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þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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87-0617894
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(State of Other Jurisdiction of Incorporation)
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(I.R.S. Employer Identification No.)
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27-01 Queens Plaza North, Long Island City, New York
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11101
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
þ
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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(Do not check if a smaller reporting company)
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Page
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PART I. FINANCIAL INFORMATION
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PART II. OTHER INFORMATION
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JETBLUE AIRWAYS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in millions, except per share data)
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|||||||
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June 30, 2016
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December 31, 2015
|
||||
ASSETS
|
|
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||||
CURRENT ASSETS
|
|
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||||
Cash and cash equivalents
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$
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935
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$
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318
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Investment securities
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575
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558
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Receivables, less allowance (2016-$5; 2015-$6)
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153
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136
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Prepaid expenses and other
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415
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361
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Total current assets
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2,078
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1,373
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PROPERTY AND EQUIPMENT
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||||
Flight equipment
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7,334
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7,079
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Predelivery deposits for flight equipment
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172
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171
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Total flight equipment and predelivery deposits, gross
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7,506
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7,250
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Less accumulated depreciation
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1,700
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1,573
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Total flight equipment and predelivery deposits, net
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5,806
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5,677
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Other property and equipment
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916
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868
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Less accumulated depreciation
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319
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293
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Total other property and equipment, net
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597
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575
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Assets constructed for others
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561
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561
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Less accumulated depreciation
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173
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161
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Total assets constructed for others, net
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388
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|
400
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Total property and equipment
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6,791
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6,652
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OTHER ASSETS
|
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||||
Investment securities
|
30
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|
|
49
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|
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Restricted cash
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66
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63
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Other
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493
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507
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Total other assets
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589
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619
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TOTAL ASSETS
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$
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9,458
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$
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8,644
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||||
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JETBLUE AIRWAYS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in millions, except per share data)
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|||||||
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June 30, 2016
