UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, ~~2024~~2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission file number 000-49728

JETBLUE AIRWAYS CORPORATION

(Exact name of registrant as specified in its charter)


Delaware			87-0617894
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

27-01 Queens Plaza North	Long Island City	New York	11101
(Address of principal executive offices)			(Zip Code)

Registrant's telephone number, including area code: (718) 286-7900

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, $0.01 par value	JBLU	The NASDAQ Stock Market LLC

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

The aggregate market value of the registrant's common stock held by non-affiliates of the registrant as of June 30, ~~2024~~2025 was approximately $2.1.5 billion (based on the last reported sale price on the NASDAQ Global Select Market on that date). The number of shares outstanding of the registrant's common stock as of January 31, ~~2025~~2026 was ~~353~~370,~~001~~119,~~047~~668 shares.

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DOCUMENTS INCORPORATED BY REFERENCE

Designated portions of the Registrant's Proxy Statement for its ~~2025~~2026 Annual Meeting of Stockholders, which is to be filed within 120 days after the end of the fiscal year ended December 31, ~~2024~~2025, are incorporated by reference into Part III of this Annual Report on Form 10-K, or the Report, to the extent described therein.

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	Forward-Looking Information	5
	Risk Factor Summary	6
PART I.
Item 1.	Business	8
	Overview	8
	JetBlue Experience	8
	Operations and Cost Structure	11
	Human Capital Management	13
	Regulation	15
	Where You Can Find Other Information	1718
Item 1A.	Risk Factors	1718
	Risks Related to JetBlue	1718
	Risks Associated with the Airline Industry	3031
Item 1B.	Unresolved Staff Comments	3334
Item 1C.	Cybersecurity	3435
Item 2.	Properties	3536
Item 3.	Legal Proceedings	3638
Item 4.	Mine Safety Disclosures	3638
PART II.
Item 5.	Market for Registrant's Common Equity; Related Stockholder Matters and Issuer Purchases of Equity Securities	3739
Item 6.	Reserved	3941
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	3941
	Overview	3941
	Results of Operations	4244
	Liquidity and Capital Resources	4446
	Contractual Obligations	4850
	Off-Balance Sheet Arrangements	4951
	Climate Change	50
	Critical Accounting Policies and Estimates	52
	Regulation G Reconciliation of Non-GAAP Financial Measures	54
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	58
Item 8.	Financial Statements and Supplementary Data	59
	Reports of Independent Registered Public Accounting Firm	59
	Consolidated Balance Sheets	62
	Consolidated Statements of Operations	64
	Consolidated Statements of Comprehensive Loss	65
	Consolidated Statements of Cash Flows	66
	Consolidated Statements of Stockholders' Equity	68
	Notes to Consolidated Financial Statements	69
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	99100
Item 9A.	Controls and Procedures	99100
Item 9B.	Other Information	99100
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	99100
PART III.
Item 10.	Directors, Executive Officers, and Corporate Governance	~~100~~101
Item 11.	Executive Compensation	~~101~~102
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	~~101~~102
Item 13.	Certain Relationships and Related Transactions, and Director Independence	~~101~~102
Item 14.	Principal Accounting Fees and Services	~~101~~102

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PART IV.
Item 15.	Exhibits and Financial Statement Schedules	~~102~~103
	Exhibit Index	~~103~~104
Item 16.	Form 10-K Summary	~~112~~113
	Signatures	~~113~~114

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FORWARD-LOOKING INFORMATION

This Annual Report (the "Report") contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended, (the "Exchange Act"). All statements other than statements of historical facts contained in this Report are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "expects," "plans," "intends," "anticipates," "indicates," "remains," "believes," "estimates," "forecast," "guidance," "outlook," "may," "will," "should," "seeks," "goals," "targets" or the negative of these terms or other similar expressions. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed, or assured. Forward-looking statements contained in this Report include, without limitation, statements regarding our outlook and future results of operations and financial position, our business strategy and plans for future operations, ~~including~~such as our JetForward initiatives, including our Blue Sky collaboration, our financing arrangements and potential implications thereof on our business, our sustainability initiatives, the impact of industry or other macroeconomic trends affecting our business, seasonality, and ~~our expectations regarding~~ the ~~remaining impact of the wind down of our Northeast Alliance ("NEA") with American Airlines Group Inc. and the~~ related ~~impact~~impacts on our business, financial condition and results of operations. Forward-looking statements involve risks, uncertainties and assumptions, and are based on information currently available to us. Actual results may differ materially from those expressed in the forward-looking statements due to many factors, including, without limitation, the important risk factors discussed in Part I, Item 1A. "Risk Factors" in this Report on Form 10-K for the year ended December 31, ~~2024~~2025. It is routine for our internal projections and expectations to change as the year or each quarter in the year progresses, and therefore it should be clearly understood that the internal projections, beliefs, and assumptions upon which we base our expectations may change prior to the end of each quarter or year.

Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. You should understand that many important factors, in addition to those discussed or incorporated by reference in this Report, could cause our results to differ materially from those expressed in the forward-looking statements. Potential factors that could affect our results include, in addition to others not described in this Report, those described in Part I., Item 1A of this Report under "Risk Factors." In light of these risks and uncertainties, the forward-looking events discussed in this Report might not occur. Our forward-looking statements speak only as of the date of this Report. Other than as required by law, we undertake no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.

Additionally, our discussion of certain environmental assessments, goals and related issues herein is informed by various sustainability-related standards and frameworks (including standards for the measurement of underlying data) and the interests of various stakeholders. Any references to "materiality" in the context of such discussions and any related assessment of environmental "materiality" may differ from the definition of "materiality" under the federal securities laws for Securities and Exchange Commission ("SEC") reporting purposes. Furthermore, much of this information is subject to assumptions, estimates or third-party information that is still evolving and subject to change. For example, we note that standards and expectations regarding greenhouse gas ("GHG") accounting and the processes for measuring and counting GHG emissions and ~~GHG~~ emission reductions are evolving, and it is possible that our approaches ~~both~~ to measuring ~~our~~such emissions and ~~to reducing emissions and measuring those~~ reductions may be considered inconsistent, ~~either currently by some stakeholders or at some point future,~~ with common or best practices ~~with respect to measuring and accounting for such matters and reducing overall emissions~~. Similarly, we cannot guarantee strict adherence to standard recommendations, and our disclosures based on any standards may change due to revisions in framework or legal requirements, availability of information, changes in our business or applicable government policies, or other factors, some of which may be beyond our control. Finally, any website or document references included herein are for convenience only and, unless indicated otherwise, are explicitly not incorporated by reference.

As used in this Report, the terms "JetBlue," the "Company," "we," "us," "our," and similar terms refer to JetBlue Airways Corporation and its subsidiaries, unless the context indicates otherwise.

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RISK FACTOR SUMMARY

We are subject to various risks that make an investment in our securities risky. The events and consequences discussed in these risk factors could, in circumstances we may or may not be able to accurately predict, recognize, or control, have a material adverse effect on our business, liquidity, financial condition, and results of operations. In addition, these risks could cause our actual results to differ materially from those we express in forward-looking statements contained in this Report or in other Company communications. You should read the following section in conjunction with the following sections of this Report: Part II., Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations," our consolidated financial statements and the related notes, included in Part II., Item 8 and our "Forward-Looking Information."

The following is a summary of the principal risks we face that could have a material adverse effect on our business, liquidity, financial condition, and results of operations:

Risks Related to JetBlue

Competitive Risks

•We operate in an extremely competitive industry.

•We may be subject to competitive risks due to the long-term nature of our fleet order book.

Operational Risks

•We may not be successful in executing elements of our strategic operating plan, which may have a material adverse impact on our reputation, business, operating results, and financial condition.

•Our business is highly dependent on the availability of fuel, and fuel is subject to price volatility.

•Our maintenance costs will increase as our fleet ages.

•Our salaries, wages, and benefits increase as our workforce ages.

•We face risks associated with a potential material reduction in the rate of interchange reimbursement fees.

•We face risks associated with doing business internationally.

•Our comparatively high aircraft utilization rate helps us keep our costs low, but also makes us vulnerable to delays and cancellations, which could reduce our profitability and harm our reputation.

•We depend greatly on the New York metropolitan market, and increases in competition or shifts in demand for air travel in this market, or governmental reduction of our operating capacity at John F. Kennedy International Airport ("JFK"), could harm us.

•Extended interruptions or disruptions in service at our focus cities could have a material adverse impact on us.

•We may be impacted by increases in airport expenses relating to infrastructure and facilities, as well as by infrastructure and regulatory disruptions or failures.

•Our results of operations fluctuate due to seasonality, weather, and other factors.

•We have been, and may from time to time be, subject to legal and regulatory proceedings that could result in significant costs, operational disruption, or reputational harm.

•We have a limited number of suppliers for our aircraft, engines, and our Fly-Fi® product.

•~~Remaining~~Tariffs, ~~impacts~~including ofthose that impact commercial aircraft and related parts imported from outside the ~~wind~~United ~~down~~States, ofor ~~our~~tariffs ~~Northeast~~that ~~Alliance~~may ~~("NEA")~~be ~~with~~escalated ~~American~~over ~~Airlines~~time, may have ana material adverse ~~impact~~effect on our fleet, business, financial condition and results of operations.

•Tariffs on commercial aircraft and related parts imported from outside the United States, or tariffs that may be escalated over time, may have a material adverse effect on our fleet, business, financial condition and results of operations.

•Stockholder activism could disrupt our business, cause us to incur significant expenses, hinder execution of our business strategy, and impact our stock price.

~~Information~~Cybersecurity ~~Security~~ and ~~Privacy~~Information ~~Related~~Security Risks

•Our reputation and business may be harmed, and we may be subject to legal claims if there is disruption to our information technology systems or loss, unlawful disclosure or misappropriation of, or unsanctioned access to, our customers', crewmembers', business partners' or our own information or other breaches of our information security.

•Data security compliance requirements could increase our costs, and any significant data breach could disrupt our operations and harm our reputation, business, results of operations and financial condition.

•We rely heavily on automated systems to operate our business; any failure of these systems could harm our business.

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~~•Compliance~~Data ~~with~~Privacy ~~ever-evolving federal, state,~~ and ~~foreign~~Security ~~laws~~Compliance and other requirements relating to the handling of information about individuals necessitates significant expenditure and resources, and any failure by us or our vendors to comply may result in significant liability, negative publicity, and/or an erosion of trust, which could materially adversely affect our business, results of operations, and financial condition.Risks

•Compliance with ever-evolving federal, state, and foreign laws and other requirements relating to the handling of information about individuals necessitates significant expenditure and resources, and any failure by us or our business partners to comply may result in significant liability, negative publicity, and/or an erosion of trust, which could materially adversely affect our business, results of operations, and financial condition.

Human Capital Related Risks

•Failure to attract and retain qualified personnel, or maintain company culture, could harm our business.

•We may be subject to unionization, work stoppages, slowdowns, or increased labor costs and the unionization of our pilots, flight instructors and inflight crewmembers could result in increased labor costs.

Reputational Risks

•An accident or incident involving our aircraft could harm our reputation and business.

•Our business depends on our strong reputation and the value of the JetBlue brand.

Financing and Financial Risks

•We have a significant amount of fixed obligations and we ~~will~~expect to incur significantly more fixed obligations in the future, which could harm our ability to service our current obligations or satisfy future fixed obligations.

•Agreements governing our debt include financial and other covenants. Failure to comply with these covenants could result in events of default.

•Our liquidity could be adversely impacted in the event one or more of our credit card processors were to impose material reserve requirements for payments due to us from credit card transactions.

•We have a significant amount of indebtedness from fixed obligations and may seek material amounts of additional financial liquidity in the short-term, and insufficient liquidity may have a material adverse effect on our financial condition and business.

•We may never realize the full value of our intangible assets or long-lived assets, causing us to record impairments that may negatively affect us.

•Our ability to use certain tax attributes could be subject to limitations.

Artificial ~~intelligence~~Intelligence Related Risks

•Our development and use of AI-powered solutions could lead to operational, reputational, or competitive harm, legal and regulatory risk, and additional costs.

Risks Associated with the Airline Industry

•An outbreak or resurgence of a disease or an environmental disaster could significantly affect travel behavior, which would adversely affect our industry and our business.

•Compliance with environmental laws and regulations may cause us to incur substantial costs.

•WeIncreasing ~~may~~scrutiny beof, ~~affected~~and byevolving ~~global~~expectations ~~climate change or by legal~~regarding, ~~regulatory~~environmental ormatters ~~market~~may ~~responses~~impact toour ~~such~~business ~~change~~and reputation.

•~~Increasing~~Federal ~~scrutiny~~government ofshutdowns, ~~and~~federal ~~evolving~~budget ~~expectations~~constraints ~~regarding,~~or ~~environmental~~federally ~~and~~imposed ~~social~~furloughs ~~matters~~due ~~may~~to ~~impact~~budget ~~our~~negotiation ~~business~~deadlocks ~~and~~may ~~reputation~~adversely affect us.

•~~Federal~~Changes ~~budget~~in ~~constraints~~laws orand ~~federally~~government ~~imposed~~regulations ~~furloughs~~that ~~due~~impose toadditional ~~budget~~requirements ~~negotiation~~and ~~deadlocks~~restrictions ~~may~~on ~~adversely~~our ~~affect~~operations uscould increase our operating costs and result in service delays and disruptions.

•Changes in laws and government regulations, imposing additional requirements and restrictions on our operations could increase our operating costs and result in service delays and disruptions.

•A future act of terrorism, the threat of such acts or escalation of U.S. military involvement overseas could adversely affect our industry.

•The airline industry is particularly sensitive to changes in economic conditions.

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PART I

ITEM 1. BUSINESS

OVERVIEW

General

JetBlue Airways Corporation is New York's Hometown Airline®. As of December 31, ~~2024~~2025, JetBlue served ~~over~~112 ~~100~~ destinations across the United States, the Caribbean and Latin America, Canada and Europe.

JetBlue was incorporated in Delaware in August 1998 and commenced service on February 11, 2000. We believe our differentiated product and culture combined with our competitive cost structure ~~enables~~enable us to compete effectively in the high-value geographies we serve. Looking to the future, we plan to continue to grow in our high-value geographies, invest in industry -leading products, and provide award-winning service by our 23,000+ dedicated employees, whom we refer to as crewmembers. Going forward, we believe we will continue to differentiate ourselves from other airlines, enabling us to continue to attract a greater mix of customers, and to drive continued growth. We are focused on delivering solid results for our stockholders, our customers, and our crewmembers.

Our principal executive offices are located at 27-01 Queens Plaza North, Long Island City, New York 11101 and our telephone number is (718) 286-7900.

Our Industry and Competition

The U.S. airline industry is extremely competitive and challenging, and results are often volatile. It is uniquely susceptible to external factors such as fuel costs, downturns in domestic and international economic conditions, weather-related disruptions, air traffic control ("ATC") shortages, reduced or suspended operation of applicable regulatory agencies, the spread of infectious diseases, the impact of airline restructurings or consolidations, and military actions or acts of terrorism. We operate in a capital and energy intensive industry that has high fixed costs, as well as heavy taxation and fees. Airline returns are sensitive to slight changes in fuel prices, average fare levels, and customer demand. The industry's principal competitive factors include fares, brand and customer service, frequent flyer loyalty programs, route networks, flight schedules, aircraft types, safety records, codeshare and interline relationships, inflight entertainment and connectivity systems.

JETBLUE EXPERIENCE

We offer our customers a distinctive flying experience which we refer to as the "JetBlue experience". We believe we deliver award-winning service and product with competitive fares that focuses on the entire customer experience, from booking an itinerary to arrival at the final destination. We believe JetBlue is the carrier of choice for the majority of travelers who have been underserved by other airlines.

In July 2024, we announced JetForward, our new strategic framework which is driving new initiatives focused on four priority moves: delivering reliable and caring service, building the best east coast leisure network, offering products and perks customers value, and providing a secure financial future. Refer to Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" of this report for further details on progress made on our JetForward initiatives.

Differentiated Product and Culture

Delivering the JetBlue experience to our customers through our differentiated product and culture is core to our mission to bring humanity back to air travel. We look to attract new customers to our brand and provide current customers with a reason to come back by continuing to innovate and evolve the JetBlue experience. We believe we can adapt to the changing needs of our customers and a key element of our success is the belief that competitive fares and a great product need not be mutually exclusive.

We offer customers a choice of one of three JetBlue experiences: the core experience, EvenMore® and Mint®. Within the core experience, there are four fares to choose from: Blue Basic, Blue, Blue Plus, and Blue Extra. All JetBlue fares include a free carry-on bag, free seatback entertainment, free high-speed wiWi-fiFi, free snacks, and free non-alcoholic beverages. Customers can choose to "buy up" to an option with additional offerings. These different fares allow customers to select the products or services they need or value when they travel, without having to pay for the things they do not need or value.

We offer core customers comfortable seating to relax and enjoy the JetBlue experience. Beginning in January 2025, EvenMore® Space was rebranded to EvenMore® which, in addition to giving customers the opportunity to enjoy additional legroom, priority security access, and early boarding, it also includes dedicated overhead bin space, complimentary alcoholic beverages, and premium snack options. Our EvenMore® experience is available for purchase across our fleet. ~~Customers~~Additionally onin ~~select coast-to-coast~~2025, ~~Caribbean~~we ~~and~~enhanced ~~Latin American routes and all transatlantic flights have the option to purchase Mint®,~~ our ~~lie-flat premium service. Each Mint~~EvenMore® ~~seat~~offering, ~~includes a fully lie-flat bed~~ with ~~our~~EvenMore® ~~exclusive~~now ~~Tuft~~selling &via ~~Needle®~~global ~~sleep~~distribution ~~experience.~~systems, ~~Our~~providing ~~Mint®~~ customers ~~also~~more ~~have~~opportunities ~~access~~ to anbook ~~assortment~~our ofpremium ~~complimentary~~economy ~~food,~~offering ~~beverages~~on ~~and products including~~ a ~~small-plates~~single ~~menu,~~ticket ~~artisanal~~through ~~snacks,~~travel ~~alcoholic~~agents ~~beverages,~~and aonline ~~blanket,~~travel ~~pillows, an amenity kit and headphones~~agencies.

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OnCustomers on select ~~transatlantic and~~ coast-to-coast, ~~flights~~Caribbean weand ~~offer~~Latin aAmerican ~~reimagined~~routes ~~version~~and ofall ~~our~~transatlantic flights have the option to purchase Mint®, ~~experience~~our ~~with~~lie-flat apremium ~~completely~~service. ~~refreshed~~Each ~~cabin~~Mint® ~~design~~seat ~~featuring~~includes ~~private~~a ~~suites~~fully lie-flat bed with ~~aisle~~our ~~access.~~exclusive ~~Each~~Tuft of& ~~these~~Needle® ~~select~~sleep experience. Our Mint® ~~aircraft~~customers also ~~include~~have ~~two~~access ~~front~~to ~~row~~an ~~Mint®~~assortment ~~Studios~~of ~~which~~complimentary ~~offer~~food, ~~the~~beverages ~~largest~~and TVproducts onincluding a ~~U.S.~~small-plates ~~airline~~menu, ~~and~~artisanal ansnacks, ~~extra~~alcoholic ~~seat~~beverages, ~~and~~a ~~space~~blanket, ~~to work~~pillows, ~~lounge~~an amenity kit and ~~entertain~~headphones.

~~Our~~On ~~inflight entertainment system onboard our aircraft includes free live TV on~~ select ~~routes~~transatlantic and ~~premium~~coast-to-coast ~~movie~~flights, ~~channel~~we ~~offerings~~offer ~~from~~a ~~JetBlue~~reimagined ~~Features.~~version ~~Our~~of ~~entire~~our ~~fleet~~Mint® isexperience ~~equipped~~ with ~~Fly-Fi®,~~ a ~~broadband~~completely ~~product~~refreshed ~~that~~cabin ~~allows~~design ~~gate-to-gate~~featuring ~~wi-fi~~private atsuites ~~every~~with ~~seat~~aisle access. ~~Customers~~Each ~~also~~of ~~have~~these ~~access~~select ~~to the Fly-Fi~~Mint® ~~Hub,~~aircraft aalso ~~content~~includes ~~portal~~two ~~where~~front ~~customers~~row ~~can~~Mint® ~~access~~Studios awhich ~~wide~~offer ~~range~~the oflargest ~~additional~~TV ~~content~~on ~~from~~a ~~their own personal devices~~U.S. ~~All~~airline ~~customers~~and ~~may~~an ~~enjoy~~extra anseat ~~assortment~~and ofspace ~~free~~to ~~snacks~~work, lounge and ~~non-alcoholic beverages~~entertain.

~~Because~~In of2024, ~~our~~we ~~network~~announced ~~strength~~plans into ~~leisure~~launch ~~destinations,~~a wedomestic ~~also~~first-class ~~sell~~experience ~~vacation~~across ~~packages through~~ our ~~wholly~~non-Mint® ~~owned~~fleet ~~subsidiary,~~to ~~JetBlue~~offer ~~Travel~~an ~~Products,~~additional ~~LLC~~option ~~("JBTP"),~~for ~~which~~customers ~~offers~~seeking ~~one-stop,~~a ~~value-priced~~premium ~~vacation~~travel ~~services~~experience. ~~for~~The ~~self~~first-~~directed~~class ~~packaged~~experience ~~travel~~is ~~planning.~~expected ~~These~~to ~~packages~~roll ~~offer~~out ~~competitive~~on ~~fares~~a ~~for~~portion ~~air~~of ~~travel~~our onfleet ~~JetBlue~~in ~~along~~2026 with athe ~~selection~~majority ofplanned ~~JetBlue-recommended~~to ~~hotels~~be ~~and~~completed ~~resorts,~~by ~~car~~the ~~rentals,~~end ~~and~~of ~~local attractions~~2027.

InWe ~~2024,~~offer weseatback ~~announced~~screens ~~plans~~across toour ~~launch~~fleet, awith ~~domestic~~AVANT ~~first-class~~systems ~~experience~~installed ~~across~~on ~~our~~majority ~~non-Mint®~~of ~~fleet~~our aircraft. ~~This~~AVANT ~~will~~equipped ~~offer~~aircraft feature an ~~additional~~inflight ~~option~~entertainment ~~for~~library ~~customers~~of ~~seeking~~approximately a300 ~~premium~~movies ~~travel~~and ~~experience.~~1,000 Wetelevision ~~also~~episodes, ~~announced~~while ~~plans~~a ~~for~~small portion of the ~~opening~~fleet ofoperates ~~airport~~other ~~lounges~~systems atwith ~~John~~more Flimited content. ~~Kennedy~~Customers ~~International~~also ~~Airport~~enjoy ~~("JFK")~~at ~~Terminal~~least 518 ~~and~~channels ~~Boston~~of ~~Logan~~live ~~International~~TV ~~Airport~~on ~~("BOS")~~most ~~Terminal C~~flights. ~~The~~Our ~~JFK~~entire ~~lounge~~fleet is ~~expected~~equipped towith ~~open in late 2025~~Fly-Fi®, ~~with~~our ~~the~~high-speed ~~BOS~~broadband ~~lounge~~service, ~~expected~~providing gate-to-gate ~~follow~~Wi-Fi ~~shortly~~access ~~thereafter~~at every seat.

