þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware
(State or other jurisdiction of |
87-0617894
(I.R.S. Employer Identification No.) |
|
incorporation or organization) | ||
118-29 Queens Boulevard, Forest Hills, New York | 11375 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer þ | Accelerated filer o |
Non-accelerated filer o (Do not check if a smaller reporting company) |
Smaller reporting company o |
Page #s | ||||||||
PART I. |
FINANCIAL INFORMATION
|
|||||||
Item 1. |
Financial Statements
|
1 | ||||||
Condensed Consolidated Balance Sheets June 30, 2010 and December 31, 2009
|
1 | |||||||
Consolidated Statements of Operations Three and Six Months Ended June 30, 2010 and 2009
|
3 | |||||||
Condensed Consolidated Statements of Cash Flows Six Months Ended June 30, 2010 and 2009
|
4 | |||||||
Notes to Condensed Consolidated Financial Statements
|
5 | |||||||
Item 2. |
Managements Discussion and Analysis of Financial Condition and Results of Operations
|
16 | ||||||
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk
|
26 | ||||||
Item 4. |
Controls and Procedures
|
26 | ||||||
PART II. |
OTHER INFORMATION
|
|||||||
Item 1. |
Legal Proceedings
|
27 | ||||||
Item 1A. |
Risk Factors
|
27 | ||||||
Item 6. |
Exhibits
|
29 |
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
June 30,
December 31,
2010
2009
(unaudited)
(as adjusted,
Note 1)
$
477
$
896
513
240
95
81
9
13
265
308
1,359
1,538
4,244
4,170
155
139
4,399
4,309
608
540
3,791
3,769
500
515
164
169
336
346
554
549
38
26
516
523
4,643
4,638
169
6
61
64
358
311
588
381
$
6,590
$
6,557
June 30,
December 31,
2010
2009
(unaudited)
(as adjusted,
Note 1)
$
115
$
93
593
455
122
121
140
116
220
384
1,190
1,169
2,896
2,920
530
529
280
260
138
138
418
398
3
3
(4
)
(2
)
1,434
1,422
146
117
(23
)
1
1,556
1,541
$
6,590
$
6,557
Three Months Ended
Six Months Ended
June 30,
June 30,
2010
2009
2010
2009
(as adjusted,
Note 1)
(as adjusted,
Note 1)
$
850
$
721
$
1,635
$
1,427
89
86
174
173
939
807
1,809
1,600
279
236
533
458
218
192
437
377
58
54
112
104
54
56
111
111
31
32
62
64
43
38
83
75
41
34
80
71
121
89
255
191
845
731
1,673
1,451
94
76
136
149
(43
)
(49
)
(90
)
(98
)
1
2
2
4
(1
)
7
1
1
(43
)
(40
)
(87
)
(93
)
51
36
49
56
21
16
20
24
$
30
$
20
$
29
$
32
$
0.11
$
0.08
$
0.11
$
0.13
$
0.10
$
0.07
$
0.10
$
0.11
Six months ended
June 30,
2010
2009
(as adjusted,
Note 1)
$
29
$
32
19
24
96
90
20
24
8
8
(5
)
109
174
(55
)
15
(7
)
356
225
(131
)
(342
)
(20
)
(15
)
58
(8
)
(22
)
36
29
(722
)
761
(584
)
72
(4
)
(596
)
(296
)
5
116
66
446
20
13
9
25
(239
)
(77
)
(37
)
(120
)
(3
)
(13
)
(179
)
390
(419
)
319
896
561
$
477
$
880
Carrying
Estimated
Value
Fair Value
$
252
$
208
373
291
49
41
84
72
201
244
123
162
2
2
681
642
1,178
1,197
$
2,943
$
2,859
Three Months Ended
June 30,
2010
2009
$
30
$
20
(16
)
36
(16
)
36
$
14
$
56
Six Months Ended
June 30,
2010
2009
$
29
$
32
(24
)
65
(24
)
65
$
5
$
97
Aircraft Fuel
Interest Rate
Derivatives
Swaps
Total
$
2
$
(9
)
$
(7
)
2
2
4
(14
)
(6
)
(20
)
$
(10
)
$
(13
)
$
(23
)
Aircraft Fuel
Interest Rate
Derivatives
Swaps
Total
$
7
$
(6
)
$
1
1
3
4
(18
)
(10
)
(28
)
$
(10
)
$
(13
)
$
(23
)
Three Months Ended
Six Months Ended
June 30,
June 30,
2010
2009
2010
2009
$
30
$
20
$
29
$
32
3
2
6
3
$
33
$
22
$
35
$
35
275,229
251,770
274,644
248,102
2,603
2,887
2,506
2,775
68,605
68,605
68,605
68,605
346,437
323,262
345,755
319,482
10.2
10.2
22.5
23.2
25.8
24.8
Crude oil cap
Heating oil
Jet fuel swap
agreements
collars
agreements
Total
13
%
18
%
16
%
47
%
13
%
19
%
14
%
46
%
15
%
5
%
20
%
19
%
19
%
14
%
14
%
2
%
2
%
As of
June 30,
December 31,
2010
2009
$
22
$
17
As of
June 30,
December 31,
2010
2009
$
6
$
25
9
3
3
18
18
4,575
5,070
(15
)
12
22
10
(8
)
(8
)
Three Months Ended
Six Months Ended
June 30,
June 30,
2010
2009
2010
2009
$
(2
)
$
(42
)
$
$
(98
)
(2
)
(2
)
(21
)
6
(28
)
3
45
%
9
%
55
%
9
%
(7
)
10
(12
)
5
(1)
Gross liability, prior to impact of collateral posted
Level 1
quoted prices in active markets for identical assets or liabilities;
Level 2
quoted prices in active markets for similar assets and liabilities and inputs that
are observable for the asset or liability; or
Level 3
unobservable inputs, such as discounted cash flow models or valuations.
