|
ý
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
(State or other jurisdiction of incorporation or organization)
|
87-0617894
(I.R.S. Employer Identification No.)
|
Title of each class
|
|
Name of each exchange on which registered
|
Common Stock, $0.01 par value
|
|
The NASDAQ Global Select Market
|
Large accelerated filer
þ
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Accelerated filer
o
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Non-accelerated filer
o
(Do not check if a smaller reporting company)
|
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Smaller reporting company
o
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Emerging growth company
o
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Table of Contents
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PART I.
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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PART II.
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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PART III.
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Item 10.
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Item 11.
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Item 12.
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||
Item 13.
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Item 14.
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PART IV.
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Item 15.
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Item 16.
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Capacity Distribution
|
|
2018
|
|
2017
|
|
2016
|
|||
Transcontinental
|
|
31.3
|
%
|
|
28.6
|
%
|
|
28.8
|
%
|
Caribbean & Latin America
(1)
|
|
28.7
|
|
|
28.3
|
|
|
30.1
|
|
Florida
|
|
27.3
|
|
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30.1
|
|
|
29.1
|
|
East
|
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6.5
|
|
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6.4
|
|
|
5.4
|
|
Central
|
|
4.0
|
|
|
3.8
|
|
|
4.1
|
|
West
|
|
2.2
|
|
|
2.8
|
|
|
2.5
|
|
Total
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Destination
|
|
Service Scheduled to Commence
|
Guayaquil, Ecuador
|
|
February 28, 2019
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Gallons consumed (millions)
|
|
849
|
|
|
792
|
|
|
760
|
|
|||
Total cost (millions)
(1)
|
|
$
|
1,899
|
|
|
$
|
1,363
|
|
|
$
|
1,074
|
|
Average price per gallon
(1)
|
|
$
|
2.24
|
|
|
$
|
1.72
|
|
|
$
|
1.41
|
|
Percent of operating expenses
|
|
25.8
|
%
|
|
22.6
|
%
|
|
20.2
|
%
|
Crewmember Group
|
|
Representative
|
|
Crewmembers
(1)
|
|
Amendable Date
(2)
|
Pilots
|
|
Air Line Pilots Association (ALPA)
|
|
3,409
|
|
August 1, 2022
|
Inflight
|
|
Transport Workers Union (TWU)
|
|
4,480
|
|
In negotiations
|
Aircraft
|
|
Seating Capacity
|
|
Owned
|
|
Capital Leased
|
|
Operating Leased
|
|
Total
|
|
Average Age in Years
|
|||||||
Airbus A320
|
|
162/ 150
|
|
(1) (2)
|
|
115
|
|
|
4
|
|
|
11
|
|
|
130
|
|
|
13.3
|
|
Airbus A321
|
|
200 / 159
|
|
(1) (3)
|
|
60
|
|
|
2
|
|
|
1
|
|
|
63
|
|
|
2.5
|
|
Embraer E190
|
|
100
|
|
|
|
30
|
|
|
—
|
|
|
30
|
|
|
60
|
|
|
10.2
|
|
|
|
|
|
|
205
|
|
|
6
|
|
|
42
|
|
|
253
|
|
|
9.8
|
|
Year
|
|
Airbus A321neo
|
|
Airbus A220
|
|
Total
|
2019
|
|
13
|
|
—
|
|
13
|
2020
|
|
15
|
|
1
|
|
16
|
2021
|
|
16
|
|
6
|
|
22
|
2022
|
|
15
|
|
8
|
|
23
|
2023
|
|
14
|
|
19
|
|
33
|
2024
|
|
12
|
|
22
|
|
34
|
2025
|
|
—
|
|
4
|
|
4
|
Total
|
|
85
|
|
60
|
|
145
|
Period
|
|
Total Number of Shares Purchased
|
|
Average Price Paid Per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans
|
|
Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs
|
||||
March 2018
|
|
5.8
|
|
|
(1)
|
|
5.8
|
|
|
$
|
625
|
|
May 2018
|
|
5.3
|
|
|
(2)
|
|
5.3
|
|
|
500
|
|
|
July 2018
|
|
1.3
|
|
|
(2)
|
|
1.3
|
|
|
500
|
|
|
August 2018
|
|
5.7
|
|
|
(3)
|
|
5.7
|
|
|
375
|
|
|
September 2018
|
|
1.0
|
|
|
(3)
|
|
1.0
|
|
|
375
|
|
|
TOTAL
|
|
19.1
|
|
|
|
|
19.1
|
|
|
|
|
|
12/31/2014
|
|
12/31/2015
|
|
12/31/2016
|
|
12/31/2017
|
|
12/31/2018
|
||||||||||
JetBlue Airways Corporation
|
|
$
|
100
|
|
|
$
|
143
|
|
|
$
|
141
|
|
|
$
|
141
|
|
|
$
|
101
|
|
S&P 500 Stock Index
|
|
100
|
|
|
99
|
|
|
109
|
|
|
130
|
|
|
122
|
|
|||||
NYSE Arca Airline Index
|
|
100
|
|
|
83
|
|
|
106
|
|
|
112
|
|
|
87
|
|
(in millions)
|
|
2018
|
|
2017
|
|
2016
|
|
2015
(1)
|
|
2014
(1)
|
||||||||||
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
474
|
|
|
$
|
303
|
|
|
$
|
433
|
|
|
$
|
318
|
|
|
$
|
341
|
|
Investment securities
|
|
416
|
|
|
392
|
|
|
628
|
|
|
607
|
|
|
427
|
|
|||||
Total assets
|
|
10,426
|
|
|
9,781
|
|
|
9,323
|
|
|
8,499
|
|
|
7,643
|
|
|||||
Total long-term debt and capital leases
|
|
1,670
|
|
|
1,199
|
|
|
1,384
|
|
|
1,827
|
|
|
2,211
|
|
|||||
Common stockholders’ equity
|
|
4,611
|
|
|
4,732
|
|
|
3,933
|
|
|
3,210
|
|
|
2,529
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
(1)
|
|
2014
(1)
|
||||||||||
Operating Statistics:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue passengers (thousands)
|
|
42,150
|
|
|
40,038
|
|
|
38,263
|
|
|
35,101
|
|
|
32,078
|
|
|||||
Revenue passenger miles (millions)
|
|
50,790
|
|
|
47,240
|
|
|
45,619
|
|
|
41,711
|
|
|
37,813
|
|
|||||
Available seat miles (ASMs) (millions)
|
|
59,881
|
|
|
56,007
|
|
|
53,620
|
|
|
49,258
|
|
