustainability JetBlue aims to mitigate risks to promote the long-term sustainability of our business. Customers, crewmembers and our communities are key to JetBlue's sustainability strategy.
TrueBlue Mosaic ® is an additional program threshold for our most loyal customers which features four levels, Mosaic 1, Mosaic 2, Mosaic 3 and Mosaic 4. Our TrueBlue ® loyalty program brings many choices and perks for customers. TrueBlue ® offers tiles as the way to track and measure progress toward Mosaic status.
Redemption amounts are based on the current price for that trip on JetBlue-operated flights or members can use a combination of cash and points. TrueBlue Mosaic ® is an additional program threshold for our most loyal customers which features four levels, Mosaic 1, Mosaic 2, Mosaic 3, and Mosaic 4.
Department of Transportation ("DOT"), include Puerto Rico and the U.S. Virgin Islands, but for the purposes of the capacity distribution table above, we have included these locations in the Caribbean and Latin America region.
Department of Transportation ("DOT"), include Puerto Rico and the U.S.
Following denial of a motion to dismiss, discovery has commenced. The Company intends to vigorously defend against these lawsuits. We continue to believe these lawsuits are without merit. Marketing JetBlue is a widely recognized and respected global brand. JetBlue created a new category in air travel and our brand stands for offering a great product with competitive fares.
JetBlue created a new category in air travel and our brand stands for offering a great product and experience with competitive fares. We believe our brand continues to be one of our most valuable assets, reflecting our reputation as a safe, reliable, and high-value airline.
Removed
Our entire fleet is equipped with Fly-Fi ® , a broadband product that allows gate-to-gate wi-fi at every seat. Customers also have access to the Fly-Fi ® Hub, a content portal where customers can access a wide range of additional content from their own personal devices. All customers may enjoy an assortment of free snacks and non-alcoholic beverages.
Added
In July 2024, we announced JetForward, our new strategic framework which is driving new initiatives focused on four priority moves: delivering reliable and caring service, building the best east coast leisure network, offering products and perks customers value, and providing a secure financial future. Refer to Part II, Item 7.
Removed
VFR travelers tend to be slightly less seasonal and less susceptible to economic downturns than traditional leisure destination travelers. Understanding the purpose of our customers' travel helps us to optimize destinations, strengthen our network, and increase revenue.
Added
"Management's Discussion and Analysis of Financial Condition and Results of Operations" of this report for further details on progress made on our JetForward initiatives. Differentiated Product and Culture Delivering the JetBlue experience to our customers through our differentiated product and culture is core to our mission to bring humanity back to air travel.
Removed
Northeast Alliance In July 2020, JetBlue and American Airlines entered into the Northeast Alliance ("NEA") which was designed to optimize our respective networks at JFK, BOS, LaGuardia Airport ("LaGuardia"), and Newark Liberty International Airport ("Newark"). 9 Table of Contents On September 21, 2021, the United States Department of Justice, along with the Attorneys General of six states and the District of Columbia filed suit against JetBlue and American Airlines seeking to enjoin the NEA, alleging that it violated Section 1 of the Sherman Act.
Added
Each Mint ® seat includes a fully lie-flat bed with our exclusive Tuft & Needle ® sleep experience. Our Mint ® customers also have access to an assortment of complimentary food, beverages and products including a small-plates menu, artisanal snacks, alcoholic beverages, a blanket, pillows, an amenity kit and headphones.
Removed
The court issued a decision on May 19, 2023, permanently enjoining the NEA, and shortly thereafter we initiated a wind down of the NEA. On July 28, 2023, the court issued its Final Judgement and Order Entering Permanent Injunction, which took effect on August 18, 2023.
Added
We offer seatback screens across our fleet, with AVANT systems installed on majority of our aircraft. AVANT equipped aircraft feature an inflight entertainment library of approximately 300 movies and 1,000 television episodes, while a small portion of the fleet operates other systems with more limited content. Customers also enjoy at least 18 channels of live TV on most flights.
Removed
The wind down of the NEA is substantially complete, but remaining impacts could require us to incur additional costs and therefore have an impact on our financial condition and results of operations.
Added
Our entire fleet is equipped with Fly-Fi ® , our high-speed broadband service, providing gate-to-gate Wi-Fi access at every seat. In September 2025, we announced that JetBlue was the first airline in the world to sign on with Amazon's Leo, an advanced low Earth orbit satellite broadband network, to bring even faster and more reliable connectivity to our onboard Wi-Fi.
Removed
In December 2022 and February 2023, four putative class actions lawsuits were filed in the United States District Court for the Eastern District of New York ("EDNY") and the United States District Court for the District of Massachusetts, respectively, alleging that the NEA violates Sections 1 and 2 of the Sherman Act.
Added
We expect to adopt Amazon Leo's cutting-edge technology on a portion of our fleet in 2027. In December 2025, we opened BlueHouse, JetBlue's first airport lounge, at John F. Kennedy International Airport ("JFK") Terminal 5. The next BlueHouse location is scheduled to open at Boston Logan International Airport ("BOS") Terminal C in 2026, reinforcing our ongoing investment in premium offerings.

… 56 more changes not shown on this page.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

113 edited+27 added−33 removed167 unchanged
Biggest changeThe amount of our existing debt, and other fixed obligations, and potential increases in the amount of our debt and other fixed obligations could have important consequences to investors and could require a substantial portion of cash flows from operations for debt service payments, thereby reducing the availability of our cash flow to fund working capital, capital expenditures, and other general corporate purposes. 26 Table of Contents Our level of debt and other fixed obligations could: • impact our ability to obtain additional financing to support capital expansion plans, including our JetForward strategy and for working capital and other purposes on acceptable terms or at all; • divert substantial cash flow from our operations, execution of our commercial initiatives, and expansion plans in order to service our fixed obligations; • require us to incur more interest expense than we currently do if rates were to increase, since approximately 20% of our debt has floating interest rates; • place us at a possible competitive disadvantage compared to less leveraged competitors and competitors with better access to capital resources or more favorable financing terms; and • lead to rating agency downgrades which in turn could impact our ability to raise capital at attractive terms.
Biggest changeOur level of debt and other fixed obligations could: • impact our ability to obtain additional financing to support capital expansion plans, including our JetForward strategy and for working capital and other purposes on acceptable terms or at all; • divert substantial cash flow from our operations, execution of our commercial initiatives, and expansion plans in order to service our fixed obligations; • require us to incur more interest expense than we currently do if rates were to increase, since approximately 22% of our debt has floating interest rates; • place us at a possible competitive disadvantage compared to less leveraged competitors and competitors with better access to capital resources or more favorable financing terms; and • lead to rating agency downgrades which in turn could impact our ability to raise capital at attractive terms.
However, such contracts and agreements do not completely protect us against price volatility, are limited in volume and duration, and can be less effective during volatile market conditions and may carry counterparty risk.
However, such contracts and agreements do not completely protect us against price volatility, are limited in volume and duration, can be less effective during volatile market conditions and may carry counterparty risk.
While we have in past engaged, and expect in future to continue to engage, in voluntary initiatives (such as voluntary disclosures, certifications, or goals) to improve the profile of our Company and/or offerings or to respond to stakeholder expectations, such initiatives may be costly and may not have the desired effect.
While we have in the past engaged, and expect in future to continue to engage, in voluntary initiatives (such as voluntary disclosures, certifications, or goals) to improve the profile of our Company and/or offerings or to respond to stakeholder expectations, such initiatives may be costly and may not have the desired effect.
Various meteorological phenomena and extreme weather events (including, but not limited to, storms, flooding, drought, wildfire, and extreme temperatures) may disrupt our operations or those of our suppliers and business partners, cause inflight cancellations, delays, and diversions, require us to incur additional operating or capital expenditures, reduce the demand for certain of our flight offerings, or otherwise adversely impact our business, financial condition, or results of operations.
Various meteorological phenomena and extreme weather events (including, but not limited to, storms, flooding, drought, wildfire, and extreme temperatures) may disrupt our operations or those of our suppliers and business partners, cause flight cancellations, delays, and diversions, require us to incur additional operating or capital expenditures, reduce the demand for certain of our flight offerings, or otherwise adversely impact our business, financial condition, or results of operations.
Aircraft utilization is reduced by delays and cancellations from various factors, many of which are beyond our control, including adverse weather conditions, security requirements, air traffic congestion, infrastructure failures (such as technical issues with air-traffic control systems), unscheduled maintenance events, issues associated with the availability and effectiveness of air traffic personnel, and labor shortages, including with respect to pilots.
Aircraft utilization is reduced by delays and cancellations from various factors, many of which are beyond our control, including adverse weather conditions, security requirements, air traffic congestion, infrastructure failures (such as technical issues with air-traffic control systems), unscheduled maintenance events, issues associated with the availability and effectiveness of air traffic personnel, and skilled labor shortages, including with respect to pilots.
Substantial claims resulting from an accident or incident in excess of our related insurance coverage would harm our business and financial results. Moreover, any aircraft accident or incident, even if fully covered by our existing insurance, could cause a public perception we are less safe or reliable than other airlines which would harm our business.
Substantial claims resulting from an accident or incident in excess of our related insurance coverage would harm our business and financial results. Moreover, any aircraft accident or incident, even if fully covered by our existing insurance, could cause a public perception that we are less safe or reliable than other airlines which would harm our business.
We cannot be assured that these and other laws, including executive orders, regulations, or tax laws, enacted in the future, or other changes in the political landscape, will not harm our business. A future act of terrorism, the threat of such acts or escalation of U.S. military involvement overseas could adversely affect our industry.
We cannot be assured that these and other laws, including executive orders, regulations, tariffs or tax laws, enacted in the future, or other changes in the political landscape, will not harm our business. A future act of terrorism, the threat of such acts or escalation of U.S. military involvement overseas could adversely affect our industry.
In addition, we and certain of our third-party providers collect, process, and maintain data about customers, crewmembers, employees, contractors, business partners and others, including credit card data and personally identifiable information, as well as trade secrets, financial information and other sensitive and proprietary business information (collectively, "Confidential Information").
In addition, we and certain of our third-party providers collect, process, and maintain data about customers, crewmembers, contractors, business partners and others, including credit card data and personally identifiable information, as well as trade secrets, financial information and other sensitive and proprietary business information (collectively, "Confidential Information").
If we fail, or are perceived to fail, to comply with or advance certain environmental or social initiatives (including the timeline and manner in which we complete such initiatives), we may be subject to various adverse impacts, including reputational damage and potential stakeholder engagement and/or litigation, even if such initiatives are currently voluntary.
If we fail, or are perceived to fail, to comply with or advance certain environmental initiatives (including the timeline and manner in which we complete such initiatives), we may be subject to various adverse impacts, including reputational damage and potential stakeholder engagement and/or litigation, even if such initiatives are currently voluntary.
Data security compliance requirements could increase our costs, and any significant data breach could disrupt our operations and harm our reputation, business, results of operations and financial condition. We are subject to increasing legislative, regulatory, and customer focus on privacy issues and data security.
Data Privacy and Security Compliance Risks Data security compliance requirements could increase our costs, and any significant data breach could disrupt our operations and harm our reputation, business, results of operations and financial condition. We are subject to increasing legislative, regulatory, and customer focus on privacy issues and data security.
In developing our JetForward plan, we made certain assumptions including, but not limited to, customer demand (in light of changing economic conditions), fuel costs, delivery of aircraft, aircraft certification approval timelines, 17 Table of Contents labor market constraints and related costs, supply chain constraints, inflationary pressures, voluntary or mandatory groundings of aircraft, our regional network, competition, market consolidation and other macroeconomic and geopolitical factors.
In developing our JetForward plan, we made certain assumptions including, but not limited to, customer 18 Table of Contents demand (in light of changing economic conditions), fuel costs, delivery of aircraft, aircraft certification approval timelines, labor market constraints and related costs, supply chain constraints, inflationary pressures, voluntary or mandatory groundings of aircraft, our regional network, competition, market consolidation and other macroeconomic and geopolitical factors.
For example, the California Consumer Privacy Act ("CCPA") requires businesses that process personal information of California residents to, among other things: provide certain disclosures to California residents regarding the business's collection, use, and disclosure of their personal information; receive and respond to requests from California residents to access, delete, and correct their personal information, or to opt-out of certain disclosures of their personal information; and enter into specific contractual provisions with service providers that process California resident personal information on the business's behalf.
For example, the California Consumer Privacy Act ("CCPA") requires businesses that process personal information of California residents to, among other things: provide certain disclosures to California residents regarding the business's collection, use, and disclosure of their personal information; receive and respond to requests from California residents to access, delete, and correct their personal information, or to opt-out of certain disclosures of their personal information; and enter into specific contractual provisions with service providers that process California residents' personal information on the business's behalf.
There has also been proposed revisions to the limits on interchange reimbursement fees set by the Federal Reserve and previously been bipartisan legislation that would limit interchange reimbursement fees for credit card transactions which, if enacted, could fundamentally alter the profitability of our agreements with co-branded credit card partners and the benefits we provide to our consumers through the co-branded credit cards issued by these partners.
There has also been proposed revisions to the limits on interchange reimbursement fees set by the Federal Reserve and previously been bipartisan legislation that would limit interchange reimbursement fees for credit card transactions which, if enacted, could fundamentally alter the profitability of our agreements with co-branded credit card partners and the benefits we provide to our customers through the co-branded credit cards issued by these partners.
Compliance with ever-evolving federal, state, and foreign laws and other requirements relating to the handling of information about individuals necessitates significant expenditure and resources, and any failure by us or our vendors to comply may result in significant liability, negative publicity, and/or an erosion of trust, which could materially adversely affect our business, results of operations, and financial condition.
Compliance with ever-evolving federal, state, and foreign laws and other requirements relating to the handling of information about individuals necessitates significant expenditure and resources, and any failure by us or our business partners to comply may result in significant liability, negative publicity, and/or an erosion of trust, which could materially adversely affect our business, results of operations, and financial condition.
Airlines are subject to extensive regulatory and legal requirements, both domestically and internationally, involving significant compliance costs. These requirements may adversely impact our business, operating results and financial condition. For example, in January 2025, the DOT assessed a $2 million civil penalty against us in connection with flights determined to be chronically delayed in 2022 and 2023.
Airlines are subject to extensive regulatory and legal requirements, both domestically and internationally, involving significant compliance costs. These requirements may adversely impact our business, operating results and financial condition. For example, in January 2025, the DOT assessed a civil penalty against us in connection with flights determined to be chronically delayed in 2022 and 2023.
There is a possibility that airport authorities, suffering from revenue shortfalls due to the pandemic, may attempt to recover those shortfalls by passing along the costs or increasing rents or fees to airline tenants. Our operations may in the future be impacted by disruptions associated with the current ATC system utilized by the U.S. government.
There is a possibility that airport authorities, suffering from revenue shortfalls due to the pandemic, may attempt to recover those shortfalls by passing along the costs or increasing rents or fees to airline tenants. Our operations have and may in the future be impacted by disruptions associated with the current ATC system utilized by the U.S. government.
As part of our overall profitability strategy, we periodically offer voluntary separation packages to certain employees, with the goal of reducing fixed costs by giving people who work in a number of corporate functions, in our airports, and in our customer support centers the opportunity to leave JetBlue with a departing pay and benefits package.
As part of our overall profitability strategy, we periodically offer voluntary separation packages to certain crewmembers, with the goal of reducing fixed costs by giving people who work in a number of corporate functions, in our airports, and in our customer support centers the opportunity to leave JetBlue with a departing pay and benefits package.
Additionally, the current political climate may alter or prevent industry consolidation and growth. Lastly, if a traditional network airline were to fully develop a low-cost structure, or if we were to experience increased competition from low cost carriers or new entrants, our business could be materially adversely affected.
Additionally, the current political and regulatory climate may alter, delay or prevent industry consolidation and growth. Lastly, if a traditional network airline were to fully develop a low-cost structure, or if we were to experience increased competition from low-cost carriers or new entrants, our business could be materially adversely affected.