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December 31, 2015
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||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
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||||
CURRENT LIABILITIES
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|
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||||
Accounts payable
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$
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341
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$
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205
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Air traffic liability
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1,193
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1,053
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Accrued salaries, wages and benefits
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297
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302
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Other accrued liabilities
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336
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267
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Current maturities of long-term debt and capital leases
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446
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448
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Total current liabilities
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2,613
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2,275
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LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS
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1,300
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1,379
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CONSTRUCTION OBLIGATION
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465
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472
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DEFERRED TAXES AND OTHER LIABILITIES
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||||
Deferred income taxes
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1,341
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|
1,218
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Other
|
95
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|
|
90
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|
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Total deferred taxes and other liabilities
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1,436
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1,308
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STOCKHOLDERS’ EQUITY
|
|
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||||
Preferred stock, $0.01 par value; 25 shares authorized, none issued
|
—
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—
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Common stock, $0.01 par value; 900 shares authorized, 395 and 392 shares issued and 324 and 322 shares outstanding at June 30, 2016 and December 31, 2015, respectively
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4
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4
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Treasury stock, at cost; 71 and 70 shares at June 30, 2016 and December 31, 2015, respectively
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(380
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)
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(366
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)
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Additional paid-in capital
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1,946
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1,896
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Retained earnings
|
2,058
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1,679
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Accumulated other comprehensive income (loss)
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16
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(3
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)
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Total stockholders’ equity
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3,644
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3,210
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
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$
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9,458
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$
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8,644
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Three Months Ended June 30,
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Six Months Ended June 30,
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||||||||||||
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2016
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2015
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2016
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2015
|
||||||||
OPERATING REVENUES
|
|
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|
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||||||||
Passenger
|
$
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1,487
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|
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$
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1,496
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$
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2,965
|
|
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$
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2,904
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Other
|
156
|
|
|
116
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|
|
295
|
|
|
231
|
|
||||
Total operating revenues
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1,643
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|
|
1,612
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|
|
3,260
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|
|
3,135
|
|
||||
OPERATING EXPENSES
|
|
|
|
|
|
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|
||||||||
Aircraft fuel and related taxes
|
274
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|
|