|
44,994
|
|
|||||
Load factor
|
|
84.8
|
%
|
|
84.3
|
%
|
|
85.1
|
%
|
|
84.7
|
%
|
|
84.0
|
%
|
|||||
Aircraft utilization (hours per day)
|
|
11.8
|
|
|
11.7
|
|
|
12.0
|
|
|
11.9
|
|
|
11.8
|
|
|||||
Average fare
|
|
$
|
175.11
|
|
|
$
|
168.88
|
|
|
$
|
166.74
|
|
|
$
|
167.89
|
|
|
$
|
166.57
|
|
Yield per passenger mile (cents)
|
|
14.53
|
|
|
14.31
|
|
|
13.99
|
|
|
14.13
|
|
|
14.13
|
|
|||||
Passenger revenue per ASM (cents)
|
|
12.33
|
|
|
12.07
|
|
|
11.90
|
|
|
11.96
|
|
|
11.88
|
|
|||||
Operating revenue per ASM (cents)
|
|
12.79
|
|
|
12.52
|
|
|
12.28
|
|
|
13.03
|
|
|
12.93
|
|
|||||
Operating expense per ASM (cents)
|
|
12.31
|
|
|
10.75
|
|
|
9.93
|
|
|
10.56
|
|
|
11.78
|
|
|||||
Operating expense per ASM, excluding fuel
(2)
|
|
8.34
|
|
|
8.25
|
|
|
7.88
|
|
|
7.82
|
|
|
7.53
|
|
|||||
Departures
|
|
366,619
|
|
|
353,681
|
|
|
337,302
|
|
|
316,505
|
|
|
294,800
|
|
|||||
Average stage length (miles)
|
|
1,096
|
|
|
1,072
|
|
|
1,093
|
|
|
1,092
|
|
|
1,088
|
|
|||||
Average number of operating aircraft during period
|
|
246.8
|
|
|
233.5
|
|
|
218.9
|
|
|
207.9
|
|
|
196.2
|
|
|||||
Average fuel cost per gallon, including fuel taxes
|
|
$
|
2.24
|
|
|
$
|
1.72
|
|
|
$
|
1.41
|
|
|
$
|
1.93
|
|
|
$
|
2.99
|
|
Fuel gallons consumed (millions)
|
|
849
|
|
|
792
|
|
|
760
|
|
|
700
|
|
|
639
|
|
|||||
Average number of full-time equivalent Crewmembers
(3)
|
|
17,766
|
|
|
17,118
|
|
|
15,696
|
|
|
14,537
|
|
|
13,280
|
|
(revenues in millions; percent changes based on unrounded numbers)
|
|
|
|
|
|
Year-over-Year Change
|
|
|||||||
|
2018
|
|
2017
|
|
$
|
|
%
|
|
||||||
Passenger revenue
|
|
$
|
7,381
|
|
|
$
|
6,761
|
|
|
620
|
|
|
9.2
|
|
Other revenue
|
|
277
|
|
|
251
|
|
|
26
|
|
|
10.5
|
|
||
Operating revenues
|
|
$
|
7,658
|
|
|
$
|
7,012
|
|
|
646
|
|
|
9.2
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Average fare
|
|
$
|
175.11
|
|
|
$
|
168.88
|
|
|
6.23
|
|
|
3.7
|
|
Yield per passenger mile (cents)
|
|
14.53
|
|
|
14.31
|
|
|
0.22
|
|
|
1.5
|
|
||
Passenger revenue per ASM (cents)
|
|
12.33
|
|
|
12.07
|
|
|
0.26
|
|
|
2.1
|
|
||
Operating revenue per ASM (cents)
|
|
12.79
|
|
|
12.52
|
|
|
0.27
|
|
|
2.1
|
|
||
Average stage length (miles)
|
|
1,096
|
|
|
1,072
|
|
|
24
|
|
|
2.2
|
|
||
Revenue passengers (thousands)
|
|
42,150
|
|
|
40,038
|
|
|
2,112
|
|
|
5.3
|
|
||
Revenue passenger miles (millions)
|
|
50,790
|
|
|
47,240
|
|
|
3,550
|
|
|
7.5
|
|
||
Available seat miles (ASMs) (millions)
|
|
59,881
|
|
|
56,007
|
|
|
3,874
|
|
|
6.9
|
|
||
Load factor
|
|
84.8
|
%
|
|
84.3
|
%
|
|
|
|
0.5
|
pts
|
(in millions; per ASM data in cents; percentages based on unrounded numbers)
|
|
|
|
|
|
Year-over-Year Change
|
|
per ASM
|
||||||||||||||
|
2018
|
|
2017
|
|
$
|
|
%
|
|
2018
|
|
2017
|
|
% Change
|
|||||||||
Aircraft fuel and related taxes
|
|
$
|
1,899
|
|
|
$
|
1,363
|
|
|
536
|
|
|
39.4
|
|
3.17
|
|
|
2.43
|
|
|
30.4
|
|
Salaries, wages and benefits
|
|
2,044
|
|
|
1,887
|
|
|
157
|
|
|
8.3
|
|
3.41
|
|
|
3.37
|
|
|
1.3
|
|
||
Landing fees and other rents
|
|
420
|
|
|
397
|
|
|
23
|
|
|
5.8
|
|
0.70
|
|
|
0.71
|
|
|
(1.0
|
)
|
||
Depreciation and amortization
|
|
491
|
|
|
446
|
|
|
45
|
|
|
9.9
|
|
0.82
|
|
|
0.80
|
|
|
2.8
|
|
||
Aircraft rent
|
|
103
|
|
|
100
|
|
|
3
|
|
|
2.6
|
|
0.17
|
|
|
0.18
|
|
|
(4.0
|
)
|
||
Sales and marketing
|
|
294
|
|
|
271
|
|
|
23
|
|
|
8.4
|
|
0.49
|
|
|
0.49
|
|
|
1.4
|
|
||
Maintenance, materials and repairs
|
|
625
|
|
|
622
|
|
|
3
|
|
|
0.5
|
|
1.04
|
|
|
1.11
|
|
|
(6.0
|
)
|
||
Other operating expenses
|
|
1,059
|
|
|
933
|
|
|
126
|
|
|
13.5
|
|
1.78
|
|
|
1.66
|
|
|
6.2
|
|
||
Special items
|
|
435
|
|
|
—
|
|
|
435
|
|
|
—
|
|
0.73
|
|
|
—
|
|
|
—
|
|
||
Total operating expenses
|
|
$
|
7,370
|
|
|
$
|
6,019
|
|
|
1,351
|
|
|
22.4
|
|
12.31
|
|
|
10.75
|
|
|
14.5
|
|
(revenues in millions; percent changes based on unrounded numbers)
|
|
|
|
|
|
Year-over-Year Change
|
|
|||||||||
|
2017
|
|
2016
|
|
$
|
|
%
|
|
||||||||
Passenger revenue
|
|
$
|
6,761
|
|
|
$
|
6,380
|
|
|
381
|
|
|
6.0
|
|
|
|
Other revenue
|
|
251
|
|
|
204
|
|
|
47
|
|
|
22.8
|
|
|
|||
Operating revenues
|
|
$
|
7,012
|
|
|
$
|
6,584
|
|
|
428
|
|
|
6.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Average fare
|
|
$
|
168.88
|
|
|
$
|
166.74
|
|
|
$
|
2.14
|
|
|
1.3
|
|
|
Yield per passenger mile (cents)
|
|
14.31
|
|
|
13.99
|
|
|
0.32
|
|
|
2.3
|
|
|
|||
Passenger revenue per ASM (cents)
|
|
12.07
|
|
|
11.90
|
|
|
0.17
|
|
|
1.5
|
|
|
|||
Operating revenue per ASM (cents)
|
|
12.52
|
|
|
12.28
|
|
|
0.24
|
|
|
2.0
|
|
|
|||
Average stage length (miles)
|
|
1,072
|
|
|
1,093
|
|
|
(21
|
)
|
|
(1.9
|
)
|
|
|||
Revenue passengers (thousands)
|
|
40,038
|
|
|
38,263
|
|
|
1,775
|
|
|
4.6
|
|
|
|||
Revenue passenger miles (millions)
|
|
47,240
|
|
|
45,619
|
|
|
1,621
|
|
|
3.6
|
|
|
|||
Available seat miles (ASMs) (millions)
|
|
56,007
|
|
|
53,620
|
|
|
2,387
|
|
|
4.5
|
|
|
|||
Load factor
|
|
84.3
|
%
|
|
85.1
|
%
|
|
|
|
(0.8
|
)
|
pts
|
(in millions; per ASM data in cents; percentages based on unrounded numbers)
|
|
|
|
|
|
Year-over-Year Change
|
|
per ASM
|
|||||||||||||||
|
2017
|
|
2016
|
|
$
|
|
%
|
|
2017
|
|
2016
|
|
% Change
|
||||||||||
Aircraft fuel and related taxes
|
|
$
|
1,363
|
|
|
$
|
1,074
|
|
|
289
|
|
|
26.9
|
|
|
2.43
|
|
|
2.00
|
|
|
21.5
|
|
Salaries, wages and benefits