Our business would also be harmed by any circumstances causing a reduction in demand for air transportation in the New York metropolitan area, such as adverse changes in local economic conditions, health concerns, climatic concerns (including adverse weather and sea-level rise), negative public perception of New York City, acts of terrorism, or significant price or tax increases linked to increases in airport access costs and fees imposed on passengers.
Our business would also be harmed by any circumstances causing a reduction in demand for air transportation in the New York metropolitan area, such as adverse changes in local economic conditions, health concerns, climatic concerns (including adverse weather and sea-level rise), negative public perception of 21 Table of Contents New York City, acts of terrorism, or significant price or tax increases linked to increases in airport access costs and fees imposed on passengers.
In addition, outbreaks of disease could result in quarantines of our personnel, business partners and their suppliers, or an inability to access facilities or our aircraft, which could adversely affect our operations. Certain environmental disasters may be caused or adversely exacerbated by the physical impacts of climate change.
In addition, outbreaks of disease could result in quarantines of our crewmembers, business partners and their suppliers, or an inability to access facilities or our aircraft, which could adversely affect our operations. Certain environmental disasters may be caused or adversely exacerbated by the physical impacts of climate change.
Because we derive a portion of our revenues from operations outside the United States, the risks of doing business internationally, or in a particular country or region, could lower our revenues, increase our costs, reduce our profits, or disrupt our business. We currently opera te in 31 count ries around the world.
Because we derive a portion of our revenues from operations outside the United States, the risks of doing business internationally, or in a particular country or region, could lower our revenues, increase our costs, reduce our profits, or disrupt our business. We currently opera te in 32 count ries around the world.
If the licensor for such open-source generative AI developed their models by training on data or algorithms that was inadequate, inaccurate, incomplete, misleading biased or otherwise poor-quality, or for which it did not have the appropriate rights, we could be subject to claims or lawsuits, including for infringement of third-party intellectual property.
If the licensor for such open-source generative AI developed their models by training on data or algorithms that was inadequate, inaccurate, incomplete, misleading biased or 30 Table of Contents otherwise poor-quality, or for which it did not have the appropriate rights, we could be subject to claims or lawsuits, including for infringement of third-party intellectual property.
For example, the European Union’s Artificial Intelligence Act (the “AI Act”), which entered into force on August 1, 2024, establishes, among other things, a risk-based governance framework for regulating AI systems operating in the EU.
For example, the European Union's Artificial Intelligence Act (the "AI Act"), which entered into force on August 1, 2024, establishes, among other things, a risk-based governance framework for regulating AI systems operating in the EU.
The costs to remediate breaches and similar system compromises that do occur could be material. In addition, as cyber criminals become more frequent, intense, and sophisticated, the costs of proactive defensive measures may increase.
The costs to remediate breaches and similar system compromises that do occur could be material. In addition, as cyber crimes become more frequent, intense, and sophisticated, the costs of proactive defensive measures may increase.
We and our vendors are subject to a variety of federal, state and foreign data privacy laws, rules, regulations, industry standards and other requirements, including those that apply generally to the handling of Personal Information, and those that are specific to certain industries, sectors, contexts, or locations. These requirements, and their application, interpretation and amendment are constantly evolving.
We and our business partners are subject to a variety of federal, state and foreign data privacy laws, rules, regulations, industry standards and other requirements, including those that apply generally to the handling of Personal Information, and those that are specific to certain industries, sectors, contexts, or locations. These requirements, and their application, interpretation and amendment are constantly evolving.
While we evaluate and procure insurance policies that are intended to address liabilities and losses associated with cybersecurity risks and threats, there is no guarantee that any policies would cover any or all of the losses associated with a cyberattack or other security incident, or that we will be able to procure such coverage in the future.
While we evaluate and procure insurance policies that are intended to address liabilities and losses associated with cybersecurity risks and threats, there is no guarantee that any 24 Table of Contents policies would cover any or all of the losses associated with a cyberattack or other security incident, or that we will be able to procure such coverage in the future.
If we fail to obtain protection for the intellectual property rights concerning our AI, or later have our intellectual property rights invalidated or otherwise diminished, our competitors may be able to take 29 Table of Contents advantage of our research and development efforts to develop competing products which could adversely affect our business, reputation and financial condition.
If we fail to obtain protection for the intellectual property rights concerning our AI, or later have our intellectual property rights invalidated or otherwise diminished, our competitors may be able to take advantage of our research and development efforts to develop competing products which could adversely affect our business, reputation and financial condition.
For additional information concerning risks with respect to cyberattacks, cybersecurity breaches, service outages or other similar incidents, see "Information Security and Privacy Related Risks." A number of aspects of intellectual property protection in the field of AI and machine learning are currently under development, and there is uncertainty and ongoing litigation in different jurisdictions as to the degree and extent of protection warranted for AI and machine learning systems and relevant system inputs and outputs.
For additional information concerning risks with respect to cyberattacks, cybersecurity breaches, service outages or other similar incidents, see the risk factors under "Cybersecurity and Information Security Risks." A number of aspects of intellectual property protection in the field of AI and machine learning are currently under development, and there is uncertainty and ongoing litigation in different jurisdictions as to the degree and extent of protection warranted for AI and machine learning systems and relevant system inputs and outputs.
Failure to address these issues appropriately could also give rise to additional legal risks, which, in turn, could increase the size and number of litigation claims and damages asserted or subject us to enforcement actions, fines and penalties, and cause us to incur further related costs and expenses.
Failure to address these issues appropriately could also give rise to additional legal risks, which, in turn, could increase 25 Table of Contents the size and number of litigation claims and damages asserted or subject us to enforcement actions, fines and penalties, and cause us to incur further related costs and expenses.
We are highly dependent on the New York metropolitan market where we maintain a large presence with approximately one-half of our daily flights having JFK, LaGuardia, Newark, or Westchester County Airport as either their origin or destination.
We are highly dependent on the New York metropolitan market where we maintain a large presence with approximately one-half of our daily flights having JFK, LaGuardia, Newark, Westchester County Airport or Long Island MacArthur Airport as either their origin or destination.
For additional information concerning risks with respect to compliance with data privacy laws, see "Information Security and Privacy Related Risks." The cost to comply with federal, foreign, state or other laws, regulations, or decisions and/or guidance applicable to our business could be significant and could increase our operating expenses (such as by imposing additional reporting obligations regarding our use of AI).
For additional information concerning risks with respect to compliance with data privacy laws, see the risk factors under "Data Privacy and Security Compliance Risks." The cost to comply with federal, foreign, state or other laws, regulations, or decisions and/or guidance applicable to our business could be significant and could increase our operating expenses (such as by imposing additional reporting obligations regarding our use of AI).
The enactment of the CCPA is prompting a wave of similar legislative developments in other states in the United States, which creates a patchwork of overlapping but different state laws. 24 Table of Contents These laws are in some cases relatively new and the interpretation and application of these laws are uncertain.
The enactment of the CCPA is prompting a wave of similar legislative developments in other states in the United States, which creates a patchwork of overlapping but different state laws. These laws are in some cases relatively new and the interpretation and application of these laws are uncertain.
Increasing scrutiny of, and evolving expectations regarding, environmental and social matters may impact our business and reputation. Companies across industries are facing increasing scrutiny from a variety of stakeholders, including states attorneys general, related to their environmental, human rights, social, and sustainability practices.
Increasing scrutiny of, and evolving expectations regarding, environmental matters may impact our business and reputation. Companies across industries are facing increasing scrutiny from a variety of stakeholders, including states attorneys general, related to their environmental and sustainability practices.
Governors of the Federal Reserve System ("Federal Reserve") cap the maximum U.S. debit interchange reimbursement rate received by card issuers operating in the U.S. with assets of $10 billion or more at 21 cents plus 5 basis points per transaction, plus a possible fraud adjustment of 1 cent.
For example, regulations adopted by the U.S. Governors of the Federal Reserve System ("Federal Reserve") cap the maximum U.S. debit interchange reimbursement rate received by card issuers operating in the U.S. with assets of $10 billion or more at 21 cents plus 5 basis points per transaction, plus a possible fraud adjustment of 1 cent.
Our available seat miles that take off or land outside the United States and Canada represented approximatel y 39% of o ur revenues for the year ended December 31, 2024. Over the long term, we expect our international operations may account for an increasing portion of our total revenues and available seat miles.
Our available seat miles that take off or land outside the United States and Canada represented approximatel y 40% of o ur revenues for the year ended December 31, 2025. Over the long term, we expect our international operations may account for an increasing portion of our total revenues and available seat miles.
In connection with running our business, we receive, store, use and otherwise process information that relates to individuals and/or constitutes "personal data," "personal information," "personally identifiable information," or similar terms under applicable data privacy laws (collectively, "Personal Information"), including from and about actual customers, as well as our employees, crew members, and business contacts.
In connection with running our business, we receive, store, use and otherwise process information that relates to individuals and/or constitutes "personal data," "personal information," "personally identifiable information," or similar terms under applicable data privacy laws (collectively, "Personal Information"), including from and about actual customers, as well as our crewmembers, and business contacts.
Governmental authorities in the U.S. and abroad are increasingly focused on potential contamination resulting from the use of certain chemicals, most notably per- and polyfluoroalkyl, substances ("PFAS"). Products containing PFAS have been 30 Table of Contents used in manufacturing, industrial, and consumer applications over many decades, including those related to aviation.
Governmental authorities in the U.S. and abroad are increasingly focused on potential contamination resulting from the use of certain chemicals, most notably per- and polyfluoroalkyl, substances ("PFAS"). Products containing PFAS have been used in manufacturing, industrial, and consumer applications over many decades, including those related to aviation. In April 2024, the U.S.
As our overall workforce ages, we expect the cost of our medical and related benefits to increase as well, despite an increased corporate focus on crewmember wellness.
As our overall workforce ages, we expect the cost of our medical and related benefits to increase as well, despite an increased corporate focus 19 Table of Contents on crewmember wellness.
Tariffs imposed on commercial aircraft and related parts imported from outside the United States, or tariffs that may be escalated over time, may have a material adverse effect on our fleet, business, financial condition, and results of operations.
Tariffs, including those that impact commercial aircraft and related parts imported from outside the United States, or tariffs that may be escalated over time, may have a material adverse effect on our fleet, business, financial condition and results of operations.
Sanctions imposed by the United States and other countries in response to such conflicts, including the one in Ukraine, may also adversely impact the financial markets and the global economy, and any economic countermeasures by the affected countries or others could exacerbate market and economic instability.
Sanctions or tariffs imposed by the United States and other countries in response to such conflicts may also adversely impact the financial markets and the global economy, and any economic countermeasures by the affected countries or others could exacerbate market and economic instability.
The travel behaviors of the flying public could also be affected, which may materially adversely impact our industry and our business. 32 Table of Contents Changes in laws and government regulations, imposing additional requirements and restrictions on our operations could increase our operating costs and result in service delays and disruptions.
The travel behaviors of the flying public could also be affected, which may materially adversely impact our industry and our business. 33 Table of Contents Changes in laws and government regulations that impose additional requirements and restrictions on our operations could increase our operating costs and result in service delays and disruptions.
In August 2022, the US Environmental Protection Agency ("USEPA") published for public comment a new rulemaking that would designate two PFAS substances (perfluorooctanoic acid and perfluorooctanesulfonic acid) as hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act.
Environmental Protection Agency ("USEPA") published for public comment a new rulemaking that would designate two PFAS substances (perfluorooctanoic acid and perfluorooctanesulfonic acid) as hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act.
The air traffic controller shortage and outdated ATC system has led to short-term capacity constraints imposed by government agencies and has resulted in delays and disruptions of air traffic during peak travel periods in certain markets due to its inability to handle demand and reduced resiliency in the event of a failure causing flight cancellations and delays.
The air traffic controller shortage and outdated ATC system, as well as the U.S. governmental shutdowns, has led to short-term capacity constraints imposed by government agencies and has resulted in delays and disruptions of air traffic during peak travel periods in certain markets due to its inability to handle demand and reduced resiliency in the event of a failure causing flight cancellations and delays.
Unanticipated delays may require the Company to operate existing aircraft beyond the point at which it is economically optimal to retire them, resulting in increased maintenance costs, or reductions to the Company's schedule, thereby reducing revenues.
Unanticipated delays in adopting new technology or other issues may require the Company to operate existing aircraft beyond the point at which it is economically optimal to retire them, resulting in increased maintenance costs, or reductions to the Company's schedule, thereby reducing revenues.
As a result, we are subject to the risks of doing business outside the United States, including: • the costs of complying with laws, regulations, and policies (including taxation policies) of foreign governments relating to investments and operations, the costs or desirability of complying with local practices and customs, and the impact of various anti-corruption and other laws affecting the activities of U.S. companies abroad; • evolving local data residency requirements that require data to be stored only in and, in some cases, also to be accessed only from within, a certain jurisdiction; • U.S. and foreign taxation of income earned abroad; 19 Table of Contents • import and export licensing requirements and regulations, as well as unforeseen changes in regulatory requirements, including imposition of tariffs or embargoes, import or export regulations, controls, and other trade restrictions; • political and economic instability, including as a result of the ongoing conflict between Russia and Ukraine; • fluctuations in GDP, interest and currency exchange rates, civil disturbances, government instability, nationalization and expropriation of private assets, trafficking and the imposition of taxes or other charges by governments; • health and safety protocols, including global care and cleanliness certifications, at the airports in which we operate; • the complexity of managing an organization doing business in many jurisdictions; • uncertainties as to local laws and enforcement of contract and intellectual property rights and occasional requirements for onerous contract clauses; and • rapid changes in government, economic, and political policies; political or civil unrest; acts of terrorism; or the threat of international boycotts or U.S. anti-boycott legislation.
Expansion is also dependent upon our ability to maintain a safe and secure operation and requires additional personnel, equipment, and facilities. 20 Table of Contents As a result, we are subject to the risks of doing business outside the United States, including: • the costs of complying with laws, regulations, and policies (including taxation policies) of foreign governments relating to investments and operations, the costs or desirability of complying with local practices and customs, and the impact of various anti-corruption and other laws affecting the activities of U.S. companies abroad; • evolving local data residency requirements that require data to be stored only in and, in some cases, also to be accessed only from within, a certain jurisdiction; • U.S. and foreign taxation of income earned abroad; • import and export licensing requirements and regulations, as well as unforeseen changes in regulatory requirements, including imposition of tariffs or embargoes, import or export regulations, controls, and other trade restrictions; • political and economic instability; • fluctuations in GDP, interest and currency exchange rates, civil disturbances, government instability, nationalization and expropriation of private assets, trafficking and the imposition of tariffs, taxes or other charges by governments; • health and safety protocols, including global care and cleanliness certifications, at the airports in which we operate; • the complexity of managing an organization doing business in many jurisdictions; • uncertainties as to local laws and enforcement of contract and intellectual property rights and occasional requirements for onerous contract clauses; and • rapid changes in government, economic, and political policies; political or civil unrest; acts of terrorism; or the threat of international boycotts or U.S. anti-boycott legislation.
The financial markets and the global economy may also be adversely affected by the current or anticipated impact of military conflict, including the conflict between Russia and Ukraine, terrorism or other geopolitical events.
The financial markets and the global economy may also be adversely affected by the current or anticipated impact of military conflict, terrorism or other geopolitical events.
Our current dependence on five specific types of aircraft and engines for all of our flights makes us vulnerable to any significant problems associated with Pratt & Whitney Geared Turbofan Engines (the "PW1100G"), on our A321neo fleet; International Aero Engines (the "IAE V2533-A5"), on our Airbus A321 fleet, International Aero Engines (the "IAE V2527-A5"), on our Airbus A320 fleet, collectively (the "V2500") engine type; Pratt & Whitney Geared Turbofan Engines (the "PW1500G"), on our A220 fleet; and General Electric Engines (the "CF34-10"), on our Embraer E190 fleet.