371
|
|
|
489
|
|
|
706
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|
||||
Salaries, wages and benefits
|
415
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|
|
375
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|
|
850
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|
|
750
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|
||||
Landing fees and other rents
|
92
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|
|
90
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|
|
177
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|
|
173
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|
||||
Depreciation and amortization
|
96
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|
|
81
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|
|
188
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|
|
168
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|
||||
Aircraft rent
|
28
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|
|
31
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|
|
56
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|
|
62
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|
||||
Sales and marketing
|
72
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|
|
70
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|
|
137
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|
|
130
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|
||||
Maintenance materials and repairs
|
140
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|
|
126
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|
|
274
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|
|
239
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|
||||
Other operating expenses
|
213
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|
|
186
|
|
|
427
|
|
|
372
|
|
||||
Total operating expenses
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1,330
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|
|
1,330
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|
2,598
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|
|
2,600
|
|
||||
OPERATING INCOME
|
313
|
|
|
282
|
|
|
662
|
|
|
535
|
|
||||
OTHER INCOME (EXPENSE)
|
|
|
|
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|
||||||||
Interest expense
|
(28
|
)
|
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(32
|
)
|
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(57
|
)
|
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(66
|
)
|
||||
Capitalized interest
|
2
|
|
|
2
|
|
|
4
|
|
|
4
|
|
||||
Interest income and other
|
2
|
|
|
(2
|
)
|
|
3
|
|
|
(1
|
)
|
||||
Total other income (expense)
|
(24
|
)
|
|
(32
|
)
|
|
(50
|
)
|
|
(63
|
)
|
||||
INCOME BEFORE TAXES
|
289
|
|
|
250
|
|
|
612
|
|
|
472
|
|
||||
Income tax expense
|
109
|
|
|
98
|
|
|
232
|
|
|
183
|
|
||||
NET INCOME
|
$
|
180
|
|
|
$
|
152
|
|
|
$
|
380
|
|
|
$
|
289
|
|
|
|
|
|
|
|
|
|
||||||||
EARNINGS PER COMMON SHARE:
|
|
|
|
|
|
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|
||||||||
Basic
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$
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0.56
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$
|
0.48
|
|
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$
|
1.18
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|
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$
|
0.92
|
|
Diluted
|
$
|
0.53
|
|
|
$
|
0.44
|
|
|
$
|
1.11
|
|
|
$
|
0.84
|
|
|
Three Months Ended June 30,
|
||||||
|
2016
|
|
2015
|
||||
NET INCOME
|
$
|
180
|
|
|
$
|
152
|
|
Changes in fair value of derivative instruments, net of reclassifications into earnings (net of $12 and $17 of taxes in 2016 and 2015, respectively)
|
19
|
|
|
26
|
|
||
Total other comprehensive income
|
19
|
|
|
26
|
|
||
COMPREHENSIVE INCOME
|
$
|
199
|
|
|
$
|
178
|
|
|
Six Months Ended June 30,
|
||||||
|
2016
|
|
2015
|
||||
NET INCOME
|
$
|
380
|
|
|
$
|
289
|
|
Changes in fair value of derivative instruments, net of reclassifications into earnings (net of $12 and $25 of taxes in 2016 and 2015, respectively)
|
19
|
|
|
39
|
|
||
Total other comprehensive income
|
19
|
|
|
39
|
|
||
COMPREHENSIVE INCOME
|
$
|
399
|
|
|
$
|
328
|
|
JETBLUE AIRWAYS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
|
|||||||
|
Six Months Ended June 30,
|
||||||
|
2016
|
|
2015
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
||||
Net income
|
$
|
380
|
|
|
$
|
289
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Deferred income taxes
|
122
|
|
|
131
|
|
||
Depreciation
|
162
|
|
|
138
|
|
||
Amortization
|
26
|
|
|
30
|
|
||
Stock-based compensation
|
13
|
|
|
10
|
|
||
Gains on sale of assets and debt extinguishment
|
(4
|
)
|
|
(8
|
)
|
||
Collateral returned for derivative instruments
|
—
|
|
|
39
|
|
||
Changes in certain operating assets and liabilities
|
323
|
|
|
254
|
|
||
Other, net
|
(15
|
)
|
|
7
|
|
||
Net cash provided by operating activities
|
1,007
|
|
|
890
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
||||
Capital expenditures
|
(276
|
)
|
|
(372
|
)
|
||
Predelivery deposits for flight equipment
|
(41
|
)
|
|
(34
|
)
|
||
Purchase of held-to-maturity investments
|
(95
|
)
|
|
(267
|
)
|
||
Proceeds from the maturities of held-to-maturity investments
|
225
|
|
|
187
|
|
||
Purchase of available-for-sale securities
|
(330
|
)
|
|
(175
|
)
|
||
Proceeds from the sale of available-for-sale securities
|
200
|
|
|
130
|
|
||
Other, net
|
(2
|
)
|
|
1
|
|
||
Net cash used in investing activities
|
(319
|
)
|
|
(530
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
||||
Proceeds from issuance of common stock
|
25
|
|
|
57
|
|
||
Repayment of long-term debt and capital lease obligations
|
(87
|
)
|
|
(178
|
)
|
||
Acquisition of Treasury Stock
|
(14
|
)
|
|
(163
|
)
|
||
Other, net
|
5
|
|
|
5
|
|
||
Net cash used in financing activities
|
(71
|
)
|
|
(279
|
)
|
||
INCREASE IN CASH AND CASH EQUIVALENTS
|
617
|
|
|
81
|
|
||
Cash and cash equivalents at beginning of period
|
318
|
|
|
341
|
|
||
Cash and cash equivalents at end of period
|
$
|
935
|
|
|
$
|
422
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
Available-for-sale securities
|
|
|
|
||||
Time deposits
|
$
|
125
|
|
|
$
|
125
|
|
Commercial paper
|
13
|
|
|
55
|
|
||
Treasury bills
|
247
|
|
|
75
|
|
||
Total available-for-sale securities
|
385
|
|
|
255
|
|
||
Held-to-maturity securities
|
|
|
|
||||
Corporate bonds
|
$
|
95
|
|
|
$
|
322
|
|
Treasury notes
|
125
|
|
|
30