|
|
1,887
|
|
|
1,698
|
|
|
189
|
|
|
11.1
|
|
|
3.37
|
|
|
3.17
|
|
|
6.4
|
|
||
Landing fees and other rents
|
|
397
|
|
|
357
|
|
|
40
|
|
|
11.1
|
|
|
0.71
|
|
|
0.67
|
|
|
6.3
|
|
||
Depreciation and amortization
|
|
446
|
|
|
393
|
|
|
53
|
|
|
13.7
|
|
|
0.80
|
|
|
0.73
|
|
|
8.9
|
|
||
Aircraft rent
|
|
100
|
|
|
110
|
|
|
(10
|
)
|
|
(9.0
|
)
|
|
0.18
|
|
|
0.21
|
|
|
(12.9
|
)
|
||
Sales and marketing
|
|
271
|
|
|
263
|
|
|
8
|
|
|
3.0
|
|
|
0.49
|
|
|
0.49
|
|
|
(1.4
|
)
|
||
Maintenance, materials and repairs
|
|
622
|
|
|
563
|
|
|
59
|
|
|
10.5
|
|
|
1.11
|
|
|
1.04
|
|
|
5.8
|
|
||
Other operating expenses
|
|
933
|
|
|
866
|
|
|
67
|
|
|
7.6
|
|
|
1.66
|
|
|
1.62
|
|
|
3.0
|
|
||
Total operating expenses
|
|
$
|
6,019
|
|
|
$
|
5,324
|
|
|
695
|
|
|
13.1
|
|
|
10.75
|
|
|
9.93
|
|
|
8.2
|
|
|
|
Payments due in
|
||||||||||||||||||||||||||
|
|
Total
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Thereafter
|
||||||||||||||
Debt and capital lease obligations
(1)
|
|
$
|
1.9
|
|
|
$
|
0.4
|
|
|
$
|
0.3
|
|
|
$
|
0.3
|
|
|
$
|
0.3
|
|
|
$
|
0.2
|
|
|
$
|
0.4
|
|
Lease commitments
|
|
1.0
|
|
|
0.2
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.4
|
|
|||||||
Flight equipment obligations
|
|
8.4
|
|
|
1.2
|
|
|
1.3
|
|
|
1.4
|
|
|
1.3
|
|
|
1.6
|
|
|
1.6
|
|
|||||||
Other obligations
(2)
|
|
3.1
|
|
|
0.3
|
|
|
0.4
|
|
|
0.3
|
|
|
0.3
|
|
|
0.3
|
|
|
1.5
|
|
|||||||
Total
|
|
$
|
14.4
|
|
|
$
|
2.1
|
|
|
$
|
2.1
|
|
|
$
|
2.1
|
|
|
$
|
2.0
|
|
|
$
|
2.2
|
|
|
$
|
3.9
|
|
(1)
|
Includes actual interest and estimated interest for floating-rate debt based on
December 31, 2018
rates.
|
(2)
|
Amounts include noncancelable commitments for the purchase of goods and services.
|
Reconciliation of Operating expense per ASM, excluding fuel
|
|||||||||||||||||||||||||||||||||||
(in millions; per ASM data in cents)
|
|
2018
|
|
2017
|
|
2016
|
|
2015
(1)
|
|
2014
(1)
|
|||||||||||||||||||||||||
|
$
|
|
per ASM
|
|
$
|
|
per ASM
|
|
$
|
|
per ASM
|
|
$
|
|
per ASM
|
|
$
|
|
per ASM
|
||||||||||||||||
Total operating expenses
|
|
$
|
7,370
|
|
|
12.31
|
|
|
$
|
6,019
|
|
|
10.75
|
|
|
$
|
5,324
|
|
|
9.93
|
|
|
$
|
5,200
|
|
|
10.56
|
|
|
$
|
5,302
|
|
|
11.78
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Aircraft fuel and related taxes
|
|
1,899
|
|
|
3.17
|
|
|
1,363
|
|
|
2.43
|
|
|
1,074
|
|
|
2.00
|
|
|
1,348
|
|
|
2.74
|
|
|
1,912
|
|
|
4.25
|
|
|||||
Other non-airline expenses
(2)
|
|
44
|
|
|
0.07
|
|
|
35
|
|
|
0.07
|
|
|
26
|
|
|
0.05
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Special items
|
|
435
|
|
|
0.73
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Operating expenses, excluding fuel
|
|
$
|
4,992
|
|
|
8.34
|
|
|
$
|
4,621
|
|
|
8.25
|
|
|
$
|
4,224
|
|
|
7.88
|
|
|
$
|
3,852
|
|
|
7.82
|
|
|
$
|
3,390
|
|
|
7.53
|
|
|
|
Year Ended December 31,
|
||||||||||
(in millions except per share amounts)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Total operating expenses
|
|
$
|
7,370
|
|
|
$
|
6,019
|
|
|
$
|
5,324
|
|
Less: Special items
|
|
435
|
|
|
—
|
|
|
—
|
|
|||
Total operating expenses excluding special items
|
|
$
|
6,935
|
|
|
$
|
6,019
|
|
|
$
|
5,324
|
|
|
|
|
|
|
|
|
||||||
Operating income
|
|
$
|
288
|
|
|
$
|
993
|
|
|
$
|
1,260
|
|
Add back: Special items
|
|
435
|
|
|
—
|
|
|
—
|
|
|||
Operating income excluding special items
|
|
$
|
723
|
|
|
$
|
993
|
|
|
$
|
1,260
|
|
|
|
|
|
|
|
|
||||||
Income before income taxes
|
|
$
|
219
|
|
|
$
|
914
|
|
|
$
|
1,164
|
|
Add back: Special items
|
|
435
|
|
|
—
|
|
|
—
|
|
|||
Income before income taxes excluding special items
|
|
$
|
654
|
|
|
$
|
914
|
|
|
$
|
1,164
|
|
|
|
|
|
|
|
|
||||||
Income before income taxes excluding special items
|
|
$
|
654
|
|
|
$
|
914
|
|
|
$
|
1,164
|
|
Less: Income tax expense (benefit)
|
|
31
|
|
|
(211
|
)
|
|
437
|
|
|||
Less: Income tax related to special items
|
|
108
|
|
|
—
|
|
|
—
|
|
|||
Less: Tax reform impact
|
|
28
|
|
|
551
|
|
|
$
|
—
|
|
||
Net Income excluding special items and tax reform impact
|
|
$
|
487
|
|
|
$
|
574
|
|
|
$
|
727
|
|
|
|
|
|
|
|
|
||||||
Earnings Per Common share:
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
0.60
|
|
|
$
|
3.42
|
|
|
$
|
2.23
|
|
Add back: Special items, net of tax
|
|
1.05
|
|
|
—
|
|
|
—
|
|
|||
Less: Tax reform impact
|
|
(0.09
|
)
|
|
(1.67
|
)
|
|
—
|
|
|||
Basic excluding special items and tax reform impact
|
|
$
|
1.56
|
|
|
$
|
1.75
|
|
|
$
|
2.23
|
|
|
|
|
|
|
|
|
||||||
Diluted
|
|
$
|
0.60
|
|
|
$
|
3.41
|
|
|
$
|
2.13
|
|
Add back: Special items, net of tax
|
|
1.04
|
|
|
—
|
|
|
—
|
|
|||
Less: Tax reform impact
|
|
(0.09
|
)
|
|
(1.67
|
)
|
|
—
|
|
|||
Diluted excluding special items and tax reform impact
|
|
$
|
1.55
|
|
|
$
|
1.74
|
|
|
$
|
2.13
|
|
Reconciliation of Free Cash Flow (Non-GAAP)
|
||||||||||||||||||||
(in millions)
|
|
Year Ended December 31,
|
||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Net cash provided by operating activities
|
|
$
|
1,217
|
|
|
$
|
1,396
|
|
|
$
|
1,632
|
|
|
$
|
1,598
|
|
|
$
|
912
|
|
Less: Capital expenditures
(1)
|
|
(908
|
)
|
|
(1,074
|
)
|
|
(850
|
)
|
|
(837
|
)
|
|
(806
|
)
|
|||||
Less: Predelivery deposits for flight equipment
|
|
(206
|
)
|
|
(128
|
)
|
|
(161
|
)
|
|
(104
|
)
|
|
(127
|
)
|
|||||
Free Cash Flow
|
|
$
|
103
|
|
|
$
|
194
|
|
|
$
|
621
|
|
|
$
|
657
|
|
|
$
|
(21
|
)