In September 2025, we announced that JetBlue was the first airline in the world to sign on with Amazon's Leo, an advanced low Earth orbit satellite broadband network, to bring even faster and more reliable connectivity to our onboard Wi-Fi. We expect to adopt Amazon Leo's cutting-edge technology on a portion of our fleet in 2027.

In December 2025, we opened BlueHouse, JetBlue's first airport lounge, at John F. Kennedy International Airport ("JFK") Terminal 5. The next BlueHouse location is scheduled to open at Boston Logan International Airport ("BOS") Terminal C in 2026, reinforcing our ongoing investment in premium offerings.

Because of our network strength in leisure destinations, we also sell vacation packages through our wholly owned subsidiary, Paisly, LLC ("Paisly") (f/k/a JetBlue Travel Products), which offers one-stop, value-priced vacation services for self-directed packaged travel planning. These packages offer competitive fares for air travel on JetBlue along with a selection of JetBlue-recommended hotels and resorts, car rentals, and local attractions.

Network

We are a ~~predominately~~predominantly point-to-point system carrier with 9695% of our routes touching at least one of our six focus cities: the New York metropolitan area, Boston, Fort Lauderdale-Hollywood, Orlando, Los Angeles and San Juan. All six of our focus cities are in regions with a diverse mix of traffic.

Leisure traveler focused airlines are often faced with high seasonality. As a result, we continually work to manage our mix of customers to include both business travelers and travelers visiting friends and relatives ("VFR"). VFR travelers tend to be slightly less seasonal and less susceptible to economic downturns than traditional leisure destination travelers. Understanding the purpose of our customers' travel helps us to optimize destinations, strengthen our network, and increase revenue.

As of December 31, ~~2024~~2025, we served ~~105~~112 destinations ("BlueCities") in 2829 states, the District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Canada, and 3130 countries in the Caribbean and Latin America, ~~Canada~~ and Europe.

We group our capacity distribution based upon geographical regions rather than on mileage or a length-of-haul basis. The historic distribution of available seat miles ("ASMs"), which we also refer to as capacity, by region for the years ending December 31 was:

Capacity Distribution	~~2024~~2025		~~2023~~2024		~~2022~~2023
Transcontinental	2726.0	%	2927.90	%	3029.89	%
Caribbean & Latin America (1)	3536.95		3335.29		3233.52
Florida	2325.84		23.78		2423.67
Other (East, Central, West)	87.0		108.10		10.61
Transatlantic	5.31		35.13		13.51
Total	100.0	%	100.0	%	100.0	%

(1) Domestic operations as defined by the U.S. Department of Transportation ("DOT"), include Puerto Rico and the U.S. Virgin Islands, but for the purposes of the capacity distribution table above, we have included these locations in the Caribbean and Latin America region.

Airline Commercial Partnerships

Airlines frequently participate in commercial partnerships with other carriers in order to increase customer convenience by providing interline-connectivity, codeshare, complementary flight schedules, frequent flyer program reciprocity, and other joint marketing activities. Our commercial partnerships typically begin as an interline agreement allowing a customer to book a single itinerary with tickets on multiple airlines. On their day of travel, customers have a simplified airport experience with single check-in and bag drop.

Northeast Alliance

In July 2020, JetBlue and American Airlines entered into the Northeast Alliance ("NEA") which was designed to optimize our respective networks at JFK, BOS, LaGuardia Airport ("LaGuardia"), and Newark Liberty International Airport ("Newark").

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OnAirline ~~September~~Commercial 21, 2021, the United States Department of Justice, along with the Attorneys General of six states and the District of Columbia filed suit against JetBlue and American Airlines seeking to enjoin the NEA, alleging that it violated Section 1 of the Sherman Act. The court issued a decision on May 19, 2023, permanently enjoining the NEA, and shortly thereafter we initiated a wind down of the NEA. On July 28, 2023, the court issued its Final Judgement and Order Entering Permanent Injunction, which took effect on August 18, 2023. The wind down of the NEA is substantially complete, but remaining impacts could require us to incur additional costs and therefore have an impact on our financial condition and results of operations.Partnerships

InAirlines ~~December~~frequently ~~2022~~participate ~~and~~in ~~February~~commercial ~~2023,~~partnerships ~~four~~with ~~putative~~other ~~class~~carriers ~~actions lawsuits were filed~~ in ~~the~~order ~~United~~to ~~States~~increase ~~District~~customer ~~Court~~convenience ~~for~~by ~~the~~providing ~~Eastern~~interline ~~District of New York ("EDNY") and the United States District Court for the District of Massachusetts~~connectivity, ~~respectively~~codeshare, ~~alleging~~complementary ~~that~~flight ~~the~~schedules, ~~NEA~~frequent ~~violates~~flyer ~~Sections~~program 1reciprocity, and 2other ofjoint ~~the~~marketing ~~Sherman Act~~activities. ~~Among~~Our ~~other~~commercial ~~things,~~partnerships ~~plaintiffs~~typically ~~seek~~begin ~~injunctive~~as ~~relief~~an ~~and~~interline ~~monetary~~agreement ~~damages~~allowing ~~on behalf of~~ a ~~claimed~~customer ~~putative~~to ~~class~~book ofa ~~direct~~single ~~purchasers~~itinerary ofwith ~~airline~~ tickets ~~from JetBlue and American Airlines and, depending~~ on ~~the~~multiple ~~specific case, other~~ airlines. onOn ~~flights~~their today orof ~~from NEA airports from July 16~~travel, ~~2020~~customers ~~through~~have ~~the~~a ~~time~~simplified ~~that~~airport ~~the~~experience ~~NEA~~with ~~was~~single check-in ~~effect~~ and ~~also~~bag ~~to the alleged anticompetitive effects of the defendants' conduct~~drop. ~~Following denial of a motion to dismiss, discovery has commenced. The Company intends to vigorously defend against these lawsuits. We continue to believe these lawsuits are without merit.~~

Blue Sky

In May 2025, we announced a collaboration with United Airlines, referred to as Blue Sky. This collaboration is structured to give customers of both airlines even more options to find flights that fit their plans as well as new opportunities to earn and use MileagePlus® miles and TrueBlue® points across both airlines. Blue Sky includes a standard interline between JetBlue and United Airlines, which is expected to be implemented over time. In October 2025, customers became eligible to earn and redeem points across both JetBlue Airways and United Airlines loyalty programs. We are also now able to reaccommodate customers across either airline in the event of a real-time cancellation or schedule change. In February 2026 we began to cross-merchandise flights on one another's website, and expect implementation to progress in 2026 at which point we plan to introduce additional enhancements such as reciprocal benefits including priority boarding, preferred and extra legroom seating, and same-day standby and flight changes, with anticipated implementation beginning in March 2026. Additionally, during the second quarter of 2026, we expect to begin selling United Airlines non-air ancillaries through Paisly. We plan to launch with car rentals, followed by cruises, vacation packages, and travel insurance, with the expectation to be selling all ancillary products by the end of 2026.

Marketing

JetBlue is a widely recognized and respected global brand. JetBlue created a new category in air travel and our brand stands for offering a great product and experience with competitive fares. We believe ~~this~~our brand ~~has~~continues ~~evolved~~to ~~into~~be anone ~~important~~of ~~and~~our most valuable ~~asset~~assets, ~~which~~reflecting ~~identifies~~our usreputation as a safe, reliable, and high -value airline. ~~Similarly,~~Strong ~~we believe~~ customer awareness ofand affinity for our brand ~~has~~are ~~contributed~~integral to the success of our marketing efforts., Itand enables us to promote ourselves as a preferred marketing partner with companies across many different industries.

We market our services through ~~advertising~~an ~~and~~integrated ~~promotions~~mix inof ~~various~~channels, ~~media forms~~ including ~~popular~~digital advertising, social media ~~outlets~~platforms, search and performance marketing, and strategic brand partnerships. We ~~engage~~use ina ~~large multi~~data-~~market~~driven ~~programs~~marketing approach to better target audiences, ~~local~~optimize ~~events~~spend, and ~~sponsorships~~enhance personalization across ~~our~~the ~~route~~customer ~~network~~journey. asIn ~~well~~addition asto ~~mobile~~larger ~~marketing~~multi-market ~~programs.~~campaigns, ~~Our~~we ~~targeted~~participate ~~public~~in local events, sponsorships, and community ~~relations~~engagement ~~efforts~~programs ~~reflect~~across our ~~commitment~~route network to ~~the~~demonstrate ~~communities~~our wecommitment ~~serve,~~and ~~promote~~strengthen brand ~~awareness,~~relevance ~~and~~in ~~complement~~key ~~our strong reputation~~markets.

Distribution

Our primary and preferred distribution channel to customers is through our website, www.jetblue.com, our lowest cost channel. Our website allows us to more closely control and deliver the JetBlue experience while also offering the full suite of JetBlue Core fare options, EvenMore®, Mint®, JetBlue Vacations® and TrueBlue TravelTM, and other ancillary services.

Our participation in a global distribution ~~system~~systems ("GDS") supports our profitable growth, particularly in the business market. We find business customers are more likely to book through a travel agency or a booking product which relies on a GDS platform. Although the distribution cost through this channel is higher than through our website, the average fare purchased through a GDS is generally higher and often covers the increased distribution costs. We currently participate in several major GDSs and online travel agents. Due to the majority of our customers booking travel on our website, we maintain relatively low distribution costs which helps us to offer lower fares to customers.

Customer Loyalty Program

TrueBlue® is our customer loyalty program designed to reward and recognize loyal customers. Members earn points with JetBlue, JetBlue Vacations®, ~~Paisly®~~TrueBlue byTravelTM, ~~JetBlue~~ and select airline and travel partners. Members can redeem points for any JetBlue-operated flight, or flight and hotel package, as well as car rentals and hotel stays through TrueBlue TravelTM. TrueBlue® points can be used any time (with no blackout dates) and they never expire. Redemption amounts are based on the current price for that trip on JetBlue-operated flights or members can use a combination of cash and points. TrueBlue Mosaic® is an additional program threshold for our most loyal customers which features four levels, Mosaic 1, Mosaic 2, Mosaic 3, and Mosaic 4.

Our TrueBlue® loyalty program brings many choices and perks for customers. TrueBlue® ~~offers~~members earn tiles ~~as the way~~ to track and measure progress ~~toward~~towards perks and Mosaic® status. Tiles are earned based on a combination of travel spend and credit card spend. The program is designed to provide TrueBlue® members many opportunities to get rewarded, even before achieving ~~Mosaic® status. TrueBlue® includes four distinct Mosaic levels, each featuring Mosaic Signature Perks and a selection from the Mosaic Perks You Pick® menu.~~

We currently have co-branded loyalty credit cards available to eligible U.S. residents, as well as co-brand agreements in Puerto Rico, the Dominican Republic, and the Caribbean to allow cardholders to earn TrueBlue® points. Our co-branded credit cards in the United States are issued in partnership with Barclaycard® on the MasterCard® network. We also have co-branded loyalty credit cards issued by Banco Popular de Puerto Rico and MasterCard® in Puerto Rico, Banco Popular Dominicano and MasterCard® in the Dominican Republic, and CIBC Caribbean and MasterCard® in Barbados, Jamaica, Trinidad, the Bahamas, and the Cayman Islands.

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InMosaic® ~~2024,~~status. weTrueBlue® ~~also~~includes ~~expanded~~Perks ~~the~~You coPick® for non-~~brand~~Mosaic® ~~portfolio~~TrueBlue® ~~with~~members, ~~the~~and ~~announcement~~four ofdistinct aMosaic ~~premium~~levels, ~~co-branded~~each ~~credit~~featuring ~~card,~~Mosaic ~~which~~Signature ~~launched~~Perks inand ~~January~~a ~~2025~~selection from the Mosaic Perks You Pick® menu.

We currently have ~~various~~co-branded ~~agreements~~loyalty ~~with~~credit ~~other~~cards ~~loyalty~~available ~~partners,~~to ~~including~~eligible ~~financial~~U.S. ~~institutions~~residents, ~~hotels,~~as ~~and~~well ~~car~~as ~~rental~~co-brand ~~companies,~~agreements ~~that~~in ~~allow~~the ~~their~~Caribbean ~~customers~~to allow cardholders to earn TrueBlue® points ~~through~~and ~~participation~~tiles. Our co-branded credit cards in ~~our~~the ~~partners'~~United ~~programs.~~States Weare ~~intend~~issued toin ~~continue~~partnership towith ~~develop~~Barclaycard® on the ~~footprint~~Mastercard® ofnetwork. ~~our~~Our co-branded credit cards in the Caribbean are on the Mastercard® network and ~~pursue~~are ~~other~~issued ~~loyalty~~by ~~partnerships~~Banco Popular de Puerto Rico in Puerto Rico, Banco Popular Dominicano in the ~~future~~Dominican Republic, and CIBC Caribbean in Barbados, Jamaica, Trinidad, the Bahamas, the Cayman Islands and more countries coming.

In January 2025, we launched a premium co-branded credit card, which provides cardholders with incremental benefits such as lounge access, priority boarding, TrueBlue TravelTM statement credits, and more.

We have various agreements with other loyalty partners, including financial institutions, hotels, car rental companies and other airlines, that allow their customers to earn TrueBlue® points across programs. We plan to continue expanding the reach of our co-branded credit cards and pursue additional loyalty partnerships in the future.

OPERATIONS AND COST STRUCTURE

Historically, our cost structure has allowed us to price fares lower than many of our competitors. Our cost advantage relative to some of our competitors was due to, among other factors, high aircraft utilization, new and efficient aircraft, relatively low distribution costs, and a productive workforce. Because our network initiatives and growth plans require a low cost platform, we strive to stay focused on our competitive costs, operational excellence, and efficiency improvements. Due to post-pandemic labor shortages and subsequent collective bargaining agreement renewals, labor costs across the industry have increased significantly.

As of December 31, ~~2024~~2025, we had an operating fleet of ~~290~~288 aircraft. Refer to Part I, Item 2 "Properties" for additional information on our fleet.

Route Structure

JetBlue's point-to-point network is designed to optimize costs as well as accommodate customers' preference for nonstop itineraries. A vast majority of our operations are centered in the heavily populated Northeast corridor of the U.S., which includes the New York and Boston metropolitan areas. This airspace is some of the world's most congested and drives certain operational constraints. The majority of our flights touch at least one of our six focus cities:

Focus City	Nonstop Routes Served (2)	JetBlue ~~Seats~~Seat ~~Offered~~Share (1)
New York metropolitan area (2)	130	14	%
New York metropolitan area (3)	118	13	%
Boston	7578	2526	%
San Juan	18	2629	%
Fort Lauderdale-Hollywood	4349	1920	%
Orlando	2827	10	%
Los Angeles	186	3	%

(1) Reflects JetBlue's seat share in each focus city as of December 31, 2025, which includes regional jet flying compared to the industry as a whole.

(2) ~~Includes~~Reflects ~~JFK,~~JetBlue's ~~Newark,~~nonstop ~~LaGuardia,~~routes ~~and~~served ~~New~~in ~~York's~~each ~~Westchester~~focus ~~County~~city ~~Airport~~as of December 31, 2025.

(3) Includes JFK, Newark, LaGuardia, Westchester County Airport and Long Island MacArthur Airport.

Our peak levels of traffic over the course of the typical year vary by route. Generally speaking, many of our areas of operations in the Northeast experience ATC delays and weather-related disruptions resulting in increased costs associated with de-icing aircraft, canceling flights, accommodating displaced customers, and crewmember interrupted trip costs. Many of our Florida and Caribbean routes experience bad weather conditions in the summer and fall due to thunderstorms and hurricanes. As we enter new markets, we could be subject to additional seasonal variations along with competitive responses by other airlines.

Fleet Maintenance

Consistent with our core value of safety, our Federal Aviation Administration ("FAA") approved maintenance programs are administered by our technical operations department. We use qualified maintenance personnel who receive comprehensive training. We maintain our aircraft and associated maintenance records in accordance with, if not exceeding, FAA regulations.

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Fleet maintenance work is divided into four categories: line maintenance, heavy maintenance, engine maintenance and component maintenance.

The bulk of our line maintenance is handled by JetBlue technicians and inspectors. It consists of service checks, interior maintenance, weekly checks, phased "A" checks and "B" checks, along with periodic diagnostics, routine repairs, departure checks on our transatlantic flights and non-routine component replacements.

Heavy maintenance checks, or base maintenance, consist of a series of more complex maintenance, modification, and inspection tasks taking from one to six weeks to complete and are typically performed once every 36 months. All of our aircraft heavy maintenance work is performed by third-party FAA-certified repair stations and are subject to direct oversight by JetBlue personnel. We contract out heavy maintenance as the costs are lower than if we were to perform the tasks internally.

11Engine maintenance is performed by the original equipment manufacturer of the engines themselves or by their approved network providers. Some of our Airbus aircraft engines are serviced under fixed price flight hour agreements for the repair, overhaul, modification, and logistics, while others are covered under time and material contracts.

~~Table~~Component maintenance on equipment such as auxiliary power units, landing gears, pumps, avionic computers, and in-flight entertainment equipment are all performed by a number of ~~Contents~~different FAA-certified repair stations that are surveilled and approved by JetBlue. Many of our maintenance service agreements are based on a fixed cost per flight hour. These fixed costs vary based upon the age of the aircraft and other operating factors impacting the related component. Required maintenance not otherwise covered by these agreements is performed on a fixed event price or time and materials cost basis. All other maintenance activities are sub-contracted to qualified maintenance, repair, and overhaul facilities.

Engine maintenance is performed by the original equipment manufacturer of the engines themselves or by their approved network providers. We have fixed price flight hour agreements for the repair, overhaul, modification, and logistics of our Airbus aircraft engines.

Component maintenance on equipment such as auxiliary power units, landing gears, pumps, avionic computers, and in-flight entertainment equipment are all performed by a number of different FAA-certified repair stations that are surveilled and approved by JetBlue. Many of our maintenance service agreements are based on a fixed cost per flight hour. These fixed costs vary based upon the age of the aircraft and other operating factors impacting the related component. Required maintenance not otherwise covered by these agreements is performed on a time and materials basis. All other maintenance activities are sub-contracted to qualified maintenance, repair, and overhaul facilities.

Pratt & Whitney

Aircraft Fuel

Aircraft fuel continues to be one of our largest expenses. Prices have been extremely volatile due to global economic and geopolitical factors, which we can neither control nor accurately predict. Our 2025 fuel consumption decreased by 3.2% due to lower capacity and increased fuel efficiency, and our average price per gallon decreased 9.3% compared to 2024. Our historical fuel consumption and costs for the years ended December 31 were:

	2024			2023			2022
	2025			2024			2023
Gallons consumed (millions)	~~853~~826			~~897~~853			~~842~~897
Total cost (millions) (1)	$	2,~~343~~057		$	2,~~807~~343		$	32,~~190~~807
Average price per gallon (1)	$	2.7549		$	32.1375		$	3.7913
Percent of operating expenses	23.5		%	28.5		%	33.7		%
Fuel efficiency (ASMs per fuel gallon)	79			77			76
Percent of operating expenses	21.8		%	23.5		%	28.5		%

(1) Total cost and average price per gallon each include the cost of jet fuel, related taxes, into-plane, transportation, airport fuel flowage, and storage fees. It also includes effective fuel hedging gains and losses.

We attempt to protect ourselves against the volatility of fuel prices by entering into a variety of derivative instruments with underlyings of jet fuel, crude, and heating oil. In 2024 and 2023, we effectively hedged a portion of exposure to price fluctuations by utilizing call spread options with an underlying of jet fuel. As of December 31, 2025 and 2024, we did not have any outstanding fuel hedging contracts.

Financial Health

In 2024, we completed our structural cost program to set the foundation for continued cost control through our strategic operating plan, JetForward. We remain focused on maintaining a healthy liquidity balance, ending the year with $3.9 billion of cash and cash equivalents, short term investments and long-term marketable securities.

The net book value of our assets pledged, or committed to be pledged, as security under various financing arrangements increased by $259 million from $7.1 billion at December 31, 2023 to $7.3 billion at December 31, 2024.

JetBlue Ventures

JetBlue Technology Ventures, LLC, ("JetBlue Ventures" or "JBV") is a wholly owned subsidiary of JetBlue. JBV invests in and partners with early-stage startups with goals of improving the travel, hospitality, and transportation industries. As of December 31, 2024 and 2023, our JBV equity investments had an aggregate carrying value of $84 million and $96 million, respectively included in other assets on the consolidated balance sheets.

JetBlue Travel Products

JetBlue Travel Products, LLC ("JBTP"), a wholly owned JetBlue subsidiary, encompasses the JetBlue Vacations® brand, offering integrated travel packages including hotel, cruise, and non-air travel products like insurance, car rentals, and activities. JBTP aims to enhance JetBlue's vision of inspiring humanity by providing comprehensive travel experiences.

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~~JetBlue~~Cost ~~Vacations® allows customers to combine JetBlue flights with hotels and cruises, offering savings, exclusive benefits like early boarding, free inflight drinks, and flexible payment options.~~Discipline

~~JBTP~~In ~~also~~2025, ~~manages~~to ~~Paisly~~secure our financial future and navigate near-term demand volatility, we focused on executing cost discipline and managing our fleet to drive future capital light growth. We continued to make progress on the JetForward cost program by ~~JetBlue®~~implementing AI and data science technology to optimize planning, anbetter amanage ladisruptions, ~~carte~~and ~~travel~~enable ~~website~~greater ~~offering~~customer ~~deals~~self-service. We are modernizing fuel processes and ~~TrueBlue~~are ~~benefits~~unlocking oncost ~~cars~~savings through technology, ~~stays~~process, ~~activities~~and operational initiatives. Additionally, we streamlined product costs and ~~travel~~strengthened ~~bags~~efficiencies on our fixed support center costs. We remain focused on maintaining a healthy liquidity balance, ending the year with $2.5 billion of cash and cash equivalents, short-term investments and long-term marketable securities.

AThe ~~key~~net ~~partnership~~book ~~with~~value ~~Allianz~~of ~~Partners~~our ~~USA~~assets ~~enables~~pledged, ~~JetBlue~~or ~~customers~~committed to ~~safeguard~~be ~~their~~pledged, ~~travel~~as ~~plans~~security ~~with~~under ~~comprehensive~~various ~~travel~~financing ~~insurance,~~arrangements ~~covering~~remained ~~both~~the ~~flights~~same for 2025 and ~~vacation~~2024 ~~packages~~at $7.3 billion.