Our current dependence on four specific types of aircraft and engines for all of our flights makes us vulnerable to any significant problems associated with Pratt & Whitney Geared Turbofan Engines (the "PW1100G"), on our A321neo fleet; International Aero Engines (the "IAE V2533-A5"), on our Airbus A321 fleet, International Aero Engines (the "IAE V2527-A5"), on our Airbus A320 fleet, collectively (the "V2500") engine type; and Pratt & Whitney Geared Turbofan Engines (the "PW1500G"), on our A220 fleet.
We also depend on a number of third-party vendors in relation to the operation of our business, a number of which process Personal Information on our behalf.
We also depend on business partners in relation to the operation of our business, a number of which process Personal Information on our behalf.
Many aspects of airlines' operations are subject to increasingly stringent environmental regulations and enforcement policies, and growing concerns about climate change and other matters, including an evolving set of previously unregulated substances, may result in the imposition of additional regulation.
Compliance with environmental laws and regulations may cause us to incur substantial costs. Many aspects of airlines' operations are subject to increasingly stringent environmental regulations and enforcement policies, and growing concerns about climate change and other matters, including an evolving set of previously unregulated substances, may result in the imposition of additional regulation.
We are required by the DOT to carry liability insurance. Although we believe we currently maintain liability insurance 25 Table of Contents in amounts and of the type generally consistent with industry practice, the amount of such coverage may not be adequate and we may be forced to bear substantial losses from an accident or incident.
Although we believe we currently maintain liability insurance in amounts and of the type generally consistent with industry practice, the amount of such coverage may not be adequate and we may be forced to bear substantial losses from an accident or incident.
There can be no assurance that there will not be a material decrease in interchange reimbursement fees, including due to new laws or regulatory action by the government.
There can be no assurance that there will not be a material decrease in interchange reimbursement fees, or other regulatory actions affecting credit card economics, including due to new laws or regulatory action by the government.
These regulations took effect in April 2024 and will apply to larger business and commercial jet aircraft with either new design types (not previously certified by the FAA) or existing design types that are in production as of January 1, 2028. More stringent standards, or other restrictions, may also be adopted in the future.
These regulations took effect in April 2024 and will apply to larger business and commercial jet aircraft with either new design types (not previously certified by the FAA) or existing design types that are in production as of January 1, 2028.
As we experience turnover, we may be unable to identify, hire, or retain enough people who demonstrate the values of our company culture, including those in management or other key positions. If we fail to maintain the strength of our company culture, our competitive ability and our business may be harmed.
As we experience turnover, we may be unable to identify, hire, or retain enough people who demonstrate the values of our company culture, including those in management or other key positions.
We have and may continue to enter into a variety of option contracts and swap agreements for crude oil, heating oil, and jet fuel to partially protect against significant increases in fuel prices.
Additionally, some of our competitors may have more leverage than we do in obtaining fuel. We have and may continue to enter into a variety of option contracts and swap agreements for crude oil, heating oil, and jet fuel to partially protect against significant increases in fuel prices.
A material decease in the rate of interchange reimbursement fees, either voluntarily by card processing networks or mandated by authorities, would adversely affect the TrueBlue ® loyalty program, as well as the loyalty programs that our airline partners operate, and would have an adverse effect on JetBlue's business and operating results.
A material decrease in the rate of interchange reimbursement fees, or other adverse changes to the economics of credit card programs, including limits on interest rates, fees, or other issuer revenue sources, either voluntarily by card processing networks or mandated by authorities, would adversely affect the TrueBlue ® loyalty program, as well as the loyalty programs that our airline partners operate, and would have an adverse effect on JetBlue's business and operating results.
See " Our liquidity could be adversely impacted in the event one or more of our credit card processors were to impose material reserve requirements for payments due to us from credit card transactions." Our substantial level of indebtedness and non-investment grade credit rating, as well as market conditions and the availability of assets as collateral for loans or other indebtedness, may make it difficult for us to raise additional capital if needed to meet our liquidity needs on acceptable terms, or at all.
See " Our liquidity could be adversely impacted in the event one or more of our credit card processors were to impose material reserve requirements for payments due to us from credit card transactions." Our substantial level of indebtedness and non-investment grade credit rating, as well as market conditions and the availability of assets as collateral for loans or other indebtedness, may make it difficult for us to raise additional capital if needed to meet our liquidity needs on acceptable terms, or at all. 29 Table of Contents See Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Report for additional information regarding our liquidity as of December 31, 2025.
Information Security and Privacy Related Risks Our reputation and business may be harmed, and we may be subject to legal claims if there is disruption to our information technology systems or loss, unlawful disclosure or misappropriation of, or unsanctioned access to, our customers', crewmembers', business partners' or our own information or other breaches of our information security.
These risks could adversely affect our business and operating results. 23 Table of Contents Cybersecurity and Information Security Risks Our reputation and business may be harmed, and we may be subject to legal claims if there is disruption to our information technology systems or loss, unlawful disclosure or misappropriation of, or unsanctioned access to, our customers', crewmembers', business partners' or our own information or other breaches of our information security.
This includes gates, check-in facilities, operations facilities, and landing slots, where applicable. The costs associated with these airports are often negotiated on a short-term basis with the airport authority and we could be subject to increases in costs on a regular basis with or without our approval.
The costs associated with these airports are often negotiated on a short-term basis with the airport authority and we could be subject to increases in costs on a regular basis with or without our approval.
Failure to ensure adequate ATC controller staffing and update the ATC system in a timely manner and the substantial funding requirements of a modernized ATC system that may be imposed on air carriers may have an adverse impact on the Company's financial condition or operating results. Our results of operations fluctuate due to seasonality, weather, and other factors.
Failure to continue the process of modernizing the ATC system in a timely manner, or imposing substantial funding requirements on air carriers, may have an adverse impact on the Company's financial condition or operating results. Our results of operations fluctuate due to seasonality, weather, and other factors.
In addition, we have substantial non-cancelable commitments for capital expenditures, including for the acquisition of new aircraft and related spare engines. 27 Table of Contents In the event of a global emergency or other exigent circumstances that materially impact our business, we may be required to seek additional short-term liquidity, which may include the issuance of additional unsecured or secured debt securities, equity securities and equity-linked securities, the sale of assets, the entry into sale-leaseback transactions, as well as additional bilateral and syndicated secured and/or unsecured credit facilities, among other items.
In the event of a global emergency or other exigent circumstances that materially impact our business, we may be required to seek additional short-term liquidity, which may include the issuance of additional unsecured or secured debt securities, equity securities and equity-linked securities, the sale of assets, the entry into sale-leaseback transactions, as well as additional bilateral and syndicated secured and/or unsecured credit facilities, among other items.
Fuel costs comprise a substantial portion of our total operating expenses. Historically, fuel costs, such as US Gulf Coast Jet, have been subject to wide price fluctuations, ranging from a low of $1.91 per gallon to a high of $4.41 per gallon from January 1, 2022 to December 31, 2024.
Fuel costs comprise a substantial portion of our total operating expenses. Historically, fuel costs, such as U.S. Gulf Coast Jet, have been subject to wide price fluctuations, ranging from a low of $1.83 per gallon to a high of $3.85 per gallon from January 1, 2023 to December 31, 2025.
Given our large dependency on New York harbor jet fuel, we may be impacted more than our competitors by these price spikes due to decreases in refining capacity and increases in US exports filling the void left by Russia.
These fluctuations are based on geopolitical factors as well as supply and demand. In addition, given our dependency on New York harbor jet fuel, we may be impacted more than our competitors by these price spikes due to decreases in refining capacity and increases in U.S. exports filling the void left by Russia.
There can be no assurance that these measures will lead to a significant reduction in costs. 18 Table of Contents A material reduction in the rate of interchange reimbursement fees could have an adverse effect on JetBlue's business and operating results.
There can be no assurance that these measures will lead to a significant reduction in costs. A material reduction in the rate of interchange reimbursement fees or other regulatory actions that may materially affect the economics of credit card programs could have an adverse effect on JetBlue's business and operating results.
Credit card processors have financial risk associated with tickets purchased for travel which can occur several weeks after the purchase. Our credit card processing agreements provide for reserves to be deposited with the processor in certain circumstances. We do not currently have reserves posted for our credit card processors.
We currently have agreements with organizations that process credit card transactions arising from purchases of air travel tickets by our customers. Credit card processors have financial risk associated with tickets purchased for travel which can occur several weeks after the purchase. Our credit card processing agreements provide for reserves to be deposited with the processor in certain circumstances.
This could include, but is not limited to design defects, mechanical problems, contractual performance, such as delivery delays by the manufacturers, or adverse perception by the public which may result in customer avoidance or in actions by the FAA that would impede our ability to operate our aircraft.
This could include, but is not limited to design defects, mechanical problems, contractual performance, such as delivery delays by the manufacturers, or adverse perception by the public which may result in customer avoidance or in actions by the FAA that would impede our ability to operate our aircraft, such as the FAA emergency airworthiness directive on Airbus A320-family aircraft requiring certain software updates that were identified and remediated in November 2025.
If circumstances were to occur requiring us to deposit reserves, the negative impact on our liquidity could be significant which could materially adversely affect our business.
We do not currently have reserves posted for our credit card processors. If circumstances were to occur requiring us to deposit reserves, the negative impact on our liquidity could be significant which could materially adversely affect our business.
The potential impacts to our business are not known at this time, but additional costs can be expected. In addition, climate change-related litigation and investigations have increased in recent years and any claims or investigations against us could be costly to defend and our business could be adversely affected by the outcome.
In addition, climate change-related litigation and investigations have increased in recent years and any claims or investigations against us could be costly to defend and our business could be adversely affected by the outcome.
Because we make extensive use of third-party providers, such as online services and centralized data processing, successful cyberattacks that disrupt or result in unauthorized access to third-party IT Systems beyond our control could materially impact 22 Table of Contents our business.
Because we make extensive use of third-party providers, such as online services and centralized data processing, successful cyberattacks that disrupt or result in unauthorized access to third-party IT Systems beyond our control could materially impact our business. In many cases, we have limited ability to monitor or verify the security practices of these business partners or their subcontractors.
In addition, to the extent we continue to grow our business both domestically and internationally, opening new markets requires us to commit a substantial amount of resources even before the new services commence. Expansion is also dependent upon our ability to maintain a safe and secure operation and requires additional personnel, equipment, and facilities.
In addition, to the extent we continue to grow our business both domestically and internationally, opening new markets requires us to commit a substantial amount of resources even before the new services commence.
Reputational Risks Our reputation and financial results could be harmed in the event of an accident or incident involving our aircraft. An accident or incident involving one of our aircraft could involve significant potential claims of injured passengers or others in addition to repair or replacement of a damaged aircraft and its consequential temporary or permanent loss from service.
An accident or incident involving one of our aircraft could involve significant potential claims of injured passengers or others in addition to repair or replacement of a damaged aircraft and its consequential temporary or permanent loss from service. We are required by the DOT to carry liability insurance.
High daily aircraft utilization is achieved in part by reducing turnaround times at airports so we can fly more hours on average in a day.
We maintain a high daily aircraft utilization rate, which is the amount of time our aircraft spend in the air carrying passengers. High daily aircraft utilization is achieved in part by reducing turnaround times at airports so we can fly more hours on average in a day.
We have a significant amount of indebtedness from fixed obligations, including aircraft lease and debt financings, leases of airport property, our TrueBlue ® Financings (as defined below), secured loan facilities and other facilities, and other material cash obligations.
We have a significant amount of indebtedness from fixed obligations, including aircraft lease and debt financings, leases of airport property, our TrueBlue ® Financings (as defined below), secured loan facilities and other facilities, and other material cash obligations. In addition, we have substantial non-cancelable commitments for capital expenditures, including for the acquisition of new aircraft and related spare engines.
For more information, please see our risk factor titled "We may be affected by global climate change or by legal, regulatory or market responses to such change." The extent, duration, and magnitude of an outbreak or resurgence of a disease will depend on various factors, all of which are highly uncertain, difficult to predict and not controlled by us.
For more information, please see our risk factor titled "Our results of operations fluctuate due to seasonality, weather, and other factors." The extent, duration, and magnitude of an outbreak or resurgence of a disease will depend on various factors, all of which are highly uncertain, difficult to predict and not controlled by us.
Various policymakers, such as the European Union, and the State of California, have adopted or are considering adopting, requirements for companies to provide significantly expanded climate-related disclosures, adopt specific policies or procedures, or take other climate-related actions.
Reporting expectations are also increasing, with a variety of customers, capital providers, and regulators seeking increased information on climate-related risks and impacts. Various policymakers, such as the European Union, and the State of California, have adopted or are considering adopting, requirements for companies to provide significantly expanded climate-related disclosures, adopt specific policies or procedures, or take other climate-related actions.
The value of our aircraft could also be impacted in future periods by changes in supply and demand for these aircraft. Such changes in supply and demand for certain aircraft types could result from the grounding of aircraft.
The value of our aircraft could also be impacted in future periods by changes in supply and demand for these aircraft. Such changes in supply and demand for certain aircraft types could result from the grounding of aircraft. A further impairment loss could have a material adverse effect on our financial condition and operating results.
In addition, we have a significant amount of other fixed obligations under operating leases related to our aircraft, airport terminal space, airport hangars, other facilities, and office space. As of December 31, 2024, future minimum payments under non-cancelable leases and other financing obligations were approximately $2.7 billion.
As of December 31, 2025, our debt and finance lease obligations, including interest were approximately $11.5 billion. In addition, we have a significant amount of other fixed obligations under operating leases related to our aircraft, airport terminal space, airport hangars, other facilities, and office space.
Federal budget constraints or federally imposed furloughs due to budget negotiation deadlocks may adversely affect our industry, business, results of operations and financial position. Many of our airline operations are regulated by governmental agencies, including, but not limited to, the DOT, FAA, CBP, and the TSA.
Many of our airline operations are regulated by governmental agencies, including, but not limited to, the DOT, FAA, CBP, and the TSA. Federal government shutdowns, including the disruptive shutdowns experienced in 2025, federal budget constraints or federally imposed furloughs resulting from budget negotiation deadlocks may adversely affect the ability of these agencies to perform critical functions.
We may be subject to further unionization, work stoppages, slowdowns or increased labor costs and the unionization of our pilots and inflight crewmembers have and could continue to result in increased labor costs.
If we fail to maintain the strength of our company culture, our competitive ability and our business may be harmed. 26 Table of Contents We may be subject to further unionization, work stoppages, slowdowns or increased labor costs, and the unionization of our pilots, flight instructors and inflight crewmembers have and could continue to result in increased labor costs.
Congress or any other governmental body may enact new tax legislation or tax regulations, or offer any assurance that new legislation or regulations, including changes to existing laws and regulations, will not have an adverse effect on our business, results of operations, financial condition or prospects.
Congress or any other governmental body may enact new tax legislation or tax regulations, or offer any assurance that new legislation or regulations, including changes to existing laws and regulations, will not have an adverse effect on our business, results of operations, financial condition or prospects Our high aircraft utilization rate helps us keep our costs low, but also makes us vulnerable to delays and cancellations; such delays and cancellations could reduce our profitability and harm our reputation.
An integral component of the Fly-Fi ® system is the antenna, which is supplied to us by Thales. If Thales were to stop supplying us with its antennas for any reason, we would have to incur significant costs to procure an alternate supplier.
If Thales were to stop supplying us with its antennas for any reason, we would have to incur significant costs to procure an alternate supplier. Additionally, if the satellites Fly-Fi ® uses were to become inoperable for any reason, we would have to incur significant costs to replace the service.