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
CURRENT LIABILITIES
|
|
|
|
|
||||
Accounts payable
|
|
$
|
437
|
|
|
$
|
378
|
|
Air traffic liability
|
|
1,035
|
|
|
966
|
|
||
Accrued salaries, wages and benefits
|
|
313
|
|
|
313
|
|
||
Other accrued liabilities
|
|
324
|
|
|
293
|
|
||
Current maturities of long-term debt and capital leases
|
|
309
|
|
|
196
|
|
||
Total current liabilities
|
|
2,418
|
|
|
2,146
|
|
||
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS
|
|
1,361
|
|
|
1,003
|
|
||
CONSTRUCTION OBLIGATION
|
|
424
|
|
|
441
|
|
||
DEFERRED TAXES AND OTHER LIABILITIES
|
|
|
|
|
||||
Deferred income taxes
|
|
1,088
|
|
|
999
|
|
||
Air traffic liability - loyalty non-current
|
|
447
|
|
|
385
|
|
||
Other
|
|
77
|
|
|
75
|
|
||
Total deferred taxes and other liabilities
|
|
1,612
|
|
|
1,459
|
|
||
COMMITMENTS AND CONTINGENCIES (Notes 11 & 12)
|
|
|
|
|
|
|||
STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
Preferred stock, $0.01 par value; 25 shares authorized, none issued
|
|
—
|
|
|
—
|
|
||
Common stock, $0.01 par value; 900 shares authorized, 422 and 418 shares issued and 306 and 321 shares outstanding at 2018 and 2017, respectively
|
|
4
|
|
|
4
|
|
||
Treasury stock, at cost; 116 and 97 shares at 2018 and 2017, respectively
|
|
(1,272
|
)
|
|
(890
|
)
|
||
Additional paid-in capital
|
|
2,203
|
|
|
2,127
|
|
||
Retained earnings
|
|
3,679
|
|
|
3,491
|
|
||
Accumulated other comprehensive income
|
|
(3
|
)
|
|
—
|
|
||
Total stockholders’ equity
|
|
4,611
|
|
|
4,732
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
$
|
10,426
|
|
|
$
|
9,781
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
OPERATING REVENUES
|
|
|
|
|
|
|
||||||
Passenger
|
|
$
|
7,381
|
|
|
$
|
6,761
|
|
|
$
|
6,380
|
|
Other
|
|
277
|
|
|
251
|
|
|
204
|
|
|||
Total operating revenues
|
|
7,658
|
|
|
7,012
|
|
|
6,584
|
|
|||
OPERATING EXPENSES
|
|
|
|
|
|
|
||||||
Aircraft fuel and related taxes
|
|
1,899
|
|
|
1,363
|
|
|
1,074
|
|
|||
Salaries, wages and benefits
|
|
2,044
|
|
|
1,887
|
|
|
1,698
|
|
|||
Landing fees and other rents
|
|
420
|
|
|
397
|
|
|
357
|
|
|||
Depreciation and amortization
|
|
491
|
|
|
446
|
|
|
393
|
|
|||
Aircraft rent
|
|
103
|
|
|
100
|
|
|
110
|
|
|||
Sales and marketing
|
|
294
|
|
|
271
|
|
|
263
|
|
|||
Maintenance, materials and repairs
|
|
625
|
|
|
622
|
|
|
563
|
|
|||
Other operating expenses
|
|
1,059
|
|
|
933
|
|
|
866
|
|
|||
Special items
|
|
435
|
|
|
—
|
|
|
—
|
|
|||
Total operating expenses
|
|
7,370
|
|
|
6,019
|
|
|
5,324
|
|
|||
OPERATING INCOME
|
|
288
|
|
|
993
|
|
|
1,260
|
|
|||
OTHER INCOME (EXPENSE)
|
|
|
|
|
|
|
||||||
Interest expense
|
|
(92
|
)
|
|
(95
|
)
|
|
(111
|
)
|
|||
Capitalized interest
|
|
10
|
|
|
10
|
|
|
8
|
|
|||
Interest income and other
|
|
13
|
|
|
6
|
|
|
7
|
|
|||
Total other income (expense)
|
|
(69
|
)
|
|
(79
|
)
|
|
(96
|
)
|
|||
INCOME BEFORE INCOME TAXES
|
|
219
|
|
|
914
|
|
|
1,164
|
|
|||
Income tax expense (benefit)
|
|
31
|
|
|
(211
|
)
|
|
437
|
|
|||
NET INCOME
|
|
$
|
188
|
|
|
$
|
1,125
|
|
|
$
|
727
|
|
|
|
|
|
|
|
|
||||||
EARNINGS PER COMMON SHARE
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
0.60
|
|
|
$
|
3.42
|
|
|
$
|
2.23
|
|
Diluted
|
|
$
|
0.60
|
|
|
$
|
3.41
|
|
|
$
|
2.13
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
NET INCOME
|
$
|
188
|
|
|
$
|
1,125
|
|
|
$
|
727
|
|
Changes in fair value of derivative instruments, net of reclassifications into earnings, net of tax benefit/(expense) of $2, $8, and $(8) in 2018, 2017, and 2016, respectively
|
(3
|
)
|
|
(13
|
)
|
|
16
|
|
|||
Total other comprehensive income (loss)
|
(3
|
)
|
|
(13
|
)
|
|
16
|
|
|||
COMPREHENSIVE INCOME
|
$
|
185
|
|
|
$
|
1,112
|
|
|
$
|
743
|
|
|
|
Common
Shares |
|
Common
Stock |
|
Treasury
Shares |
|
Treasury
Stock |
|
Additional
Paid-In Capital |
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Total
|
||||||||||||||
Balance at December 31, 2015
|
|
392
|
|
|
$
|
4
|
|
|
70
|
|
|
$
|
(366
|
)
|
|
$
|
1,896
|
|
|
$
|
1,679
|
|
|
$
|
(3
|
)
|
|
$
|
3,210
|
|
Cumulative Effect for the adoption of ASU 2016-09
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
||||||
Cumulative effect for the adoption of ASU 2014-09
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(48
|
)
|
|
—
|
|
|
(48
|
)
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
727
|
|
|
—
|
|
|
727
|
|
||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
16
|
|
||||||
Vesting of restricted stock units
|
|
1
|
|
|
—
|
|
|
1
|
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
||||||
Exercise of stock options
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
10
|
|
||||||
Stock compensation expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
23
|
|
||||||
Stock issued under Crewmember stock purchase plan
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35
|
|
|
—
|
|
|
—
|
|
|
35
|
|
||||||
Shares repurchased under 2012 share repurchase plan
|
|
—
|
|
|
—
|
|
|
6
|
|
|
(120
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(120
|
)
|
||||||
Convertible debt redemption
|
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
86
|
|
|
—
|
|
|
—
|
|
|
86
|
|
||||||
Balance at December 31, 2016
|
|
414
|
|
|
$
|
4
|
|
|
77
|
|
|
$
|
(500
|
)
|
|
$
|
2,050
|
|
|
$
|
2,366
|
|
|
$
|
13
|
|
|
$
|
3,933
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,125