JetBlue Ventures

JetBlue Technology Ventures, LLC, ("JetBlue Ventures" or "JBV") is a wholly owned subsidiary of JetBlue. JBV was formed to invest in and partner with early-stage startups with goals of improving the travel, hospitality, and transportation industries. As of December 31, 2025 and 2024, our JBV equity investments had an aggregate carrying value of $89 million and $84 million, respectively, included in other assets on the consolidated balance sheets.

In May 2025, as part of efforts to return focus to our core business, SKY Leasing ("SKY"), a leading aviation investment manager, acquired certain assets of JBV. JetBlue continues to serve as a strategic partner to SKY and its portfolio companies. JetBlue retained ownership of its fund portfolio, disclosed in Note 14 to our consolidated financial statements included in Part II, Item 8 of this Report, and SKY has assumed management of the investments, subject to an agreed upon management fee. Certain other conditions exist in the agreement, but are not expected to have a material impact on the companies' operations or financial condition.

Paisly

Paisly, formerly known as JetBlue Travel Products, is a wholly owned JetBlue subsidiary encompassing the JetBlue Vacations® brand, which offers integrated travel packages combining JetBlue flights with hotels and cruises, and TrueBlue TravelTM, which sells non-air travel products such as insurance, hotels, car rentals, and activities on a stand-alone basis, whether connected to a JetBlue flight or not, leveraging the TrueBlue® point earning and redemption opportunities and JetBlue Card benefits.

In June 2025, we announced the rebranding of JetBlue Travel Products to Paisly, marking a strategic milestone within JetBlue's JetForward strategy. The rebrand reflects Paisly's evolution into a full-service, tech-enabled managed travel services company, positioned to serve not only JetBlue customers but also those of other partners, beginning with a new collaboration with United Airlines. Over time, Paisly expects to support a growing range of partners across the broader travel landscape. We believe the collaboration with United Airlines, under United's brand, will contribute to Paisly's high-margin, high-growth business for the distribution of hotels, rental cars, cruises, travel insurance, and vacation packages.

HUMAN CAPITAL MANAGEMENT

Our People and Culture

We believe our success depends on our crewmembers delivering the JetBlue experience in the sky and on the ground. One of our competitive strengths is a service-oriented culture rooted in our five key values: safety, caring, integrity, passion, and fun. We believe a highly productive and engaged workforce enhances customer loyalty. Our goal is to hire, train, and retain caring, passionate, fun, and friendly people who share our mission to bring humanity back to air travel.

Sustaining a talent pipeline of skilled aviation professionals is also key to JetBlue's success and we continue to cultivate and build a qualified and engaged workforce, open to individuals regardless of background, through a variety of development programs. These programs provide opportunities for external applicants to pursue a path to joining JetBlue in critical roles and support the continued growth of internal talent, growing leaders from within the organization. Our JetBlue Gateway programs offer a suite of eight distinct paths dedicated to helping support the next generation of pilots and aviation maintenance technicians. Our suite of Gateway programs ~~include~~includes pilot and maintenance technician development paths to meet any level of experience and a variety of learning styles for both our internal crewmembers and external applicants.

We provide professional and leadership development programs to elevate the performance and support the career growth of all interested crewmembers. These programs include leadership round tables, online skills-based learning courses through LinkedIn Learning, and principles of leadership sessions for our newly promoted crewleaders.

We believe a direct relationship between crewmembers and our leadership is in the best interest of our crewmembers, our customers, and our stockholders. Our leadership team communicates on a regular basis with all crewmembers to bolster our culture and to keep them informed about news, strategy updates, and challenges affecting the airline and the industry. Effective and frequent communication throughout the organization is fostered through various means including periodic email messages from our CEO and other senior leaders, weekday news updates to all crewmembers, crewmember engagement surveys, open forum meetings across our network referred to as "pocket sessions" and active leadership participation in new hire orientation.

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culture and to keep them informed about news, strategy updates, and challenges affecting the airline and the industry. Effective and frequent communication throughout the organization is fostered through various means including periodic email messages from our CEO and other senior leaders, weekday news updates to all crewmembers, crewmember engagement surveys, open forum meetings across our network referred to as "pocket sessions" and active leadership participation in new hire orientation.

Labor Unions and Non-Unionized Crewmembers

Except for our pilots, pilot instructors, and inflight crewmembers, our other frontline crewmembers do not have third-party representation.

As of December 31, 2025, approximately 49% of our active full-time equivalent crewmembers were represented by unions. The following table sets forth our crewmember groups and the status of their respective collective bargaining agreements.

Crewmember Group

Representative

Crewmembers (1)

Amendable Date (2)

Pilots

Air Line Pilots Association (ALPA)

4,~~492~~251

February 1, 2025

Inflight

Transport Workers Union (TWU)

5,302

December 13, 2026

Pilot instructors

Transport Workers Union (TWU)

N/A

Inflight

Transport Workers Union (TWU)

5,369

December 13, 2026

(1) Number of active full-time equivalent crewmembers as of December 31, ~~2024~~2025.

(2) Our relations with our labor organizations are governed by Title II of the Railway Labor Act of 1926, pursuant to which the collective bargaining agreements between us and these organizations do not expire but instead become amendable as of a certain date if either party wishes to modify the terms of the agreement.

On July 14, 2022, TWU filed a representation application with the National Mediation Board ("NMB") seeking an election among the 35 pilot instructors ("Flight Instructors"). JetBlue disputed the TWU's application alleging that Flight Instructors do not constitute a craft or class. On October 26, 2023, the NMB notified the participants that it rejected JetBlue's argument and ordered an election. The Flight Instructors voted for TWU representation. Contract negotiations for an initial collective bargaining agreement ("CBA") began in April 2024 and are ongoing. ALPA

WeIn ~~have~~January ~~individual employment agreements with each of our non-unionized FAA licensed crewmembers which consist of dispatchers~~2023, ~~technicians,~~JetBlue ~~inspectors,~~pilots ~~and~~ratified ~~air traffic controllers. Each employment agreement is for~~ a ~~term of five years and automatically renews for an additional five~~two-year ~~term~~contract ~~unless~~extension ~~either~~effective ~~the~~March ~~crewmember~~1, ~~or we elect not to renew it by giving at least 90 days' notice before the end of the relevant term~~2023. ~~Pursuant~~In toFebruary ~~these agreements~~2025, ~~these~~the ~~crewmembers~~contract ~~can~~became ~~only be terminated for cause~~amendable. InContract ~~the~~negotiations ~~event~~formally ofbegan ~~a downturn~~ in ~~our~~early ~~business,~~May ~~resulting~~2024 ~~in a reduction of flying~~ and ~~related work hours, we~~ are ~~obligated~~ ongoing.

13TWU

On July 14, 2022, TWU filed a representation application with the National Mediation Board ("NMB") seeking an election among the 35 pilot instructors ("Flight Instructors"). JetBlue disputed TWU's application alleging that Flight Instructors do not constitute a craft or class. On October 26, 2023, the NMB notified the participants that it rejected JetBlue's argument and ordered an election. The Flight Instructors voted for TWU representation. Contract negotiations for an initial collective bargaining agreement ("CBA") began in April 2024 and are ongoing.

JetBlue's inflight crewmembers are represented by TWU, with a contract amendable date of December 13, 2026. The option for TWU to initiate negotiations began on January 1, 2025 and is ongoing until the contract amendable date.

In November 2025, TWU filed a petition with the NMB seeking to represent the Company's dispatchers, air traffic system controllers, and system controllers. The NMB has authorized an election which will run from January 15, 2026 through February 26, 2026. The vote is scheduled to be counted on or around February 26, 2026.

IAM

In November 2025, the International Association of Machinists & Aerospace Workers ("IAM") filed a petition with the NMB seeking to represent the Company's ground operations class of employees. The NMB reviewed IAM's submission and determined IAM failed to show it had the required amount of authorization cards to hold an election.

We have individual employment agreements with each of our non-unionized FAA licensed crewmembers which consist of dispatchers, technicians, inspectors, and air traffic controllers. Each employment agreement is for a term of five years and automatically renews for an additional five-year term unless either the crewmember or we elect not to renew it by giving at least 90 days' notice before the end of the relevant term. Pursuant to these agreements, these crewmembers can only be terminated for cause. In the event of a downturn in our business, resulting in a reduction of flying and related work hours, we are obligated to pay these crewmembers a guaranteed level of income and continue their benefits if they do not obtain other aviation employment.

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toOur ~~pay~~average ~~these~~active ~~crewmembers~~full-time aequivalent ~~guaranteed~~crewmembers ~~level~~for ofthe ~~income~~year ~~and~~ended ~~continue~~December 31, ~~their~~2025 ~~benefits~~consisted ifof: ~~they do not obtain other aviation employment.~~

Our average full-time equivalent crewmembers for the year ended December 31, 2024 consisted of:


Crewmember Group						Average full-time equivalent crewmembers
Pilots						4,326
Inflight (1)						5,331
Airport operations						3,929
Technicians (2)						1,008
Reservation agents						402
Management and other personnel						4,263

Crewmember Group						Average full-time equivalent crewmembers
Pilots						4,497
Inflight (1)						5,785
Airport operations						3,934
Technicians (2)						959
Reservation agents						477
Management and other personnel						4,170

(1) Referred to as flight attendants by other airlines.

(2) Referred to as mechanics by other airlines.

For the year ended December 31, ~~2024~~2025, we employed an average of 1918,~~403~~971 active full-time and 3,~~390~~116 active part-time crewmembers. Our average number of active full-time equivalent crewmembers decreased by 32.98% compared to ~~2023~~2024.

Crewmember and Community Programs

We are committed to treating our crewmembers and customers with dignity and respect, in line with our mission ofto bring humanity back to air travel. As such, we support our crewmembers through a number of programs, including a JetBlue ~~scholars~~Scholars program and a crewmember crisis fund.

The JetBlue ~~scholars~~Scholars' program assists crewmembers in earning an undergraduate degree more cost-effectively through online, self-directed, credit approved courses. Crewmembers may also contribute to or participate in our crewmember crisis fund, JCCF, a 501(c)(3) non-profit charitable organization, which provides assistance to JetBlue crewmembers and their immediate family members with short-term financial support in times of crisis and unexpected emergencies when other resources are not available.

JetBlue is committed to supporting the communities and BlueCities we serve through a variety of community programs which focus on the youth and education, community and environment. We also have established the JetBlue Foundation, a 501(c)(3) non-profit corporation, focused on raising awareness for careers in science, technology, engineering and math ("STEM"), and aviation. Since inception, our crewmembers have volunteered over 1.5 million hours to the communities that they live and work in.

Sustainability

JetBlue aims to mitigate risks to promote the long-term sustainability of our business. Customers, crewmembers and our ~~community~~communities are key to JetBlue's sustainability strategy.

We are focused on ~~decarbonizing~~decreasing our ~~operations~~carbon footprint to mitigate the various risks posed to our ~~company~~Company. We have integrated science-based environmental risks and opportunities into broader business goals and decision-making processes~~. In 2022~~, weand ~~received~~taken ~~approval~~steps ~~from~~to ~~the~~review ~~Science~~and ~~Based~~update ~~Targets Initiative ("SBTi") for~~ our ~~near-term~~sustainability ~~emissions reduction target on the path to net zero. With this target~~initiatives, ~~JetBlue~~including ~~set~~adopting ~~a goal to reduce well-to-wake (lifecycle) scope 1 and 3~~ greenhouse gas ("GHG") emissions ~~related~~reduction totargets, ~~jet~~sourcing ~~fuel~~Sustainable byAviation ~~50%~~Fuel ~~per~~("SAF"), ~~revenue~~driving ~~tonne~~increased ~~kilometer~~fuel ~~by 2035 from a 2019 base year. Aligned with SBTi requirements~~efficiency, ~~JetBlue plans to regularly review~~ and ~~update~~partnering ~~this~~with ~~target~~sustainability-related companies.

We are pursuing the following five key levers to reduce the emissions associated with our business:

(1) Fleet Renewal: Our investments over time in new next generation aircraft are aimed at increasing fuel efficiency and reducing associated costs.

(2) Fuel Optimization: We operate a cross-functional team focused on procedural and technological improvements to drive increased fuel-efficiency in our operations. Opportunities include the promotion of single-engine taxi and single-engine taxi without auxiliary power, improved ground power and pre-conditioned air hookup times when aircraft arrive at gates, investing in ground power infrastructure for use during maintenance, and improvements to dispatch procedures to optimize fueling.

(3) Sustainable Aviation Fuel ("SAF"): SAF is a jet fuel made from renewable resources such as waste fats, oils, and greases, that drops directly into aircraft and infrastructure, which is calculated to be able to reduce emissions by up to roughly 80% per gallon on a lifecycle basis before being blended with conventional jet fuel. SAF is expected to be the airline industry's key contributor to large-scale lifecycle emissions reduction, which is highly dependent on availability and costs of supply. We are regularly flying using SAF from various sources as a portion of our jet fuel usage today. As of December 31, 2024, JetBlue

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had eight public and active SAF partners for current and future supply, which will support our target to convert 10% of our jet fuel usage to blended SAF by 2030.

(4) Electric Ground Operations: Where feasible, we are converting our Ground Service Equipment ("GSE") to electric power and maximizing electric ground power and air systems for our aircraft to minimize our fuel use and emissions on the ramp. We have committed to converting 40% of our GSE to electric power by 2025, and 50% by 2030.

(5) Technology Partnerships: Primarily through our subsidiary JBV, we support and invest in lower-emissions aircraft technologies such as electric and hydrogen aircraft, sustainable aviation fuel and direct air capture technologies. As of December 31, 2024, JBV has invested in 11 sustainability-related companies.

REGULATION

Airlines are heavily regulated, with rules and regulations set by various federal, state, and local agencies. ~~We also operate under specific regulations due to our operations within the high density airspace of the Northeast.~~ Most of our airline operations are regulated by U.S. governmental agencies, including:

DOT - The DOT primarily regulates economic issues affecting air service including, but not limited to, certification and fitness, insurance, consumer protection, and competitive practices. It has the authority to investigate and institute proceedings to enforce its economic regulations, including its tarmac delay, full fare advertising and ~~fair~~unfair and deceptive practice regulations, and may assess civil penalties, impose consumer protection remedies, revoke operating authority, and seek criminal sanctions for various levels and manners of non-compliance.

FAA - The FAA primarily regulates flight operations, in particular, matters affecting air safety. This includes but is not limited to airworthiness requirements for aircraft, the licensing of pilots, mechanics and dispatchers, and the certification of flight attendants. It requires each airline to obtain an operating certificate authorizing the airline to operate at specific airports using specified equipment. Like all U.S. certified carriers, JetBlue cannot fly to new destinations without the prior authorization of the FAA. After providing notice and a hearing, the FAA has the authority to modify, suspend temporarily, or revoke permanently our authority to provide air transportation or that of our licensed personnel for failure to comply with FAA regulations. It can additionally assess civil penalties for such failures as well as institute proceedings for the imposition and collection of monetary fines for the violation of certain FAA regulations. When significant safety issues are involved, it can revoke a U.S. carrier's authority to provide air transportation on an emergency basis, without providing notice and a hearing. It monitors our compliance with maintenance as well as flight operations and safety regulations. It maintains a requisite level of oversight and performs frequent in-person spot inspections of our aircraft, crewmembers, and records. The FAA also has the authority to issue airworthiness directives and other mandatory orders. This includes the inspection of aircraft and engines, fire retardant and smoke detection devices, collision and wind shear avoidance systems, noise abatement, and the mandatory removal and replacement of aircraft parts that have failed or may fail in the future. We have and maintain FAA certificates of airworthiness for all of our aircraft and have the necessary FAA authority to fly to all of the destinations we currently serve.

Airport Access - Federal regulations, administered by the FAA, manage congestion at three U.S. airports: Ronald Reagan Washington National, LaGuardia, and JFK. A slot is legal permission to conduct an arrival or departure. FAA rules limit the air traffic in and out of these airports during specific times; however, even with the rules in place, delays remain among the highest in the nation due to continuing shortages in the air traffic control workforce. Additionally, we have slots at other slot-controlled airports governed by unique local ordinances not subject to federal regulation as well as international destinations.

Transportation Security Administration and U.S. Customs and Border Protection - The Transportation Security Administration ("TSA"), and the U.S. Customs and Border Protection ("CBP"), operate under the Department of Homeland Security and are responsible for all civil aviation security. This includes passenger and baggage screening; cargo security measures; airport security; assessment and distribution of intelligence; security research and development; international passenger screening; customs; and agriculture. They also have enforcement powers and the authority to issue regulations, including in cases of national emergency, without a notice or comment period. They can also assess civil penalties for such failures as well as institute proceedings for the imposition and collection of monetary fines for the violation of certain regulations.

Taxes & Fees - The airline industry is one of the most heavily taxed industries in the U.S. Airlines are obligated to fund all of the taxes and fees imposed on them regardless of their ability to pass these charges on to the customer.

State and Local - In addition to the federal regulations with which we must comply, we are also subject to state and local laws and regulations in the states in which we operate and the regulations of various local authorities operating the airports we serve.

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Tocollection of monetary fines for the ~~extent~~violation weof ~~seek~~certain FAA regulations. When significant safety issues are involved, it can revoke a U.S. carrier's authority to provide air transportation toon ~~additional~~an ~~international~~emergency ~~markets~~basis, without providing notice and a hearing. It monitors our compliance with maintenance as well as flight operations and safety regulations. It maintains a requisite level of oversight and performs frequent in-person ~~the~~spot ~~future~~inspections of our aircraft, wecrewmembers, ~~would~~and berecords. ~~required~~The toFAA ~~obtain~~also ~~necessary~~has the authority ~~from~~to issue airworthiness directives and other mandatory orders. This includes the ~~DOT~~inspection of aircraft and engines, fire retardant and smoke detection devices, collision and wind shear avoidance systems, noise abatement, and the mandatory removal and replacement of aircraft parts that have failed or may fail in the future. We have and maintain FAA ascertificates ~~well~~of asairworthiness for all of our aircraft and have the ~~applicable~~necessary ~~foreign~~FAA ~~government~~authority to fly to all of the destinations we currently serve.

WeAirport ~~believe~~Access we- ~~are~~Federal ~~operating~~regulations, inadministered ~~compliance~~by ~~with~~the ~~DOT~~FAA, ~~FAA~~manage congestion at four U.S. airports: Ronald Reagan Washington National, ~~TSA~~LaGuardia, ~~CBP~~ and ~~applicable~~JFK, ~~international~~with ~~regulations~~slots, and ~~hold~~Newark, ~~all~~with ~~necessary~~ operating ~~and~~authorizations. ~~airworthiness~~A ~~authorizations~~slot ~~and~~is ~~certificates~~legal permission to conduct an arrival or departure. ~~Should~~FAA ~~any~~rules limit the air traffic in and out of these ~~authorizations~~airports orduring ~~certificates~~specific betimes; ~~modified~~however, ~~suspended~~even with the rules in place, ordelays ~~revoked~~remain among the highest in the nation due to continuing shortages in the air traffic control workforce. Additionally, ~~our~~we ~~business~~have ~~could~~slots beat ~~materially~~Westchester ~~adversely~~County ~~affected~~Airport, which is governed by unique local ordinances not subject to federal regulation as well as international destinations.

Transportation Security Administration and U.S. Customs and Border Protection - The Transportation Security Administration ("TSA") and the U.S. Customs and Border Protection ("CBP") operate under the Department of Homeland Security and are responsible for all civil aviation security. This includes passenger and baggage screening; cargo security measures; airport security; assessment and distribution of intelligence; security research and development; international passenger screening; customs; and agriculture. They also have enforcement powers and the authority to issue regulations, including in cases of national emergency, without a notice or comment period. They can also assess civil penalties for such failures as well as institute proceedings for the imposition and collection of monetary fines for the violation of certain regulations.

Foreign Operations - International air transportation is subject to extensive government regulation. The availability of international routes to U.S. airlines is regulated by treaties and related agreements between the U.S. and foreign governments. To the extent we seek to provide air transportation to additional international markets in the future, we would be required to obtain necessary authority from the DOT and the FAA as well as the applicable foreign government.

We believe we are operating in compliance with DOT, FAA, TSA, CBP, and applicable international regulations and hold all necessary operating and airworthiness authorizations and certificates. Should any of these authorizations or certificates be modified, suspended, or revoked, our business could be materially adversely affected.

Other

Environmental - We are subject to various federal, state and local environmental laws, ~~relating~~including to the ~~protection of the environment. This includes the~~ regulation of ~~GHG~~ emissions, the discharge or disposal of materials and chemicals, as well as the regulation of aircraft noise administered by numerous state and federal agencies.

The Airport Noise and Capacity Act of 1990 recognizes the right of airport operators with special noise problems to implement local noise abatement procedures as long as those procedures do not interfere unreasonably with the interstate and foreign commerce of the national air transportation system. Certain airports, including San Diego airport, have established restrictions to limit noise which can include limits on the number of hourly or daily operations and the time of such operations. These limitations are intended to protect the local noise-sensitive communities surrounding the airport. Our scheduled flights at San Diego airport are in compliance with the noise curfew limits, but we may violate these curfews on occasion when we experience irregular operations.

~~Concern~~Historical concern over climate change, including the impact of global warming, has led to ~~significant~~ U.S. and international legislative and regulatory efforts to limit GHG emissions, including our aircraft and ground operations emissions. In October 2016, the International Civil Aviation Organization ("ICAO") passed a resolution adopting the Carbon Offsetting and Reduction Scheme for International Aviation ("CORSIA"), which is a global, market-based emissions offset program intended to promote carbon-neutral growth beyond 2020. Annual international emissions reporting is required via CORSIA as of the 2019 reporting year, and offsetting compliance relative to a predetermined baseline is scheduled to be implemented through multiple phases that began in 2021. ICAO ~~originally~~continues ~~defined~~to ~~the~~develop ~~baseline~~details asregarding ~~the~~implementation ~~average emissions from covered flights in 2019~~ and ~~2020. However~~, inwhile ~~2020,~~we ~~given~~expect ~~the~~compliance ~~impacts~~with ofCORSIA ~~COVID-19~~will ~~which~~increase ~~dramatically~~our ~~reduced~~operating ~~2020 emissions~~costs, ~~ICAO agreed that~~ the ~~baseline~~anticipated ~~from~~cost ~~which~~of ~~the industry achieves carbon neutral growth would be from 2019 only. ICAO continues to develop details regarding implementation, but we expect~~ compliance with CORSIA ~~will~~is ~~increase~~uncertain ~~our~~due ~~operating costs.~~

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to a number of factors, including the volatility in demand for international air travel, regulatory uncertainty, and uncertainty in the supply and price of eligible carbon offsets or low-carbon aircraft fuels.