|
|
||
Total held-to-maturity securities
|
220
|
|
|
352
|
|
||
Total investment securities
|
$
|
605
|
|
|
$
|
607
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||||||||||
|
Carrying Value
|
|
Estimated Fair Value
|
|
Carrying Value
|
|
Estimated Fair Value
|
||||||||
Public Debt
|
|
|
|
|
|
|
|
||||||||
Floating rate enhanced equipment notes
|
|
|
|
|
|
|
|
||||||||
Class G-1, due 2016
|
$
|
13
|
|
|
$
|
13
|
|
|
$
|
16
|
|
|
$
|
16
|
|
Class G-2, due 2016
|
185
|
|
|
185
|
|
|
185
|
|
|
184
|
|
||||
Fixed rate special facility bonds, due through 2036
|
43
|
|
|
47
|
|
|
43
|
|
|
45
|
|
||||
6.75% convertible debentures due in 2039
|
86
|
|
|
274
|
|
|
86
|
|
|
405
|
|
||||
Non-Public Debt
|
|
|
|
|
|
|
|
||||||||
Fixed rate enhanced equipment notes, due through 2023
|
$
|
196
|
|
|
$
|
211
|
|
|
$
|
201
|
|
|
$
|
209
|
|
Floating rate equipment notes, due through 2025
|
183
|
|
|
185
|
|
|
193
|
|
|
195
|
|
||||
Fixed rate equipment notes, due through 2026
|
906
|
|
|
1,018
|
|
|
964
|
|
|
1,042
|
|
||||
Total
(1)
|
$
|
1,612
|
|
|
$
|
1,933
|
|
|
$
|
1,688
|
|
|
$
|
2,096
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net Income
|
$
|
180
|
|
|
$
|
152
|
|
|
$
|
380
|
|
|
$
|
289
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|
||||||||
Interest on convertible debt, net of income taxes and profit sharing
|
1
|
|
|
1
|
|
|
1
|
|
|
2
|
|
||||
Net income applicable to common stockholders after assumed conversions for diluted earnings per share
|
$
|
181
|
|
|
$
|
153
|
|
|
$
|
381
|
|
|
$
|
291
|
|
|
|
|
|
|
|
|
|
||||||||
Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding
|
323.2
|
|
|
316.9
|
|
|
322.4
|
|
|
313.6
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
||||||||
Employee stock options, restricted stock units and stock purchase plan
|
1.7
|
|
|
2.7
|
|
|
2.0
|
|
|
3.0
|
|
||||
Convertible debt
|
17.7
|
|
|
28.0
|
|
|
17.7
|
|
|
30.4
|
|
||||
Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share
|
342.6
|
|
|
347.6
|
|
|
342.1
|
|
|
347.0
|
|
|
Jet fuel swap
agreements |
|
Jet fuel collar agreements
|
|
Heating oil collar agreements
|
|
Total
|
||||
Third Quarter 2016
|
24
|
%
|
|
—
|
%
|
|
—
|
%
|
|
24
|
%
|
Fourth Quarter 2016
|
26
|
%
|
|
—
|
%
|
|
—
|
%
|
|
26
|
%
|
First Quarter 2017
|
11
|
%
|
|
—
|
%
|
|
—
|
%
|
|
11
|
%
|
Second Quarter 2017
|
10
|
%
|
|
—
|
%
|
|
—
|
%
|
|
10
|
%
|
Third Quarter 2017
|
9
|
%
|
|
—
|
%
|
|
—
|
%
|
|
9
|
%
|
Fourth Quarter 2017
|
10
|
%
|
|
—
|
%
|
|
—
|
%
|
|
10
|
%
|
Fuel derivatives
|
June 30,
2016 |
|
December 31,
2015 |
||||
Asset fair value recorded in prepaid expense and other
(1)
|
$
|
21
|
|
|
$
|
—
|
|
Asset fair value recorded in other long term assets
(1)
|
$
|
6
|
|
|
$
|
—
|
|
Liability fair value recorded in other accrued liabilities
(1)
|
$
|
—
|
|
|
$
|
5
|
|
Longest remaining term (months)
|
18
|
|
|
12
|
|
||
Hedged volume (barrels, in thousands)
|
4,170
|
|
|
900
|
|
||
Estimated amount of existing gains expected to be reclassified into earnings in the next 12 months
|
$
|
26
|
|
|
$
|
4
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
Fuel derivatives
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Hedge effectiveness losses recognized in aircraft fuel expense
|
$
|
—
|
|
|
$
|
(31
|
)
|
|
$
|
—
|
|
|
$
|
(66
|
)
|
Gains on derivatives not qualifying for hedge accounting recognized in other expense
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Hedge gains (losses) on derivatives recognized in comprehensive income
|
31
|
|
|
12
|
|
|
31
|
|
|
(2
|
)
|
||||
Percentage of actual consumption economically hedged
|
—
|
%
|
|
20
|
%
|
|
—
|
%
|
|
20
|
%
|
|
Gross Amount of Recognized
|
|
Gross Amount of Cash Collateral
|
|
Net Amount Presented on Balance Sheet
|
||||||||||||||
Fuel derivatives
|
Assets
|
|
Liabilities
|
|
Offset
|
|
Assets
|
|
Liabilities
|
||||||||||
As of June 30, 2016
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
27
|
|
|
$
|
—
|
|
As of December 31, 2015
|
—
|
|
|
5
|
|
|
—
|
|
|
$
|
—
|
|
|
5
|
|
|
June 30, 2016
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
784
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
784
|
|
Available-for-sale investment securities
|
247
|
|
|
138
|
|
|
—
|
|
|
385
|
|
||||
Aircraft fuel derivatives
|
—
|
|
|
27
|
|
|
—
|
|
|
27
|
|
||||
|
$
|
1,031
|
|
|
$
|
165
|
|
|
$
|
—
|
|
|
$
|
1,196
|
|
|
December 31, 2015
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
147
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
147
|
|
Available-for-sale investment securities
|
75
|
|
|
180
|
|
|
—
|
|
|
255
|
|
||||
|
$
|
222
|
|
|
$
|
180
|
|
|
$
|
—
|
|
|
$
|
402
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Aircraft fuel derivatives
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
Aircraft Fuel Derivatives
(1)
|
|
Interest Rate Swaps
(2)
|
|
Total
|
||||||
Balance of accumulated gains (losses) at March 31, 2016
|
$
|
(4
|
)
|
|
$
|
1
|
|
|
$
|
(3
|
)
|
Change in fair value (net of $12 of taxes)
|
19
|
|
|
—
|
|
|
19
|
|
|||
Balance of accumulated gains at June 30, 2016
|
$
|
15
|
|
|
$
|
1
|
|
|
$
|
16
|
|
|
|
|
|
|
|
||||||
Balance of accumulated losses at March 31, 2015
|
$
|
(50
|
)
|
|
$
|
—
|
|
|
$
|
(50
|
)
|
Reclassifications into earnings (net of $13 of taxes)
|
18
|
|
|
—
|
|
|
18
|
|
|||
Change in fair value (net of $4 of taxes)
|
8
|
|
|
—
|
|
|
8
|
|
|||
Balance of accumulated losses at June 30, 2015
|
$
|
(24
|
)
|
|
$
|
—
|
|
|
$
|
(24
|
)
|
|
Aircraft Fuel Derivatives
(1)
|
|
Interest Rate Swaps
(2)
|
|
Total
|
||||||
Balance of accumulated (losses) gains at December 31, 2015
|
$
|
(4
|
)
|
|
$
|
1
|
|
|
$
|
(3
|
)
|
Change in fair value (net of $12 of taxes)
|
19
|
|
|
—
|
|
|
19
|
|
|||
Balance of accumulated gains at June 30, 2016
|
$
|
15
|
|
|
$
|
1
|
|
|
$
|
16
|
|
|
|
|
|
|
|
||||||
Balance of accumulated losses at December 31, 2014
|
$
|
(63
|
)
|
|
$
|
—
|
|
|
$
|
(63
|
)
|
Reclassifications into earnings (net of $26 of taxes)
|
40
|
|
|
—
|
|
|
40
|
|
|||
Change in fair value (net of $(1) of taxes)
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Balance of accumulated losses at June 30, 2015
|
$
|
(24
|
)
|
|
$
|
—
|
|
|
$
|
(24
|
)
|
•
|
We had a
$31 million
increase
in operating revenue compared to the
second quarter
of
2015
due primarily to an
11.1%
increase
in capacity, partially offset by a
9.9%
decrease
in yield per passenger mile.
|
•
|
We generated
$1,007 million
in cash from operations for the
six months ended June 30, 2016
.