|
|
|
—
|
|
|
1,125
|
|
||||||
Other comprehensive (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
(13
|
)
|
||||||
Vesting of restricted stock units
|
|
1
|
|
|
—
|
|
|
1
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
||||||
Exercise of stock options
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||||
Stock compensation expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29
|
|
|
—
|
|
|
—
|
|
|
29
|
|
||||||
Stock issued under Crewmember stock purchase plan
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
—
|
|
|
44
|
|
||||||
Shares repurchased under 2016 share repurchase plan
|
|
—
|
|
|
—
|
|
|
19
|
|
|
(380
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(380
|
)
|
||||||
Balance at December 31, 2017
|
|
418
|
|
|
$
|
4
|
|
|
97
|
|
|
$
|
(890
|
)
|
|
$
|
2,127
|
|
|
$
|
3,491
|
|
|
$
|
—
|
|
|
$
|
4,732
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
188
|
|
|
—
|
|
|
188
|
|
||||||
Other comprehensive (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
||||||
Vesting of restricted stock units
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
||||||
Stock compensation expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|
—
|
|
|
—
|
|
|
28
|
|
||||||
Stock issued under Crewmember stock purchase plan
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
48
|
|
|
—
|
|
|
—
|
|
|
48
|
|
||||||
Shares repurchased under 2018 share repurchase plan
|
|
—
|
|
|
—
|
|
|
19
|
|
|
(375
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(375
|
)
|
||||||
Balance at December 31, 2018
|
|
422
|
|
|
$
|
4
|
|
|
116
|
|
|
$
|
(1,272
|
)
|
|
$
|
2,203
|
|
|
$
|
3,679
|
|
|
$
|
(3
|
)
|
|
$
|
4,611
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||
Available-for-sale securities
|
|
|
|
|
||||
Time deposits
|
|
$
|
190
|
|
|
$
|
130
|
|
U.S. Treasury
|
|
39
|
|
|
—
|
|
||
Debt securities
|
|
7
|
|
|
6
|
|
||
Total available-for-sale securities
|
|
236
|
|
|
136
|
|
||
Held-to-maturity securities
|
|
|
|
|
||||
U.S. Treasury
|
|
180
|
|
|
220
|
|
||
Corporate bonds
|
|
—
|
|
|
36
|
|
||
Total held-to-maturity securities
|
|
180
|
|
|
256
|
|
||
Total investment securities
|
|
$
|
416
|
|
|
$
|
392
|
|
Property and Equipment Type
|
|
Estimated Useful Life
|
|
Residual Value
|
|
Aircraft
|
|
25 years
|
|
20
|
%
|
In-flight entertainment systems
|
|
5-10 years
|
|
0
|
%
|
Aircraft parts
|
|
Fleet life
|
|
10
|
%
|
Flight equipment leasehold improvements
|
|
Lower of lease term or economic life
|
|
0
|
%
|
Ground property and equipment
|
|
2-10 years
|
|
0
|
%
|
Leasehold improvements—other
|
|
Lower of lease term or economic life
|
|
0
|
%
|
Buildings on leased land
|
|
Lease term
|
|
0
|
%
|
|
2018
|
|
2017
|
|
2016
|
||||||
Passenger revenue
|
|
|
|
|
|
||||||
Passenger travel
|
$
|
7,221
|
|
|
$
|
6,659
|
|
|
$
|
6,324
|
|
Loyalty revenue - air transportation
|
160
|
|
|
102
|
|
|
56
|
|
|||
Other Revenue
|
|
|
|
|
|
||||||
Loyalty revenue
|
168
|
|
|
140
|
|
|
92
|
|
|||
Other revenue
|
109
|
|
|
111
|
|
|
112
|
|
|||
Total revenue
|
$
|
7,658
|
|
|
$
|
7,012
|
|
|
$
|
6,584
|
|
(in millions)
|
December 31, 2018
|
|
December 31, 2017
|
||||
Air traffic liability - passenger travel
|
$
|
892
|
|
|
$
|
836
|
|
Air traffic liability - loyalty program (air transportation)
|
580
|
|
|
502
|
|
||
Deferred revenue
|
10
|
|
|
13
|
|
||
Total
|
$
|
1,482
|
|
|
$
|
1,351
|
|
Balance at December 31, 2016
|
$
|
417
|
|
TrueBlue
®
points redeemed
|
(102
|
)
|
|
TrueBlue
®
points earned and sold
|
187
|
|
|
Balance at December 31, 2017
|
$
|
502
|
|
TrueBlue
®
points redeemed
|
(160
|
)
|
|
TrueBlue
®
points earned and sold
|
238
|
|
|
Balance at December 31, 2018
|
$
|
580
|
|
|
|
2018
|
|
2017
|
||||||||||
Secured Debt
|
|
|
|
|
|
|
|
|
||||||
Floating rate equipment notes, due through 2028
(1)
|
|
$
|
247
|
|
|
4.9
|
%
|
|
$
|
153
|
|
|
4.7
|
%
|
Fixed rate enhanced equipment notes, due through 2023
(2)
|
|
152
|
|
|
4.5
|
%
|
|
171
|
|
|
4.5
|
%
|
||
Fixed rate equipment notes, due through 2028
(3)
|
|
1,131
|
|
|
4.7
|
%
|
|
716
|
|
|
5.4
|
%
|
||
Fixed rate specialty bonds, due through 2036
(4)
|
|
43
|
|
|
4.9
|
%
|
|
43
|
|
|
4.9
|
%
|
||
Capital Leases
(5)
|
|
107
|
|
|
4.7
|
%
|
|
124
|
|
|
4.5
|
%
|
||
Total debt and capital lease obligations
|
|
1,680
|
|
|
|
|
1,207
|
|
|
|
||||
Less: Current maturities
|
|
(309
|
)
|
|
|
|
(196
|
)
|
|
|
||||
Less: Debt acquisition cost
|
|
(10
|
)
|
|
|
|
(8
|
)
|
|
|
||||
Long-term debt and capital lease obligations
|
|
$
|
1,361
|
|
|
|
|
$
|
1,003
|
|
|
|
Year
|
|
Maturities
|
|
|
2019
|
|
$
|
306
|
|
2020
|
|
273
|
|
|
2021
|
|
262
|
|
|
2022
|
|
240
|
|
|
2023
|
|
223
|
|
|
Thereafter
|
|
366
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||
|
|
Carrying Value
|
|
Estimated Fair Value
|
|
Carrying Value
|
|
Estimated Fair Value
|
||||||||
Public Debt
|
|
|
|
|
|
|
|
|
||||||||
Fixed rate special facility bonds, due through 2036
|
|
$
|
42
|
|
|
$
|
44
|
|
|
$
|
42
|
|
|
$
|
46
|
|
Non-Public Debt
|
|
|
|
|
|
|
|
|
||||||||
Fixed rate enhanced equipment notes, due through 2023
|
|
151
|
|
|
153
|
|
|
169
|
|
|
178
|
|
||||
Floating rate equipment notes, due through 2028
|
|
245
|
|
|
245
|
|
|
152
|
|
|
159
|
|
||||
Fixed rate equipment notes, due through 2028
|
|
1,125
|
|
|
1,135
|
|
|
712
|
|
|
771
|
|
||||
Total
(1)
|
|
$
|
1,563
|
|
|
$
|
1,577
|
|
|
$
|
1,075
|
|
|
$