Level 1
Level 2
Level 3
Total
$
454
$
$
$
454
63
63
42
42
123
123
518
518
7
7
3
3
$
1,158
$
3
$
49
$
1,210
$
$
3
$
$
3
22
22
$
$
3
$
22
$
25
Auction Rate
Put Option
Interest Rate
Securities
related to ARS
Swaps
Total
$
63
$
9
$
(15
)
$
57
3
(3
)
(2
)
(2
)
(5
)
(5
)
(24
)
1
(23
)
$
42
$
7
$
(22
)
$
27
$
74
$
11
$
(10
)
$
75
4
(4
)
(4
)
(4
)
(8
)
(8
)
(36
)
(36
)
$
42
$
7
$
(22
)
$
27
June 30,
December 31,
2010
2009
$
$
109
33
36
90
5
123
150
297
22
45
35
124
16
517
22
42
74
$
682
$
246
Three Months Ended
June 30,
Percent
2010
2009
Change
(in cents)
3.21
2.86
12.2
%
2.51
2.33
7.5
%
.66
.65
1.5
%
.62
.69
(9.7
)%
.35
.39
(8.2
)%
.50
.47
6.9
%
.48
.41
16.7
%
1.39
1.08
28.6
%
9.72
8.88
9.5
%
Six Months Ended
June 30,
Percent
2010
2009
Change
(in cents)
3.11
2.83
10.1
%
2.55
2.33
9.4
%
.65
.64
2.0
%
.65
.69
(5.8
)%
.36
.39
(8.7
)%
.49
.47
4.9
%
.47
.44
7.2
%
1.49
1.18
26.5
%
9.77
8.97
9.0
%
Three Months Ended
Six Months Ended
June 30,
Percent
June 30,
Percent
2010
2009
Change
2010
2009
Change
6,114
5,691
7.4
11,642
10,982
6.0
7,126
6,545
8.9
13,596
12,585
8.0
8,688
8,237
5.5
17,112
16,179
5.8
82.0
%
79.5
%
2.5
pts.
79.5
%
77.8
%
1.7
pts.
11.8
11.9
(0.3
)
11.8
11.9
(1.0
)
$
139.02
$
126.74
9.7
$
140.43
$
129.94
8.1
11.93
11.02
8.2
12.02
11.34
6.0
9.78
8.76
11.7
9.55
8.82
8.3
10.81
9.80
10.4
10.57
9.89
6.9
9.72
8.88
9.5
9.77
8.97
9.0
6.51
6.02
8.2
6.66
6.13
8.6
9.55
8.66
10.3
9.58
8.74
9.6
56,202
54,885
2.4
110,569
107,899
2.5
1,102
1,067
3.3
1,102
1,066
3.4
151.0
147.4
2.5
151.0
144.9
4.2
$
2.30
$
2.05
12.3
$
2.25
$
2.04
10.0
121
115
5.4
237
224
5.8
10,906
10,235
6.6
(1)
Excludes operating expenses and employees of LiveTV, LLC, which are unrelated to our airline operations.
Payments due in
Total
2010
2011
2012
2013
2014
Thereafter
$
3,942
$
196
$
309
$
302
$
491
$
693
$
1,951
1,768
106
206
182
153
154
967
4,480
115
425
715
815
765
1,645
5,887
139
244
299
317
331
4,557
$
16,077
$
556
$
1,184
$
1,498
$
1,776
$
1,943
$
9,120
(1)
Includes actual interest and estimated interest for floating-rate debt based on June 30, 2010 rates.
(2)
Amounts include noncancelable commitments for the purchase of goods and services.
Firm
Option
Airbus
EMBRAER
Airbus
EMBRAER
Year
A320
190
Total
A320
190
Total
2
2
4
5
9
4
4
11
6
17
10
10
13
7
20
10
10
12
7
19
4
10
14
15
7
22
4
10
14
8
8
10
10
8
8
10
10
8
8
10
10
55
58
113
8
74
82
27
28
29
30
JETBLUE AIRWAYS CORPORATION
(Registrant)
Date: July 27, 2010
By:
/s/ DONALD DANIELS
Vice President, Controller and Chief Accounting Officer
(Principal Accounting Officer)
31
Exhibit
Number
Exhibit
Certificate of Amendment of Certificate of Incorporation, dated May 20, 2010
Amendment No. 9 to Purchase Agreement DCT-025/2003, dated as of May 24, 2010, between
Embraer Empresa Brasileira de Aeronautica S.A and JetBlue Airways Corporation.