|
•
|
Our operating margin
increase
d by
1.6
points to
19.1%
.
|
•
|
Operating expense per available seat mile
decrease
d by
9.9%
to
9.78 cent
s, primarily due to a significant decline in aircraft fuel expenses and an increase in available seat miles. Excluding fuel, profit sharing and related taxes, our cost per available seat mile
(1)
decrease
d by
1.0%
.
|
•
|
Operating income reached
$313 million
, an
increase
of
$31 million
over the comparable period in 2015. This increase was principally driven by a reduction in aircraft fuel expenses and higher revenue, partially offset by increases in most other expense categories.
|
(Revenues in millions; percent changes based on unrounded numbers)
|
Three months ended June 30,
|
|
Year-over-Year Change
|
||||||||||||
2016
|
|
2015
|
|
$
|
|
%
|
|||||||||
Passenger revenue
|
$
|
1,487
|
|
|
$
|
1,496
|
|
|
$
|
(9
|
)
|
|
(0.6
|
)
|
|
Other revenue
|
156
|
|
|
116
|
|
|
40
|
|
|
35.2
|
|
|
|||
Total operating revenues
|
$
|
1,643
|
|
|
$
|
1,612
|
|
|
$
|
31
|
|
|
2.0
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Average Fare
|
$
|
153.94
|
|
|
$
|
168.85
|
|
|
$
|
(14.91
|
)
|
|
(8.8
|
)
|
|
Yield per passenger mile (cents)
|
12.87
|
|
|
14.28
|
|
|
(1.41
|
)
|
|
(9.9
|
)
|
|
|||
Passenger revenue per ASM (cents)
|
10.94
|
|
|
12.22
|
|
|
(1.28
|
)
|
|
(10.5
|
)
|
|
|||
Operating revenue per ASM (cents)
|
12.09
|
|
|
13.17
|
|
|
(1.08
|
)
|
|
(8.2
|
)
|
|
|||
Average stage length (miles)
|
1,097
|
|
|
1,085
|
|
|
12
|
|
|
1.1
|
|
|
|||
Revenue passengers (thousands)
|
9,660
|
|
|
8,858
|
|
|
802
|
|
|
9.1
|
|
|
|||
Revenue passenger miles (millions)
|
11,553
|
|
|
10,472
|
|
|
1,081
|
|
|
10.3
|
|
|
|||
Available Seat Miles (ASMs) (millions)
|
13,597
|
|
|
12,237
|
|
|
1,360
|
|
|
11.1
|
|
|
|||
Load Factor
|
85.0
|
%
|
|
85.6
|
%
|
|
|
|
(0.6
|
)
|
pts.
|
(in millions; per ASM data in cents; percent changes based on unrounded numbers)
|
Three Months Ended June 30,
|
|
Year-over-Year Change
|
|
Cents per ASM
|
||||||||||||||||||
2016
|
|
2015
|
|
$
|
|
%
|
|
2016
|
|
2015
|
|
% Change
|
|||||||||||
Aircraft fuel and related taxes
|
$
|
274
|
|
|
$
|
371
|
|
|
$
|
(97
|
)
|
|
(26.1
|
)%
|
|
2.02
|
|
|
3.03
|
|
|
(33.5
|
)%
|
Salaries, wages and benefits
|
415
|
|
|
375
|
|
|
40
|
|
|
10.6
|
|
|
3.05
|
|
|
3.06
|
|
|
(0.5
|
)
|
|||
Landing fees and other rents
|
92
|
|
|
90
|
|
|
2
|
|
|
3.2
|
|
|
0.67
|
|
|
0.74
|
|
|
(7.2
|
)
|
|||
Depreciation and amortization
|
96
|
|
|
81
|
|
|
15
|
|
|
18.2
|
|
|
0.71
|
|
|
0.66
|
|
|
6.4
|
|
|||
Aircraft rent
|
28
|
|
|
31
|
|
|
(3
|
)
|
|
(9.5
|
)
|
|
0.20
|
|
|
0.25
|
|
|
(18.6
|
)
|
|||
Sales and marketing
|
72
|
|
|
70
|
|
|
2
|
|
|
3.7
|
|
|
0.53
|
|
|
0.57
|
|
|
(6.7
|
)
|
|||
Maintenance materials and repairs
|
140
|
|
|
126
|
|
|
14
|
|
|
10.9
|
|
|
1.03
|
|
|
1.03
|
|
|
(0.1
|
)
|
|||
Other operating expenses
|
213
|
|
|
186
|
|
|
27
|
|
|
14.7
|
|
|
1.57
|
|
|
1.52
|
|
|
3.2
|
|
|||
Total operating expenses
|
$
|
1,330
|
|
|
$
|
1,330
|
|
|
$
|
—
|
|
|
0.1
|
%
|
|
9.78
|
|
|
10.86
|
|
|
(9.9
|
)%
|