|
1,154
|
|
|
|
Aircraft
|
|
Other
|
|
Total
|
||||||
2019
|
|
$
|
54
|
|
|
$
|
105
|
|
|
$
|
159
|
|
2020
|
|
52
|
|
|
86
|
|
|
138
|
|
|||
2021
|
|
46
|
|
|
78
|
|
|
124
|
|
|||
2022
|
|
41
|
|
|
72
|
|
|
113
|
|
|||
2023
|
|
45
|
|
|
64
|
|
|
109
|
|
|||
Thereafter
|
|
67
|
|
|
379
|
|
|
446
|
|
|||
Total minimum operating lease payments
|
|
$
|
305
|
|
|
$
|
784
|
|
|
$
|
1,089
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Numerator:
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
188
|
|
|
$
|
1,125
|
|
|
$
|
727
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
||||||
Interest on convertible debt, net of income taxes and profit sharing
|
|
—
|
|
|
—
|
|
|
2
|
|
|||
Net income applicable to common stockholders after assumed conversions for diluted earnings per share
|
|
$
|
188
|
|
|
$
|
1,125
|
|
|
$
|
729
|
|
Denominator:
|
|
|
|
|
|
|
||||||
Weighted average shares outstanding for basic earnings per share
|
|
312.9
|
|
|
328.7
|
|
|
326.5
|
|
|||
Effect of dilutive securities:
|
|
|
|
|
|
|
||||||
Employee stock options and restricted stock units
|
|
1.6
|
|
|
1.7
|
|
|
2.1
|
|
|||
Convertible debt
|
|
—
|
|
|
—
|
|
|
13.6
|
|
|||
Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share
|
|
314.5
|
|
|
330.4
|
|
|
342.2
|
|
|
|
Shares
|
|
Weighted Average Grant Date Fair Value
|
|||
Nonvested at beginning of year
|
|
1.6
|
|
|
$
|
20.14
|
|
Granted
|
|
1.1
|
|
|
20.62
|
|
|
Vested
|
|
(0.8
|
)
|
|
19.71
|
|
|
Forfeited
|
|
(0.2
|
)
|
|
20.51
|
|
|
Nonvested at end of year
|
|
1.7
|
|
|
$
|
20.59
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Deferred:
|
|
|
|
|
|
|
||||||
Federal
|
|
$
|
82
|
|
|
$
|
(344
|
)
|
|
$
|
227
|
|
State
|
|
7
|
|
|
24
|
|
|
24
|
|
|||
Foreign
|
|
1
|
|
|
23
|
|
|
—
|
|
|||
Deferred income tax (benefit) expense
|
|
90
|
|
|
(297
|
)
|
|
251
|
|
|||
Current:
|
|
|
|
|
|
|
||||||
Federal
|
|
(60
|
)
|
|
93
|
|
|
129
|
|
|||
State
|
|
(5
|
)
|
|
18
|
|
|
26
|
|
|||
Foreign
|
|
6
|
|
|
(25
|
)
|
|
31
|
|
|||
Current income tax (benefit) expense
|
|
(59
|
)
|
|
86
|
|
|
186
|
|
|||
Total income tax (benefit) expense
|
|
$
|
31
|
|
|
$
|
(211
|
)
|
|
$
|
437
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Income tax expense at statutory rate
|
|
$
|
46
|
|
|
$
|
319
|
|
|
$
|
407
|
|
State income tax, net of federal benefit
|
|
8
|
|
|
27
|
|
|
32
|
|
|||
Adjustment of net deferred tax liability from enacted tax rate change
|
|
(28
|
)
|
|
(551
|
)
|
|
—
|
|
|||
Nondeductible expenses
|
|
7
|
|
|
4
|
|
|
4
|
|
|||
Foreign rate differential
|
|
(2
|
)
|
|
(7
|
)
|
|
(1
|
)
|
|||
Other, net
|
|
—
|
|
|
(3
|
)
|
|
(5
|
)
|
|||
Total income tax (benefit) expense
|
|
$
|
31
|
|
|
$
|
(211
|
)
|
|
$
|
437
|
|
|
|
2018
|
|
2017
|
||||
Deferred tax assets:
|
|
|
|
|
||||
Deferred revenue/gains
|
|
$
|
106
|
|
|
$
|
129
|
|
Employee benefits
|
|
35
|
|
|
32
|
|
||
Foreign tax credit
|
|
32
|
|
|
23
|
|
||
Net operating loss carryforward
|
|
28
|
|
|
—
|
|
||
Terminal 5 lease
|
|
28
|
|
|
45
|
|
||
Rent expense
|
|
20
|
|
|
22
|
|
||
Other
|
|
11
|
|
|
7
|
|
||
Total deferred tax assets
|
|
260
|
|
|
258
|
|
||
Valuation allowance
|
|
(21
|
)
|
|
(1
|
)
|
||
Deferred tax assets, net
|
|
239
|
|
|
257
|
|
||
Deferred tax liabilities:
|
|
|
|
|
||||
Accelerated depreciation
|
|
(1,327
|
)
|
|
(1,256
|
)
|
||
Total deferred tax liabilities
|
|
(1,327
|
)
|
|
(1,256
|
)
|
||
Net deferred tax liability
|
|
$
|
(1,088
|
)
|
|
$
|
(999
|
)
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Unrecognized tax benefits at January 1,
|
|
$
|
31
|
|
|
$
|
26
|
|
|
$
|
21
|
|
Increases for tax positions taken during a prior period
|
|
—
|
|
|
2
|
|
|
10
|
|
|||
Increases for tax positions taken during the period
|
|
5
|
|
|
6
|
|
|
5
|
|
|||
Decreases for tax positions taken during a prior period
|
|
(3
|
)
|
|
(3
|
)
|
|
(4
|
)
|
|||
Decreases for settlement with tax authorities during the period
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|||
Unrecognized tax benefits December 31,
|
|
$
|
33
|
|
|
$
|
31
|
|
|
$
|
26
|
|
|
Jet fuel call option agreements
|
|
Jet fuel call option spread agreements
|
|
Total
|
|||
First Quarter 2019
|
7
|
%
|
|
—
|
%
|
|
7
|
%
|
Second Quarter 2019
|
7
|
%
|
|
—
|
%
|
|
7
|
%
|
Third Quarter 2019
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Fourth Quarter 2019
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
|
As of December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Fuel derivatives
|
|
|
|
|
||||
Asset fair value recorded in prepaid expenses and other
(1)
|
|
$
|
—
|
|
|
$
|
—
|
|
Longest remaining term (months)
|
|
6
|
|
|
—
|
|
||
Hedged volume (barrels, in thousands)
|
|
756
|
|
|
—
|
|
||
Estimated amount of existing (gains) losses expected to be reclassified into earnings in the next 12 months
|
|
$
|
4
|
|
|
$
|
—
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Fuel derivatives
|
|
|
|
|
|
|
||||||
Hedge effectiveness (gains) losses recognized in aircraft fuel expense
|
|
$
|
2
|
|
|
$
|
(15
|
)
|
|
$
|
(9
|
)
|
Hedge (gains) losses on derivatives recognized in comprehensive income
|
|
$
|
6
|
|
|
$
|
6
|
|
|
$
|
(34
|
)
|
Percentage of actual consumption economically hedged
|
|
4
|
%
|
|
10
|
%
|
|
12
|
%
|
(1)
|
Gross asset of each contract prior to consideration of offsetting positions with each counterparty and prior to impact of collateral paid.