In January 2021, the U.S. Environmental Protection Agency ("USEPA") promulgated a final rule implementing the 2017 ICAO aircraft engine GHG emission standards, which will apply to larger business and commercial jet aircraft with either new design types (not previously certified by the FAA) or existing design types that are in production as of January 1, 2028. Pursuant to the Clean Air Act, the FAA issued a final rule in February 2024 to implement these standards, introducing new fuel efficiency certification regulations. These regulations became effective in April 2024 and apply to airplanes manufactured after January 1, 2028, as well as to uncertified large business and commercial jet aircrafts.

Federal tax law, as most recently modified under the One Big Beautiful Bill Act ("OBBB"), provides for the Clean Fuel Production Credit ("45Z") tax credit for sustainable aviation fuel ("SAF"). The SAF credit applies to a qualified fuel mixture containing sustainable aviation fuel for certain sales or uses and provides up to a $1.00 credit for each gallon of SAF in a qualified mixture produced beginning in January 1, 2026 through December 31, 2029. Under the OBBB, credits are limited to SAF derived from feedstock sourced domestically or from Mexico and Canada. In 2025, the bipartisan Securing America's Fuels ("SAF") Act was introduced in the U.S. House with the aim of increasing the value of the credit for SAF to $1.75 per gallon (the level available prior to the passage of the OBBB) and extending the entire 45Z tax credit through 2033. We believe tax credits like 45Z are an important step in helping the U.S. airline industry reach its goal of achieving net-zero carbon emissions by 2050, as well as our own goal of net zero emissions by 2040.

There are also growing initiatives to mandate use of SAF or otherwise reduce GHG emissions associated with various aircraft design types. For example, the EU adopted a regulation that entered into force in 2024, imposing a SAF blending standard starting at 2% in 2025 and rising to 70% in 2050. Other countries, including the UK, have adopted or are considering adopting similar SAF requirements. In the U.S., USEPA issues annual regulations under the Renewable Fuel Standard ("RFS") program that require the national pool of transportation fuel to contain a certain percentage of alternative fuels such as SAF. Though the obligated party under these programs is the fuel provider, JetBlue has worked with its fuel partners to proactively plan for SAF requirements. JetBlue has similarly worked alongside our partner airlines to preemptively understand reporting requirements. For more information, see our risk factor titled "Compliance with environmental laws and regulations may cause us to incur substantial costs."

Foreign Ownership - Under federal law and DOT regulations, JetBlue must be controlled by U.S. citizens. In this regard, our chief executive officer and at least two-thirds of our Board must be U.S. citizens. Further, no more than 25% of our outstanding common stock may be voted by non-U.S. citizens. We believe we are currently in compliance with these requirements.

Other Regulations - All airlines are subject to a multitude of federal regulations including certain provisions of the Communications Act of 1934 due to their extensive use of radio and other communication facilities. They are also required to obtain an aeronautical radio license from the Federal Communications Commission ("FCC"). To the extent we are subject to FCC requirements, we take all necessary steps to comply with those requirements. Similarly, we are subject to various market and consumer protection laws and regulations promulgated by the Federal Trade Commission ("FTC"). The FTC has promulgated guidelines on certain environmental marketing claims and is currently reviewing such guidelines for potential updates, including potentially initiating rule making relating to such claims under its FTC Act authority. Similar laws in other jurisdictions, including various U.S. states, include similar or more stringent regulations on such marketing claims.

Our labor relations are covered under Title II of the Railway Labor Act of 1926 and are subject to the jurisdiction of the NMB.

In addition, during periods of fuel scarcity, access to aircraft fuel may be subject to federal allocation regulations.

Civil Reserve Air Fleet - We are a participant in the Civil Reserve Air Fleet Program, which permits the U.S. Department of Defense to utilize our aircraft during national emergencies when the need for military airlift exceeds the capability of military aircraft. By participating in this program, we are eligible to bid on and be awarded peacetime airlift contracts with the U.S. military.

Insurance

We carry various types of insurance customary in the airline industry and at amounts deemed adequate to protect us and our property as well as comply with both federal regulations and certain credit and lease agreements.

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WHERE YOU CAN FIND OTHER INFORMATION

Our website is www.jetblue.com. Information contained on our website is not part of this Report. Information we furnish or file with the SEC, including our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any amendments to or exhibits included in these reports are available for download, free of charge, on our website soon after such reports are filed with or furnished to the SEC. Our SEC filings, including exhibits filed therewith, are also available on the SEC's website at www.sec.gov.

ITEM 1A. RISK FACTORS

We are subject to various risks that make an investment in our securities risky. The events and consequences discussed in these risk factors could, in circumstances we may or may not be able to accurately predict, recognize, or control, have a material adverse effect on our business, liquidity, financial condition, and results of operations. In addition, these risks could cause our actual results to differ materially from those we express in forward-looking statements contained in this Annual Report or in other Company communications. You should read the following section in conjunction with the following sections of this Report: Part II., Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations," our consolidated financial statements and the related notes, included in Part II., Item 8 and our "Forward-Looking Information."

RISKS RELATED TO JETBLUE

Competitive Risks

We operate in an extremely competitive industry.

The domestic airline industry is characterized by low profit margins, high fixed costs, and significant competition. We currently compete with other airlines on all of our routes. Most of our competitors are larger and have greater financial resources and name recognition than we do. Following our entry into new markets or expansion of existing markets, some of our competitors have chosen to add service or engage in extensive price competition. Unanticipated shortfalls in expected revenues as a result of price competition or in the number of passengers carried would negatively impact our financial results and harm our business. We also face competition from surface transportation and technological alternatives to travel, such as virtual meetings, teleconferencing, and videoconferencing, particularly during periods of unfavorable economic conditions. The extremely competitive nature of the airline industry could prevent us from attaining the level of passenger traffic or maintaining the level of fares required to maintain profitable operations in new and existing markets and could impede our ability to execute on our growth and profitability strategies, including JetForward, which would harm our business.

Furthermore, there have been numerous mergers and acquisitions within the airline industry over the years, as well as cooperative marketing alliances and joint ventures. The industry may continue to change. Any business combination, or other industry consolidation could significantly alter industry conditions and competition within the airline industry. Additionally, the current political and regulatory climate may alter, delay or prevent industry consolidation and growth. Lastly, if a traditional network airline were to fully develop a low-cost structure, or if we were to experience increased competition from low -cost carriers or new entrants, our business could be materially adversely affected.

We have also used certain assets from our TrueBlue® loyalty program as collateral for the TrueBlue® Financing, which contains covenants that impose restrictions on certain amendments or changes to certain of our TrueBlue® loyalty program agreements provided as collateral under the TrueBlue® Financing and other aspects of the TrueBlue® loyalty program. These competitive factors and covenants (to the extent applicable) may affect our ability to attract and retain customers, increase usage of our loyalty program and maximize the revenue generated by our loyalty program.

We may be subject to competitive risks due to the long-term nature of our fleet order book.

At present, we have existing aircraft commitments through 2033. As technological evolution occurs in our industry, through the use of composites and other innovations, we may be competitively disadvantaged because we have existing extensive fleet commitments that could prohibit us from adopting new technologies on an expedited basis. Unanticipated delays in adopting new technology or other issues may require the Company to operate existing aircraft beyond the point at which it is economically optimal to retire them, resulting in increased maintenance costs, or reductions to the Company's schedule, thereby reducing revenues.

Operational Risks

We may not be successful in executing elements of our strategic operating plan, which may have a material adverse impact on our reputation, business, operating results, and financial condition.

JetForward, the Company's strategic operating plan, includes initiatives aimed at enhancing our service, developing and maintaining our leisure network, identifying and providing the products and perks our customers value and promoting a secure financial future. In developing our JetForward plan, we made certain assumptions including, but not limited to, customer ~~demand (in light of changing economic conditions), fuel costs, delivery of aircraft, aircraft certification approval timelines,~~

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demand (in light of changing economic conditions), fuel costs, delivery of aircraft, aircraft certification approval timelines, labor market constraints and related costs, supply chain constraints, inflationary pressures, voluntary or mandatory groundings of aircraft, our regional network, competition, market consolidation and other macroeconomic and geopolitical factors. Actual conditions may be different from our assumptions at any time and could cause us to further adjust our strategic operating plan. In addition, we cannot provide any assurance that we will be able to successfully execute our strategic plan, that the growth that we anticipate will occur through execution of our strategic plan will not exacerbate any other risk described herein, that our strategic plan will not result in additional unanticipated costs, that our suppliers will timely provide adequate products or support for our products (including but not limited to engine support and certification of aircraft) or that our strategic plan will result in improvements in future financial performance. If we do not successfully execute our JetForward or other strategic plans, or if actual results vary significantly from our expectations, our business, operating results, financial condition and market capitalization could be materially and adversely impacted. The failure to successfully structure our business to meet market conditions could have a material adverse effect on our business, operating results and financial condition.

Our strategic operating plan also includes collaborative arrangements with other airlines, including our Blue Sky collaboration with United Airlines and similar industry standard interline agreements, which may involve operational, technological and commercial coordination. These initiatives may present additional execution risks, including systems challenges, increased complexity, higher than anticipated implementation or operating costs, regulatory scrutiny or delays, labor disputes and the risk that such initiatives do not achieve their anticipated benefits or desired results.

In addition, we cannot provide any assurance that we will be able to successfully execute our strategic plan, that the growth that we anticipate will occur through execution of our strategic plan will not exacerbate any other risk described herein, that our strategic plan will not result in additional unanticipated costs, that our suppliers will timely provide adequate products or support for our products (including but not limited to engine support and certification of aircraft), or that our strategic plan will result in improvements in future financial performance. If we do not successfully execute our JetForward or other strategic plans, or if actual results vary significantly from our expectations, our business, operating results, financial condition, and market capitalization could be materially and adversely impacted. The failure to successfully structure our business to meet market conditions could have a material adverse effect on our business, operating results, and financial condition.

Our business is highly dependent on the availability of fuel, and fuel is subject to price volatility.

Our results of operations are heavily impacted by the price and availability of fuel. Fuel costs comprise a substantial portion of our total operating expenses. Historically, fuel costs, such as USU.S. Gulf Coast Jet, have been subject to wide price fluctuations, ranging from a low of $1.9183 per gallon to a high of $43.4185 per gallon from January 1, ~~2022~~2023 to December 31, ~~2024~~2025. These fluctuations are based on geopolitical factors as well as supply and demand. In addition, given our dependency on New York harbor jet fuel, we may be impacted more than our competitors by these price spikes due to decreases in refining capacity and increases in U.S. exports filling the void left by Russia. The price per gallon for New York harbor jet fuel has ranged from a low of $1.91 to $5.77 per gallon from January 1, 2023 to December 31, 2025. The availability of fuel is not only dependent on crude oil but also on refining capacity. When even a small amount of the domestic or global oil refining capacity becomes unavailable, supply shortages can result for extended periods of time. The availability of fuel is also affected by demand for home heating oil, gasoline and other petroleum products, as well as crude oil reserves, dependence on foreign imports of crude oil and potential hostilities in oil producing areas of the world. Given our large dependency on New York harbor jet fuel, we may be impacted more than our competitors by these price spikes due to decreases in refining capacity and increases in US exports filling the void left by Russia. The price per gallon for New York harbor jet fuel has ranged from a low of $1.97 to $7.59 per gallon from January 1, 2022 to December 31, 2024. Because of the effects of these factors on the price and availability of fuel, the cost and future availability of fuel cannot be predicted with any degree of certainty.

Our aircraft fuel purchase agreements do not protect us against price increases or guarantee the availability of fuel. Additionally, some of our competitors may have more leverage than we do in obtaining fuel. We have and may continue to enter into a variety of option contracts and swap agreements for crude oil, heating oil, and jet fuel to partially protect against significant increases in fuel prices. However, such contracts and agreements do not completely protect us against price volatility, are limited in volume and duration, ~~and~~ can be less effective during volatile market conditions and may carry counterparty risk. Under the fuel hedge contracts we may enter from time to time, counterparties to those contracts may require us to fund the margin associated with any loss position on the contracts. Meeting our obligations to fund these margin calls could adversely affect our liquidity.

Due to the competitive nature of the domestic airline industry, at times we have not been able to adequately increase our fares to offset the increases in fuel prices nor may we be able to do so in the future. Future fuel price increases, continued high fuel price volatility or fuel supply shortages may result in a curtailment of scheduled services and could have a material adverse effect on our financial condition and results of operations.

Our maintenance costs will increase as our fleet ages.

Our maintenance costs will increase as our fleet ages. In the past, we have incurred lower maintenance expenses because most of the parts on our aircraft were under multi-year warranties, but many of these warranties on JetBlue's existing fleet types have expired. If any maintenance provider with whom we have a flight hour agreement fails to perform or honor such agreements, we could incur higher interim maintenance costs until we negotiate new agreements. Furthermore, we expect to continue to implement various fleet modifications over the next several years to facilitate our aircraft's continued efficiency, modernization, brand consistency, and safety. These fleet modifications require significant investment over several years, some of which involve taking aircraft out of service for days or weeks at a time.

Our salaries, wages, and benefits costs will increase as our workforce ages.

As our crewmembers' tenure with JetBlue matures, our salaries, wages, and benefits costs increase. As our overall workforce ages, we expect the cost of our medical and related benefits to increase as well, despite an increased corporate focus on crewmember wellness. As part of our overall profitability strategy, we periodically offer voluntary separation packages to certain employees, with the goal of reducing fixed costs by giving people who work in a number of corporate functions, in our airports, and in our customer support centers the opportunity to leave JetBlue with a departing pay and benefits package. There can be no assurance that these measures will lead to a significant reduction in costs.

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Aon ~~material~~crewmember ~~reduction~~wellness. inAs part of our overall profitability strategy, we periodically offer voluntary separation packages to certain crewmembers, with the ~~rate~~goal of ~~interchange~~reducing ~~reimbursement~~fixed ~~fees~~costs ~~could~~by ~~have~~giving anpeople ~~adverse~~who ~~effect~~work onin a number of corporate functions, in our airports, and in our customer support centers the opportunity to leave JetBlue's ~~business~~with a departing pay and ~~operating~~benefits ~~results~~package. There can be no assurance that these measures will lead to a significant reduction in costs.

~~The~~A ~~TrueBlue®~~material ~~loyalty~~reduction ~~program operated by us, and the programs operated by our TrueBlue® partners and the payment card transactions conducted~~ in ~~connection with such programs, are significantly impacted by~~ the rate of interchange reimbursement fees (i.e., the fees charged to merchants by the issuing banks), for which rates have historically been set by card processing networks. Interchange reimbursement fees continue to be subject to increased government regulation globally, and such regulations may be conflicting across jurisdiction in which we operate. It may be complex, costly, or ~~infeasible~~other ~~to comply with such regulations, which could have an adverse effect on JetBlue's business and operating results. In addition,~~ regulatory ~~authorities~~actions ~~and~~that ~~central banks in a number of jurisdictions have been reviewed or are reviewing these fees and related practices, and~~ may ~~enact~~materially ~~regulations~~affect ~~that exert downward pressure on such fees. For example, regulations adopted by~~ the ~~U.S.~~economics ~~Governors~~ of the Federal Reserve System ("Federal Reserve") cap the maximum U.S. debit interchange reimbursement rate received by card issuers operating in the U.S. with assets of $10 billion or more at 21 cents plus 5 basis points per transaction, plus a possible fraud adjustment of 1 cent. There has also been proposed revisions to the limits on interchange reimbursement fees set by the Federal Reserve and previously been bipartisan legislation that would limit interchange reimbursement fees for credit card ~~transactions~~programs ~~which, if enacted,~~ could fundamentally alter the profitability of our agreements with co-branded credit card partners and the benefits we provide to our consumers through the co-branded credit cards issued by these partners. A material decease in the rate of interchange reimbursement fees, either voluntarily by card processing networks or mandated by authorities, would adversely affect the TrueBlue® loyalty program, as well as the loyalty programs that our airline partners operate, and would have an adverse effect on JetBlue's business and operating results. ~~There can be no assurance that there will not be a material decrease in interchange reimbursement fees, including due to new laws or regulatory action by the government.~~

The TrueBlue® loyalty program operated by us, and the programs operated by our TrueBlue® partners and the payment card transactions conducted in connection with such programs, are significantly impacted by the rate of interchange reimbursement fees (i.e., the fees charged to merchants by the issuing banks), for which rates have historically been set by card processing networks. In addition, the overall economics of the TrueBlue® loyalty program are influenced by other sources of revenue and costs affecting the issuing banks that support the program, including those arising from payment card transactions. Interchange reimbursement fees continue to be subject to increased government regulation globally, and such regulations may be conflicting across jurisdictions in which we operate. It may be complex, costly, or infeasible to comply with such regulations, which could have an adverse effect on JetBlue's business and operating results. In addition, regulatory authorities and central banks in a number of jurisdictions have been reviewed or are reviewing these fees and related practices, and may enact regulations that exert downward pressure on such fees. For example, regulations adopted by the U.S. Governors of the Federal Reserve System ("Federal Reserve") cap the maximum U.S. debit interchange reimbursement rate received by card issuers operating in the U.S. with assets of $10 billion or more at 21 cents plus 5 basis points per transaction, plus a possible fraud adjustment of 1 cent. There has also been proposed revisions to the limits on interchange reimbursement fees set by the Federal Reserve and previously been bipartisan legislation that would limit interchange reimbursement fees for credit card transactions which, if enacted, could fundamentally alter the profitability of our agreements with co-branded credit card partners and the benefits we provide to our customers through the co-branded credit cards issued by these partners. In addition, legislative or regulatory actions that limit or cap interest rates, fees or other revenue sources associated with credit card products could reduce the availability of credit card products, limit card usage and spending, and alter consumer behavior. These developments could reduce willingness or ability of issuing banks to fund loyalty rewards, marketing support or other program economics, or could result in the renegotiation or termination of co-branded credit card agreements. A material decrease in the rate of interchange reimbursement fees, or other adverse changes to the economics of credit card programs, including limits on interest rates, fees, or other issuer revenue sources, either voluntarily by card processing networks or mandated by authorities, would adversely affect the TrueBlue® loyalty program, as well as the loyalty programs that our airline partners operate, and would have an adverse effect on JetBlue's business and operating results. There can be no assurance that there will not be a material decrease in interchange reimbursement fees, or other regulatory actions affecting credit card economics, including due to new laws or regulatory action by the government.

Because we derive a portion of our revenues from operations outside the United States, the risks of doing business internationally, or in a particular country or region, could lower our revenues, increase our costs, reduce our profits, or disrupt our business.

We currently operate in 3132 countries around the world. Our available seat miles that take off or land outside the United States and Canada represented approximately 3940% of our revenues for the year ended December 31, ~~2024~~2025. Over the long term, we expect our international operations may account for an increasing portion of our total revenues and available seat miles. Expansion into new international markets may have risks due to factors specific to those markets. In connection with our international operations, we are required to comply with U.S. and other applicable economic and trade sanctions laws and regulations, which restrict our ability to transact and deal with certain countries, regions, governments, and persons.

We have expanded and expect to continue to expand our service to countries in the Caribbean and Latin America, some of which have less developed legal systems, financial markets, and business and political environments than the United States, and therefore present greater political, legal, regulatory, economic, and operational risks. We emphasize legal compliance and have implemented and continue to implement and refresh policies, procedures and certain ongoing training of crewmembers with regard to business ethics and compliance, compliance with economic and trade sanctions, anti-corruption policies and many key legal requirements; however, there can be no assurance our crewmembers or third-party service providers will adhere to our code of business conduct, anti-corruption and trade compliance policies, other Company policies, or other legal requirements. If we fail to enforce our policies and procedures properly or maintain adequate record-keeping and internal accounting practices to accurately record our transactions, we may be subject to sanctions. In the event we believe or have reason to believe our crewmembers have or may have violated applicable laws or regulations, we may be subject to investigation costs, potential penalties and other related costs which in turn could negatively affect our reputation, and our results of operations and cash flow.

In addition, to the extent we continue to grow our business both domestically and internationally, opening new markets requires us to commit a substantial amount of resources even before the new services commence. Expansion is also dependent upon our ability to maintain a safe and secure operation and requires additional personnel, equipment, and facilities.

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As a result, we are subject to the risks of doing business outside the United States, including:

•the costs of complying with laws, regulations, and policies (including taxation policies) of foreign governments relating to investments and operations, the costs or desirability of complying with local practices and customs, and the impact of various anti-corruption and other laws affecting the activities of U.S. companies abroad;

•evolving local data residency requirements that require data to be stored only in and, in some cases, also to be accessed only from within, a certain jurisdiction;

•U.S. and foreign taxation of income earned abroad;

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•import and export licensing requirements and regulations, as well as unforeseen changes in regulatory requirements, including imposition of tariffs or embargoes, import or export regulations, controls, and other trade restrictions;

•political and economic instability~~, including as a result of the ongoing conflict between Russia and Ukraine~~;

•fluctuations in GDP, interest and currency exchange rates, civil disturbances, government instability, nationalization and expropriation of private assets, trafficking and the imposition of tariffs, taxes or other charges by governments;

•health and safety protocols, including global care and cleanliness certifications, at the airports in which we operate;

•the complexity of managing an organization doing business in many jurisdictions;

•uncertainties as to local laws and enforcement of contract and intellectual property rights and occasional requirements for onerous contract clauses; and

•rapid changes in government, economic, and political policies; political or civil unrest; acts of terrorism; or the threat of international boycotts or U.S. anti-boycott legislation.

While these factors and the impact of these factors are difficult to predict, any one or more of them could lower our revenues, affect our operations, increase our costs, reduce our profits, or disrupt our business. The occurrence of any of these events in markets served by us and the resulting instability may adversely affect our business.

Moreover, the Organization for Economic Co-operation and Development (the "OECD") has announced an accord commonly referred to as "Pillar Two" to set a ~~minimum~~ global ~~corporate~~minimum tax rate of 15%, ~~which~~on iscorporate ~~being~~profits. orThe ~~may~~OECD beand ~~implemented~~numerous incountries ~~many~~also ~~jurisdictions,~~reached ~~including~~an ~~the~~accord ~~United~~to ~~States~~exempt U.S. ~~The~~based ~~OECD~~corporations isfrom ~~also~~many ~~issuing~~of ~~guidelines~~the ~~that~~requirements ~~are~~of ~~different,~~Pillar inTwo. ~~some~~The ~~respects,~~ultimate ~~than~~impact ~~current~~of ~~international~~Pillar ~~tax~~Two ~~principles,~~is uncertain and ~~adoption of these guidelines~~ may ~~increase~~have ~~tax~~an ~~uncertainty~~adverse ~~and~~effect ~~increase~~on ~~taxes~~our ~~applicable to us~~business. We cannot predict whether the U.S. Congress or any other governmental body may enact new tax legislation or tax regulations, or offer any assurance that new legislation or regulations, including changes to existing laws and regulations, will not have an adverse effect on our business, results of operations, financial condition or prospects.