… 93 more changes not shown on this page.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

5 edited+3 added−1 removed6 unchanged
Biggest changeA cyber risk update is provided on a quarterly basis to the Audit Committee, which has delegated authority from the Board for cybersecurity risk oversight, and reports are made to the full Board on an annual basis. For 2024 , we reported no material cybersecurity incidents affecting the confidentiality, integrity, or availability of data or information technology systems.
Biggest changeFor 2025 , we reported no material cybersecurity incidents affecting the confidentiality, integrity, or availability of data or information technology systems.
Among the key features of our cybersecurity risk management processes are the following: • policies and procedures designed to comply with data security and privacy obligations; • security technology and tools deployed in our IT environment that help us to identify and manage critical cybersecurity risks, as well as to detect and respond to incidents; • security awareness training offered to our workforce, and specialized incident response training for our cybersecurity team; • a Security Operations Center that monitors and responds to incidents; and • a third-party risk management program that includes diligence and contracting processes for vendors and service providers based on their respective function and risk profile.
Among the key features of our cybersecurity risk management processes are the following: • policies and procedures designed to comply with data security and privacy obligations; • security technology and tools deployed in our IT environment that help us to identify and manage critical cybersecurity risks, as well as to detect and respond to incidents; • security awareness training offered to our workforce, and specialized incident response training for our cybersecurity team; • a Security Operations Center that monitors and responds to incidents; and • a third-party risk management program that includes diligence and contracting processes for business partners and service providers based on their respective function and risk profile.
JetBlue management has overall responsibility for assessing and managing risks from cybersecurity threats to the Company and has an established cyber risk committee that consists of the Chief Executive Officer, Chief Financial Officer, Chief Legal Officer, Chief Information Officer and Chief Information Security Officer (CISO).
These processes help us manage cybersecurity risks but cannot eliminate them. JetBlue has overall responsibility for assessing and managing risks from cybersecurity threats to the Company and has an established cyber risk committee that consists of the Chief Executive Officer, Chief Financial Officer, Chief Legal Officer, Chief Information Officer and Chief Information Security Officer ("CISO").
Our current CISO has nearly two decades of experience in IT risk and program management, threat intelligence, and cybersecurity governance; he also has several cybersecurity industry certifications and specialized training in cybersecurity. The CISO regularly briefs the cyber risk committee to review and evaluate potential threats and cyber risks to the Company.
Our current CISO has nearly two decades of experience in IT risk and program management, threat intelligence, and cybersecurity governance; he also has several cybersecurity industry certifications and specialized training in cybersecurity. However, experience and governance cannot eliminate the cybersecurity risks described in Item 1A.
We face certain ongoing risks from cybersecurity threats that, if realized, are reasonably likely to materially affect us, including our operations, business strategy, results of operations, or financial condition.
We face certain ongoing risks from cybersecurity threats that, if realized, are reasonably likely to materially affect us, including our operations, business strategy, results of operations, or financial condition. We are also subject to evolving legal and regulatory requirements regarding the reporting and disclosure of cybersecurity incidents, including SEC rules, which may increase our compliance obligations.
Removed
For further information, please see our risk factors titled " Our reputation and business may be harmed and we may be subject to legal claims if there is disruption to our information technology systems or loss, unlawful disclosure or misappropriation of, or unsanctioned access to, our customers', crewmembers', business partners' or our own information or other breaches of our information security " and " Data security compliance requirements could increase our costs, and any significant data breach could disrupt our operations and harm our reputation, business, results of operations and financial condition.
Added
The CISO regularly briefs management's cyber risk governance committee to review and evaluate cybersecurity threats and risks to the Company. The Audit Committee, which has been delegated cybersecurity risk oversight responsibility by the Board, receives an update on cybersecurity matters at least twice annually, and the full Board receives cybersecurity updates on an annual basis.
Added
The Audit Committee Chair and the Board received additional updates, as appropriate, in connection with evolving risk, emerging threats, or significant developments. The Audit Committee also receives periodic cybersecurity reporting, including metrics and key risk indicators, through regular meeting materials and supplements.
Added
For further information, see the risk factors under Item 1A titled "Cybersecurity and Information Security Risks" and "Data Privacy and Security Compliance Risks." 35 Table of Contents

Item 2. Properties

Properties — owned and leased real estate

10 edited+9 added−3 removed4 unchanged
Biggest changePROPERTIES Aircraft As of December 31, 2024, our aircraft types and configurations consisted of the following (1) : Aircraft Seating Capacity Owned (2) Operating Lease Total Average Age in Years Airbus A220 140 42 — 42 2 Airbus A320 150 11 — 11 24 Airbus A320 Restyled 162 101 18 119 19 Airbus A321 200 28 — 28 9 Airbus A321 with Mint ® 159 35 — 35 8 Airbus A321neo 200 16 — 16 5 Airbus A321neo with Mint ® 160 10 — 10 2 Airbus A321neoLR with Mint ® 138 11 — 11 2 Embraer E190 (3) 100 10 8 18 16 264 26 290 12 (1) I ncludes aircraft that have been temporarily removed from service, including 11 aircraft grounded as of December 31, 2024 , due to the required removal of certain Pratt & Whitney engines for inspection and lack of engine availability.
Biggest changePROPERTIES Aircraft As of December 31, 2025, our aircraft types and configurations consisted of the following (1), (2) : Aircraft Seating Capacity Owned Leased (3) Total Average Age in Years Airbus A220 140 59 — 59 2 Airbus A320 150 10 — 10 25 Airbus A320 Restyled 162 106 13 119 20 Airbus A321 200 28 — 28 10 Airbus A321 with Mint ® 159 35 — 35 9 Airbus A321neo 200 16 — 16 6 Airbus A321neo with Mint ® 160 10 — 10 3 Airbus A321neoLR with Mint ® 138 11 — 11 3 275 13 288 12 (1) Excludes the following parked aircraft: • eight Embraer E190 owned aircraft and one Airbus A321neo XLR variant owned aircraft contracted to sell within one year. • three Embraer E190 leased aircraft awaiting lease return. • one permanently parked Airbus A320 owned aircraft. • two Airbus A321neo aircraft with Mint ® not yet entered into service.
We have since entered into multiple amendments with Massport to continue to grow our footprint in Terminal C. As of December 31, 2024, we leased 30 gates in Boston. Our lease with Massport is scheduled to expire in April 2030.
We have since entered into multiple amendments with Massport to continue to grow our footprint in Terminal C. As of December 31, 2025, we leased 30 gates in Boston. Our lease with Massport is scheduled to expire in April 2030.
We also occupy a training center, JetBlue University, with a lease agreement expiring in 2035 which we use for training our pilots and inflight crewmembers, as well as support training for our technical operations and airport crewmembers. This facility is equipped with 12 full flight simulators, 12 flight training devices, four cabin trainers, a training pool, classrooms, and support areas.
We also occupy a training center, JetBlue University, with a lease agreement expiring in 2035 which we use for training our pilots and inflight crewmembers, as well as support training for our technical operations and airport crewmembers. This facility is equipped with 10 full flight simulators, 12 flight training devices, 4 cabin trainers, a training pool, classrooms, and support areas.
The Lodge at the Orlando Support Center is adjacent to JetBlue University and is used for lodging our crewmembers when they attend training. Our primary corporate office is located in Long Island City, New York, with our lease expiring in 2039. We have an additional support center located in Salt Lake City, Utah, with our lease expiring in 2028.
The Lodge at the Orlando Support Center is adjacent to JetBlue University and is used for lodging our crewmembers when they attend training. Our primary corporate office is located in Long Island City, New York, with our lease expiring in 2039.
In November 2022, we amended the lease to relinquish a portion of the former Terminal 6 property to allow for development of a new Terminal 6 by our development partner, JFK Millennium Partners ("JMP"). • BOS - In May 2005, we entered into a lease with Massachusetts Port Authority ("Massport") with a five-year term (and 20 automatic one-year renewals), for five gates in Terminal C, which expanded to 11 by November 2008.
As a result, we adjusted the related right-of-use asset and corresponding lease liability to reflect the 2042 end date. • BOS - In May 2005, we entered into a lease with Massachusetts Port Authority ("Massport") with a five-year term (and 20 automatic one-year renewals), for five gates in Terminal C, which expanded to 11 by November 2008.
As of December 31, 2024, our aircraft leases had an average remaining term of approximately two years, with expiration dates between 2025 and 2028. As of December 31, 2024, we had 106 aircraft on order and scheduled for delivery through 2033.
As of December 31, 2025, we had 86 aircraft on order and scheduled for delivery through 2033.
We also maintain other facilities that are necessary to support our operations in the cities we serve.
We have an additional support center located in Salt Lake City, Utah, with our lease expiring in 2028. 37 Table of Contents We also maintain other facilities that are necessary to support our operations in the cities we serve.
Our passenger terminal service facilities consisting of ticket counters, gate space, operations support area, and baggage service offices generally have agreement terms ranging from less than one year to five years. They can contain provisions for periodic adjustments of rental rates, landing fees, and other charges applicable under the type of lease.
This space is leased directly or indirectly from the local airport authority on varying terms dependent on prevailing practices at each airport. Our passenger terminal service facilities consisting of ticket counters, gate space, operations support area, and baggage service offices generally have agreement terms ranging from less than one year to five years.
Under some of these agreements, we are responsible for the maintenance, insurance, utilities, and certain other facility-related expenses and services. 35 Table of Contents A summary of our most significant lease agreements is provided below: • JFK - We have a lease agreement with the PANYNJ for Terminal 5 until November 2042, but we have the option to terminate the agreement in 2033.
A summary of our most significant lease agreements is provided below: • JFK - We have a lease agreement with the PANYNJ for Terminal 5 through November 2042, with the option to terminate the agreement in 2033. In 2012, we amended the lease to extend into the former Terminal 6 property in order to build T5i.
Our future aircraft delivery schedule is as follows (1) : Contractual Order Book Year Airbus A220 Airbus A321neo Total 2025 20 4 24 2026 17 — 17 2027 5 — 5 2028 9 — 9 2029 7 — 7 Thereafter — 44 44 Total (2) 58 48 106 (1) The aircraft orders stated above represents the current delivery schedule set forth in our Airbus order book as of December 31, 2024.
Our future aircraft delivery schedule is as follows: Contractual Order Book Year Airbus A220 Airbus A321neo (2) Total 2026 14 1 15 2027 5 — 5 2028 11 — 11 2029 10 — 10 2030 1 3 4 Thereafter — 41 41 Total (1) 41 45 86 (1) In addition, we have options to purchase 20 A220-300 aircraft in 2027 and 2028.
Removed
All aircraft temporarily removed from service are expected to return to operation in the future. (2) Total owned aircraft includes aircraft associated with sale-leaseback transactions that did not qualify as sales for accounting purposes. (3) Excludes 15 permanently parked aircraft owned by the Company, and five parked aircraft awaiting lease return.
Added
(2) I ncludes aircraft that have been temporarily removed from service but are expected to return to operation in the future. (3) Includes 10 operating and 3 finance leases. As of December 31, 2025, our aircraft leases had an average remaining term of approximately 2 years, with expiration dates between 2026 and 2028.
Removed
(2) In addition, we have options to purchase 20 A220-300 aircraft in 2027 and 2028. Ground Facilities Airports All of our airport facilities are under leases or other occupancy agreements. This space is leased directly or indirectly from the local airport authority on varying terms dependent on prevailing practices at each airport.
Added
(2) Includes one Airbus A321neo XLR variant aircraft which has been contracted to sell following delivery of the aircraft.
Removed
In 2012, we amended the lease to extend into the former Terminal 6 property in order to build T5i.
Added
The aircraft is anticipated to deliver in the second quarter of 2026. 36 Table of Contents Embraer E190 Fleet Transition In 2025, as part of the Company's fleet transition plan, we retired our remaining Embraer E190 aircraft - marking nearly two decades of service and completing our transition to a more cost efficient and customer focused all-Airbus fleet.
Added
The Company entered into definitive agreements to sell our remaining owned Embraer E190 fleet, which included 25 airframes, 60 engines and the related Embraer E190 spare parts. These aircraft sales began in July 2025 and are expected to continue through the second quarter of 2026.
Added
In 2025, we sold Embraer E190 airframes, engines, as well as full flight simulators, and recorded a net gain of $32 million related to the E190 fleet transactions, which is included in other operating expenses on our consolidated statements of operations.
Added
As of December 31, 2025 , we had 11 permanently parked Embraer E190 aircraft, of which eight are owned and three are awaiting lease return. Ground Facilities Airports All of our airport facilities are under leases or other occupancy agreements.
Added
They can contain provisions for periodic adjustments of rental rates, landing fees, and other charges applicable under the type of lease. Under some of these agreements, we are responsible for the maintenance, insurance, utilities, and certain other facility-related expenses and services.
Added
In November 2022, we amended the lease to relinquish a portion of the former Terminal 6 property to allow for development of a new Terminal 6 by our development partner, JFK Millennium Partners ("JMP").
Added
In 2025, we reassessed the lease term and concluded that we intend to utilize the facility through 2042 rather than exercise the early termination option in 2033.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

5 edited+0 added−0 removed3 unchanged
Biggest changeThe stock performance shown represents historical performance and is not representative of future stock performance. 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 JetBlue Airways Corporation $ 100 $ 78 $ 76 $ 35 $ 30 $ 42 S&P 500 Stock Index 100 116 148 119 148 182 NYSE ARCA Airline Index 100 76 74 48 62 61 38 Table of Contents ITEM 6.
Biggest changeThe stock performance shown represents historical performance and is not representative of future stock performance. 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 JetBlue Airways Corporation $ 100 $ 98 $ 45 $ 38 $ 54 $ 31 S&P 500 Stock Index 100 127 102 127 157 182 NYSE ARCA Airline Index 100 98 64 82 81 85 40 Table of Contents ITEM 6.
The acquisition of treasury stock reflected on our consolidated statement of cash flows for the year ended December 31, 2024, represents the return of shares to satisfy tax payments associated with crewmember stock compensation that vested during the period. 37 Table of Contents Stock Performance Graph This performance graph shall not be deemed "filed" with the SEC or subject to Section 18 of the Exchange Act, nor shall it be deemed incorporated by reference in any of our filings under the Securities Act.
The acquisition of treasury stock reflected on our consolidated statement of cash flows for the year ended December 31, 2025, represents the return of shares to satisfy tax payments associated with crewmember stock compensation that vested during the period. 39 Table of Contents Stock Performance Graph This performance graph shall not be deemed "filed" with the SEC or subject to Section 18 of the Exchange Act, nor shall it be deemed incorporated by reference in any of our filings under the Securities Act.
The comparison assumes the investment of $100 on December 31, 2019 in our common stock and in each of the foregoing indices and assumes reinvestment of all dividends.
The comparison assumes the investment of $100 on December 31, 2020 in our common stock and in each of the foregoing indices and assumes reinvestment of all dividends.
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY; RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information and Stockholder Matters Our common stock is traded on the NASDAQ Global Select Market under the symbol JBLU. As of January 31, 2025, there were approximately 370 holders of record of our common stock.
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY; RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information and Stockholder Matters Our common stock is traded on the NASDAQ Global Select Market under the symbol JBLU. As of January 31, 2026, there were approximately 350 holders of record of our common stock.
The following graph compares the cumulative total stockholder return on our common stock to the cumulative total return of the S&P 500 Stock Index and the NYSE ARCA Airline Index from December 31, 2019 to December 31, 2024.
The following graph compares the cumulative total stockholder return on our common stock to the cumulative total return of the S&P 500 Stock Index and the NYSE ARCA Airline Index from December 31, 2020 to December 31, 2025.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

2 edited+0 added−0 removed0 unchanged
Biggest changeItem 6. Reserved 39 Item 7. Management ' s Discussion and Analysis of Financial Condition and Results of Operations 39 Overview 39 Results of Operations 42 Liquidity and Capital Resources 44 Contractual Obligations 48 Off-Balance Sheet Arrangements 49 Climate Change 50 Critical Accounting Policies and Estimates 52 Regulation G Reconciliation of Non-GAAP Financial Measures 54 Item 7A.