|
|
|
As of December 31, 2018
|
||||||||||||||
Assets
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Cash equivalents
|
|
$
|
198
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
198
|
|
Available-for-sale investment securities
|
|
39
|
|
|
197
|
|
|
—
|
|
|
236
|
|
||||
Aircraft fuel derivatives
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
As of December 31, 2017
|
||||||||||||||
Assets
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Cash equivalents
|
|
$
|
173
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
173
|
|
Available-for-sale investment securities
|
|
—
|
|
|
136
|
|
|
—
|
|
|
136
|
|
|
|
Aircraft Fuel Derivatives
(1)
|
|
Interest Rate Swaps
(2)
|
|
Total
|
||||||
Balance of accumulated income (losses), at December 31, 2015
|
|
$
|
(4
|
)
|
|
$
|
1
|
|
|
$
|
(3
|
)
|
Reclassifications into earnings, net of tax benefit of $4
|
|
(5
|
)
|
|
(1
|
)
|
|
(6
|
)
|
|||
Change in fair value, net of tax (expense) of $(12)
|
|
22
|
|
|
—
|
|
|
22
|
|
|||
Balance of accumulated income, at December 31, 2016
|
|
13
|
|
|
—
|
|
|
13
|
|
|||
Reclassifications into earnings, net of tax benefit of $6
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
|||
Change in fair value, net of tax benefit of $2
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
|||
Balance of accumulated income, at December 31, 2017
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Reclassifications into earnings, net of tax benefit of $0
|
|
1
|
|
|
—
|
|
|
1
|
|
|||
Change in fair value, net of tax benefit of $2
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
|||
Balance of accumulated (losses), at December 31, 2018
|
|
$
|
(3
|
)
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
(1)
|
Reclassified to aircraft fuel expense
|
(2)
|
Reclassified to interest expense
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Domestic
|
|
$
|
5,386
|
|
|
$
|
4,999
|
|
|
$
|
4,717
|
|
Caribbean & Latin America
|
|
2,272
|
|
|
2,013
|
|
|
1,867
|
|
|||
Total
|
|
$
|
7,658
|
|
|
$
|
7,012
|
|
|
$
|
6,584
|
|
|
|
First
Quarter |
|
Second
Quarter |
|
Third
Quarter |
|
Fourth
Quarter |
||||||||
2018
|
|
|
|
|
|
|
|
|
||||||||
Operating revenues
|
|
$
|
1,754
|
|
|
$
|
1,928
|
|
|
$
|
2,008
|
|
|
$
|
1,968
|
|
Operating income
(1)(2)(3)
|
|
128
|
|
|
(144
|
)
|
|
83
|
|
|
221
|
|
||||
Net income
(1)(2)(3)(4)
|
|
88
|
|
|
(120
|
)
|
|
50
|
|
|
169
|
|
||||
Basic earnings per share
|
|
$
|
0.28
|
|
|
$
|
(0.38
|
)
|
|
$
|
0.16
|
|
|
$
|
0.55
|
|
Diluted earnings per share
(1)(2)(3)(4)
|
|
$
|
0.27
|
|
|
$
|
(0.38
|
)
|
|
$
|
0.16
|
|
|
$
|
0.55
|
|
2017
|
|
|
|
|
|
|
|
|
||||||||
Operating revenues
|
|
$
|
1,600
|
|
|
$
|
1,836
|
|
|
$
|
1,818
|
|
|
$
|
1,758
|
|
Operating income
|
|
142
|
|
|
347
|
|
|
314
|
|
|
190
|
|
||||
Net income
(5)
|
|
82
|
|
|
207
|
|
|
181
|
|
|
654
|
|
||||
Basic earnings per share
|
|
$
|
0.25
|
|
|
$
|
0.63
|
|
|
$
|
0.56
|
|
|
$
|
2.04
|
|
Diluted earnings per share
(5)
|
|
$
|
0.24
|
|
|
$
|
0.62
|
|
|
$
|
0.55
|
|
|
$
|
2.03
|
|
|
|
Year Ended December 31,
|
||||||||||
Special Items
|
|
2018
|
|
2017
|
|
2016
|
||||||
Embraer E190 fleet transition costs
(1)
|
|
$
|
362
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Union contract costs
(2)
|
|
73
|
|
|
—
|
|
|
—
|
|
|||
Total
|
|
$
|
435
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Plan Category
|
|
Number of securities to
be issued upon exercise
of outstanding options,
warrants and rights
|
|
Weighted-average
exercise price of
outstanding
options, warrants
and rights
|
|
Number of securities
remaining available
for future issuance
under equity
compensation plans
(excluding securities
reflected in first
column)
|
||||
Equity compensation plans approved by security holders
|
|
2,575,842
|
|
|
$
|
18.88
|
|
|
19,779,124
|
|
Equity compensation plans not approved by security holders
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
|
2,575,842
|
|
|
$
|
18.88
|
|
|
19,779,124
|
|
|
|
|
|
|
1.
|
|
Financial statements:
|
|
|
|
|
Reports of Independent Registered Public Accounting Firm
|
|
|
|
|
Consolidated Balance Sheets — December 31, 2018 and December 31, 2017
|
|
|
|
|
Consolidated Statements of Operations — For the years ended December 31, 2018, 2017 and 2016
|
|
|
|
|
Consolidated Statements of Comprehensive Income — For the years ended December 31, 2018, 2017 and 2016
|
|
|
|
|
Consolidated Statements of Cash Flows — For the years ended December 31, 2018, 2017 and 2016
|
|
|
|
|
Consolidated Statements of Stockholders’ Equity — For the years ended December 31, 2018, 2017 and 2016
|
|
|
|
|
Notes to Consolidated Financial Statements
|
|
|
2.
|
|
Financial Statement Schedules:
|
|
|
|
|
Schedule II — Valuation of Qualifying Accounts and Reserves
|
|
S-1
|
|
|
All other schedules have been omitted because they are inapplicable, not required, or the information is included elsewhere in the consolidated financial statements or notes thereto.
|
|
|
3.
|
|
Exhibits: See accompanying Exhibit Index included after the signature page of this Report for a list of the exhibits filed or furnished with or incorporated by reference in this Report.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JETBLUE AIRWAYS CORPORATION
|
||||
|
|
|
|
(Registrant)
|
||||
|
|
|
|
|||||
Date:
|
|
February 20, 2019
|
|
|
|
By:
|
|
/s/ Alexander Chatkewitz
|
|
|
|
|
|
|
|
|
Vice President, Controller, and Chief Accounting Officer (Principal Accounting Officer)
|
|
|
|
|
|
Signature
|
|
Capacity
|
|
Date
|
|
|
|
||
/S/ ROBIN HAYES
|
|
Chief Executive Officer and Director
(Principal Executive Officer) |
|
February 20, 2019
|
Robin Hayes
|
|
|
|
|
|
|
|
|
|
/S/ STEVE PRIEST
|
|
Chief Financial Officer (Principal Financial Officer)
|
|
February 20, 2019
|
Steve Priest
|
|
|
|
|
|
|
|
||
/S/ ALEXANDER CHATKEWITZ
|
|
Vice President, Controller, and Chief Accounting Officer (Principal Accounting Officer)
|
|
February 20, 2019
|
Alexander Chatkewitz
|
|
|
|
|
|
|
|
|
|
/S/ B. BEN BALDANZA
|
|
Director
|
|
February 20, 2019
|
B. Ben Baldanza *
|
|
|
|
|
|
|
|
||
/S/ PETER BONEPARTH
|
|
Director
|
|
February 20, 2019
|
Peter Boneparth *
|
|
|
|
|
|
|
|
||
/S/ VIRGINIA GAMBALE
|
|
Director
|
|
February 20, 2019
|
Virginia Gambale *
|
|
|
|
|
|
|
|
||
/S/ STEPHAN GEMKOW
|
|
Director
|
|
February 20, 2019
|
Stephan Gemkow *
|
|
|
|
|
|
|
|
||
/S/ ELLEN JEWETT
|
|
Director
|
|
February 20, 2019
|
Ellen Jewett *
|
|
|
|
|
|
|
|
|
|
/S/ SARAH ROBB O'HAGAN
|
|
Director
|
|
February 20, 2019
|
Sarah Robb O'Hagan *
|
|
|
|
|
|
|
|
|
|
/S/ JOEL PETERSON
|
|
Director
|
|
February 20, 2019
|
Joel Peterson *
|
|
|
|
|
|
|
|
|
|
/S/ FRANK SICA
|
|
Director
|
|
February 20, 2019
|
Frank Sica *
|
|
|
|
|
|
|
|
|
|
/S/ THOMAS WINKELMANN
|
|
Director
|
|
February 20, 2019
|
Thomas Winkelmann *
|
|
|
|
|
2.1
|
|
|
|
|
|
2.1(a)
|
|
|
|
|
|
2.1(b)
|
|
|
|
|
|
3.1
|
|
|
|
|
|
3.2
|
|
|
|
|
|
3.3
|
|
|
|
|
|
4.1
|
|
|
|
|
|
4.2
|
|
|
|
|
|
4.2(a)
|
|
|
|
|
|
4.2(b)
|
|
|
|
|
|
4.2(c)
|
|
|
|
|
|
4.2(d)
|
|
|
|
|
|
4.4
|
|
|
|
|
|
4.5
|
|
|
|
|
|
4.5(a)
|
|
|
|
|
|
4.9
|
|
|
|
|
|
4.9(f)
|
|
|
|
|
|
4.9(g)
|
|
|
|
|
|
4.9(h)
|
|
|
|
|
|
4.9(i)
|
|
|
|
|
|
4.10
|
|
|
|
|
|
4.10(a)
|
|
|
|
|
|
4.11
|
|
|
|
|
|
4.12
|
|
|
|
|
|
4.13
|
|
|
|
|
|
10.3**
|
|
|
|
|
|
10.3(a)**
|
|
|
|
|
|
10.3(b)**
|
|
|
|
|
10.3(c)**
|
|
|
|
|
|
10.3(d)**
|
|
|
|
|
|
10.3(e)**
|
|
|
|
|
|
10.3(f)**
|
|
|
|
|
|
10.3(g)**
|
|
|
|
|
|
10.3(h)**
|
|
|
|
|
|
10.3(i)**
|
|
|
|
|
|
10.3(j)**
|
|
|
|
|
|
10.3(k)**
|
|
|
|
|
|
10.3(l)**
|
|
|
|
|
|
10.3(m)**
|
|
|
|
|
|
10.3(n)**
|
|
|
|
|
|
10.3(o)**
|
|
|
|
|
|
10.3(p)**
|
|
|
|
|
|
10.3(q)**
|
|
|
|
|
|
10.3(r)**
|
|
|
|
|
|
10.3(s)**
|
|
|
|
|
|
10.3(t)**
|
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|
10.3(u)**
|
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10.3(v)**
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10.3(w)**
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10.3(x)**
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10.3(y)**
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10.3(z)**
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10.3(aa)**
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10.3(ab)**
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10.3(ac)**
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10.3(ad)**
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10.3(ae)**
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10.3(af)**
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10.3(ag)
|
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10.15
|
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|
10.17**
|
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|
10.17(a)**
|