Our high aircraft utilization rate helps us keep our costs low, but also makes us vulnerable to delays and cancellations; such delays and cancellations could reduce our profitability and harm our reputation.

We maintain a high daily aircraft utilization rate, which is the amount of time our aircraft spend in the air carrying passengers. High daily aircraft utilization is achieved in part by reducing turnaround times at airports so we can fly more hours on average in a day. Aircraft utilization is reduced by delays and cancellations from various factors, many of which are beyond our control, including adverse weather conditions, security requirements, air traffic congestion, infrastructure failures (such as technical issues with air-traffic control systems), unscheduled maintenance events, issues associated with the availability and effectiveness of air traffic personnel, and skilled labor shortages, including with respect to pilots. The majority of our operations are concentrated in the Northeast and Florida, which are particularly vulnerable to weather and congestion delays. Reduced aircraft utilization may limit our ability to achieve and maintain profitability as well as lead to customer dissatisfaction and reputational harm.

Our business is highly dependent on the New York metropolitan market and increases in competition or congestion or a reduction in demand for air travel in this market, or governmental reduction of our operating capacity at JFK, could harm our business.

We are highly dependent on the New York metropolitan market where we maintain a large presence with approximately one-half of our daily flights having JFK, LaGuardia, Newark, or Westchester County Airport or Long Island MacArthur Airport as either their origin or destination. We have historically experienced an increase in flight delays and cancellations at these airports due to airport congestion which has adversely affected our operating performance and results of operations. Our business could be further harmed by an increase in the amount of direct competition we face in the New York metropolitan market or by continued or increased congestion, delays or cancellations. Our business would also be harmed by any circumstances causing a reduction in demand for air transportation in the New York metropolitan area, such as adverse changes in local economic conditions, health concerns, climatic concerns (including adverse weather and sea-level rise), negative public perception of New York City, acts of terrorism, or significant price or tax increases linked to increases in airport access costs and fees imposed on passengers. In addition, ATC staffing shortages in the Northeast and Florida have forced us to cut back our capacity plans to help protect our operations. The FAA has granted a temporary slot relief of 10% until October 2025, but there is no guarantee that relief will be extended and ATC staffing shortages may continue beyond the period of relief.

~~Extended interruptions or disruptions in service at one or more of our focus cities could have a material adverse impact on our operations.~~21

Our business is heavily dependent on our operations in the New York Metropolitan area, particularly at JFK, and in our other focus cities: Boston, Orlando, Fort Lauderdale, the Los Angeles basin, and San Juan. Each of these operations includes

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~~flights~~New ~~that~~York ~~gather~~City, ~~and~~acts ~~distribute~~of ~~traffic~~terrorism, or significant price or tax increases linked to ~~other~~increases ~~major~~in ~~cities~~airport access costs and fees imposed on passengers. AIn ~~significant~~addition, ~~interruption~~ATC orstaffing ~~disruption~~shortages in ~~service~~the atNortheast ~~one~~and Florida have forced us to cut back our capacity plans to help protect our operations. Even with recently approved federal funding to support ATC reform, there is no assurance that allocations will prioritize the New York airspace or ~~more~~that such allocations will be completely effective. If the New York airspace does not receive timely and effective deployment of resources, congestion, delays, cancellations, and operational constraints in our ~~focus~~New ~~cities~~York markets could ~~have~~continue aor ~~serious~~intensify, ~~impact~~adversely onaffecting our ~~business,~~operations ~~financial~~and ~~condition~~results. The FAA has granted a temporary slot relief of 10% until October 2026, but there is no guarantee that relief will be extended and ~~results~~ATC staffing shortages may continue beyond the period of ~~operations~~relief.

WeExtended ~~may~~interruptions beor ~~impacted~~disruptions byin ~~increases~~service inat ~~airport~~one ~~expenses~~or ~~relating~~more toof ~~infrastructure~~our ~~and~~focus ~~facilities,~~cities ascould ~~well~~have asa bymaterial ~~infrastructure~~adverse ~~disruptions~~impact oron ~~failures~~our operations.

Our business is heavily dependent on our operations in the New York metropolitan area, particularly at JFK, and in our other focus cities: Boston, Orlando, Fort Lauderdale, the Los Angeles basin, and San Juan. Each of these operations includes flights that gather and distribute traffic to other major cities. A significant interruption or disruption in service at one or more of our focus cities could have a serious impact on our business, financial condition, and results of operations.

We may be impacted by increases in airport expenses relating to infrastructure and facilities, as well as by infrastructure and regulatory disruptions or failures.

In order to operate within our current markets as well as continue to grow in new markets, we must be able to obtain adequate infrastructure and facilities within the airports we serve. This includes gates, check-in facilities, operations facilities, and landing slots, where applicable. The costs associated with these airports are often negotiated on a short-term basis with the airport authority and we could be subject to increases in costs on a regular basis with or without our approval. There is a possibility that airport authorities, suffering from revenue shortfalls due to the pandemic, may attempt to recover those shortfalls by passing along the costs or increasing rents or fees to airline tenants.

Our operations have and may in the future be impacted by disruptions associated with the current ATC system utilized by the U.S. government. The air traffic controller shortage and outdated ATC system, as well as the U.S. governmental shutdowns, has led to short-term capacity constraints imposed by government agencies and has resulted in delays and disruptions of air traffic during peak travel periods in certain markets due to its inability to handle demand and reduced resiliency in the event of a failure causing flight cancellations and delays. Failure to ~~ensure~~continue ~~adequate~~the ~~ATC~~process ~~controller~~of ~~staffing~~modernizing ~~and update~~ the ATC system in a timely manner, ~~and~~or ~~the~~imposing substantial funding requirements ~~of a modernized ATC system that may be imposed~~ on air carriers, may have an adverse impact on the Company's financial condition or operating results.

Our results of operations fluctuate due to seasonality, weather, and other factors.

We expect our quarterly operating results to fluctuate due to seasonality including high vacation and leisure demand generally occurring on our Florida and Caribbean routes between October and April and on our western routes during the summer. Actions of our competitors and travel restrictions may also contribute to fluctuations in our results. We are more susceptible to adverse weather conditions, including snow storms and hurricanes, than some of our competitors as a result of our operations being concentrated on the East Coast. Certain of these seasonal factors, including adverse weather conditions in the East Coast, Florida and Caribbean, have been adversely affected by climate change in recent years, and are likely to continue to be adversely exacerbated by the physical effects of climate change for the foreseeable future. As we enter new markets, we could be subject to additional seasonal variations along with any competitive responses to our entry by other airlines. In addition, there are inherent climate-related risks wherever business is conducted. Various meteorological phenomena and extreme weather events (including, but not limited to, storms, flooding, drought, wildfire, and extreme temperatures) may disrupt our operations or those of our suppliers and business partners, cause flight cancellations, delays, and diversions, require us to incur additional operating or capital expenditures, reduce the demand for certain of our flight offerings, or otherwise adversely impact our business, financial condition, or results of operations. The frequency and/or intensity of such events may increase over time. Price changes in aircraft fuel as well as the timing and amount of maintenance and advertising expenditures may also impact our operations. As a result of these factors, quarter-to-quarter comparisons of our operating results may not be a good indicator of our future performance. In addition, it is possible in any future period our operating results could be below the expectations of investors and any published reports or analysis regarding JetBlue. In such an event, the price of our common stock could decline, perhaps substantially.

We ~~are~~have ~~subject~~been, and may from time to ~~the~~time ~~risks~~be, ofsubject ~~having~~to alegal ~~limited~~and ~~number~~regulatory ofproceedings ~~suppliers~~that ~~for~~could ~~our~~adversely ~~aircraft,~~affect ~~engines,~~our business and ~~our~~results ~~Fly-Fi®~~of ~~product~~operations.

~~Our~~From ~~current~~time ~~dependence~~to ontime, ~~five~~we ~~specific~~are, ~~types of aircraft~~ and ~~engines~~in ~~for~~the ~~all~~future ofmay ~~our~~continue ~~flights makes us vulnerable~~ to ~~any~~be, ~~significant~~involved ~~problems~~in ~~associated~~legal ~~with Pratt & Whitney Geared Turbofan Engines (the "PW1100G")~~proceedings, ~~on our A321neo fleet; International Aero Engines (the "IAE V2533-A5")~~claims, ~~on our Airbus A321 fleet~~investigations, ~~International~~regulatory ~~Aero Engines (the "IAE V2527-A5")~~actions, onlabor ~~our~~disputes ~~Airbus~~or ~~A320~~other ~~fleet,~~legal ~~collectively~~matters. ~~(the~~The ~~"V2500")~~outcome ~~engine~~of ~~type;~~these ~~Pratt~~and &other ~~Whitney~~such ~~Geared~~matters ~~Turbofan~~is ~~Engines~~inherently ~~(the "PW1500G")~~uncertain, ~~on our A220 fleet;~~ and ~~General~~adverse ~~Electric~~results ~~Engines (the "CF34-10"), on our Embraer E190 fleet. This~~ could ~~include,~~result ~~but~~in ismonetary ~~not limited to design defects~~damages, ~~mechanical problems~~fines, ~~contractual performance~~penalties, ~~such~~injunctive asor ~~delivery~~other ~~delays~~non-monetary byrelief, ~~the~~negative ~~manufacturers~~publicity, ordiversion ~~adverse~~of ~~perception~~management's bytime ~~the~~and ~~public~~attention, ~~which may result in customer avoidance~~ or inrequirements ~~actions by the FAA that would impede our ability~~ to ~~operate~~modify our ~~aircraft.~~business ~~In the event of design defects or mechanical problems~~practices, ~~we cannot be certain that~~ any ~~remediation~~of ~~steps will be effective,~~ which ~~may~~could ~~lead to a material, adverse effect on our business, operating results, and financial condition.~~

In July 2023, Pratt & Whitney, a division of RTX Corporation, announced the requirement, mandated by the FAA, for removal of certain engines for inspection due to a rare condition involving powdered metal used in the production of certain engine parts on the PW1100G and PW1500G engine types. These engines power our Airbus A220 and Airbus A321neo fleets. The powdered metal affects engines manufactured between October 2015 and September 2021. Those engines are now required to be inspected after they have reached a reduced number of cycles dependent on the fleet type. As a result of these required inspections and other engine reliability deficiencies, as of December 31, 2024, we had 11 aircraft grounded due to lack of engine availability. The Company currently expects each removed engine to take approximately 360 days to complete a shop visit and return to a serviceable condition. We currently expect aircraft out of service in 2025 to average in the mid-to-high teens. Given that we expect to have a certain number of aircraft groundings into 2025 and beyond, we plan to continue to assess the resulting impact on our future capacity plans. We are currently working with Pratt & Whitney on a resolution and any potential remediation steps remains uncertain. Carriers operating a more diversified fleet are better positioned than we are to manage such events.22

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materially adversely affect our business, reputation, financial condition, cash flows, and results of operations. Defending these matters can be costly, time-consuming and disruptive to our operations, and amounts paid in connection with judgments, settlements or penalties may not be fully covered by insurance or insurance may by unavailable, insufficient or not collectible. For additional information on certain legal matters in which we are involved, see Part I, Item 3. "Legal Proceedings," and Note 11 and Note 18 to our consolidated financial statements included in Part II, Item 8 of this Report.

We are subject to the risks of having a limited number of suppliers for our aircraft, engines, and our Fly-Fi® product.

Our current dependence on four specific types of aircraft and engines for all of our flights makes us vulnerable to any significant problems associated with Pratt & Whitney Geared Turbofan Engines (the "PW1100G"), on our A321neo fleet; International Aero Engines (the "IAE V2533-A5"), on our Airbus A321 fleet, International Aero Engines (the "IAE V2527-A5"), on our Airbus A320 fleet, collectively (the "V2500") engine type; and Pratt & Whitney Geared Turbofan Engines (the "PW1500G"), on our A220 fleet. This could include, but is not limited to design defects, mechanical problems, contractual performance, such as delivery delays by the manufacturers, or adverse perception by the public which may result in customer avoidance or in actions by the FAA that would impede our ability to operate our aircraft, such as the FAA emergency airworthiness directive on Airbus A320-family aircraft requiring certain software updates that were identified and remediated in November 2025. Because our fleet is concentrated among a limited number of aircraft and engine types, any such issues could disproportionately affect our operations, require us to ground additional aircraft, adjust capacity plans, incur higher costs, or delay the execution of our strategic initiatives.

In July 2023, Pratt & Whitney, a division of RTX Corporation, announced the requirement, mandated by the FAA, for removal of certain engines for inspection due to a rare condition involving powdered metal used in the production of certain engine parts on the PW1100G and PW1500G engine types. These engines power our Airbus A220 and Airbus A321neo fleets. The powdered metal affects engines manufactured between October 2015 and September 2021. Those engines are now required to be inspected after they have reached a reduced number of cycles dependent on the fleet type. As a result of these required inspections and other engine durability deficiencies, as of December 31, 2025, we had four aircraft grounded due to lack of engine availability, and we expect the number of aircraft groundings in 2026 to be in mid-single digits. The Company currently expects each removed engine to take approximately 200 days for the PW1500G engines and approximately 300 days for the PW1100G engines to complete a shop visit and return to a serviceable condition. Given that we expect to have a certain number of aircraft groundings into 2026 and beyond, we plan to continue to assess the resulting impact on our future capacity plans. We are currently working with Pratt & Whitney on a resolution and any potential remediation steps remains uncertain. Carriers operating a more diversified fleet are better positioned than we are to manage such events.

Our Fly-Fi® service uses technology and satellite access through our agreement with Thales Avionics, Inc. ("Thales"). An integral component of the Fly-Fi® system is the antenna, which is supplied to us by Thales. If Thales were to stop supplying us with its antennas for any reason, we would have to incur significant costs to procure an alternate supplier. Additionally, if the satellites Fly-Fi® uses were to become inoperable for any reason, we would have to incur significant costs to replace the service.

~~Remaining~~Tariffs, ~~impacts~~including ofthose ~~the~~that ~~wind~~impact ~~down~~commercial ofaircraft ~~our~~and ~~Northeast~~related ~~Alliance~~parts ~~with~~imported ~~American~~from ~~Airlines~~outside ~~may~~the ~~result~~United inStates, ~~additional~~or ~~costs~~tariffs that may be escalated over time, may have ana material adverse ~~impact~~effect on our fleet, business, financial condition and results of operations.

In July 2020, JetBlue and American entered into the NEA which was designed to optimize our respective networks at JFK, LaGuardia, and BOS (the "NEA Airports"). On September 21, 2021, the United States Department of Justice, along with the Attorneys General of six states and the District of Columbia filed suit against JetBlue and American seeking to enjoin the NEA, alleging that it violates Section 1 of the Sherman Act. The court issued a decision on May 19, 2023, permanently enjoining the NEA, and shortly thereafter we initiated a wind down of the NEA. On July 28, 2023, the court issued its Final Judgement and Order Entering Permanent Injunction, which took effect on August 18, 2023. The wind down of the NEA is substantially complete, but remaining impacts, including the outcome of putative class action lawsuits involving the NEA, could require us to incur additional costs and therefore have an impact on our financial condition and results of operations.

Tariffs imposed on commercial aircraft and related parts imported from outside the United States, or tariffs that may be escalated over time, may have a material adverse effect on our fleet, business, financial condition, and results of operations.

Certain of the products and services that we purchase, including aircraft and related parts, are sourced from suppliers located outside the United States, and the imposition of new tariffs, or any increase in existing tariffs, by the U.S. government on the importation of such products or services could materially increase the amounts we pay for them.

We may seek to postpone or cancel delivery of certain aircraft or parts currently scheduled for delivery or purchase, and we may choose not to purchase in the future as many aircraft as we intended. In addition, should additional or different retaliatory tariffs be imposed, our business could be harmed. Any such action could have a material adverse effect on the size of our fleet, business, financial condition, and results of operations.

Stockholder activism has and could in the future disrupt our business, cause us to incur significant expenses, hinder execution of our business strategy, and impact our stock price.

The Company has been and may continue to be subject to actions from activist shareholders or others that may not align with its business strategies or may not be in the best interests of all of its shareholders. Shareholder activism has resulted in, and could in the future result in, substantial costs, such as legal fees and expenses, and divert management's and our Board's attention and resources from our business and strategic plans. Additionally, shareholder activism could give rise to perceived uncertainties as to our future, adversely affect our relationships with our customers, partners, licensees, business partners or other investors, make it more difficult to attract and retain qualified personnel, and cause our stock price to fluctuate based on temporary or speculative market perceptions or other factors that do not necessarily reflect the underlying fundamentals and prospects of our business. These risks could adversely affect our business and operating results.

~~Information Security and Privacy Related Risks~~23

Our reputation and business may be harmed, and we may be subject to legal claims if there is disruption to our information technology systems or loss, unlawful disclosure or misappropriation of, or unsanctioned access to, our customers', crewmembers', business partners' or our own information or other breaches of our information security.

We rely on computer systems, hardware, software, technology infrastructure and online sites and networks for both internal and external operations that are critical to our business (collectively, "IT Systems"). We own and manage some of these IT Systems but also rely on third parties for a range of IT Systems and related products and services, including but not limited to cloud computing services and encryption and authentication technologies licensed from third parties for credit card processing activities. In addition, we and certain of our third-party providers collect, process, and maintain data about customers, crewmembers, employees, contractors, business partners and others, including credit card data and personally identifiable information, as well as trade secrets, financial information and other sensitive and proprietary business information (collectively, "Confidential Information"). The secure maintenance and transmission of customer and crewmember information, in particular, is a critical element of our operations.

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~~our~~Cybersecurity ~~business. Given the nature of complex systems, software~~ and ~~services~~Information ~~like~~Security ours, and the scanning tools that we and our third parties deploy across our IT Systems, we regularly identify and track security vulnerabilities. We are unable to comprehensively apply patches or confirm that measures are in place to mitigate all such vulnerabilities, or that patches will be applied before vulnerabilities are exploited by a threat actor. If attackers are able to exploit vulnerabilities before patches are installed or mitigating measures are implemented, significant compromises could impact IT Systems and Confidential Information.Risks

We rely on computer systems, hardware, software, technology infrastructure and online sites and networks for both internal and external operations that are critical to our business (collectively, "IT Systems"). We own and manage some of these IT Systems but also rely on third parties for a range of IT Systems and related products and services, including but not limited to cloud computing services and encryption and authentication technologies licensed from third parties for credit card processing activities. In addition, we and certain of our third-party providers collect, process, and maintain data about customers, crewmembers, contractors, business partners and others, including credit card data and personally identifiable information, as well as trade secrets, financial information and other sensitive and proprietary business information (collectively, "Confidential Information"). The secure maintenance and transmission of customer and crewmember information, in particular, is a critical element of our operations.

We face numerous and evolving cybersecurity and privacy risks and threats, such as criminal hackers, hacktivists, state-sponsored intrusions, industrial espionage, social engineering, employee malfeasance, and human or technological error, including misconfigurations, bugs, and other vulnerabilities in software and hardware that support our operations. High-profile cyberattacks and security breaches at other companies and in government agencies have increased in recent years, and security industry experts and government officials have warned about the risks of cyberattacks targeting businesses such as ours. Because we make extensive use of third-party providers, such as online services and centralized data processing, successful cyberattacks that disrupt or result in unauthorized access to third-party IT Systems beyond our control could materially impact our business. In many cases, we have limited ability to monitor or verify the security practices of these business partners or their subcontractors. Given the nature of complex systems, software and services like ours, and the scanning tools that we and our third parties deploy across our IT Systems, we regularly identify and track security vulnerabilities. We are unable to comprehensively apply patches or confirm that measures are in place to mitigate all such vulnerabilities, or that patches will be applied before vulnerabilities are exploited by a threat actor. If attackers are able to exploit vulnerabilities before patches are installed or mitigating measures are implemented, significant compromises could impact IT Systems and Confidential Information.

Threat actors routinely attempt to disrupt or gain access to our IT Systems and Confidential Information. While we make significant efforts to design and implement security measures, we cannot provide any assurances that our efforts will defend against all cyberattacks. We remain vulnerable to denial-of-service attacks, viruses, malicious software (for example, ransomware), zero-day vulnerabilities, social engineering/phishing, breaches of our security policies and controls, and the negligence or malfeasance of parties who have or obtain access to our IT Systems or Confidential Information. For example, threat actors regularly attempt to fraudulently induce our crewmembers, customers, and others to disclose Confidential Information or provide access to our IT Systems.

WeBased ~~have~~on ~~experienced~~our ~~cyberattacks~~current ~~and other incidents in the past~~assessments, ~~and will continue~~ to ~~experience~~date, ~~varying~~we ~~degrees~~have ofnot ~~attacks~~identified ~~and~~any ~~incidents~~cybersecurity ~~in the future. While to date no~~ incidents that have ~~had~~materially aaffected ~~material impact on~~ our business, operations, or financial ~~results~~condition, weconsistent ~~cannot~~with ~~guarantee~~our ~~that~~disclosure ~~material incidents will not occur~~ in ~~the~~Item ~~future~~1C. Cyberattacks are expected to accelerate on a global basis in frequency and magnitude as threat actors become increasingly sophisticated in leveraging techniques and tools (including artificial intelligence) that circumvent security controls, evade detection, and even remove forensic evidence. This means we may be unable to detect, investigate, remediate or recover from future attacks or incidents, or to avoid a material adverse impact on our IT Systems or Confidential Information. There can be no assurance that our cybersecurity risk management program and processes, including our policies, controls or procedures, will be fully ~~implemented, complied with or~~ effective in protecting our systems and information.