(Revenues in millions; percent changes based on unrounded numbers)
|
Six Months Ended June 30,
|
|
Year-over-Year Change
|
||||||||||||
2016
|
|
2015
|
|
$
|
|
%
|
|||||||||
Passenger revenue
|
$
|
2,965
|
|
|
$
|
2,904
|
|
|
$
|
61
|
|
|
2.1
|
|
|
Other revenue
|
295
|
|
|
231
|
|
|
64
|
|
|
27.6
|
|
|
|||
Total operating revenues
|
$
|
3,260
|
|
|
$
|
3,135
|
|
|
$
|
125
|
|
|
4.0
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Average Fare
|
$
|
157.88
|
|
|
$
|
171.29
|
|
|
$
|
(13.41
|
)
|
|
(7.8
|
)
|
|
Yield per passenger mile (cents)
|
13.16
|
|
|
14.45
|
|
|
(1.29
|
)
|
|
(8.9
|
)
|
|
|||
Passenger revenue per ASM (cents)
|
11.13
|
|
|
12.28
|
|
|
(1.15
|
)
|
|
(9.3
|
)
|
|
|||
Operating revenue per ASM (cents)
|
12.24
|
|
|
13.25
|
|
|
(1.01
|
)
|
|
(7.6
|
)
|
|
|||
Average stage length (miles)
|
1,103
|
|
|
1,091
|
|
|
12
|
|
|
1.1
|
|
|
|||
Revenue passengers (thousands)
|
18,778
|
|
|
16,953
|
|
|
1,825
|
|
|
10.8
|
|
|
|||
Revenue passenger miles (millions)
|
22,529
|
|
|
20,093
|
|
|
2,436
|
|
|
12.1
|
|
|
|||
Available Seat Miles (ASMs) (millions)
|
26,626
|
|
|
23,656
|
|
|
2,970
|
|
|
12.6
|
|
|
|||
Load Factor
|
84.6
|
%
|
|
84.9
|
%
|
|
|
|
(0.3
|
)
|
pts.
|
(in millions; per ASM data in cents; percent changes based on unrounded numbers)
|
Six Months Ended June 30,
|
|
Year-over-Year Change
|
|
Cents per ASM
|
||||||||||||||||||
2016
|
|
2015
|
|
$
|
|
%
|
|
2016
|
|
2015
|
|
% Change
|
|||||||||||
Aircraft fuel and related taxes
|
$
|
489
|
|
|
$
|
706
|
|
|
$
|
(217
|
)
|
|
(30.7
|
)%
|
|
1.84
|
|
|
2.99
|
|
|
(38.5
|
)%
|
Salaries, wages and benefits
|
850
|
|
|
750
|
|
|
100
|
|
|
13.3
|
|
|
3.19
|
|
|
3.17
|
|
|
0.7
|
|
|||
Landing fees and other rents
|
177
|
|
|
173
|
|
|
4
|
|
|
2.6
|
|
|
0.67
|
|
|
0.73
|
|
|
(8.9
|
)
|
|||
Depreciation and amortization
|
188
|
|
|
168
|
|
|
20
|
|
|
11.2
|
|
|
0.71
|
|
|
0.71
|
|
|
(1.2
|
)
|
|||
Aircraft rent
|
56
|
|
|
62
|
|
|
(6
|
)
|
|
(9.8
|
)
|
|
0.21
|
|
|
0.26
|
|
|
(19.8
|
)
|
|||
Sales and marketing
|
137
|
|
|
130
|
|
|
7
|
|
|
5.0
|
|
|
0.51
|
|
|
0.55
|
|
|
(6.7
|
)
|
|||
Maintenance materials and repairs
|
274
|
|
|
239
|
|
|
35
|
|
|
14.6
|
|
|
1.03
|
|
|
1.01
|
|
|
1.9
|
|
|||
Other operating expenses
|
427
|
|
|
372
|
|
|
55
|
|
|
15.2
|
|
|
1.60
|
|
|
1.57
|
|
|
2.3
|
|
|||
Total operating expenses
|
$
|
2,598
|
|
|
$
|
2,600
|
|
|
$
|
(2
|
)
|
|
(0.1
|
)%
|
|
9.76
|
|
|
10.99
|
|
|
(11.2
|
)%
|
|
Three Months Ended June 30,
|
|
Year-over-Year Change
|
|
Six Months Ended June 30,
|
|
Year-over-Year Change
|
|
|||||||||||||||
(percent changes based on unrounded numbers)
|
2016
|
|
2015
|
|
%
|
|
2016
|
|
2015
|
|
%
|
|
|||||||||||
Operational Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue passengers (thousands)
|
9,660
|
|
|
8,858
|
|
|
9.1
|
|
|
|
18,778
|
|
|
16,953
|
|
|
10.8
|
|
|
||||
Revenue passenger miles (RPMs) (millions)
|
11,553
|
|
|
10,472
|
|
|
10.3
|
|
|
|
22,529
|
|
|
20,093
|
|
|
12.1
|
|
|
||||
Available seat miles (ASMs) (millions)
|
13,597
|
|
|
12,237
|
|
|
11.1
|
|
|
|
26,626
|
|
|
23,656
|
|
|
12.6
|
|
|
||||
Load factor
|
85.0
|
%
|
|
85.6