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10.17(b)**
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10.17(c)**
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10.17(d)**
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10.17(e)**
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10.17(f)**
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10.17(g)**
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10.17(h)**
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10.17(i)**
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10.17(j)**
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10.17(k)**
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10.17(l)**
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10.17(m)**
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10.17(n)**
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10.17(o)**
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10.17(p)**
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10.17(q)**
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10.17(r)**
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10.17(s)**
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10.17(t)**
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10.18**
|
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10.18(a)**
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10.18(b)**
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10.18(c)**
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10.18(d)**
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10.18(e)**
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10.18(f)**
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10.18(g)**
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10.18(h)**
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10.18(i)**
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10.18(j)**
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10.18(k)**
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10.20
|
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10.20(a)
|
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10.21*
|
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10.22*
|
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|
10.22(a)*
|
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|
10.30**
|
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|
10.31*
|
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|
10.31(a)*
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10.31(b)*
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10.31(c)*
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10.31(d)*
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10.31(e)*
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10.31(f)*
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10.31(g)*
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10.31(h)*
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10.31(i)*
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10.31(j)*
|
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|
10.33**
|
|
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|
10.33(a)**
|
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10.33(b)**
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10.33(c)**
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10.33(d)**
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10.33(e)**
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10.33(f)**
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10.33(g)**
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10.33(h)**
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10.33(i)**
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10.33(j)**
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10.33(k)**
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|
10.33(l)***
|
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|
|
10.34**
|
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|
10.34(a)**
|
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|
10.35*
|
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|
10.36
|
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|
10.37
|
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10.37(a)
|
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|
|
10.38**
|
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|
|
10.38(a)**
|
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|
10.39*
|
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|
|
10.41*
|
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|
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|
10.41(a)*
|
|
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|
|
|
10.44*
|
|
|
|
|
|
10.45**
|
|
|
|
|
|
21.1
|
|
|
|
|
|
23
|
|
|
|
|
|
31.1
|
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|
31.2
|
|
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|
|
|
32
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Labels Linkbase Document
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
*
|
Compensatory plans in which the directors and executive officers of JetBlue participate.
|
**
|
Pursuant to a Confidential Treatment Request under Rule 24b-2 filed with and approved by the SEC, portions of this exhibit have been omitted.
|
***
|
Pursuant to 17 CFR 240.24b-2, confidential information has been omitted and has been provided separately to the Securities and Exchange Commission pursuant to a Confidential Treatment Request filed with the Commission.
|
|
|
Balance at
beginning of period |
|
Additions Charged to
Costs and Expenses |
|
Deductions
|
|
Balance at
end of period |
||||||||
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Valuation allowance for deferred tax assets
|
|
$
|
1
|
|
|
$
|
20
|
|
|
$
|
—
|
|
|
$
|
21
|
|
Allowance for obsolete inventory parts
|
|
14
|
|
|
4
|
|
|
—
|
|
(1)
|
18
|
|
||||
Allowance for doubtful accounts
|
|
1
|
|
|
2
|
|
|
2
|
|
(2)
|
1
|
|
||||
Total
|
|
16
|
|
|
26
|
|
|
2
|
|
|
40
|
|
||||
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
||||||||
Valuation allowance for deferred tax assets
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Allowance for obsolete inventory parts
|
|
12
|
|
|
2
|
|
|
—
|
|
(1)
|
14
|
|
||||
Allowance for doubtful accounts
|
|
5
|
|
|
—
|
|
|
4
|
|
(2)
|
1
|
|
||||
Total
|
|
17
|
|
|
3
|
|
|
4
|
|
|
16
|
|
||||
Year Ended December 31, 2016
|
|
|
|
|
|
|
|
|
||||||||
Valuation allowance for deferred tax assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Allowance for obsolete inventory parts
|
|
10
|
|
|
2
|
|
|
—
|
|
(1)
|
12
|
|
||||
Allowance for doubtful accounts
|
|
6
|
|
|
—
|
|
|
1
|
|
(2)
|
5
|
|
||||
Total
|
|
16
|
|
|
2
|
|
|
1
|
|
|
17
|
|
(1)
|
Inventory scrapped.
|
(2)
|
Uncollectible accounts written off, net of recoveries.
|
1
|
[***]
|
3
|
MISCELLANEOUS
|
4
|
EFFECT OF THE AMENDMENT
|
5
|
CONFIDENTIALITY
|
6
|
ASSIGNMENT
|
7
|
COUNTERPARTS
|
8
|
INTERPRETATION AND LAW
|
By: /S/ STEVE PRIEST
|
By: /S/ BENOIT DE SAINT-EXUPERY
|
(1)
|
Registration Statement (Form S-8 No. 333-86444) pertaining to the JetBlue Airways Corporation 2002 Stock Incentive Plan and the JetBlue Airways Corporation Crewmember Stock Purchase Plan,
|
(2)
|
Registration Statement (Form S-8 No. 333-129238) pertaining to the JetBlue Airways Corporation 2002 Stock Incentive Plan and the JetBlue Airways Corporation Crewmember Stock Purchase Plan,
|
(3)
|
Registration Statement (Form S-8 No. 333-161565) pertaining to the JetBlue Airways Corporation 2002 Stock Incentive Plan and the JetBlue Airways Corporation Crewmember Stock Purchase Plan,
|
(4)
|
Registration Statement (Form S-8 No. 333-174947) pertaining to the JetBlue Airways Corporation 2011 Incentive Compensation Plan and the JetBlue Airways Corporation 2011 Crewmember Stock Purchase Plan,
|
(5)
|
Registration Statement (Form S-3 ASR No. 333-202143) of JetBlue Airways Corporation; and
|
(6)
|
Registration Statement (Form S-8 No. 333-207242) pertaining to the JetBlue Airways Corporation 2011 Incentive Compensation Plan and the JetBlue Airways Corporation 2011 Crewmember Stock Purchase Plan
|
1.
|
I have reviewed this Annual Report on Form 10-K 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:
|
February 20, 2019
|
By:
|
/s/ ROBIN HAYES
|
|
|
|
Chief Executive Officer
|
1.
|
I have reviewed this Annual Report on Form 10-K 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:
|
February 20, 2019
|
By:
|
/s/ STEVE PRIEST
|
|
|
|
Chief Financial Officer
|
Date:
|
February 20, 2019
|
|
By:
|
/s/ ROBIN HAYES
|
|
|
|
|
Chief Executive Officer
|
|
|
|
|
|
Date:
|
February 20, 2019
|
|
By:
|
/s/ STEVE PRIEST
|
|
|
|
|
Chief Financial Officer
|