Biggest changeItem 6. Reserved 41 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 41 Overview 41 Results of Operations 44 Liquidity and Capital Resources 46 Contractual Obligations 50 Off-Balance Sheet Arrangements 51 Critical Accounting Policies and Estimates 52 Regulation G Reconciliation of Non-GAAP Financial Measures 54 Item 7A.
Quantitative and Qualitative Disclosures About Market Risk 58 Item 8. Financial Statements and Supplementary Data 59 Reports of Independent Registered Public Accounting Firm 59 Consolidated Balance Sheets 62 Consolidated Statements of Operations 64 Consolidated Statements of Comprehensive Loss 65 Consolidated Statements of Cash Flows 66 Consolidated Statements of Stockholders ' Equity 68 Notes to Consolidated Financial Statements 69
Quantitative and Qualitative Disclosures About Market Risk 58 Item 8. Financial Statements and Supplementary Data 59 Reports of Independent Registered Public Accounting Firm 59 Consolidated Balance Sheets 62 Consolidated Statements of Operations 64 Consolidated Statements of Comprehensive Loss 65 Consolidated Statements of Cash Flows 66 Consolidated Statements of Stockholders' Equity 68 Notes to Consolidated Financial Statements 69

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

87 edited+44 added−57 removed52 unchanged
Biggest changeNON-GAAP FINANCIAL MEASURE RECONCILIATION OF OPERATING EXPENSE, OPERATING LOSS, OPERATING MARGIN, PRE-TAX LOSS, ADJUSTED PRE-TAX MARGIN, NET LOSS, LOSS PER SHARE, EXCLUDING SPECIAL ITEMS, GAIN (LOSS) ON INVESTMENTS AND GAIN ON DEBT EXTINGUISHMENTS Year Ended December 31, (in millions except percentages) 2024 2023 2022 Total operating revenues $ 9,279 $ 9,615 $ 9,158 RECONCILIATION OF OPERATING EXPENSE Total operating expenses $ 9,963 $ 9,845 $ 9,456 Less: Special items 591 197 113 Total operating expenses excluding special items $ 9,372 $ 9,648 $ 9,343 RECONCILIATION OF OPERATING LOSS Operating loss $ (684) $ (230) $ (298) Add back: Special items 591 197 113 Operating loss excluding special items $ (93) $ (33) $ (185) RECONCILIATION OF OPERATING MARGIN Operating margin (7.4) % (2.4) % (3.3) % Operating loss excluding special items $ (93) $ (33) $ (185) Total operating revenues 9,279 9,615 9,158 Adjusted operating margin (1.0) % (0.3) % (2.0) % RECONCILIATION OF PRE-TAX LOSS Loss before income taxes $ (897) $ (334) $ (437) Add back: Special items 591 197 113 Less: Gain (loss) on investments, net (27) 9 (9) Less: Gain on debt extinguishments 22 — — Loss before income taxes excluding special items, gain (loss) on investments and gain on debt extinguishments $ (301) $ (146) $ (315) RECONCILIATION OF PRE-TAX MARGIN Pre-tax margin (9.7) % (3.5) % (4.8) % Loss before income taxes excluding special items $ (301) $ (146) $ (315) Total operating revenues 9,279 9,615 9,158 Adjusted pre-tax margin (3.2) % (1.5) % (3.4) % 55 Table of Contents NON-GAAP FINANCIAL MEASURE RECONCILIATION OF OPERATING EXPENSE, OPERATING LOSS, OPERATING MARGIN, PRE-TAX LOSS, PRE-TAX MARGIN, NET LOSS, LOSS PER SHARE, EXCLUDING SPECIAL ITEMS, NET GAIN (LOSS) ON INVESTMENTS AND GAIN ON DEBT EXTINGUISHMENTS (CONTINUED) (in millions except per share amounts) Year Ended December 31, 2024 2023 2022 RECONCILIATION OF NET LOSS Net loss $ (795) $ (310) $ (362) Add back: Special items 591 197 113 Less: Income tax benefit related to special items 45 31 19 Less: Gain (loss) on investments, net (27) 9 (9) Less: Income tax benefit (expense) related to gain (loss) on investments, net 6 (2) 1 Less: Gain on debt extinguishments 22 — — Less: Income tax expense related to gain on debt extinguishments (5) — — Net loss excluding special items, gain (loss) on investments and gain on debt extinguishments $ (245) $ (151) $ (260) CALCULATION OF LOSS PER SHARE Loss per common share Basic $ (2.30) $ (0.93) $ (1.12) Add back: Special items 1.71 0.59 0.35 Less: Income tax expense related to special items 0.13 0.09 0.06 Less: Gain (loss) on investments, net (0.08) 0.03 (0.03) Less: Income tax benefit (expense) related to gain (loss) on investments, net 0.02 (0.01) — Less: Gain on debt extinguishments 0.06 — — Less: Income tax expense related to gain on debt extinguishments (0.01) — — Basic excluding special items, gain (loss) on investments and gain on debt extinguishments $ (0.71) $ (0.45) $ (0.80) Diluted $ (2.30) $ (0.93) $ (1.12) Add back: Special items 1.71 0.59 0.35 Less: Income tax benefit related to special items 0.13 0.09 0.06 Less: Gain (loss) on investments, net (0.08) 0.03 (0.03) Less: Income tax benefit (expense) related to gain (loss) on investments, net 0.02 (0.01) — Less: Gain on debt extinguishments 0.06 — — Less: Income tax expense related to gain on debt extinguishments (0.01) — — Diluted excluding special items, gain (loss) on investments and gain on debt extinguishments $ (0.71) $ (0.45) $ (0.80) 56 Table of Contents Glossary of Airline terminology Airline terminology used in this section and elsewhere in this Report: • Aircraft utilization - The average number of block hours operated per day per aircraft for the total fleet of aircraft. • Available seat miles - The number of seats available for passengers multiplied by the number of miles the seats are flown. • Average fare - The average one-way fare paid per flight segment by a revenue passenger. • Average fuel cost per gallon - Total aircraft fuel costs, including related taxes, into-plane, transportation, airport fuel flowage, storage fees and effective portion of fuel hedging, divided by the total number of fuel gallons consumed. • Average stage length - The average number of miles flown per flight. • Load factor - The percentage of aircraft seating capacity actually utilized, calculated by dividing revenue passenger miles by available seat miles. • Operating expense per available seat mile - Operating expenses divided by available seat miles. • Operating expense per available seat mile, excluding fuel - Operating expenses, less aircraft fuel, other non-airline expenses, and special items, divided by available seat miles. • Operating revenue per available seat mile - Operating revenues divided by available seat miles. • Passenger revenue per available seat mile - Passenger revenue divided by available seat miles. • Revenue passengers - The total number of paying passengers flown on all flight segments. • Revenue passenger miles - The number of miles flown by revenue passengers. • Yield per passenger mile - The average amount one passenger pays to fly one mile. 57 Table of Contents
Biggest changeNON-GAAP FINANCIAL MEASURE RECONCILIATION OF OPERATING EXPENSE, OPERATING LOSS, OPERATING MARGIN, PRE-TAX LOSS, PRE-TAX MARGIN, NET LOSS, LOSS PER SHARE, EXCLUDING SPECIAL ITEMS, GAIN (LOSS) ON INVESTMENTS AND GAIN ON DEBT EXTINGUISHMENTS Year Ended December 31, (in millions except percentages) 2025 2024 2023 Total operating revenues $ 9,062 $ 9,279 $ 9,615 RECONCILIATION OF OPERATING EXPENSE Total operating expenses $ 9,430 $ 9,963 $ 9,845 Less: Special items 30 591 197 Total operating expenses excluding special items $ 9,400 $ 9,372 $ 9,648 RECONCILIATION OF OPERATING LOSS Operating loss $ (368) $ (684) $ (230) Add back: Special items 30 591 197 Operating loss excluding special items $ (338) $ (93) $ (33) RECONCILIATION OF OPERATING MARGIN Operating margin (4.1) % (7.4) % (2.4) % Operating loss excluding special items $ (338) $ (93) $ (33) Total operating revenues 9,062 9,279 9,615 Adjusted operating margin (3.7) % (1.0) % (0.3) % RECONCILIATION OF PRE-TAX LOSS Loss before income taxes $ (774) $ (897) $ (334) Add back: Special items 30 591 197 Less: Gain (loss) on investments, net 18 (27) 9 Less: Gain on debt extinguishments — 22 — Loss before income taxes excluding special items, gain (loss) on investments and gain on debt extinguishments $ (762) $ (301) $ (146) RECONCILIATION OF PRE-TAX MARGIN Pre-tax margin (8.5) % (9.7) % (3.5) % Loss before income taxes excluding special items $ (762) $ (301) $ (146) Total operating revenues 9,062 9,279 9,615 Adjusted pre-tax margin (8.4) % (3.2) % (1.5) % 55 Table of Contents NON-GAAP FINANCIAL MEASURE RECONCILIATION OF OPERATING EXPENSE, OPERATING LOSS, OPERATING MARGIN, PRE-TAX LOSS, PRE-TAX MARGIN, NET LOSS, LOSS PER SHARE, EXCLUDING SPECIAL ITEMS, GAIN (LOSS) ON INVESTMENTS AND GAIN ON DEBT EXTINGUISHMENTS (CONTINUED) (in millions except per share amounts) Year Ended December 31, 2025 2024 2023 RECONCILIATION OF NET LOSS Net loss $ (602) $ (795) $ (310) Add back: Special items 30 591 197 Less: Income tax benefit related to special items 7 45 31 Less: Gain (loss) on investments, net 18 (27) 9 Less: Income tax benefit (expense) related to gain (loss) on investments, net (4) 6 (2) Less: Gain on debt extinguishments — 22 — Less: Income tax expense related to gain on debt extinguishments — (5) — Net loss excluding special items, gain (loss) on investments and gain on debt extinguishments $ (593) $ (245) $ (151) CALCULATION OF LOSS PER SHARE Loss per common share Basic $ (1.66) $ (2.30) $ (0.93) Add back: Special items 0.08 1.71 0.59 Less: Income tax benefit related to special items 0.02 0.13 0.09 Less: Gain (loss) on investments, net 0.05 (0.08) 0.03 Less: Income tax benefit (expense) related to gain (loss) on investments, net (0.01) 0.02 (0.01) Less: Gain on debt extinguishments — 0.06 — Less: Income tax expense related to gain on debt extinguishments — (0.01) — Basic excluding special items, gain (loss) on investments and gain on debt extinguishments $ (1.64) $ (0.71) $ (0.45) Diluted $ (1.66) $ (2.30) $ (0.93) Add back: Special items 0.08 1.71 0.59 Less: Income tax benefit related to special items 0.02 0.13 0.09 Less: Gain (loss) on investments, net 0.05 (0.08) 0.03 Less: Income tax benefit (expense) related to gain (loss) on investments, net (0.01) 0.02 (0.01) Less: Gain on debt extinguishments — 0.06 — Less: Income tax expense related to gain on debt extinguishments — (0.01) — Diluted excluding special items, gain (loss) on investments and gain on debt extinguishments $ (1.64) $ (0.71) $ (0.45) 56 Table of Contents Glossary of Airline terminology Airline terminology used in this section and elsewhere in this Report: • Aircraft utilization - The average number of block hours operated per day per aircraft for the total fleet of aircraft. • Available seat miles - The number of seats available for passengers multiplied by the number of miles the seats are flown. • Average fare - The average one-way fare paid per flight segment by a revenue passenger. • Average fuel cost per gallon - Total aircraft fuel costs, including related taxes, into-plane, transportation, airport fuel flowage, storage fees and effective portion of fuel hedging, divided by the total number of fuel gallons consumed. • Average stage length - The average number of miles flown per flight. • Fuel efficiency (ASMs per fuel gallon) - Available seat miles divided by the total number of fuel gallons consumed. • Load factor - The percentage of aircraft seating capacity actually utilized, calculated by dividing revenue passenger miles by available seat miles. • Operating expense per available seat mile - Operating expenses divided by available seat miles. • Operating expense per available seat mile, excluding fuel - Operating expenses, less aircraft fuel, other non-airline expenses, and special items, divided by available seat miles. • Operating revenue per available seat mile - Operating revenues divided by available seat miles. • Passenger revenue per available seat mile - Passenger revenue divided by available seat miles. • Revenue passengers - The total number of paying passengers flown on all flight segments. • Revenue passenger miles - The number of miles flown by revenue passengers. • Yield per passenger mile - The average amount one passenger pays to fly one mile. 57 Table of Contents
These engines power our Airbus A220 and Airbus A321neo fleets. The powdered metal affects engines manufactured between October 2015 and September 2021. Those engines are now required to be inspected after they have reached a reduced number of cycles dependent on the fleet type.
These engines power our Airbus A321neo and Airbus A220 fleets. The powdered metal affects engines manufactured between October 2015 and September 2021. Those engines are now required to be inspected after they have reached a reduced number of cycles dependent on the fleet type.
For the same reasons, we are unable to address the probable significance of the unavailable information, which could have a potentially unpredictable and potentially significant impact on our future GAAP financial results. 54 Table of Contents Operating Expense, Operating Loss, Operating Margin, Pre-tax Loss, Pre-tax Margin, Net Loss and Loss per Share, excluding Special Items, Gain (Loss) on Investments and Gain on Debt Extinguishments Our GAAP results in the applicable periods were impacted by credits and charges that are deemed special items.
For the same reasons, we are unable to address the probable significance of the unavailable information, which could have a potentially unpredictable and potentially significant impact on our future GAAP financial results. 54 Table of Contents Operating Expense, Operating Loss, Operating Margin, Pre-tax Loss, Pre-tax Margin, Net Loss and Loss per Share, excluding Special Items, Gain (Loss) on Investments and Gain on Debt Extinguishments Our GAAP results in the applicable periods were impacted by charges that were deemed special items.
Financing activities during 2023 also included $4 million for the acquisition of treasury stock, which represents the return of shares to satisfy tax payments associated with crewmember stock compensation that vested during the period. It also includes $4 million in financing fees related to new debt agreements in 2023 and the extension of our $600 million revolving credit facility agreement.
Financing activities during 2023 also included $4 million for the acquisition of treasury stock, which represents the return of shares to satisfy tax payments associated with crewmember stock compensation that vested during the period. It also included $4 million in financing fees related to new debt agreements in 2023 and the extension of our $600 million revolving credit facility agreement.
When a TrueBlue ® member travels, we recognize a portion of the fare as revenue and defer in air traffic liabilities the portion that represents the value of the points net of spoilage, or breakage. We allocate the transaction price to each performance obligation on a relative standalone basis.
When a TrueBlue ® member travels, we recognize a portion of the fare as revenue and defer in air traffic liabilities the portion that represents the value of the points net of spoilage, or breakage. We allocate the transaction price to each performance obligation on a relative standalone selling price basis.
Financing activities during 2024 also included $6 million for the acquisition of treasury stock, which represents the return of shares to satisfy tax payments associated with crewmember stock compensation that vested during the period. It also includes $66 million in financing fees related to new debt agreements in 2024.
Financing activities during 2024 also included $6 million for the acquisition of treasury stock, which represents the return of shares to satisfy tax payments associated with crewmember stock compensation that vested during the period. It also included $66 million in financing fees related to new debt agreements in 2024.
The agreements governing the TrueBlue ® Notes and TrueBlue ® Term Loan Facility contains affirmative, negative and financial covenants including compliance with certain debt service coverage ratios and minimum liquidity requirements. These agreements also contain events of default, including a cross-default to other material indebtedness.
The agreements governing the TrueBlue ® Notes and TrueBlue ® Term Loan Facility contain affirmative, negative and financial covenants including compliance with certain debt service coverage ratios and minimum liquidity requirements. These agreements also contain events of default, including a cross-default to other material indebtedness.
Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, our financial measures prepared in accordance with GAAP. Further, our non-GAAP information may be different from the non-GAAP information provided by other companies.
Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, our financial performance measures prepared in accordance with GAAP. Further, our non-GAAP information may be different from the non-GAAP information provided by other companies.
This line of credit bears interest at a floating rate based upon the London Interbank Offered Rate ("LIBOR"), or such replacement index as the bank may determine from time to time in accordance with the terms of the agreement, plus a margin. We did not borrow under this facility in 2024, 2023 or 2022.
This line of credit bears interest at a floating rate based upon the London Interbank Offered Rate ("LIBOR"), or such replacement index as the bank may determine from time to time in accordance with the terms of the agreement, plus a margin. We did not borrow under this facility in 2025, 2024 or 2023.
In addition, the covenants restrict our ability to, among other things, dispose of certain collateral, or merge, consolidate, or sell assets. As of and for the years ended December 31, 2024, 2023 and 2022, we did not have a balance outstanding or any borrowings under the Revolving Facility.
In addition, the covenants restrict our ability to, among other things, dispose of certain collateral, or merge, consolidate, or sell assets. As of and for the years ended December 31, 2025, 2024 and 2023, we did not have a balance outstanding or any borrowings under the Revolving Facility.
These proceeds were partially offset by debt repayments of $748 million on our outstanding debt and finance lease obligations, which included the following repayments: • $402 million on our 0.5% convertible senior notes; • $244 million on our term loan debt; • $96 million on our failed sale-leaseback obligations; and • $6 million on our finance lease obligations.
These proceeds were partially offset by debt repayments of $748 million on our outstanding debt and finance lease obligations, which included the following repayments: • $402 million on our 0.50% convertible senior notes; • $244 million on our term loan debt; • $96 million on our failed sale-leaseback obligations; and • $6 million on our finance lease obligations.
In November 2022, we amended the lease to relinquish a portion of the former Terminal 6 property to allow for development of a new Terminal 6 by our development partners JMP through a $65 million letter of credit in exchange for 5% ownership.
In November 2022, we amended the lease to relinquish a portion of the former Terminal 6 property to allow for development of a new Terminal 6 by our development partners, JFK Millennium Partners ("JMP") through a $65 million letter of credit in exchange for 5% ownership.
(2) Amounts primarily include non-cancelable commitments for flight equipment maintenance, construction and information technology. Debt and Finance Lease Obligations As of December 31, 2024, we were in compliance with the material covenants of our debt and lease agreements. In August 2024, JetBlue co-issued with JetBlue Loyalty, LP, the TrueBlue ® Notes and TrueBlue ® Term Loan Facility.
(3) Amounts primarily include non-cancelable commitments for flight equipment maintenance, construction and information technology. Debt and Finance Lease Obligations As of December 31, 2025, we were in compliance with the material covenants of our debt and lease agreements. In August 2024, JetBlue co-issued with JetBlue Loyalty, LP, the TrueBlue ® Notes and TrueBlue ® Term Loan Facility.
Passenger credits can be used for future travel up to a year from the date of booking. Passenger breakage revenue from unused tickets and passenger credits will be recognized in proportion to flown revenue based on estimates of expected expiration when the likelihood of the customer exercising his or her remaining rights becomes remote.
Most passenger credits can be used for future travel up to one year from the date of booking. Passenger breakage revenue from unused tickets and passenger credits will be recognized in proportion to flown revenue based on estimates of expected expiration when the likelihood of the customer exercising his or her remaining rights becomes remote.
Consequently, we believe quarter-over-quarter comparisons of our operating results may not necessarily be meaningful; you should not rely on our results for any one quarter as an indication of our future performance.
Consequently, we believe year-over-year comparisons of our operating results may not necessarily be meaningful; you should not rely on our results for any one year as an indication of our future performance.
The transaction price is allocated to each performance obligation identified in a passenger ticket on a relative standalone basis. Passenger revenue, including certain ancillary fees directly related to passenger tickets, is recognized when transportation is provided. The majority of passenger tickets sold are non-refundable.
The transaction price is allocated to each performance obligation identified in a passenger ticket based on relative standalone selling price. Passenger revenue, including certain ancillary fees directly related to passenger tickets, is recognized when transportation is provided. The majority of passenger tickets sold are non-refundable.
The other elements are recognized as other revenue when the performance obligations related to those services are satisfied, which is generally the same period as when consideration is received from the participating company. 52 Table of Contents Amounts allocated to the air transportation element which are initially deferred include a portion that are expected to be redeemed during the following twelve months (included within air traffic liability), and a portion that are not expected to be redeemed during the following twelve months (included within air traffic liability - non-current).
The other elements are recognized as other revenue when the performance obligations related to those services are satisfied, which is generally the same period as when consideration is received from the participating company. 52 Table of Contents Amounts allocated to the air transportation element which are initially deferred include a portion that are expected to be redeemed during the following twelve months (included within air traffic liability on our consolidated balance sheets), and a portion that are not expected to be redeemed during the following twelve months (included within air traffic liability - non-current on our consolidated balance sheets).
Analysis of Cash Flows We had unrestricted cash and cash equivalents of $1.9 billion as of December 31, 2024. This compares to $1.2 billion and $1.0 billion as of December 31, 2023 and 2022, respectively. We held both short and long-term investments in 2024, 2023, and 2022.
Analysis of Cash Flows We had unrestricted cash and cash equivalents of $1.9 billion as of December 31, 2025. This compares to $1.9 billion and $1.2 billion as of December 31, 2024 and 2023, respectively. We held both short and long-term investments in 2025, 2024, and 2023.
Our debt agreements contain various affirmative, negative and financial covenants and complying with certain of these covenants, or entering into agreements with additional covenants, may restrict our ability to pursue our strategy or otherwise constrain our operations.
Our debt agreements contain various affirmative, negative and financial covenants and complying with certain of these covenants, or entering into agreements with 46 Table of Contents additional covenants, may restrict our ability to pursue our strategy or otherwise constrain our operations.
We exclude aircraft fuel, operating expenses related to other non-airline businesses, such as JetBlue Technology Ventures and JetBlue Travel Products, and special items from total operating expenses to determine Operating Expenses ex-fuel, which is a non-GAAP financial measure, and we exclude the same items from CASM to determine CASM ex-fuel, which is also a non-GAAP financial measure.
We exclude aircraft fuel, operating expenses related to other non-airline businesses, such as Paisly (f/k/a JetBlue Travel Products) and JetBlue Technology Ventures (JBV), and special items from total operating expenses to determine Operating Expenses ex-fuel, which is a non-GAAP financial measure, and we exclude the same items from CASM to determine CASM ex-fuel, which is also a non-GAAP financial measure.
For deliveries after 2025, although we believe debt and/or lease financing should be available to us, we cannot give any assurance that we will be able to secure financing on attractive terms, if at all. We have a revolving line of credit with Morgan Stanley for up to approximately $200 million.
For deliveries after 2026, although we believe debt and/or lease financing should be available to us, we cannot give any assurance that we will be able to secure financing on attractive terms, if at all. 48 Table of Contents We have a revolving line of credit with Morgan Stanley for up to approximately $200 million.
The information below provides an explanation of each non-GAAP financial measure used in this Report and shows a reconciliation of each such non-GAAP financial measure to its most directly comparable GAAP financial measure.
The information below provides an explanation of each non-GAAP financial measure used in this Report and shows a reconciliation of certain non-GAAP financial measures to its most directly comparable GAAP financial measure.
(1) The interest rates are fixed for $6.8 billion of our debt and finance lease obligations, with the remaining $1.7 billion having floating interest rates. The estimated floating rate is equal to SOFR plus an applicable margin based on December 31, 2024 rates. The weighted average maturity of all of our debt was 7 years as of December 31, 2024.
(1) The interest rates are fixed for $6.6 billion of our debt and finance lease obligations, with the remaining $1.9 billion having floating interest rates. The estimated floating rate is equal to SOFR plus an applicable margin based on December 31, 2025 rates. The weighted average maturity of all of our debt was 6 years as of December 31, 2025.
During 2024, flight equipment capital expenditures included $1.3 billion related to the purchase of aircraft and spare engines as well as aircraft interior modifications. Flight capital expenditures also included $81 million in spare part purchases. Other property and equipment capital expenditures included ground equipment purchases and facility improvements for $121 million.
During 2024, flight equipment capital expenditures included $1.3 billion related to the purchase of aircraft and spare engines as well as aircraft interior modifications. Flight capital expenditures also included $81 million in spare part purchases and $141 million in aircraft pre-delivery deposits payments. Other property and equipment capital expenditures included ground equipment purchases and facility improvements for $121 million.
We believe the impact of these special items distorts our overall trends and that our metrics are more comparable with the presentation of our results excluding such impact. Special items for 2024 include Spirit-related costs, union contract costs, voluntary opt-out costs, Embraer E190 fleet transition costs, and other special items.
We believe the impact of these special items distorts our overall trends and that our metrics are more comparable with the presentation of our results excluding such impact. Special items for 2025 include severance expenses and other special items. Special items for 2024 included Spirit-related costs, union contract costs, severance expenses, Embraer E190 fleet transition costs, and other special items.
Excluding special items, our adjusted loss per share (1) was $0.71 for 2024 compared to an adjusted loss per share of $0.45 for 2023.
Excluding special items, our adjusted loss per share (1) was $1.64 for 2025 compared to an adjusted loss per share of $0.71 for 2024.
As of and for the year ended December 31, 2024, we had a $763 million balance outstanding under the TrueBlue® Term Loan Facility. Working Capital We had working capital of $377 million as of Decemb er 31, 2024 compared to a deficit of $1.5 billion as of December 31, 2023.
As of and for the year ended December 31, 2025, we had a $755 million balance outstanding under the TrueBlue ® Term Loan Facility. Working Capital We had working capital deficit of $1.2 billion as of Decemb er 31, 2025 compared to a working capital surplus of $377 million as of December 31, 2024.
At the end of the initial lease term, we have the option to renew the lease for either one renewal term of 10 years, or two renewal terms of five years each. The total committed expenditure for the lease through 2039 is approximately $81 million.
We have a one-time option to terminate the lease in 2034. At the end of the initial lease term, we have the option to renew the lease for either one renewal term of 10 years, or two renewal terms of five years each. The total committed expenditure for the lease through 2039 is approximately $76 million.
Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" of the Annual Report on Form 10-K for the year ended December 31, 2023 for detailed discussions comparing the 2023 to 2022 period. 2024 Compared to 2023 Overview We reported a net loss of $795 million, an operating loss of $684 million and operating margin of (7.4)% for the year ended December 31, 2024.
Refer to Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" of the Annual Report on Form 10-K for the year ended December 31, 2024 for detailed discussions comparing the 2024 to 2023 period. 2025 Compared to 2024 Overview We reported a net loss of $602 million, an operating loss of $368 million and operating margin of (4.1)% for the year ended December 31, 2025.
These investments totaled $2.0 billion as of December 31, 2024 compared to $564 million and $522 million as of December 31, 2023 and 2022, respectively. Operating Activities Cash provided by operating activities was $144 million in 2024. This compares to cash provided by operating activities of $400 million in 2023 and $379 million in 2022.
These investments totaled $531 million as of December 31, 2025 compared to $2.0 billion and $564 million as of December 31, 2024 and 2023, respectively. Operating Activities Cash used in operating activities was $94 million in 2025. This compares to cash provided by operating activities of $144 million in 2024 and $400 million in 2023.
NON-GAAP FINANCIAL MEASURE RECONCILIATION OF OPERATING EXPENSE AND OPERATING EXPENSE PER ASM (CASM), EXCLUDING FUEL (in millions; per ASM data in cents) 2024 2023 2022 $ per ASM $ per ASM $ per ASM Total operating expenses $ 9,963 15.08 $ 9,845 14.37 $ 9,456 14.67 Less: Aircraft fuel 2,343 3.55 2,807 4.10 3,190 4.95 Other non-airline expenses 60 0.09 64 0.09 55 0.08 Special items 591 0.89 197 0.29 113 0.18 Operating expenses, excluding fuel $ 6,969 10.55 $ 6,777 9.89 $ 6,098 9.46 Percent change 6.6 % 4.6 % With respect to JetBlue's CASM ex-fuel guidance, we are unable to provide a reconciliation of the non-GAAP financial measure to GAAP CASM, the most directly comparable GAAP measure, because the quantification of certain excluded items reflected in the CASM ex-fuel guidance cannot be calculated or predicted at this time without unreasonable efforts.
NON-GAAP FINANCIAL MEASURE RECONCILIATION OF OPERATING EXPENSE AND OPERATING EXPENSE PER ASM (CASM), EXCLUDING FUEL (in millions; per ASM data in cents) 2025 2024 2023 $ per ASM $ per ASM $ per ASM Total operating expenses $ 9,430 14.51 $ 9,963 15.08 $ 9,845 14.37 Less: Aircraft fuel 2,057 3.16 2,343 3.55 2,807 4.10 Other non-airline expenses 65 0.10 60 0.09 64 0.09 Special items 30 0.05 591 0.89 197 0.29 Operating expenses, excluding fuel $ 7,278 11.20 $ 6,969 10.55 $ 6,777 9.89 Percent change 6.2 % 6.6 % With respect to JetBlue's CASM ex-fuel guidance, we are unable to provide a reconciliation of the non-GAAP financial measure to GAAP CASM, the most directly comparable GAAP measure, because the quantification of certain excluded items reflected in the CASM ex-fuel guidance cannot be calculated or predicted at this time without unreasonable efforts.
As of December 31, 2024, our unrestricted cash, cash equivalents, short-term investments, and long-term marketable securities of $3.9 billion, which we believe will be sufficient to satisfy our liquidity needs for at least the next twelve months from the date of this Report, and we expect to meet our long-term liquidity needs with our projected cash from operations, available lines of credit and debt financing.
As of December 31, 2025, we had unrestricted cash, cash equivalents, and investment securities of $2.5 billion, which we believe will be sufficient to satisfy our liquidity needs for at least the next twelve months from the date of this Report, and we expect to meet our long-term liquidity needs with our projected cash from operations, available lines of credit and debt financing.
Adjusting for these special items, our adjusted net loss (1) was $245 million, adjusted operating loss (1) was $93 million, and our adjusted operating margin (1) was (1.0)% for 2024. This compares to an adjusted net loss (1) of $151 million, adjusted operating loss (1) of $33 million, and an adjusted operating margin (1) of (0.3)% for 2023.
Adjusting for these special items, our adjusted net loss (1) was $593 million, adjusted operating loss (1) was $338 million, and our adjusted operating margin (1) was (3.7)% for 2025. This compares to an adjusted net loss (1) of $245 million, adjusted operating loss (1) of $93 million, and an adjusted operating margin (1) of (1.0)% for 2024.
Item 8 for further details of our impairment charges. 53 Table of Contents REGULATION G RECONCILIATION OF NON-GAAP FINANCIAL MEASURES We report our financial results in accordance with GAAP; however, we present certain non-GAAP financial measures in this Report.
Refer to Note 13 to our consolidated financial statements included in Part II, Item 8 for further details of our impairment charges. 53 Table of Contents REGULATION G RECONCILIATION OF NON-GAAP FINANCIAL MEASURES We report our financial results in accordance with GAAP; however, we present certain non-GAAP financial measures in this Report.
To determine if impairment exists for our aircraft used in operations, we group our aircraft by fleet-type (the lowest level for which there are identifiable cash flows) and then estimate their future cash flows based on projections of capacity, aircraft age, maintenance requirements, and other relevant conditions.
When events and circumstances indicate that our aircraft used in operations may be impaired, we determine if impairment exists by grouping our aircraft by fleet type (the lowest level for which there are identifiable cash flows) and then estimating their future cash flows based on projections of capacity, aircraft age, maintenance requirements, and other relevant conditions.