Computation of Ratio of Earnings to Fixed Charges.
13a-14(a)/15d-14(a) Certification of the Chief Executive Officer, furnished herewith.
13a-14(a)/15d-14(a) Certification of the Chief Financial Officer, furnished herewith.
Certification Pursuant to Section 1350, furnished herewith.
XBRL Instance Document
XBRL Taxonomy Extension Schema Document
XBRL Taxonomy Extension Calculation Linkbase Document
XBRL Taxonomy Extension Labels Linkbase Document
XBRL Taxonomy Extension Presentation Linkbase Document
*
XBRL (eXtensible Business Reporting Language) information is furnished and not filed or a part of
a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of
1933, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, and
otherwise is not subject to liability under these sections.
**
Pursuant to 17 CFR 240.24b-2, confidential information has been omitted and has been filed
separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Request
filed with the
SEC.
By: | /s/ James G. Hnat | |||
Authorized Officer | ||||
Title: |
General Counsel, Executive Vice President
Corporate Affairs and Corporate Secretary |
|||
Name: | James G. Hnat |
[***] | Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended. |
Amendment No. 9 to Purchase Agreement DCT-025/2003 | Page 1 of 3 | |
COM0103-10 |
Embraer Empresa Brasileira | JetBlue Airways Corporation | |||||||||||||
de Aeronáutica S.A. | ||||||||||||||
|
||||||||||||||
By: | /s/ Pablo Cesar Souza e Silva | By: | /s/ Mark D. Powers | |||||||||||
|
Name: | Pablo Cesar Souza e Silva | Name: | Mark D. Powers | ||||||||||
|
Title: | Executive Vice-President | Title: | Senior Vice President and Treasurer | ||||||||||
|
Airline Market | |||||||||||||
|
||||||||||||||
By: | /s/ Eduardo Munhos de Campos | |||||||||||||
|
Name: | Eduardo Munhos de Campos | ||||||||||||
|
Title: | Vice-President Contracts | ||||||||||||
|
Airline Market | |||||||||||||
|
||||||||||||||
Date:
|
May 26 th , 2010 | Date: | 05/24/10 | |||||||||||
Place:
|
S. Jose Dos Campos, Brasil | Place: | Forest Hills, NY | |||||||||||
|
||||||||||||||
Witness:
|
/s/ Carlos Martins Dutra | Witness: | /s/ Laura Kong | |||||||||||
|
Name: | Carlos Martins Dutra | Name: | Laura Kong |
Amendment No. 9 to Purchase Agreement DCT-025/2003 | Page 2 of 3 | |
COM0103-10 |
[***] | Represents material which has been redacted and filed separately with the Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended. |
Attachment D2 to PA DCT-025/2003 | Page 3 of 3 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
|
||||||||||||||||
Earnings:
|
||||||||||||||||
Income (loss) before income taxes
|
$ | 51 | $ | 36 | $ | 49 | $ | 56 | ||||||||
Less: capitalized interest
|
(1 | ) | (2 | ) | (2 | ) | (4 | ) | ||||||||
Add:
|
||||||||||||||||
Fixed charges
|
69 | 76 | 141 | 152 | ||||||||||||
Amortization of capitalized interest
|
1 | 1 | 1 | 1 | ||||||||||||
|
||||||||||||||||
Adjusted earnings
|
$ | 120 | $ | 111 | $ | 189 | $ | 205 | ||||||||
|
||||||||||||||||
|
||||||||||||||||
Fixed charges:
|
||||||||||||||||
Interest expense
|
$ | 41 | $ | 47 | $ | 86 | $ | 94 | ||||||||
Amortization of debt costs
|
2 | 2 | 4 | 4 | ||||||||||||
Rent expense representative of interest
|
26 | 27 | 51 | 54 | ||||||||||||
|
||||||||||||||||
Total fixed charges
|
$ | 69 | $ | 76 | $ | 141 | $ | 152 | ||||||||
|
||||||||||||||||
|
||||||||||||||||
Ratio of earnings to fixed charges
|
1.74 | 1.46 | 1.34 | 1.35 | ||||||||||||
|
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
c) | evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |
d) | disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and | |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: July 27, 2010 | By: | /s/ DAVID BARGER | ||
Chief Executive Officer | ||||
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
c) | evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |
d) | disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and | |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: July 27, 2010 | By: | /s/ EDWARD BARNES | ||
Executive Vice President and Chief Financial Officer | ||||
Date: July 27, 2010 | By: | /s/ DAVID BARGER | ||
Chief Executive Officer | ||||
Date: July 27, 2010 | By: | /s/ EDWARD BARNES | ||
Executive Vice President and Chief Financial Officer | ||||