Any compromises to the confidentiality, integrity or availability of our IT Systems or Confidential Information could have a material adverse effect on our reputation, business, operating results, and financial condition, and could result in a loss of customers. For example, personal information may be lost, disclosed, accessed, or taken without consent. Additionally, any material failure by us to achieve or maintain compliance with the Payment Card Industry Data Security Standards, ("PCI DSS") and related requirements or rectify a security issue may result in fines and the imposition of restrictions on our ability to accept credit cards as a form of payment. Any such loss, disclosure or misappropriation of, or access to, customers', crewmembers' or business partners' information or other breach of our information security or IT Systems can result in legal claims or legal proceedings (such as class actions), regulatory investigations and enforcement actions, fines and penalties, negative reputational impacts that cause us to lose existing or future customers, and/or significant incident response, system restoration/remediation and regulatory compliance costs. Any or all of the foregoing could materially adversely affect our business, operating results, and financial condition. Furthermore, the loss, disclosure or misappropriation of our business information may materially adversely affect our business, operating results, and financial condition. While we evaluate and procure insurance policies that are intended to address liabilities and losses associated with cybersecurity risks and threats, there is no guarantee that any ~~policies would cover any or all of the losses associated with a cyberattack or other security incident, or that we will be able to procure such coverage in the future.~~

Data security compliance requirements could increase our costs, and any significant data breach could disrupt our operations and harm our reputation, business, results of operations and financial condition.24

We are subject to increasing legislative, regulatory, and customer focus on privacy issues and data security. Our business requires the appropriate and secure utilization of customer, crewmember, business partner, and other sensitive information. We cannot be certain that advances in criminal capabilities (including cyberattacks or cyber intrusions over the Internet, malware, computer viruses, and the like), discovery of new vulnerabilities or attempts to exploit existing vulnerabilities in our systems, other data thefts, physical system or network break-ins or inappropriate access, or other developments will not compromise or breach the technology protecting the networks that access and store sensitive information. The risk of a security breach or disruption, particularly through cyberattack or cyber intrusion, including by computer hackers, foreign governments, and cyber terrorists, has increased as the number, intensity, and sophistication of attempted attacks and intrusions from around the world have increased.

Furthermore, there has been heightened legislative and regulatory focus on data security in the U.S. and abroad, including requirements for varying levels of customer notification in the event of a data breach. Federal and state regulations in the cybersecurity and privacy area continue to develop and evolve, including laws in jurisdictions such as California that provide for potential statutory damages in certain types of data breaches. International regulations add complexity as we expand our services and include more passengers from other countries. Many of our commercial business partners, including credit card companies, have imposed data security standards that we must meet. In particular, we are required by the PCI DSS Council, founded by the credit card companies, to comply with their highest level of data security standards. We will continue our efforts

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topolicies ~~meet~~would cover any or all of the ~~privacy~~losses ~~and~~associated ~~data~~with a cyberattack or other security ~~obligations;~~incident, ~~however~~or that we will be able to procure such coverage in the future. Emerging technologies, itincluding isartificial ~~possible~~intelligence ~~that~~used ~~certain~~both by us and by threat actors, could introduce new ~~obligations~~vulnerabilities, ~~may~~enable bemore ~~difficult~~sophisticated attacks, or lead to ~~meet~~unintended processing or disclosure of data. Given our reliance on complex technology and third-party-operated systems to support flight operations, crew scheduling, maintenance, and customer service, certain cybersecurity incidents, even if originating at third parties, could ~~increase~~materially disrupt our ~~costs~~operations, lead to flight delays or cancellations, or otherwise adversely affect safety, revenue, and customer experience.

A significant data security breach or our failure to comply with applicable U.S. or foreign data security regulations or other data security standards may expose us to litigation, claims for contract breach, fines, sanctions or other penalties, which could disrupt our operations, harm our reputation, and materially and adversely affect our business, results of operations, and financial condition. The costs to remediate breaches and similar system compromises that do occur could be material. In addition, as cyber criminals become more frequent, intense, and sophisticated, the costs of proactive defensive measures may increase. Failure to address these issues appropriately could also give rise to additional legal risks, which, in turn, could increase the size and number of litigation claims and damages asserted or subject us to enforcement actions, fines and penalties, and cause us to incur further related costs and expenses.

We rely heavily on automated systems to operate our business; any failure of these systems could harm our business.

We are dependent on a broad range of IT Systems, for example, automated systems and technology to operate our business, enhance the JetBlue experience, and achieve low operating costs. The performance and reliability of our automated systems and data centers is critical to our ability to operate our business and compete effectively. These systems include our computerized airline reservation system, flight operations system, telecommunications systems, website, maintenance systems, check-in kiosks, and our primary and redundant data centers. Our website and reservation system must be able to securely accommodate a high volume of traffic and deliver important flight information. These systems require upgrades or replacement periodically, which involve implementation and other operational risks. Our business may be harmed if we fail to operate, replace or upgrade our systems or data center infrastructure successfully.

We rely on third-party providers of our current automated systems and data center infrastructure for technical support. If our current providers were to fail to adequately provide technical support for any one of our key existing systems or if new or updated components were not integrated smoothly, we could experience service disruptions, which could result in the loss of important data, increase our expenses, decrease our revenues and generally harm our business, reputation, and brand. Furthermore, our automated systems cannot be completely protected against events beyond our control, including natural disasters, computer viruses, cyberattacks, other security breaches, or telecommunications failures. Substantial or sustained system failures could impact customer service and result in our customers purchasing tickets from other airlines. We have implemented security measures, and change control procedures and have disaster recovery plans. We also require our third-party providers to have disaster recovery plans; however, we cannot assure you these measures are adequate to prevent disruptions, which, if they were to occur, could result in the loss of important data, increase our expenses, decrease our revenues, and generally harm our business, reputation, and brand.

~~Compliance~~Data ~~with~~Privacy ~~ever-evolving federal, state,~~ and ~~foreign~~Security ~~laws~~Compliance and other requirements relating to the handling of information about individuals necessitates significant expenditure and resources, and any failure by us or our vendors to comply may result in significant liability, negative publicity, and/or an erosion of trust, which could materially adversely affect our business, results of operations, and financial condition.Risks

InData ~~connection~~security ~~with~~compliance ~~running~~requirements ~~our~~could ~~business,~~increase weour ~~receive~~costs, ~~store, use~~ and ~~otherwise~~any ~~process~~significant ~~information that relates to individuals and/or constitutes "personal~~ data," ~~"personal~~breach ~~information,"~~could ~~"personally~~disrupt ~~identifiable~~our ~~information,"~~operations ~~or similar terms under applicable data privacy laws (collectively, "Personal Information"), including from~~ and ~~about~~harm ~~actual customers, as well as~~ our ~~employees~~reputation, ~~crew members, and~~ business ~~contacts. We also depend on a number of third-party vendors in relation to the operation of our business~~, aresults ~~number~~ of ~~which~~operations ~~process~~and ~~Personal~~financial ~~Information on our behalf~~condition.

We are subject to increasing legislative, regulatory, and ~~our~~customer ~~vendors~~focus ~~are~~on ~~subject~~privacy toissues aand ~~variety~~data ofsecurity. ~~federal,~~Our ~~state~~business requires the appropriate and ~~foreign~~secure ~~data~~utilization ~~privacy~~of ~~laws~~customer, ~~rules~~crewmember, ~~regulations~~business partner, ~~industry standards~~ and other ~~requirements,~~sensitive ~~including~~information. ~~those~~We ~~that~~cannot ~~apply~~be ~~generally~~certain tothat ~~the~~advances ~~handling~~in ofcriminal ~~Personal~~capabilities ~~Information,~~(including ~~and~~cyberattacks ~~those~~or ~~that~~cyber ~~are~~intrusions ~~specific~~over tothe ~~certain industries~~Internet, ~~sectors~~malware, ~~contexts~~computer viruses, orand ~~locations.~~the ~~These requirements~~like), ~~and~~discovery ~~their~~of ~~application,~~new ~~interpretation~~vulnerabilities ~~and~~or ~~amendment~~attempts ~~are~~to ~~constantly~~exploit ~~evolving.~~existing Itvulnerabilities isin ~~also~~our ~~possible~~systems, ~~that~~other ~~new~~data ~~laws~~thefts, ~~regulations~~physical ~~and~~system ~~other~~or ~~requirements~~network break-ins or inappropriate access, or ~~amendments~~other todevelopments will not compromise or ~~changes~~breach inthe ~~interpretations~~technology ofprotecting ~~existing~~the ~~laws,~~networks ~~regulations~~that access and ~~other~~store ~~requirements,~~sensitive ~~may~~information. ~~require~~The usrisk toof ~~incur~~a ~~significant~~security ~~costs~~breach or disruption, ~~implement~~particularly ~~new~~through ~~processes,~~cyberattack or ~~change~~cyber ~~our~~intrusion, ~~handling~~including ofby ~~information~~computer hackers, foreign governments, and ~~business~~cyber ~~operations~~terrorists, ~~which~~has ~~could~~increased ~~hinder~~as ~~our~~the ~~ability~~number, tointensity, ~~grow~~and ~~our~~sophistication ~~business~~of byattempted ~~extracting~~attacks ~~value~~and intrusions from ~~our~~around ~~data~~the ~~assets~~world have increased.

InFurthermore, ~~recent~~there ~~years,~~has ~~certain~~been ~~states~~heightened ~~have~~legislative ~~adopted~~and orregulatory ~~modified~~focus on data ~~privacy~~security ~~and~~in ~~security~~the ~~laws~~U.S. and ~~regulations~~abroad, ~~that~~including ~~may~~requirements ~~apply~~for tovarying ~~our~~levels ~~business.~~of ~~For~~customer ~~example,~~notification in the ~~California~~event ~~Consumer~~of ~~Privacy~~a ~~Act~~data ~~("CCPA")~~breach. ~~requires~~Federal ~~businesses~~and ~~that~~state ~~process~~regulations ~~personal~~in ~~information~~the ofcybersecurity ~~California~~and ~~residents~~privacy area continue to, ~~among~~develop ~~other~~and ~~things:~~evolve, ~~provide~~including ~~certain~~laws ~~disclosures~~in tojurisdictions ~~California~~such ~~residents~~as ~~regarding~~California ~~the~~that ~~business's~~provide ~~collection,~~for ~~use,~~potential ~~and~~statutory ~~disclosure~~damages ofin ~~their~~certain ~~personal~~types ~~information;~~of ~~receive~~data ~~and~~breaches. ~~respond~~International toregulations ~~requests~~add ~~from~~complexity ~~California~~as ~~residents~~we toexpand ~~access,~~our ~~delete,~~services and ~~correct~~include ~~their~~more ~~personal~~passengers ~~information,~~from orother tocountries. ~~opt-out~~Many of ~~certain~~our ~~disclosures~~commercial ofbusiness ~~their~~partners, ~~personal~~including ~~information;~~credit ~~and~~card ~~enter~~companies, ~~into~~have ~~specific~~imposed ~~contractual~~data ~~provisions~~security ~~with~~standards ~~service~~that ~~providers~~we ~~that~~must ~~process~~meet. ~~California~~In ~~resident~~particular, ~~personal~~we ~~information~~are onrequired by the ~~business's~~PCI ~~behalf.~~DSS ~~The~~Council, ~~enactment~~founded ofby the ~~CCPA~~credit iscard ~~prompting~~companies, ato ~~wave~~comply with their highest level of ~~similar~~data ~~legislative~~security ~~developments~~standards. inWe ~~other~~are ~~states~~also insubject ~~the~~to ~~United~~evolving ~~States,~~laws ~~which~~and ~~creates~~rules aregarding ~~patchwork~~the reporting and disclosure of ~~overlapping~~cybersecurity ~~but~~incidents, ~~different~~which ~~state~~may ~~laws.~~increase our compliance obligations or costs.

24A significant data security breach or our failure to comply with applicable U.S. or foreign data security regulations or other data security standards may expose us to litigation, claims for contract breach, fines, sanctions or other penalties, which could disrupt our operations, harm our reputation, and materially and adversely affect our business, results of operations, and financial condition. The costs to remediate breaches and similar system compromises that do occur could be material. In addition, as cyber crimes become more frequent, intense, and sophisticated, the costs of proactive defensive measures may increase. Failure to address these issues appropriately could also give rise to additional legal risks, which, in turn, could increase

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the size and number of litigation claims and damages asserted or subject us to enforcement actions, fines and penalties, and cause us to incur further related costs and expenses.

Compliance with ever-evolving federal, state, and foreign laws and other requirements relating to the handling of information about individuals necessitates significant expenditure and resources, and any failure by us or our business partners to comply may result in significant liability, negative publicity, and/or an erosion of trust, which could materially adversely affect our business, results of operations, and financial condition.

In connection with running our business, we receive, store, use and otherwise process information that relates to individuals and/or constitutes "personal data," "personal information," "personally identifiable information," or similar terms under applicable data privacy laws (collectively, "Personal Information"), including from and about actual customers, as well as our crewmembers, and business contacts. We also depend on business partners in relation to the operation of our business, a number of which process Personal Information on our behalf.

We and our business partners are subject to a variety of federal, state and foreign data privacy laws, rules, regulations, industry standards and other requirements, including those that apply generally to the handling of Personal Information, and those that are specific to certain industries, sectors, contexts, or locations. These requirements, and their application, interpretation and amendment are constantly evolving. It is also possible that new laws, regulations and other requirements, or amendments to or changes in interpretations of existing laws, regulations and other requirements, may require us to incur significant costs, implement new processes, or change our handling of information and business operations, which could hinder our ability to grow our business by extracting value from our data assets.

In recent years, certain states have adopted or modified data privacy and security laws and regulations that may apply to our business. For example, the California Consumer Privacy Act ("CCPA") requires businesses that process personal information of California residents to, among other things: provide certain disclosures to California residents regarding the business's collection, use, and disclosure of their personal information; receive and respond to requests from California residents to access, delete, and correct their personal information, or to opt-out of certain disclosures of their personal information; and enter into specific contractual provisions with service providers that process California residents' personal information on the business's behalf. The enactment of the CCPA is prompting a wave of similar legislative developments in other states in the United States, which creates a patchwork of overlapping but different state laws.

These laws are in some cases relatively new and the interpretation and application of these laws are uncertain. Any failure or perceived failure by us to comply with privacy laws, rules, regulations, industry standards and other requirements could result in proceedings or actions against us by individuals, consumer rights groups, government agencies, or others. We could incur significant costs in investigating and defending such claims and, if found liable, pay significant damages or fines or be required to make changes to our business. Further, these proceedings and any subsequent adverse outcomes may subject us to significant negative publicity and an erosion of trust. If any of these events were to occur, our business, results of operations, and financial condition could be materially adversely affected.

Human Capital Related Risks

If we are unable to attract and retain qualified personnel or fail to maintain our company culture, our business could be harmed.

We compete against other major U.S. airlines for pilots, mechanics, and other skilled labor; some of them offer wage and benefit packages exceeding ours. As more pilots in the industry approach mandatory retirement age, the U.S. airline industry has been affected by a pilot shortage, which may worsen over time. At times, we have been required to increase wages and benefits in order to attract and retain qualified personnel, and we may be required to commit to further increases in the future or risk considerable crewmember turnover. If we are unable to attract, train, and retain qualified crewmembers of all backgrounds, experiences, and skill sets, our business could be harmed and we may be unable to implement our growth plans. However, negative perception of our crewmember talent initiatives, whether due to our perceived over- or under- pursuit of such initiatives, may likewise result in issues retaining qualified employees, as well as potential litigation or other adverse impacts. In addition, our business may be harmed if we lose too many individuals with institutional knowledge.

We believe one of our competitive strengths is our service-oriented company culture, which emphasizes friendly, helpful, qualified, team-oriented, and customer-focused crewmembers. Our company culture is important to providing high quality customer service and having a productive workforce in order to help keep our costs low. As we experience turnover, we may be unable to identify, hire, or retain enough people who demonstrate the values of our company culture, including those in management or other key positions. If we fail to maintain the strength of our company culture, our competitive ability and our business may be harmed.

We may be subject to further unionization, work stoppages, slowdowns or increased labor costs and the unionization of our pilots and inflight crewmembers have and could continue to result in increased labor costs.26

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We may be subject to further unionization, work stoppages, slowdowns or increased labor costs, and the unionization of our pilots, flight instructors and inflight crewmembers have and could continue to result in increased labor costs.

Our business is labor intensive and the unionization of any of our crewmembers could result in demands that may increase our operating expenses and adversely affect our financial condition and results of operations. Any of the different crafts or classes of our crewmembers could unionize at any time, which would require us to negotiate in good faith with the crewmember group's certified representative concerning a collective bargaining agreement. In addition, we may be subject to disruptions by unions protesting the non-union status of our other crewmembers. Any of these events would be disruptive to our operations and could harm our business.

In general, unionization has increased costs in the airline industry. In 2014, our pilots voted to be represented by the ALPA, and our first collective bargaining agreement was ratified by the pilots and became effective on August 1, 2018. In February ~~2022~~2025, wethe ~~commenced negotiations for a successor~~ contract, inbecame ~~accordance~~amendable. ~~with~~Contract ~~the~~negotiations ~~collective~~formally ~~bargaining~~began ~~agreement,~~early ~~and~~ in ~~December~~May ~~2022~~2024 weand ~~reached~~are ~~a tentative agreement with ALPA to extend the current collective bargaining agreement by two years~~ongoing. ~~The agreement was ratified by the JetBlue pilots in January 2023.~~

In April 2018, JetBlue inflight crewmembers elected to be ~~solely~~ represented by TWU. ~~The NMB certified the TWU as the representative body for JetBlue inflight crewmembers.~~ In ~~November~~December ~~2020~~2021, our inflight crewmembers ~~voted~~ratified toour ~~decline~~first ~~the~~collective ~~ratification~~bargaining ofagreement awith ~~tentative~~TWU, ~~collective~~which ~~bargaining~~is ~~agreement~~a ~~between~~five-year, ~~JetBlue~~renewable ~~and~~contract ~~TWU.~~effective In December ~~2021~~13, ~~our~~2021. ~~inflight~~The ~~crewmembers~~option ~~ratified~~for ~~our~~TWU ~~first~~to ~~collective~~initiate ~~bargaining~~negotiations ~~agreement~~began ~~with~~on ~~TWU~~January 1, ~~which~~2025 and is aongoing ~~five-year,~~until ~~renewable~~the contract ~~effective~~amendable date of December 13, ~~2021~~2026.

On July 14, 2022, TWU filed a representation application with the NMB seeking an election among the 35 pilot instructors ("Flight Instructors"). JetBlue disputed the TWU's application alleging that Flight Instructors do not constitute a craft or class. On October 26, 2023, the NMB notified the participants that it rejected JetBlue's argument and ordered an election. The Flight Instructors voted for TWU representation. Contract negotiations for an initial CBA began in April 2024 and are ongoing.

In November 2025, TWU filed a petition with the NMB seeking to represent the Company’s dispatchers, air traffic system controllers, and system controllers. The NMB has authorized an election which will run from January 15, 2026 through February 26, 2026. The vote is scheduled to be counted on or around February 26, 2026.

Reputational Risks

Our reputation and financial results could be harmed in the event of an accident or incident involving our aircraft.

An accident or incident involving one of our aircraft could involve significant potential claims of injured passengers or others in addition to repair or replacement of a damaged aircraft and its consequential temporary or permanent loss from service. We are required by the DOT to carry liability insurance. Although we believe we currently maintain liability insurance in amounts and of the type generally consistent with industry practice, the amount of such coverage may not be adequate and we may be forced to bear substantial losses from an accident or incident. Substantial claims resulting from an accident or incident in excess of our related insurance coverage would harm our business and financial results. Moreover, any aircraft accident or incident, even if fully covered by our existing insurance, could cause a public perception that we are less safe or reliable than other airlines which would harm our business.

25We have been, and may from time to time be, impacted by events that do not affect the safe operation of the aircraft, such as issues involving onboard conditions or aircraft systems, which could nevertheless result in adverse publicity, customer or crewmember complaints, regulatory scrutiny, claims or litigation, or reputational harm.

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in amounts and of the type generally consistent with industry practice, the amount of such coverage may not be adequate and we may be forced to bear substantial losses from an accident or incident. Substantial claims resulting from an accident or incident in excess of our related insurance coverage would harm our business and financial results. Moreover, any aircraft accident or incident, even if fully covered by our existing insurance, could cause a public perception we are less safe or reliable than other airlines which would harm our business.

Our business depends on our strong reputation and the value of the JetBlue brand.

The JetBlue brand name symbolizes our values of high-quality, friendly customer service, innovation, fun, and a pleasant travel experience. JetBlue is a widely recognized and respected global brand; the JetBlue brand is one of our most important and valuable assets. The JetBlue brand name and our corporate reputation are powerful sales and marketing tools and we devote significant resources to promoting and protecting them. Adverse publicity, whether or not justified, relating to activities by our crewmembers, contractors, or agents could tarnish our reputation and reduce the value of our brand. Increasingly, the perception our customers and other stakeholders have about how we address the risks and opportunities we face related to hiring and retention initiatives and climate change engagement, our role in the communities in which we operate, our relationship with our crewmembers, and other considerations may impact our reputation. Furthermore, increased usage of social media platforms presents increased risks to our reputation and our business. We may suffer damage to our reputation as a result of negative or inaccurate posts or comments about JetBlue on social media platforms, including related delays or cancellations on our flights even when these are due to weather or other circumstances that are outside of our control. In addition, inappropriate and/or unauthorized use of our social media platforms by our crewmembers or others associated with us may damage our reputation, and could lead to legal implications in the event that information is improperly collected and/or disseminated, or non-public sensitive information related to JetBlue or others is disclosed. Damage to our reputation and loss of brand equity could reduce demand for our services and thus have an adverse effect on our financial condition, liquidity, and results of operations, as well as require additional resources to rebuild our reputation and restore the value of our brand.

~~Financing and Financial Risks~~27

We have a significant amount of fixed obligations and we will incur significantly more fixed obligations in the future, which could harm our ability to service our current obligations or satisfy future fixed obligations.

As of December 31, 2024, our debt and finance lease obligations, including interest were approximately $12.0 billion. In addition, we have a significant amount of other fixed obligations under operating leases related to our aircraft, airport terminal space, airport hangars, other facilities, and office space. As of December 31, 2024, future minimum payments under non-cancelable leases and other financing obligations were approximately $2.7 billion. Terminal 5 ("T5") at JFK is under a lease with the Port Authority of New York and New Jersey ("PANYNJ") that ends on the 28th anniversary of the date of beneficial occupancy of the new International Arrivals facility and three net new gates at the former Terminal 6 ("T5i"). The minimum payments under this lease have been included in the future minimum payment totals above.

As of December 31, 2024, we had commitments of approximately $6.4 billion to purchase 106 additional aircraft and related flight equipment through 2033, including estimated amounts for contractual price escalations and pre-delivery deposits. We may incur additional debt and other fixed obligations as we take delivery of new aircraft or finance unencumbered aircraft in our fleet and other equipment and continue to expand into new or existing markets. In an effort to limit the incurrence of significant additional debt, we may seek to defer some of our scheduled deliveries, sell or lease aircraft to others, or pay cash for new aircraft, to the extent necessary or possible. The amount of our existing debt, and other fixed obligations, and potential increases in the amount of our debt and other fixed obligations could have important consequences to investors and could require a substantial portion of cash flows from operations for debt service payments, thereby reducing the availability of our cash flow to fund working capital, capital expenditures, and other general corporate purposes.

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Financing and Financial Risks

We have a significant amount of fixed obligations and we expect to incur significantly more fixed obligations in the future, which could harm our ability to service our current obligations or satisfy future fixed obligations.