|
%
|
|
(0.6
|
)
|
pts
|
|
84.6
|
%
|
|
84.9
|
%
|
|
(0.3
|
)
|
pts
|
||||
Aircraft utilization (hours per day)
|
12.3
|
|
|
12.0
|
|
|
2.5
|
|
|
|
12.2
|
|
|
11.8
|
|
|
3.4
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average fare
|
$
|
153.94
|
|
|
$
|
168.85
|
|
|
(8.8
|
)
|
|
|
$
|
157.88
|
|
|
$
|
171.29
|
|
|
(7.8
|
)
|
|
Yield per passenger mile (cents)
|
12.87
|
|
|
14.28
|
|
|
(9.9
|
)
|
|
|
13.16
|
|
|
14.45
|
|
|
(8.9
|
)
|
|
||||
Passenger revenue per ASM (cents)
|
10.94
|
|
|
12.22
|
|
|
(10.5
|
)
|
|
|
11.13
|
|
|
12.28
|
|
|
(9.3
|
)
|
|
||||
Operating revenue per ASM (cents)
|
12.09
|
|
|
13.17
|
|
|
(8.2
|
)
|
|
|
12.24
|
|
|
13.25
|
|
|
(7.6
|
)
|
|
||||
Operating expense per ASM (cents)
|
9.78
|
|
|
10.86
|
|
|
(9.9
|
)
|
|
|
9.76
|
|
|
10.99
|
|
|
(11.2
|
)
|
|
||||
Operating expense per ASM, excluding fuel and related taxes (cents)
|
7.76
|
|
|
7.83
|
|
|
(0.8
|
)
|
|
|
7.92
|
|
|
8.00
|
|
|
(1.1
|
)
|
|
||||
Operating expense per ASM, excluding fuel, profit sharing and related taxes (cents)
(1)
|
7.48
|
|
|
7.56
|
|
|
(1.0
|
)
|
|
|
7.57
|
|
|
7.75
|
|
|
(2.3
|
)
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Departures
|
85,285
|
|
|
79,558
|
|
|
7.2
|
|
|
|
166,524
|
|
|
153,381
|
|
|
8.6
|
|
|
||||
Average stage length (miles)
|
1,097
|
|
|
1,085
|
|
|
1.1
|
|
|
|
1,103
|
|
|
1,091
|
|
|
1.1
|
|
|
||||
Average number of operating aircraft during period
|
218.2
|
|
|
206.0
|
|
|
5.9
|
|
|
|
216.8
|
|
|
205.0
|
|
|
5.8
|
|
|
||||
Average fuel cost per gallon, including fuel taxes
|
$
|
1.43
|
|
|
$
|
2.13
|
|
|
(32.8
|
)
|
|
|
$
|
1.31
|
|
|
$
|
2.10
|
|
|
(37.8
|
)
|
|
Fuel gallons consumed (millions)
|
191
|
|
|
174
|
|
|
9.9
|
|
|
|
374
|
|
|
337
|
|
|
11.3
|
|
|
||||
Average number of full-time equivalent crewmembers
|
|
|
|
|
|
|
|
15,297
|
|
|
14,223
|
|
|
7.6
|
|
|
|
Payments due in
|
||||||||||||||||||||||||||
|
Total
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
Thereafter
|
||||||||||||||
Debt and capital lease obligations
(1)
|
$
|
2,036
|
|
|
$
|
400
|
|
|
$
|
245
|
|
|
$
|
242
|
|
|
$
|
254
|
|
|
$
|
208
|
|
|
$
|
687
|
|
Lease commitments
|
1,237
|
|
|
85
|
|
|
157
|
|
|
149
|
|
|
124
|
|
|
110
|
|
|
612
|
|
|||||||
Flight equipment purchase obligations
|
6,722
|
|
|
402
|
|
|
807
|
|
|
675
|
|
|
1,038
|
|
|
1,366
|
|
|
2,434
|
|
|||||||
Other obligations
(2)
|
3,572
|
|
|
611
|
|
|
572
|
|
|
603
|
|
|
573
|
|
|
388
|
|
|
825
|
|
|||||||
Total
|
$
|
13,567
|
|
|
$
|
1,498
|
|
|
$
|
1,781
|
|
|
$
|
1,669
|
|
|
$
|
1,989
|
|
|
$
|
2,072
|
|
|
$
|
4,558
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JETBLUE AIRWAYS CORPORATION
|
||||
|
|
|
|
(Registrant)
|
||||
|
|
|
|
|||||
Date:
|
|
July 29, 2016
|
|
|
|
By:
|
|
/s/ Alexander Chatkewitz
|
|
|
|
|
|
|
|
|
Vice President, Controller, and Chief Accounting Officer (Principal Accounting Officer)
|
Exhibit Number
|
|
Exhibit
|
3.1
|
|
Amended and Restated Certificate of Incorporation, as amended and restated as of May 20, 2016—incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed with the SEC dated May 20, 2016.