This compares to net loss of $310 million, operating loss of $230 million, and operating margin of (2.4)% for the year ended December 31, 2023. Our loss per share was $2.30 for 2024 compared to a loss per share of $0.93 for 2023. Our 2024 and 2023 reported results included the effects of special items.
This compares to net loss of $795 million, operating loss of $684 million, and operating margin of (7.4)% for the year ended December 31, 2024. Our loss per share was $1.66 for 2025 compared to a loss per share of $2.30 for 2024. Our 2025 and 2024 reported results included the effects of special items.
Special Items In 2024, special items included the following: • $532 million relating to Spirit-related costs; • $26 million relating to union contract costs; • $17 million relating to voluntary opt-out costs; • $15 million relating to Embraer E190 fleet transition costs; and • $1 million relating to other special items.
In 2024, special items included the following: • $532 million relating to Spirit-related costs; • $26 million relating to union contract costs; • $17 million relating to severance expenses; 45 Table of Contents • $15 million relating to Embraer E190 fleet transition costs; and • $1 million relating to other special items.
Excluding aircraft fuel, special items, and operating expenses related to our non-airline businesses, our 2024 adjusted operating expense (1) increased by 2.8% to $7.0 billion, year-over-year. • Operating expense per available seat mile ("CASM") increased by 4.9% to 15.08 cents year-over-year. • Excluding fuel, special items, and operating expenses related to our non-airline businesses, our cost per available seat mile ("CASM ex-fuel") (1) increased by 6.6% to 10.55 cents year-over-year.
Excluding aircraft fuel, special items, and operating expenses related to our non-airline businesses, our 2025 adjusted operating expense (1) increased by 4.4% to $7.3 billion, year-over-year. • Operating expense per available seat mile ("CASM") decreased by 3.8% to 14.51 cents year-over-year. • Excluding fuel, special items, and operating expenses related to our non-airline businesses, our cost per available seat mile ("CASM ex-fuel") (1) increased by 6.2% to 11.2 cents year-over-year.
We expect our operating results to fluctuate significantly from quarter-to-quarter in the future due to factors such as economic conditions, weather events, cost of aircraft fuel, and various other factors, many of which are outside of our control.
We expect our operating results to fluctuate significantly from year-to-year and quarter-to-quarter in the future due to factors such as economic conditions, weather events, cost of aircraft fuel, geopolitical developments, regulatory issues, supply constraints, competition and various other factors, including those discussed in this Annual Report, many of which are outside of our control.
Flight Equipment Purchase Obligations Our firm aircraft orders include the following aircraft (1) : Year Airbus A220 Airbus A321neo Total 2025 20 4 24 2026 17 — 17 2027 5 — 5 2028 9 — 9 2029 7 — 7 Thereafter — 44 44 Total (2) 58 48 106 (1) Our committed future aircraft deliveries are subject to change based on modifications to the contractual agreements or changes in the delivery schedules.
Flight Equipment Purchase Obligations Our firm aircraft orders include the following aircraft (1) : Year Airbus A220 Airbus A321neo (3) Total 2026 14 1 15 2027 5 — 5 2028 11 — 11 2029 10 — 10 2030 1 3 4 Thereafter — 41 41 Total (2) 41 45 86 (1) Our committed future aircraft deliveries are subject to change based on modifications to the contractual agreements or changes in the delivery schedules.
Special items for 2023 include Spirit-related costs and union contract costs. Special items for 2022 include Spirit-related costs, union contract costs and Embraer E190 fleet transition costs.
Special items for 2025 include severance expenses and other special items. Special items for 2024 included Spirit-related costs, union contract costs, severance expenses, Embraer E190 fleet transition costs, and other special items. Special items for 2023 included union contract costs and Spirit-related costs.
The warrants issued by JetBlue to Treasury under the Acts were made, and any issuances of our underlying common stock are expected to be made, in reliance on the exemption from the registration afforded by Section 4(a)(2) of the Securities Act for transactions not involving a public offering. None of our lenders or lessors are affiliated with us.
The warrants issued in connection with the various federal government support programs were made, and any issuances of our underlying common stock are expected to be made, in reliance on the exemption from the registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"), for transactions not involving a public offering.
Investing activities in 2022 also included the net proceeds of $321 million from our investment securities, $297 million in Spirit shareholder payments and $156 million in flight equipment pre-delivery deposits. 45 Table of Contents Financing Activities Financing activities during the year primarily consisted of the following proceeds: • $2.8 billion in proceeds from the TrueBlue ® Financings; • $662 million in floating rate equipment notes; • $460 million from the issuance of 2.50% convertible senior notes; • $668 million in proceeds from failed sale-leaseback transactions; and • $60 million in proceeds from the issuance of common stock related to our crewmember stock purchase plan.
Financing activities during 2024 primarily consisted of the following proceeds: • $2.8 billion in proceeds from the TrueBlue ® Financings; • $662 million in floating rate equipment notes; • $460 million from the issuance of 2.50% convertible senior notes; • $668 million in proceeds from failed sale-leaseback transactions; and • $60 million in proceeds from the issuance of common stock related to our crewmember stock purchase plan.
Flight capital expenditures also included $64 million for spare part purchases. Other property and equipment capital expenditures included ground equipment purchases and facility improvements for $132 million.
Flight capital expenditures also included $63 million in spare part purchases and $78 million in flight equipment pre-delivery deposits. Other property and equipment capital expenditures included ground equipment purchases and facility improvements for $119 million.
Our JetForward plan, which is designed to support our long-term profitability goals, reflects various assumptions regarding factors that may impact our operational and financial performance. The sections below highlight some additional changes made to support these priority moves during the year.
Our JetForward plan, which is designed to support our long-term profitability goals, reflects various assumptions regarding factors that may impact our operational and financial performance.
Operating Revenues (revenues in millions; percent changes based on unrounded numbers) Year-over-Year Change 2024 2023 $ % Passenger revenue $ 8,617 $ 9,008 (391) (4.3) % Other revenue 662 607 55 9.0 Total operating revenues $ 9,279 $ 9,615 (336) (3.5) % Average fare $ 212.78 $ 211.79 0.99 0.5 Yield per passenger mile (cents) 15.68 15.92 (0.24) (1.5) Passenger revenue per ASM (cents) 13.04 13.15 (0.11) (0.8) Operating revenue per ASM (cents) 14.04 14.04 — — Average stage length (miles) 1,287 1,230 57 4.6 Revenue passengers (thousands) 40,498 42,534 (2,036) (4.8) Revenue passenger miles (millions) 54,958 56,578 (1,620) (2.9) Available seat miles (ASMs) (millions) 66,082 68,497 (2,415) (3.5) Load factor 83.2 % 82.6 % 0.6 pts Passenger revenue is our primary source of revenue which includes seat revenue and baggage fees, as well as revenue from our ancillary product offerings such as Even More ® Space.
Operating Revenues (revenues in millions; percent changes based on unrounded numbers) Year-over-Year Change 2025 2024 $ % Passenger revenue $ 8,336 $ 8,617 (281) (3.3) % Other revenue 726 662 64 9.6 Total operating revenues $ 9,062 $ 9,279 (217) (2.3) % Average fare $ 211.93 $ 212.78 (0.85) (0.4) Yield per passenger mile (cents) 15.57 15.68 (0.11) (0.7) Passenger revenue per ASM (cents) 12.82 13.04 (0.22) (1.7) Operating revenue per ASM (cents) 13.94 14.04 (0.10) (0.7) Average stage length (miles) 1,301 1,287 14 1.1 Revenue passengers (thousands) 39,336 40,498 (1,162) (2.9) Revenue passenger miles (millions) 53,535 54,958 (1,423) (2.6) Available seat miles (ASMs) (millions) 65,007 66,082 (1,075) (1.6) Load factor 82.4 % 83.2 % (0.8) pts Passenger revenue is our primary source of revenue which includes seat revenue and baggage fees, as well as revenue from our ancillary product offerings such as EvenMore ® .
Passenger revenue decreased for 2024 compared to 2023 by $391 million, or 4.3%. This was mainly driven by a 3.5% reduction in capacity. Other revenue primarily consists of loyalty revenue from the non-transportation elements of the sale of TrueBlue ® points. It also includes revenue from the sale of vacation packages, airport concessions and advertising revenue.
Passenger revenue decreased for 2025 compared to 2024 by $281 million, or 3.3%. This was mainly driven by a 1.6% reduction in capacity and a 2.9% reduction in revenue passengers. Other revenue primarily consists of loyalty revenue from the non-transportation elements of the sale of TrueBlue ® points.
Depreciation and Amortization Depreciation and amortization primarily includes owned and finance leased aircraft and spare engines, in-flight entertainment systems, airport leasehold improvements and software development. Depreciation and amortization increased $34 million, or 5.5%, compared to the 2023 period. This increase was primarily driven by the induction of new aircraft and spare engines.
The wage rate increases were primarily driven by a pilot union contract wage rate increase of 9% effective August 2024. Depreciation and Amortization Depreciation and amortization primarily includes owned and finance leased aircraft and spare engines, in-flight entertainment systems, airport leasehold improvements and software development. Depreciation and amortization increased $33 million, or 5.0%, compared to the 2024 period.
Investing activities for 2023 also included $131 million in Spirit shareholder payments, $78 million in flight equipment pre-delivery deposits and $42 million in net purchases of investment securities. During 2022, flight equipment capital expenditures included $571 million related to the purchase of aircraft and spare engines as well as aircraft interior modifications.
Investing activities for 2024 also included $1.5 billion in net purchases of investment securities, $30 million of proceeds from the sale of assets and sale-leaseback transactions, and $22 million in Spirit shareholder payments. During 2023, flight equipment capital expenditures included $946 million related to the purchase of aircraft and spare engines as well as aircraft interior modifications.
Operating Lease Obligations As of December 31, 2024, we had operating lease obligations for 26 aircraft with lease terms that expire between 2025 and 2028. Our a ircraft lease agreements contain termination provisions which include standard maintenance and return conditions. Our policy is to record these lease return conditions when they are probable and the costs can be estimated.
Our aircraft lease agreements contain termination provisions which include standard maintenance and return conditions. Our policy is to record these lease return conditions when they are probable and the costs can be estimated. As of December 31, 2025, the average age of our operating fl eet was 12 ye ars.
An impairment occurs when the sum of the estimated undiscounted future cas h flows is less th an the aggregate carrying value of the fleet. The impairment loss recognized is the amount by which the fleet's carrying value exceeds its estimated fair value. Refer to Note 17 to our consolidated financial statements included in Part II.
An impairment occurs when the sum of the estimated undiscounted future cash flows is less than the aggregate carrying value of the fleet. The impairment loss recognized is the amount by which the fleet's carrying value exceeds its estimated fair value.
(1) Refer to our "Regulation G Reconciliation of Non-GAAP Financial Measures" at the end of this section for more information on this non-GAAP measure. 42 Table of Contents Operating Expenses (in millions; per ASM data in cents; percentages based on unrounded numbers) Year-over-Year Change Cents per ASM 2024 2023 $ % 2024 2023 % Change Aircraft fuel $ 2,343 $ 2,807 (464) (16.5) 3.55 4.10 (13.5) Salaries, wages and benefits 3,263 3,055 208 6.8 4.94 4.46 10.7 Landing fees and other rents 659 657 2 0.4 1.00 0.96 4.1 Depreciation and amortization 655 621 34 5.5 0.98 0.90 9.4 Aircraft rent 92 126 (34) (27.2) 0.14 0.18 (24.5) Sales and marketing 328 316 12 4.0 0.50 0.46 7.8 Maintenance, materials and repairs 628 654 (26) (4.1) 0.95 0.96 (0.6) Special items 591 197 394 NM (1) 0.89 0.29 NM Other operating expenses 1,404 1,412 (8) (0.6) 2.13 2.06 3.1 Total operating expenses $ 9,963 $ 9,845 118 1.2 15.08 14.37 4.9 (1) Not meaningful or greater than 100% change.
(1) Refer to our "Regulation G Reconciliation of Non-GAAP Financial Measures" at the end of this section for more information on this non-GAAP measure. 44 Table of Contents Operating Expenses (in millions; per ASM data in cents; percentages based on unrounded numbers) Year-over-Year Change Cents per ASM 2025 2024 $ % 2025 2024 % Change Aircraft fuel $ 2,057 $ 2,343 (286) (12.2) 3.16 3.55 (10.8) Salaries, wages and benefits 3,453 3,263 190 5.8 5.31 4.94 7.6 Landing fees and other rents 658 659 (1) (0.1) 1.01 1.00 1.5 Depreciation and amortization 688 655 33 5.0 1.06 0.98 6.7 Aircraft rent 74 92 (18) (19.1) 0.12 0.14 (17.7) Sales and marketing 305 328 (23) (7.0) 0.47 0.50 (5.5) Maintenance, materials and repairs 791 628 163 26.0 1.22 0.95 28.1 Special items 30 591 (561) (94.9) 0.05 0.89 (94.9) Other operating expenses 1,374 1,404 (30) (2.2) 2.11 2.13 (0.6) Total operating expenses $ 9,430 $ 9,963 (533) (5.3) 14.51 15.08 (3.8) Aircraft Fuel and Related Taxes Aircraft fuel decreased by $286 million, or 12.2%, in 2025 compared to 2024.
Interest Expense Interest expense increased by $155 million , or 73.3% , for 2024 compared to the same period in 2023. This increase was primarily due to incremental aircraft failed sale-leaseback transactions, new equipment notes, and the financing of our TrueBlue ® program.
Interest Expense Interest expense increased by $223 million , or 60.8% , for 2025 compared to the same period in 2024. This increase was primarily due to the financing of our TrueBlue ® program, the issuance of new equipment notes in 2024, and additional finance lease obligations.
The table below provides a reconciliation of our GAAP reported amounts to the non-GAAP amounts excluding the impact of these items for the periods presented.
We believe the impact of these items distort our overall trends and that our metrics are more comparable with the presentation of our results excluding the impact of these items. The table below provides a reconciliation of our GAAP reported amounts to the non-GAAP amounts excluding the impact of these items for the periods presented.
Our ability to successfully execute our growth plan is largely dependent on the continued availability of capital on attractive terms. In addition, our ability to successfully operate our business depends on maintaining sufficient liquidity. We believe we have adequate resources from a combination of cash and cash equivalents, investment securities on-hand, and available lines of credit.
In addition, our ability to successfully operate our business depends on maintaining sufficient liquidity. We believe we have adequate resources from a combination of cash and cash equivalents, investment securities on-hand, and available lines of credit. Additionally, our unencumbered assets could be an additional source of liquidity, if necessary.
The year-over-year increase in other revenue of $55 million , or 9.0%, was principally driven by an increase in TrueBlue ® non-transportation revenue due to higher customer spend as well as an increase in vacation bookings.
It also includes revenue from the sale of vacation packages, airport concessions, advertising revenue and lounge revenue. The year-over-year increase in other revenue of $64 million , or 9.6%, was principally driven by an increase in TrueBlue ® non-transportation revenue due to higher customer spend.
Aircraft Fuel and Related Taxes Aircraft fuel decreased by $464 million, or 16.5%, in 2024 compared to 2023. The average fuel price decreased 12.1% in 2024 to $2.75 per gallon and fuel consumption decreased by 4.9%, or 44 million gallons. Salaries, Wages and Benefits Salaries, wages, and benefits increased $208 million, or 6.8%, in 2024, driven by wage rate increases.
The average fuel price decreased 9.3% in 2025 to $2.49 per gallon and fuel consumption decreased by 3.2%, or 27 million gallons. Salaries, Wages and Benefits Salaries, wages, and benefits increased by $190 million, or 5.8%, in 2025, driven by wage rate increases.
We expect to meet our obligations as they become due through available cash, investment securities, and internally generated funds, supplemented, as necessary, by financing activities which may be available to us.
Working capital deficits can be customary in the airline industry since a large portion of air traffic liability is classified within current liability. We expect to meet our obligations as they become due through available cash, investment securities, and internally generated funds, supplemented, as necessary, by financing activities which may be available to us.