As of December 31, 2025, our debt and finance lease obligations, including interest were approximately $11.5 billion. In addition, we have a significant amount of other fixed obligations under operating leases related to our aircraft, airport terminal space, airport hangars, other facilities, and office space. As of December 31, 2025, future minimum payments under non-cancelable leases and other financing obligations were approximately $3.3 billion.

As of December 31, 2025, we had commitments of approximately $5.7 billion to purchase 86 additional aircraft and related flight equipment through 2033, including estimated amounts for contractual price escalations and pre-delivery deposits. We may incur additional debt and other fixed obligations as we take delivery of new aircraft or finance unencumbered aircraft in our fleet and other equipment and continue to expand into new or existing markets. In an effort to limit the incurrence of significant additional debt, we may seek to defer some of our scheduled deliveries, sell or lease aircraft to others, or pay cash for new aircraft, to the extent necessary or possible. The amount of our existing debt, and other fixed obligations, and potential increases in the amount of our debt and other fixed obligations could have important consequences to investors and could require a substantial portion of cash flows from operations for debt service payments, thereby reducing the availability of our cash flow to fund working capital, capital expenditures, and other general corporate purposes.

Our level of debt and other fixed obligations could:

•impact our ability to obtain additional financing to support capital expansion plans, including our JetForward strategy and for working capital and other purposes on acceptable terms or at all;

•divert substantial cash flow from our operations, execution of our commercial initiatives, and expansion plans in order to service our fixed obligations;

•require us to incur more interest expense than we currently do if rates were to increase, since approximately 2022% of our debt has floating interest rates;

•place us at a possible competitive disadvantage compared to less leveraged competitors and competitors with better access to capital resources or more favorable financing terms; and

•lead to rating agency downgrades which in turn could impact our ability to raise capital at attractive terms.

Our ability to make scheduled payments on our debt and other fixed obligations will depend on our future operating performance and cash flows, which in turn will depend on prevailing economic and political conditions and financial, competitive, regulatory, business and other factors, many of which are beyond our control. We are principally dependent upon our operating cash flows and access to the capital markets to fund our operations and to make scheduled payments on debt and other fixed obligations. We cannot assure that we will be able to generate sufficient cash flows from our operations or from capital market activities to pay our debt and other fixed obligations as they become due. If we fail to do so, our business could be harmed. If we are unable to make payments on our debt and other fixed obligations, we could be forced to renegotiate those obligations or seek to obtain additional equity or other forms of additional financing.

Agreements governing our debt include financial and other covenants. Failure to comply with these covenants could result in events of default.

Our debt agreements contain various affirmative, negative and financial covenants and complying with certain of these covenants, or entering into agreements with additional covenants, may restrict our ability to execute our strategies, including JetForward, or otherwise constrain our operations. If we fail to comply with these covenants and are unable to remedy or obtain a waiver or amendment, an event of default would result, which could lead to, among other things, an acceleration of outstanding obligations under such agreements. In addition, an event of default or declaration of acceleration under one financing agreement could also result in an event of default under other of our financing agreements due to cross-default and cross-acceleration provisions. The acceleration of significant amounts of debt could require us to renegotiate, repay or refinance the obligations under our financing arrangements, and there can be no assurance that we will be able to do so on commercially reasonable terms or at all.

We typically finance our aircraft through either secured debt, lease financing, or through cash from operations. The impact on financial institutions from global economic conditions may adversely affect the availability and cost of credit to JetBlue as well as to prospective purchasers of our aircraft should we undertake to sell in the future, including financing commitments we have already obtained for purchases of new aircraft or financing or refinancing of existing aircraft. To the extent we finance our activities with additional debt, we may become subject to financial and other covenants that may restrict our ability to pursue our strategies, including JetForward, or otherwise constrain our operations.

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Our liquidity could be adversely impacted in the event one or more of our credit card processors were to impose material reserve requirements for payments due to us from credit card transactions.

We currently have agreements with organizations that process credit card transactions arising from purchases of air travel tickets by our customers. Credit card processors have financial risk associated with tickets purchased for travel which can occur several weeks after the purchase. Our credit card processing agreements provide for reserves to be deposited with the processor in certain circumstances. We do not currently have reserves posted for our credit card processors. If circumstances were to occur requiring us to deposit reserves, the negative impact on our liquidity could be significant which could materially adversely affect our business.

We have a significant amount of indebtedness from fixed obligations and may seek material amounts of additional financial liquidity in the short-term, and insufficient liquidity may have a material adverse effect on our financial condition and business.

We have a significant amount of indebtedness from fixed obligations, including aircraft lease and debt financings, leases of airport property, our TrueBlue® Financings (as defined below), secured loan facilities and other facilities, and other material cash obligations. In addition, we have substantial non-cancelable commitments for capital expenditures, including for the acquisition of new aircraft and related spare engines.

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In the event of a global emergency or other exigent circumstances that materially impact our business, we may be required to seek additional short-term liquidity, which may include the issuance of additional unsecured or secured debt securities, equity securities and equity-linked securities, the sale of assets, the entry into sale-leaseback transactions, as well as additional bilateral and syndicated secured and/or unsecured credit facilities, among other items. If our credit ratings were to be downgraded, or general market conditions were to ascribe higher risk to our rating levels, the airline industry, or our business, our access to capital and the cost of any debt financing would be negatively affected. There can be no assurance as to the availability of any such financing if it becomes necessary, or that any such additional financing will be completed on favorable terms.

Although our cash flows from operations and available capital, including the proceeds from financing transactions, have been sufficient to meet our obligations and commitments to date, our liquidity has been, and may in the future be, negatively affected by the risk factors described herein. If our liquidity were to be materially diminished, we might not be able to timely pay our leases and debts or comply with certain operating and financial covenants under our financing and credit card processing agreements or with other material provisions of our contractual obligations. Moreover, as a result of our recent financing activities, the number of financings and the aggregate amount of indebtedness with respect to which such covenants and provisions apply has increased, thereby subjecting us to more substantial risk of cross-default and cross-acceleration in the event of breach, and additional operating and financial covenants could become binding on us as we continue to seek additional liquidity.

Issuing additional shares of our capital stock, other equity securities or additional securities convertible into equity, or issuing shares of our capital stock upon the exercise or conversion of our convertible notes, warrants issued in connection with our participation in payroll support programs under the CARES Act, Consolidated Appropriations Act and American Rescue Plan Act, restricted stock unit awards or other securities that may be issued from time to time, may dilute the economic and voting rights of our existing stockholders, reduce the market price of our common stock, or both. Our decision to issue securities in any future offering will depend on market conditions and other factors beyond our control, which may adversely affect the availability, amount, timing, or nature of our future offerings. As a result, holders of our common stock bear the risk that our future offerings may reduce the market price of our common stock and dilute their percentage ownership.

In addition, we have agreements with financial institutions that process customer credit card transactions for the sale of air travel and other services. Under certain of our credit card processing agreements, the financial institutions in certain circumstances have the right to require that we maintain a reserve equal to a portion of advance ticket sales that have been processed by that financial institution, but for which we have not yet provided the air transportation. Such financial institutions may require cash or other collateral reserves to be established or withholding of payments related to receivables to be collected, including if we do not maintain certain minimum levels of unrestricted cash, cash equivalents, and short-term investments. Refunds lower our liquidity and put us at risk of triggering liquidity covenants in these processing agreements and, in doing so, could force us to post cash collateral with the credit card companies for advance ticket sales. We also maintain certain insurance- and surety-related agreements under which counterparties may require collateral. See "Our liquidity could be adversely impacted in the event one or more of our credit card processors were to impose material reserve requirements for payments due to us from credit card transactions."

Our substantial level of indebtedness and non-investment grade credit rating, as well as market conditions and the availability of assets as collateral for loans or other indebtedness, may make it difficult for us to raise additional capital if needed to meet our liquidity needs on acceptable terms, or at all.

~~See Part II. Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Report for additional information regarding our liquidity as of December 31, 2024.~~29

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See Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Report for additional information regarding our liquidity as of December 31, 2025.

We may never realize the full value of our intangible assets or our long-lived assets causing us to record impairments that may negatively affect our financial condition and operating results.

In accordance with applicable accounting standards, we are required to test our indefinite-lived intangible assets for impairment on an annual basis, or more frequently where there is an indication of impairment. In addition, we are required to test certain of our other assets for impairment where there is any indication that an asset may be impaired.

We may be required to recognize losses in the future due to, among other factors, extreme fuel price volatility, tight credit markets, government regulatory changes, decline in the fair values of certain tangible or intangible assets, such as aircraft, route authorities, airport slots and frequent flyer database, unfavorable trends in historical or forecasted results of operations and cash flows and an uncertain economic environment, as well as other uncertainties. For example, during the year ended December 31, 2022, we recorded $52 million of impairment as well as engine exchanges as part of the retirement of our Embraer E190 fleet. We can provide no assurance that a material impairment loss of tangible or intangible assets will not occur in a future period. The value of our aircraft could also be impacted in future periods by changes in supply and demand for these aircraft. Such changes in supply and demand for certain aircraft types could result from the grounding of aircraft. A further impairment loss could have a material adverse effect on our financial condition and operating results.

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Our ability to use certain tax attributes could be subject to limitations.

As of December 31, ~~2024~~2025, we had U.S. federal net operating loss carryforwards of approximately $34.8 billion and net interest expense carryforwards of approximately $~~441~~731 million available to offset future U.S. federal taxable income. Under Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, if a corporation undergoes an "ownership change," the corporation's ability to use certain pre-change U.S. federal income tax attributes (including carryforward tax attributes) to offset its post-change taxable income may be limited. In general, an "ownership change" occurs if there is a cumulative change in ownership of the relevant corporation by "5% shareholders" (as defined under U.S. income tax laws) that exceeds 50 percentage points over a rolling three-year period. Similar rules apply under state tax laws. We could experience ownership changes as a result of future shifts in our stock ownership. If we experience such an ownership change, then we may be limited in our ability to use certain of our tax attributes that could otherwise reduce taxes owed on our net taxable income. Any such limitations could adversely impact our business, operating results, liquidity and financial condition. Future legislative or regulatory changes also could limit our ability to use certain of our tax attributes.

Artificial Intelligence ("AI") Related Risks

Our development and use of AI-powered solutions could lead to operational, reputational, or competitive harm, legal and regulatory risk, and additional costs.

We ~~use~~leverage automated ~~technology~~technologies and systems, including ~~both~~ predictive and generative AI~~-powered~~ solutions, to ~~facilitate~~enable a more efficient operation of our business. ~~Our~~These ~~use~~capabilities ofare ~~AI-powered~~applied ~~solutions~~across ~~includes,~~a ~~but~~range isof ~~not~~business ~~limited to~~areas, ~~AI-powered~~including ~~solutions~~providing ~~that~~support ~~enable~~for ~~quick~~real-time ~~and~~operational ~~personalized~~decisions, enabling tailored customer interactions, ~~provide predictive pricing~~ and ~~route~~informing ~~analysis~~demand forecasting and ~~assist~~commercial ~~with candidate assessments for certain roles within the Company~~strategies. We ~~anticipate~~expect ~~increased~~to ~~investments~~continue investing in the ~~future~~advancement ~~to continuously improve our use~~ of ~~AI,~~these technologies; however, there can be no assurance that the ~~development~~ongoing oruse ~~usage~~ of, or our investments in, AI will always enhance our ~~products~~offerings or ~~services~~generate orbenefits befor ~~beneficial to~~ our business.

In particular, the performance of our services and business, as well as our reputation, could suffer or we could incur liability resulting from the violation of laws or contracts to which we are a party if the AI-powered solutions used by the Company are inadequately or incorrectly designed or implemented; trained or reliant on, inadequate, inaccurate, incomplete, misleading, biased or otherwise poor-quality data or algorithms, or on data or algorithms to which we do not have sufficient rights or in relation to which we and/or the providers of such data or algorithms have not implemented sufficient legal compliance measures; used without sufficient oversight and governance to ensure their responsible use; and/or adversely impacted by unforeseen defects, technical challenges, cyberattacks, cybersecurity threats, service outages, or other similar incidents, or material performance issues. Certain AI-powered solutions used by the Company are licensed by third parties and when used as a hosted service, any disruption, outage, or loss of information through such hosted services could disrupt our operations or solutions, damage our reputation, cause a loss of confidence in our solutions, or result in legal claims or proceedings, for which we may be unable to recover damages from the affected provider. There is also a risk that our use of generative AI could produce biased, inaccurate, incomplete, misleading or poor-quality content or other discriminatory or unexpected results or behaviors, all of which could harm our reputation, business, or customer relationships. While we exercise diligence in ensuring the accuracy of AI generated content, those measures may not always be successful, and in some cases, we may need to rely on end users to report such inaccuracies. We also use and have modified certain third-party generative AI-powered solutions that are made available under an open-source license. Use of open-source generative AI could introduce inaccuracies or vulnerabilities that we are unable to anticipate, detect, or control. If the licensor for such open-source generative AI developed their models by training on data or algorithms that was inadequate, inaccurate, incomplete, misleading biased or otherwise poor-quality, or for which it did not have the appropriate rights, we could be subject to claims or lawsuits, including for infringement of third-party intellectual property. It is also possible that sophisticated attackers may exploit vulnerabilities in open-source generative AI to obtain access to our sensitive data or alter the outputs or results. For additional information concerning risks with respect to cyberattacks, cybersecurity breaches, service outages or other similar incidents, see "Information Security and Privacy Related Risks."

A number of aspects of intellectual property protection in the field of AI and machine learning are currently under development, and there is uncertainty and ongoing litigation in different jurisdictions as to the degree and extent of protection warranted for AI and machine learning systems and relevant system inputs and outputs. If we or any of our third-party service providers are deemed to not have sufficient rights to the data we use to train our AI, we may be subject to litigation by the owners of the content or other materials that comprise such data and, if such claim relates to our third-party service providers, we may not be successful in adequately recovering our losses from such third-party service providers in connection with such claims. Further, any content or other output created by us using AI-powered solutions may not be subject to copyright protection, which may adversely affect our ability to commercialize or use, or the validity or enforceability of any intellectual property rights in, any such content or other output. If we fail to obtain protection for the intellectual property rights concerning our AI, or later have our intellectual property rights invalidated or otherwise diminished, our competitors may be able to take 30

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~~advantage~~otherwise poor-quality, or for which it did not have the appropriate rights, we could be subject to claims or lawsuits, including for infringement of third-party intellectual property. It is also possible that sophisticated attackers may exploit vulnerabilities in open-source generative AI to obtain access to our ~~research~~sensitive ~~and~~data ~~development~~or ~~efforts~~alter the outputs or results. For additional information concerning risks with respect to ~~develop~~cyberattacks, ~~competing~~cybersecurity ~~products~~breaches, ~~which~~service ~~could~~outages ~~adversely~~or ~~affect~~other ~~our~~similar ~~business~~incidents, ~~reputation~~see the risk factors under "Cybersecurity and ~~financial~~Information ~~condition~~Security Risks."

~~The~~A ~~regulatory~~number ~~framework~~of ~~for~~aspects of intellectual property protection in the field of AI and machine learning are currently under development, and there is ~~rapidly~~uncertainty ~~evolving~~and ongoing litigation in different jurisdictions as ~~many~~to ~~federal,~~the ~~state~~degree and ~~foreign~~extent ~~government~~of ~~bodies~~protection warranted for AI and ~~agencies~~machine ~~have~~learning ~~introduced~~systems and relevant system inputs and outputs. If we or any of our third-party service providers are ~~currently~~deemed ~~considering~~to ~~additional~~not ~~laws~~have ~~and~~sufficient ~~regulations.~~rights ~~Additionally,~~to ~~existing~~the ~~laws~~data ~~and~~we ~~regulations~~use to train our AI, we may be ~~interpreted~~subject into ~~ways~~litigation by the owners of the content or other materials that ~~would~~comprise ~~affect~~such ~~our~~data ~~current~~and, ~~uses~~if ofsuch AIclaim relates to our third-party service providers, orwe ~~could~~may not be ~~rescinded~~successful orin ~~amended~~adequately asrecovering ~~new~~our ~~administrations~~losses ~~take~~from ~~differing~~such ~~approaches~~third-party toservice ~~evolving~~providers ~~AI.~~in Asconnection awith ~~result~~such claims. Further, ~~implementation~~any ~~standards~~content ~~and~~or ~~enforcement~~other ~~practices~~output ~~are~~created ~~likely~~by us using AI-powered solutions may not be subject to ~~remain~~copyright ~~uncertain~~protection, ~~for~~which may adversely affect our ability to commercialize or use, or the ~~foreseeable~~validity ~~future~~or enforceability of any intellectual property rights in, ~~and~~any such content or other output. If we ~~cannot~~fail ~~yet~~to ~~completely~~obtain ~~determine~~protection for the ~~impact~~intellectual ~~future~~property ~~laws,~~rights ~~regulations,~~concerning ~~standards~~our AI, or ~~market~~later ~~perception~~have ofour ~~their~~intellectual ~~requirements~~property ~~may~~rights ~~have~~invalidated onor ~~our~~otherwise ~~business~~diminished, ~~and~~our competitors may ~~not always~~ be able to ~~anticipate~~take ~~how~~advantage toof ~~respond~~our research and development efforts to ~~these~~develop ~~laws~~competing orproducts ~~regulations~~which could adversely affect our business, reputation and financial condition.

~~Already,~~The ~~certain~~regulatory ~~existing~~framework ~~legal~~for ~~regimes~~AI ~~(e.g.,~~is ~~relating~~rapidly toevolving ~~data~~as ~~privacy)~~many ~~regulate certain aspects of AI~~federal, state and ~~new~~foreign ~~laws~~government ~~regulating~~bodies ~~the~~and ~~use~~agencies ~~of AI~~ have ~~either~~introduced ~~entered into force in the United States and the EU~~ or are ~~expected~~currently toconsidering ~~enter~~additional ~~into~~laws ~~force~~and regulations. ~~For example~~Additionally, ~~the~~existing ~~European~~laws ~~Union’s~~and ~~Artificial~~regulations ~~Intelligence~~may ~~Act~~be ~~(the~~interpreted ~~“AI~~in ~~Act”),~~ways ~~which~~that ~~entered~~would ~~into~~affect ~~force~~our oncurrent ~~August~~uses 1,of ~~2024~~AI, ~~establishes,~~or ~~among~~could ~~other~~be ~~things,~~rescinded aor ~~risk-based~~amended ~~governance~~as ~~framework~~new ~~for~~administrations ~~regulating~~take AIdiffering ~~systems~~approaches ~~operating~~to inevolving ~~the EU~~AI. ~~The~~We ~~majority~~have ofalso ~~the~~been, ~~substantive~~and ~~requirements~~may ~~from~~be ~~the~~subject ~~AI Act will apply from August 2~~to, ~~2026~~requests and/or ~~this~~demands ~~framework~~by ~~categorizes~~third ~~AI systems~~parties, ~~based~~including onour ~~the~~security ~~risks associated with such AI systems’ intended purposes~~holders, aspartners ~~creating~~and ~~unacceptable or high risks~~counterparties, with ~~all~~respect ~~other~~to AIthe ~~systems~~oversight ~~being~~and ~~considered~~practices ~~limited~~of orour ~~low~~AI ~~risk~~usage. ~~There~~As is a ~~risk~~result, ~~that~~implementation ~~our~~standards ~~current~~and orenforcement ~~future~~practices ~~use~~are oflikely ~~AI may obligate us~~ to ~~comply~~remain ~~with~~uncertain for the ~~applicable~~foreseeable ~~requirements~~future, ofand ~~the~~we AIcannot ~~Act,~~yet ~~which~~completely ~~may~~determine ~~impose~~the ~~additional~~impact ~~costs~~future onlaws, usregulations, ~~increase~~standards, ~~our~~or ~~risk~~market perception of ~~liability~~their ~~and~~requirements ~~fines~~may orhave ~~otherwise~~on ~~adversely affect~~ our business, ~~results of operations, financial condition~~ and ~~future~~may ~~prospects.~~not ~~For~~always ~~additional~~be ~~information~~able ~~concerning~~to ~~risks~~anticipate ~~with~~how ~~respect~~ to ~~compliance~~respond ~~with~~to ~~data~~these ~~privacy~~ laws, ~~see~~or ~~"Information Security and Privacy Related Risks~~regulations."

Already, certain existing legal regimes (e.g., relating to data privacy) regulate certain aspects of AI, and new laws regulating the use of AI have either entered into force in the United States and the EU or are expected to enter into force. For example, the European Union's Artificial Intelligence Act (the "AI Act"), which entered into force on August 1, 2024, establishes, among other things, a risk-based governance framework for regulating AI systems operating in the EU. The majority of the substantive requirements from the AI Act will apply from August 2, 2026 and this framework categorizes AI systems, based on the risks associated with such AI systems' intended purposes, as creating unacceptable or high risks, with all other AI systems being considered limited or low risk. There is a risk that our current or future use of AI may obligate us to comply with the applicable requirements of the AI Act, which may impose additional costs on us, increase our risk of liability and fines or otherwise adversely affect our business, results of operations, financial condition and future prospects. For additional information concerning risks with respect to compliance with data privacy laws, see the risk factors under "Data Privacy and Security Compliance Risks."

The cost to comply with federal, foreign, state or other laws, regulations, or decisions and/or guidance applicable to our business could be significant and could increase our operating expenses (such as by imposing additional reporting obligations regarding our use of AI). Such an increase in operating expenses, as well as any actual or perceived failure to comply with such laws and regulations, could adversely affect our business, financial condition and results of operations.

RISKS ASSOCIATED WITH THE AIRLINE INDUSTRY

We could be adversely affected by an outbreak or resurgence of a disease or an environmental disaster that significantly affects travel behavior.

Any outbreak or resurgence of a disease, which affect travel behavior, travel demand, or travel restrictions, or a similar public health threat, or fear of such an event could have a material adverse impact on airlines. In addition, outbreaks of disease could result in quarantines of our ~~personnel~~crewmembers, business partners and their suppliers, or an inability to access facilities or our aircraft, which could adversely affect our operations. Certain environmental disasters may be caused or adversely exacerbated by the physical impacts of climate change. For more information, please see our risk factor titled "WeOur ~~may~~results beof ~~affected~~operations byfluctuate ~~global~~due ~~climate~~to ~~change~~seasonality, ~~or by legal~~weather, ~~regulatory~~and orother ~~market responses to such change~~factors."

The extent, duration, and magnitude of an outbreak or resurgence of a disease will depend on various factors, all of which are highly uncertain, difficult to predict and not controlled by us. In addition, we cannot predict whether business travel for in-person meetings will return to pre-COVID-19 levels over the long-term due to technological advancements in, and consumer acceptance and adaptation to, virtual meetings and/or changes in customer preferences.