|
10.1
(1)
|
|
Letter of Agreement dated as of April 11, 2016 between Airbus S.A.S. and JetBlue Airways Corporation
|
12.1
|
|
Computation of Ratio of Earnings to Fixed Charges
|
31.1
|
|
Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer
|
31.2
|
|
Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer
|
32
|
|
Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, furnished herewith
|
101.INS
|
|
XBRL Instance Document
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
|
XBRL Taxonomy Extension Labels Linkbase Document
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
(1)
|
|
In accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended, portions of this agreement were omitted and a complete copy of this agreement has been provided to the Securities and Exchange Commission pursuant to the Company's Confidential Treatment Request.
|
|
FROM
Christophe Mourey
Senior Vice-President Contracts
DATE
April 11
th
2016
FAX
+33 (0)5 61 93 47 27
OUR REFERENCE
160411 JBU Config Letter 2
COPY
Gary Brooks
Rob Luken
Elaine Reich
Michael Edwards
|
TO
JetBlue Airways Corporation
27-01 Queens Plaza North
Long Island City, NY 11101
Attention
: Mark D. Powers
EVP Chief Financial Officer
Telefax: +1 718 709 3639
Copy
:
Ursula Hurley
Dora Habachy
|
Airbus SAS
Société par actions simplifiée
au capital de 2.704.375 Euros
RCS Toulouse 383 474 814
|
Registered office:
1, rond-point Maurice Bellonte
31700 Blagnac, France
|
|
Airbus SAS
Société par actions simplifiée
au capital de 2.704.375 Euros
RCS Toulouse 383 474 814
|
Registered office:
1, rond-point Maurice Bellonte
31700 Blagnac, France
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Earnings:
|
|
|
|
|
|
|
|
||||||||
Income before income taxes
|
$
|
289
|
|
|
$
|
250
|
|
|
$
|
612
|
|
|
$
|
472
|
|
Less: Capitalized interest
|
(2
|
)
|
|
(2
|
)
|
|
(4
|
)
|
|
(4
|
)
|
||||
Add:
|
|
|
|
|
|
|
|
||||||||
Fixed charges
|
54
|
|
|
57
|
|
|
108
|
|
|
114
|
|
||||
Amortization of capitalized interest
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
||||
Adjusted earnings
|
$
|
342
|
|
|
$
|
306
|
|
|
$
|
718
|
|
|
$
|
584
|
|
Fixed charges:
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
$
|
27
|
|
|
$
|
31
|
|
|
$
|
55
|
|
|
$
|
64
|
|
Amortization of debt costs
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
||||
Rent expense representative of interest
|
27
|
|
|
25
|
|
|
51
|
|
|
48
|
|
||||
Total fixed charges
|
$
|
55
|
|
|
$
|
57
|
|
|
$
|
108
|
|
|
$
|
114
|
|
Ratio of earnings to fixed charges
(1)
|
6.27
|
|
|
5.37
|
|
|
6.65
|
|
|
5.12
|
|
||||
|
|
|
|
|
|
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of JetBlue Airways Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
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 registrant’s 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 registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
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 registrant’s 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 registrant’s internal control over financial reporting.
|
Date:
|
July 29, 2016
|
By:
|
/s/ ROBIN HAYES
|
|
|
|
|
Chief Executive Officer
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of JetBlue Airways Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
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 registrant’s 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 registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
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 registrant’s 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 registrant’s internal control over financial reporting.
|
Date:
|
July 29, 2016
|
|
By:
|
/s/ MARK D. POWERS
|
|
|
|
|
|
Chief Financial Officer
|
|
Date:
|
July 29, 2016
|
|
By:
|
/s/ ROBIN HAYES
|
|
|
|
|
|
Chief Executive Officer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date:
|
July 29, 2016
|
|
By:
|
/s/ MARK D. POWERS
|
|
|
|
|
|
Chief Financial Officer
|
|
|
|
|
|
|
|