Fuel prices declined over the year and we continued to make progress on our cost savings programs, allowing us to maintain low costs for the year. 2024 Results Our 2024 financial and operational highlights include the following: • 2024 system available seat miles ("ASMs" or "capacity") decreased by 3.5% compared to 2023 . • We generated $9.3 billion in operating revenue , a decrease of $336 million, or 3.5% compared to 2023, primarily due to lower capacity. • Operating expense increased by 1.2% year-over-year to $10.0 billion. • Our operating expenses in 2024 and 2023 included the effects of special items.
Additionally, w e continue to make progress on the JetForward cost program by implementing AI and data science technology, executing operational initiatives, and strengthening efficiencies. 2025 Results Our 2025 financial and operational highlights include the following: • 2025 system available seat miles ("ASMs" or "capacity") decreased by 1.6% compared to 2024 . • We generated $9.1 billion in operating revenue , a decrease of $217 million, or 2.3% compared to 2024, primarily due to softening demand. • Operating expense decreased by 5.3% year-over-year to $9.4 billion. • Our operating expenses in 2025 and 2024 included the effects of special items.
Recent Developments JetForward In July 2024, JetBlue announced JetForward, our strategic framework focused on four priority moves: delivering reliable and caring service, building the best east coast leisure network, offering products and perks customers value, and providing a secure financial future.
(1) Refer to our "Regulation G Reconciliation of Non-GAAP Financial Measures" at the end of this section for more information on this non-GAAP measure. 41 Table of Contents Recent Developments JetForward JetForward, our strategic framework, is focused on four priority moves: delivering reliable and caring service, building the best east coast leisure network, offering products and perks customers value, and providing a secure financial future.
Our approach to debt management includes managing the mix of fixed and floating rate debt, annual maturities of debt, and the weighted average cost of debt. Additionally, our unencumbered assets allow some flexibility in managing our cost of debt and capital requirements. 47 Table of Contents Other In February 2022, we filed an automatic shelf registration statement with the SEC.
Additionally, our unencumbered assets allow some flexibility in managing our cost of debt and capital requirements. 49 Table of Contents Other On February 27, 2025, we filed an automatic shelf registration statement with the SEC. This registration statement replaces the previous one, which expired in February 2025.
The Company purchased certain Airbus A320 aircraft off lease and certain Embraer E190 aircraft leases reached their lease expiration and were returned to the lessor as part of the Company's fleet transition plan.
Aircraft Rent Aircraft rent decreased by $18 million, or 19.1%, in 2025 compared to 2024 primarily as a result of fewer leases for Airbus A320 aircraft and Embraer E190 aircraft. As part of the Company's fleet transition plan, certain Embraer E190 aircraft leases reached their lease expiration and were returned to the lessor.
We expect to meet our pre-delivery deposit requirements for our aircraft by paying cash or by using short-term borrowing facilities for deposits generally required six to 24 months prior to delivery. Any pre-delivery deposits paid by the issuance of notes are fully repaid at the time of delivery of the related aircraft.
(2) Committed expenditures for our firm aircraft and spare engines include estimated amounts for contractual price escalations and pre-delivery deposits. We expect to meet our pre-delivery deposit requirements for our aircraft by paying cash or by using short-term borrowing facilities for deposits generally required six to 24 months prior to delivery.
OVERVIEW In 2024, we incurred a net loss of $795 million, compared to a net loss of $310 million in 2023, an increase of $485 million compared to the prior year. This increase is primarily due to the write off of Spirit-related costs for $532 million as a result of the termination of the Merger Agreement in March 2024.
This decrease is primarily due to the 2024 write off of Spirit-related costs for $532 million as a result of the termination of the Merger Agreement in March 2024, as well as lower current year fuel costs and benefits from our JetForward initiatives.
We have $61 million of restricted cash pledged under standby letters of credit related to certain leases that will expire at the end of the related lease terms. Approximately 65% of our owned property and equipment and intangible assets at net book value were pledged or committed to be pledged as security under various loan agreements.
Approximately 61% of our owned property and equipment and intangible assets at net book value were pledged or committed to be pledged as security under various loan agreements. 50 Table of Contents Operating Lease Obligations As of December 31, 2025, we had operating lease obligations for 10 aircraft with lease terms that expire between 2027 and 2028.
Investing activities for the current year also included $1.5 billion in net purchases of investment securities, $141 million in aircraft pre-delivery deposits payments, $30 million of proceeds from the sale of assets and sale-leaseback transactions, and $22 million in Spirit shareholder payments.
Investing activities for the current year also included $1.5 billion in net proceeds from investment securities and $279 million of proceeds primarily from eight sale-leaseback transactions, the sales of Embraer E190 airframes and Embraer E190 engines, and other flight equipment.
Certain net gains and losses on our investments and the gain on debt extinguishments were also excluded from our 2024, 2023 and 2022 non-GAAP results. We believe the impact of these items distort our overall trends and that our metrics are more comparable with the presentation of our results excluding the impact of these items.
Certain gains and losses on our investments, net were also excluded from our 2025 , 2024 and 2023 non-GAAP results. Additionally, the gain on debt extinguishments was also excluded from our 2024 non-GAAP results.
However, risks may manifest in ways that we have not foreseen or are otherwise not able to wholly mitigate. 51 Table of Contents CRITICAL ACCOUNTING POLICIES AND ESTIMATES The preparation of our consolidated financial statements in conformity with generally accepted accounting principles in the United States ("GAAP") requires management to adopt accounting policies as well as make estimates and judgments to develop amounts reported in our financial statements and accompanying notes.
See Notes 3, 4, and 11 to our consolidated financial statements included in Part II, Item 8, for a more detailed discussion of our variable interests and other contingencies, including guar antees and indemnities. 51 Table of Contents CRITICAL ACCOUNTING POLICIES AND ESTIMATES The preparation of our consolidated financial statements in conformity with generally accepted accounting principles in the United States ("GAAP") requires management to adopt accounting policies as well as make estimates and judgments to develop amounts reported in our financial statements and accompanying notes.
This increase was primarily driven by an increase in short term investments from the proceeds received from the TrueBlue ® Financings. Gain (Loss) on Investments, Net Gain (loss) on investments, net resulted in $27 million loss for 2024 . This loss primarily relates to a mark-to-market adjustment on our preferred shares of one of our JetBlue Ventures equity investments.
For 2024 , gain (loss) on investments resulted in a $27 million loss primarily relating to a mark-to-market adjustment on our preferred shares of one of our JetBlue Ventures equity investments. Gain on Debt Extinguishments We did not record any gain or loss on debt extinguishments in 2025. Gain on debt extinguishments was $22 million for 2024.
In 2023, special items included the following: • $105 million related to union contract costs; and • $92 million related to Spirit-related costs. 43 Table of Contents Other Income (Expense) (in millions; percent changes based on unrounded numbers) Year-over-Year Change 2024 2023 $ % Interest expense $ (365) $ (210) $ (155) 73.3 % Interest income 111 70 41 58.1 Capitalized interest 15 19 (4) (21.2) Gain (loss) on investments, net (27) 9 (36) NM (1) Gain on debt extinguishments 22 — 22 NM Other 31 8 23 NM Total other expense $ (213) $ (104) $ (109) NM (1) Not meaningful or greater than 100% change.
Other Income (Expense) (in millions; percent changes based on unrounded numbers) Year-over-Year Change 2025 2024 $ % Interest expense $ (588) $ (365) $ (223) 60.8 % Interest income 127 111 16 14.4 Capitalized interest 9 15 (6) (42.2) Gain (loss) on investments, net 18 (27) 45 NM (1) Gain on debt extinguishments — 22 (22) NM Other 28 31 (3) (8.2) Total other expense $ (406) $ (213) $ (193) 90.8 % (1) Not meaningful or greater than 100% change.
During 2023, flight equipment capital expenditures included $946 million related to the purchase of aircraft and spare engines as well as aircraft interior modifications. Flight capital expenditures also included $63 million in spare part purchases. Other property and equipment capital expenditures included ground equipment purchases and facility improvements for $119 million.
Flight capital expenditures also included $96 million in spare part purchases and $44 million in aircraft pre-delivery deposits payments. Other property and equipment capital expenditures included ground equipment purchases and facility improvements for $149 million.
As a result of these required inspections and other engine reliability deficiencies, as of December 31, 2024 , we had 11 aircraft grounded due to lack of engine availability. The Company currently expects each removed engine to take approximately 360 days to complete a shop visit and return to a serviceable condition.
As a result of these required inspections and other engine durability deficiencies, we averaged nine aircraft on the ground in 2025 and as of December 31, 2025 , we had four aircraft grounded due to lack of engine availability.
To the extent we cannot secure financing on terms we deem attractive, we may be required to pay in cash, further modify our aircraft acquisition plans, or incur higher than anticipated financing costs. Other Obligations Our Terminal at JFK, T5, is governed by a lease agreement we entered into with the PANYNJ in 2005.
To the extent we cannot secure financing on terms we deem attractive, we may be required to pay in cash, further modify our aircraft acquisition plans, or incur higher than anticipated financing costs. OFF-BALANCE SHEET ARRANGEMENTS We have determined that we hold a variable interest in, but are not the primary beneficiary of, certain pass-through trusts.
Special items for 2024 include Spirit-related costs, union contract costs, voluntary opt-out costs, Embraer E190 fleet transition costs, and other special items. Special items for 2023 include Spirit costs and union contract costs. Special items for 2022 include Spirit costs, union contract costs and Embraer E190 fleet transition costs.
Special items for 2023 included union contract costs and Spirit-related costs.
CONTRACTUAL OBLIGATIONS Our material cash requirements for known contractual and other obligations as of December 31, 2024 includes the following (in millions): Payments due in 2025 2026 2027 2028 2029 Thereafter Total Debt and finance lease obligations (1) $ 937 $ 1,247 $ 908 $ 986 $ 2,188 $ 5,719 $ 11,985 Operating lease obligations 132 108 96 82 75 301 794 Flight equipment purchase obligations 981 690 288 410 321 3,754 6,444 Other obligations (2) 397 372 376 425 290 9 1,869 Total $ 2,447 $ 2,417 $ 1,668 $ 1,903 $ 2,874 $ 9,783 $ 21,092 The amounts stated above do not include additional obligations incurred as a result of financing activities executed after December 31, 2024 except as otherwise noted.
CONTRACTUAL OBLIGATIONS Our material cash requirements for known contractual and other obligations as of December 31, 2025 includes the following (in millions): Payments due in 2026 2027 2028 2029 2030 Thereafter Total Debt and finance lease obligations (1) $ 1,314 $ 950 $ 1,028 $ 2,227 $ 957 $ 5,010 $ 11,486 Operating lease obligations 139 128 110 89 84 938 1,488 Flight equipment purchase obligations (2) 641 302 519 444 398 3,375 5,679 Other obligations (3) 352 409 431 280 307 — 1,779 Total $ 2,446 $ 1,789 $ 2,088 $ 3,040 $ 1,746 $ 9,323 $ 20,432 The amounts stated above do not include additional obligations incurred as a result of financing activities executed after December 31, 2025, except as otherwise noted.
As of December 31, 2024, the average age of our operating fl eet was 12 ye ars. We also lease airport terminal space and other airport facilities in each of our markets, as well as office space and other equipment.
We also lease airport terminal space and other airport facilities in each of our markets, as well as office space and other equipment. We have a lease agreement with the PANYNJ for terminal 5 through November 2042 with the option to terminate the agreement in 2033.
(1) Refer to our "Regulation G Reconciliation of Non-GAAP Financial Measures" at the end of this section for more information on this non-GAAP measure. 39 Table of Contents Best Coast East Leisure Network We are committed to refocusing our network to high-performing leisure, visiting-friends-and-relatives and transcontinental routes in core geographies like New York, New England, Florida, and Puerto Rico.
Best East Coast Leisure Network We are focused on high-performing leisure, visiting-friends-and-relatives and transcontinental routes in core geographies like New York, New England, Florida, and Puerto Rico. In 2025, we expanded our network by launching new service from Boston to two transatlantic locations, Madrid, Spain and Edinburgh, Scotland.
Financing activities during 2022 also included $37 million in financing fees, of which $35 million relate to the $3.5 billion Senior Secured Bridg e Facility to support the purchase of Spirit, and $6 million used for the acquisition of treasury stock, which represents the return of shares to satisfy tax payments associated with crewmember stock compensation that vested during the period. 46 Table of Contents Capital Resources Depending on market conditions, we may use a mix of cash and debt financing for aircraft scheduled for delivery in 2025.
Financing activities during 2025 also included the following payments: • $461 million on our outstanding debt and finance lease obligations; and • $8 million for the acquisition of treasury stock, which represents the return of shares to satisfy tax payments associated with crewmember stock compensation that vested during the period.
The Company is pursuing capital-light growth through extending the lives of certain A320 aircraft. Liquidity At December 31, 2024 , we had $ 3.9 billion in liquidity, which included unrestricted cash, cash equivalents, short-term investments, and long-term marketable securities. In addition, we had a $600 million Citibank line of credit.
Liquidity At December 31, 2025 , we had $ 2.5 billion in liquidity, which included unrestricted cash, cash equivalents, and investment securities. In addition, we had a $600 million Citibank line of credit. For the year ended December 31, 2025, we repaid $461 million on our outstanding debt and finance lease obligations.
Our working capital increased by $1.8 billion primarily due to an increase in cash and investment securities from raising $2.8 billion in proceeds from the TrueBlue ® Financings and raising $460 million in proceeds from the issuance of the 2.50% convertible senior notes.
Our working capital decreased by $1.5 billion primarily due to fewer investment securities and an increase in current maturities of long-term debt, partially offset by an increase in prepaid expenses and other. The increase in current maturities of long-term debt is due to the Company's 0.50% convertible senior notes, with a principal amount of $325 million, becoming current in 2025.

… 108 more changes not shown on this page.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

4 edited+0 added−0 removed4 unchanged
Biggest changeMarket risk is estimated as a hypothetical 10% increase in the December 31, 2024 cost per gallon of fuel. Based on projected 2025 fuel consumption, such an increase would result in an increase to aircraft fuel expense of $211 million in 2025. As of December 31, 2024, we did not have any outstanding fuel hedging contracts.
Biggest changeMarket risk is estimated as a hypothetical 10% increase in the December 31, 2025 cost per gallon of fuel. Based on projected 2026 fuel consumption, such an increase would result in an increase to aircraft fuel expense of $200 million in 2026. As of December 31, 2025, we did not have any outstanding fuel hedging contracts.
Interest Our earnings are affected by changes in interest rates due to the impact those changes have on interest expense from variable-rate debt instruments and on interest income generated from our cash and investment balances. The interest rate is fixed for $6.8 billion of our debt and finance lease obligations, with the remaining $1.7 billion having floating interest rates.
Interest Our earnings are affected by changes in interest rates due to the impact those changes have on interest expense from variable-rate debt instruments and on interest income generated from our cash and investment balances. The interest rate is fixed for $6.6 billion of our debt and finance lease obligations, with the remaining $1.9 billion having floating interest rates.
If interest rates were on average 100 basis points higher in 2025 than they were during 2024, our annual interest expense would increase by approximately $18 million. This amount is determined by considering the impact of the hypothetical change in interest rates on our variable rate debt.
If interest rates were on average 100 basis points higher in 2026 than they were during 2025, our annual interest expense would increase by approximately $19 million. This amount is determined by considering the impact of the hypothetical change in interest rates on our variable rate debt.
If interest rates were to average 100 basis points lower in 2025 than they were during 2024, our interest income from cash and investment balances would decrease by approximately $13 million.
If interest rates were to average 100 basis points lower in 2026 than they were during 2025, our interest income from cash and investment balances would increase by approximately $17 million.

Other JBLU 10-K year-over-year comparisons