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Similarly, if an environmental disaster were to occur and adversely impact any of our destination cities, travel behavior could be affected and in turn, could materially adversely impact our business, operating results, liquidity and financial condition.

Compliance with environmental laws and regulations may cause us to incur substantial costs.

Many aspects of airlines' operations are subject to increasingly stringent environmental regulations and enforcement policies, and growing concerns about climate change and other matters, including an evolving set of previously unregulated substances, may result in the imposition of additional regulation. Compliance with environmental laws and regulations can require significant expenditures, and violations can lead to significant fines and penalties, as well as civil liability.

Environmental laws and regulations may require us to investigate and remediate soil or groundwater. Under many environmental laws, generators of waste materials, and current and former owners or operators of facilities, can be subject to liability for investigation and remediation costs at locations that have been identified as contaminated. Liability under these laws may be retroactive, strict, joint and several, meaning that we could be liable for the costs of cleaning up environmental contamination regardless of when it occurred, fault or the amount of waste directly attributable to us.

Governmental authorities in the U.S. and abroad are increasingly focused on potential contamination resulting from the use of certain chemicals, most notably per- and polyfluoroalkyl, substances ("PFAS"). Products containing PFAS have been used in manufacturing, industrial, and consumer applications over many decades, including those related to aviation. In April 2024, the U.S. Environmental Protection Agency ("USEPA") published for public comment a new rulemaking that would designate two PFAS substances (perfluorooctanoic acid and perfluorooctanesulfonic acid) as hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act. With this final rule and the introduction of any additional state or federal regulations or enforcement policies, we may incur costs in connection with reporting obligations and costs related to historic usage of PFAS-containing materials, transitioning away from the usage of PFAS-containing products, disposing of PFAS-containing waste or remediating any residual environmental impacts.

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used in manufacturing, industrial, and consumer applications over many decades, including those related to aviation. Among other things, recent changes to federal requirements for firefighting foams containing PFAS, as well as related state regulations affecting their use, will require operational changes. In August 2022, the US Environmental Protection Agency ("USEPA") published for public comment a new rulemaking that would designate two PFAS substances (perfluorooctanoic acid and perfluorooctanesulfonic acid) as hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act. This rule, which was finalized in April 2024, requires entities to immediately report current and past releases that meet or exceed the reportable quantity for such substances to USEPA's National Response Center. With this final rule and the introduction of any additional state or federal regulations or enforcement policies, we may incur costs in connection with reporting obligations and costs related to historic usage of PFAS-containing materials, transitioning away from the usage of PFAS-containing products, disposing of PFAS-containing waste or remediating any residual environmental impacts.

Under our leases and related contracts for our airport facilities, we may be responsible for a share of the airport's or other operators' costs in meeting new or upgraded regulatory requirements including, for example, implementation of USEPA and state stormwater regulations that require building or reconfiguring airport de-icing facilities to capture and treat discharges of de-icing and anti-icing chemicals. In addition, USEPA is proposing to add PFAS stormwater monitoring requirements from industrial facilities in areas where USEPA is the National Pollutant Discharge Elimination System permitting authority.

~~Since~~Additionally, ~~the~~regulatory, ~~domestic~~market, ~~airline~~and ~~industry~~other ischanges ~~increasingly~~to ~~price~~respond ~~sensitive,~~to weclimate change may ~~not~~adversely beimpact ~~able~~our tobusiness, ~~recover~~financial ~~the~~condition, ~~cost~~or results of ~~compliance~~operations. ~~with~~For ~~new~~example, orthere ~~more~~have ~~stringent~~been ~~environmental~~significant ~~laws~~U.S. and ~~regulations~~international ~~from~~legislative and regulatory efforts to limit GHG emissions, including our ~~customers~~aircraft and ground operations emissions. In October 2016, the ICAO passed a resolution adopting CORSIA, which ~~could~~is ~~adversely~~a ~~affect~~global, ~~our~~market-based ~~business~~emissions offset program to encourage carbon-neutral growth in international aviation. Annual international emissions reporting is required via CORSIA as of the 2019 reporting year, and ~~financial~~offsetting ~~results~~compliance is scheduled to be implemented through multiple phases that began in 2021. ~~Although~~ICAO wecontinues doto ~~not~~develop details regarding implementation and, while we expect ~~the~~compliance with CORSIA will increase our operating costs, the anticipated cost of ~~complying~~compliance with ~~current~~CORSIA ~~environmental~~is ~~regulations~~uncertain ~~will~~due ~~have~~to a ~~material~~number ~~adverse~~of ~~effect~~factors, onincluding ~~our~~the ~~financial~~volatility ~~position,~~in ~~results~~demand for international air travel and the uncertainty in the supply and price of ~~operations,~~eligible carbon offsets or ~~cash~~low-carbon ~~flows,~~aircraft nofuels. ~~assurance~~The ~~can~~USEPA behas ~~made~~also ~~that~~adopted rules implementing the ~~costs~~ICAO ofaircraft ~~complying~~engine ~~with~~GHG ~~environmental~~emission standards. Pursuant to the Clean Air Act, the FAA issued a final rule in February 2024 to implement these standards, introducing new fuel efficiency certification regulations. These regulations took effect in ~~the~~April ~~future~~2024 and will apply to larger business and commercial jet aircraft with either new design types (not previously certified by the FAA) or existing design types that are in production as of January 1, 2028. Under the current presidential administration, steps have ~~such~~been antaken ~~effect~~to withdraw from international agreements targeting climate change and rolling back USEPA regulation of GHG emissions under the Clean Air Act. Although the U.S. continues to participate in ICAO, the outcome of these developments cannot be predicted.

WeThere ~~may~~are bealso ~~affected~~growing byinitiatives ~~global~~to ~~climate~~mandate ~~change~~use of SAF or byotherwise ~~legal~~reduce GHG emissions associated with various aircraft design types. For example, ~~regulatory~~the EU adopted a regulation that entered into force 2024 imposing a SAF blending standard starting at 2% in 2025 and rising to 70% in 2050. Other countries, including the UK, have adopted or ~~market~~are ~~responses~~considering adopting similar SAF requirements. In the U.S., USEPA issues annual regulations under the Renewable Fuel Standard ("RFS") program that require the national pool of transportation fuel to contain a certain percentage of alternative fuels such ~~change~~as SAF. These programs, in addition to our own and other airlines' commitments to increase use of SAF, may result in a competitive market for available SAF inventories or result in our inability to procure SAF at prices we find acceptable. Any regulatory uncertainty on the treatment of SAF may also impact the availability or price of SAF. Until SAF production increases, we may need to pay a significant premium for SAF above the cost of traditional fuel.

There are inherent climate-related risks wherever business is conducted. Various meteorological phenomena and extreme weather events (including, but not limited to, storms, flooding, drought, wildfire, and extreme temperatures) may disrupt our operations or those of our suppliers and business partners, cause inflight cancellations, delays, and diversions, require us to incur additional operating or capital expenditures, reduce the demand for certain of our flight offerings, or otherwise adversely impact our business, financial condition, or results of operations. The frequency and/or intensity of such events may increase over time. While we may take various actions to mitigate our business risks associated with extreme weather events, this may require us to incur substantial costs and may not be successful, due to, among other things, the uncertainty associated with the longer-term projections associated with managing such risks.32

Additionally, regulatory, market, and other changes to respond to climate change may adversely impact our business, financial condition, or results of operations. For example, there have been significant U.S. and international legislative and regulatory efforts to limit GHG emissions, including our aircraft and ground operations emissions. In October 2016, the ICAO passed a resolution adopting CORSIA, which is a global, market-based emissions offset program to encourage carbon-neutral growth in international aviation. Annual international emissions reporting is required via CORSIA as of the 2019 reporting year, and offsetting compliance is scheduled to be implemented through multiple phases that began in 2021. ICAO continues to develop details regarding implementation and, while we expect compliance with CORSIA will increase our operating costs, the anticipated cost of compliance with CORSIA is uncertain due to a number of factors, including the volatility in demand for international air travel and the uncertainty in the supply and price of eligible carbon offsets or low-carbon aircraft fuels. The USEPA has also adopted rules implementing the ICAO aircraft engine GHG emission standards. Pursuant to the Clean Air Act, the FAA issued a final rule in February 2024 to implement these standards, introducing new fuel efficiency certification regulations. These regulations took effect in April 2024 and will apply to larger business and commercial jet aircraft with either new design types (not previously certified by the FAA) or existing design types that are in production as of January 1, 2028. More stringent standards, or other restrictions, may also be adopted in the future.

The potential impacts to our business are not known at this time, but additional costs can be expected. In addition, climate change-related litigation and investigations have increased in recent years and any claims or investigations against us could be costly to defend and our business could be adversely affected by the outcome.

These climate change-related regulatory actions and related pressures to reduce our GHG emissions may adversely affect our business and financial results by requiring us, for example, to make capital investments in new equipment or technologies, purchase carbon offset credits, or incur higher fuel or other operating costs. Due to the competitive nature of the airline industry and unpredictability of the market for air travel, we can offer no assurance that we will be able to increase our fares, impose surcharges or otherwise increase revenues or decrease other operating costs sufficiently to offset our costs of meeting these obligations.

For example, there are growing initiatives to mandate use of SAF, a term which includes a variety of fuels that are believed to have lower environmental impact than conventional aviation fuels. The latest proposal in the EU, which was

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~~approved~~The bypotential ~~the~~impacts ~~European~~to ~~Parliament~~our inbusiness ~~September~~are ~~2023~~not ~~and~~known ~~the European Council in October 2023 would impose a SAF blending standard starting~~ at 2%this ~~in 2025 and rising to 70% in 2050. Other countries~~time, ~~including~~but ~~the~~additional ~~UK,~~costs ~~have~~and ~~adopted~~regulatory orinstability ~~are~~can ~~considering~~be ~~adopting similar SAF requirements~~expected. In ~~the US~~addition, ~~the~~climate ~~FAA's~~change-related ~~Aviation~~litigation ~~Climate~~and ~~Action~~investigations ~~Plan~~have ~~(published~~increased in ~~November~~recent ~~2021)~~years ~~includes~~and aany ~~Sustainable~~claims ~~Aviation~~or ~~Fuel~~investigations ~~Grand~~against ~~Challenge,~~us ~~calling~~could ~~for~~be acostly ~~replacement of all traditional aviation fuel by 2050. These programs, in addition~~ to ~~our~~defend ~~own~~ and ~~other airlines' commitments to increase use of SAF, may result in a competitive market for available SAF inventories or result in~~ our ~~inability~~business tocould ~~procure~~be ~~SAF~~adversely ataffected ~~prices~~by ~~we find acceptable. Any regulatory uncertainty on~~ the ~~treatment of SAF may also impact the availability or price of SAF~~outcome. ~~Until SAF production increases, we may need to pay a significant premium for SAF above the cost of traditional fuel.~~

Since the domestic airline industry is increasingly price sensitive, we may not be able to recover the cost of compliance with new or more stringent environmental laws and regulations from our customers, which could adversely affect our business and financial results. Although we do not expect the costs of complying with current environmental regulations will have a material adverse effect on our financial position, results of operations, or cash flows, no assurance can be made that the costs of complying with environmental regulations in the future will not have such an effect.

Increasing scrutiny of, and evolving expectations regarding, environmental matters may impact our business and reputation.

Companies across industries are facing increasing scrutiny from a variety of stakeholders, including states attorneys general, related to their environmental and sustainability practices. Expectations regarding voluntary sustainability initiatives and disclosures may result in increased costs (including but not limited to increased costs related to compliance, stakeholder engagement, contracting and insurance), changes in demand for certain product or service offerings, enhanced compliance or disclosure obligations, or other impacts to our business, financial condition, or results of operations.

While we have in the past engaged, and expect in future to continue to engage, in voluntary initiatives (such as voluntary disclosures, certifications, or goals) to improve the profile of our Company and/or offerings or to respond to stakeholder expectations, such initiatives may be costly and may not have the desired effect. Expectations around a company's management of such matters continues to evolve rapidly, in many instances due to factors that are out of our control. For example, we may ultimately be unable to complete certain initiatives or targets, either on the timelines initially announced or at all, due to technological, legal, cost, or other constraints, which may be within or outside of our control. Moreover, actions or statements that we may take based on expectations, assumptions, or third-party information that we currently believe to be reasonable may subsequently be determined to be erroneous, be subject to misinterpretation, or be out of alignment with policymaker or other stakeholder expectations. If we fail, or are perceived to fail, to comply with or advance certain environmental initiatives (including the timeline and manner in which we complete such initiatives), we may be subject to various adverse impacts, including reputational damage and potential stakeholder engagement and/or litigation, even if such initiatives are currently voluntary.

Reporting expectations are also increasing, with a variety of customers, capital providers, and regulators seeking increased information on climate-related risks and impacts. Various policymakers, such as the European Union, and the State of California, have adopted or are considering adopting, requirements for companies to provide significantly expanded climate-related disclosures, adopt specific policies or procedures, or take other climate-related actions. Such requirements are not uniform across jurisdictions, and may be inconsistently applied, which can increase the complexity and cost of compliance, and increase the risk of enforcement or litigation relating to our disclosures and initiatives. All of these risks may also impact our suppliers, business partners or customers, which may indirectly impact our business, financial condition, or results of operations.

~~Increasing~~Certain ~~scrutiny~~market ofparticipants, including major institutional investors and ~~evolving~~capital ~~expectations~~providers, ~~regarding~~use third-party benchmarks and scores to assess companies' profiles in making investment or voting decisions. Unfavorable ratings could lead to increased negative investor sentiment towards us or our industry, ~~environmental~~which could negatively impact our share price as well as our access to and ~~social~~cost of capital. To the extent sustainability matters negatively impact our reputation, it may also impede our ability to compete as effectively to attract and retain employees or customers, which may adversely impact our operations. For more information, please see our risk factor titled "Compliance with environmental laws and regulations may cause us to incur substantial costs." Additionally, many of our customers, business partners, and ~~reputation~~suppliers may be subject to similar expectations, which may augment or create additional risks, including risks that may not be known to us.

~~Companies~~Federal ~~across~~government ~~industries~~shutdowns, ~~are~~federal ~~facing~~budget ~~increasing~~constraints ~~scrutiny~~or ~~from~~federally aimposed ~~variety~~furloughs ofdue ~~stakeholders, including states attorneys general, related~~ to ~~their~~budget ~~environmental,~~negotiation ~~human~~deadlocks ~~rights, social, and sustainability practices. Expectations regarding voluntary sustainability initiatives and disclosures~~ may ~~result~~adversely inaffect ~~increased~~our ~~costs (including but not limited to increased costs related to compliance~~industry, ~~stakeholder engagement, contracting and insurance), changes in demand for certain product or service offerings, enhanced compliance or disclosure obligations, or other impacts to our~~ business, ~~financial condition, or~~ results of operations and financial position.

~~While~~Many weof ~~have~~our inairline ~~past~~operations ~~engaged,~~are ~~and~~regulated ~~expect~~by ingovernmental ~~future to continue to engage~~agencies, ~~in voluntary initiatives (such as voluntary disclosures~~including, ~~certifications,~~but ornot ~~goals)~~limited to, ~~improve~~ the ~~profile~~DOT, ofFAA, ~~our Company and/or offerings or to respond to stakeholder expectations~~CBP, ~~such initiatives may be costly~~ and ~~may not have~~ the ~~desired effect~~TSA. ~~Expectations~~Federal ~~around~~government ~~a company's management of such matters continues to evolve rapidly~~shutdowns, inincluding ~~many instances due to factors that are out of our control. For example, we may ultimately be unable to complete certain initiatives or targets, either on~~ the ~~timelines~~disruptive ~~initially~~shutdowns ~~announced~~experienced orin ~~at all~~2025, ~~due~~federal tobudget ~~technological, legal, cost, or other~~ constraints, ~~which may be within~~ or ~~outside~~federally ofimposed ~~our~~furloughs ~~control.~~resulting ~~Moreover,~~from ~~actions~~budget ornegotiation ~~statements~~deadlocks ~~that we~~ may ~~take~~adversely ~~based~~affect onthe ~~expectations,~~ability ~~assumptions,~~of orthese ~~third-party~~agencies ~~information that we currently believe~~ to beperform ~~reasonable~~critical ~~may subsequently be determined to be erroneous, be subject to misinterpretation, or be out of alignment with policymaker or other stakeholder expectations~~functions. If wethe ~~fail,~~federal orgovernment ~~are~~were ~~perceived~~ to ~~fail,~~continue toexperiencing ~~comply~~issues ~~with~~in orreaching ~~advance~~budgetary ~~certain~~consensus ~~environmental~~in ~~or social initiatives (including~~ the ~~timeline~~future, ~~and~~resulting ~~manner~~ in ~~which~~mandatory wefurloughs ~~complete such initiatives), we may be subject to various adverse impacts, including reputational damage~~ and ~~potential stakeholder engagement and~~/or ~~litigation,~~other ~~even~~budget ~~if such initiatives are currently voluntary. For example~~constraints, ~~there~~or ~~have~~if ~~been~~a ~~increasing~~government ~~allegations~~shutdown ofwere ~~greenwashing~~to ~~against~~continue ~~companies~~for ~~making~~an ~~significant~~extended ~~environmental~~period ~~or sustainability claims due to a variety~~ of ~~perceived deficiencies in actions~~time, ~~statements,~~our oroperations ~~methodology,~~and ~~including~~results asof ~~stakeholder~~operations ~~perceptions~~could ofbe ~~sustainability~~materially ~~continue~~negatively ~~to evolve~~impacted. InThe ~~the~~travel ~~airline~~behaviors ~~industry specifically, there has been particular scrutiny~~ of ~~and liability associated with~~ the ~~use~~flying ofpublic ~~"sustainable~~could ~~aviation~~also ~~fuel"~~be ~~and~~affected, ~~carbon~~which ~~offsets~~may ~~and~~materially ~~claims~~adversely ~~made~~impact inour ~~connection~~industry ~~with~~and ~~same.~~our business.

Certain market participants, including major institutional investors and capital providers, use third-party benchmarks and scores to assess companies' profiles in making investment or voting decisions. Unfavorable ratings could lead to increased negative investor sentiment towards us or our industry, which could negatively impact our share price as well as our access to and cost of capital. To the extent sustainability or social matters negatively impact our reputation, it may also impede our ability to compete as effectively to attract and retain employees or customers, which may adversely impact our operations. For more information, please see our risk factor titled "We may be affected by global climate change or by legal, regulatory or market responses to such change." Additionally, many of our customers, business partners, and suppliers may be subject to similar expectations, which may augment or create additional risks, including risks that may not be known to us.33

Federal budget constraints or federally imposed furloughs due to budget negotiation deadlocks may adversely affect our industry, business, results of operations and financial position.

Many of our airline operations are regulated by governmental agencies, including, but not limited to, the DOT, FAA, CBP, and the TSA. If the federal government were to continue experiencing issues in reaching budgetary consensus in the future, resulting in mandatory furloughs and/or other budget constraints, or if a government shutdown were to continue for an extended period of time, our operations and results of operations could be materially negatively impacted. The travel behaviors of the flying public could also be affected, which may materially adversely impact our industry and our business.

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Changes in laws and government regulations, ~~imposing~~that impose additional requirements and restrictions on our operations could increase our operating costs and result in service delays and disruptions.

Airlines are subject to extensive regulatory and legal requirements, both domestically and internationally, involving significant compliance costs. These requirements may adversely impact our business, operating results and financial condition. For example, in January 2025, the DOT assessed a ~~$2 million~~ civil penalty against us in connection with flights determined to be chronically delayed in 2022 and 2023. In recent years, Congress has passed laws and the agencies of the federal government, including, but not limited to, the DOT, FAA, CBP, and the TSA, have issued regulations relating to the operation of airlines that have required significant expenditures. We expect to continue to incur expenses in connection with complying with government regulations. Additional laws including executive orders, regulations, tax laws, and airport rates and charges have been proposed from time to time that could significantly increase the cost of or otherwise constrain airline operations or reduce the demand for air travel. For example, legislative and regulatory bodies have examined the manner in which airlines have "unbundled" the pricing in respect of certain products and services, and new rules or taxes in respect of these different revenue sources could potentially have an adverse effect on our business. If adopted or materially amended, these measures could have the effect of raising ticket prices, which in turn could affect the perception of the airline industry, reduce air travel demand and/or revenue, and increase costs. We cannot be assured that these and other laws, including executive orders, regulations, tariffs or tax laws, enacted in the future, or other changes in the political landscape, will not harm our business.

A future act of terrorism, the threat of such acts or escalation of U.S. military involvement overseas could adversely affect our industry.

Acts of terrorism, the threat of such acts or escalation of U.S. military involvement overseas could have an adverse effect on the airline industry. In the event of an act of terrorism, whether or not successful, the airline industry would likely experience increased security requirements and significantly reduced demand. In addition, the escalation of U.S. military involvement, including in regions in which we operate or through which we transit, as well as regional political instability or hostilities, could lead to the suspension, redirection or longer routings of flights, airspace closures, increased operating costs, or service disruptions in the impacted regions. We cannot be assured that these actions, or consequences resulting from these actions, will not harm our business or the industry.

The airline industry is particularly sensitive to changes in economic conditions.

Fundamental and permanent changes in the domestic airline industry have occurred over time as a result of several years of repeated losses, among other reasons. These losses resulted in airlines renegotiating or attempting to renegotiate labor contracts, reconfiguring flight schedules, furloughing, or terminating crewmembers, as well as considering other efficiency and cost-cutting measures. Despite these actions, several airlines have reorganized under Chapter 11 of the U.S. Bankruptcy Code to permit them to reduce labor rates, restructure debt, terminate pension plans, and generally reduce their cost structure. Since 2005, the U.S. airline industry has experienced significant consolidation and liquidations. A global economic recession and related unfavorable general economic conditions, such as higher unemployment rates, debt and equity market fluctuations, a constrained credit market, housing-related pressures, rising interest rates and increased business operating costs can reduce spending for both leisure and business travel and otherwise impact booking practices. Unfavorable economic conditions could also impact an airline's ability to raise fares to counteract increased fuel, labor, and other costs. It is possible that further airline reorganizations, consolidation, bankruptcies, or liquidations may occur in the current global economic environment, the effects of which we are unable to predict. We cannot be assured that the occurrence of these events, or potential changes resulting from these events, will not harm our business or the industry.

In recent years the global credit and financial markets have experienced extreme volatility and disruptions, including severely diminished liquidity and credit availability, declines in consumer confidence, declines in economic growth, increases in unemployment rates and uncertainty about economic stability. The financial markets and the global economy may also be adversely affected by the current or anticipated impact of military conflict, ~~including the conflict between Russia and Ukraine,~~ terrorism or other geopolitical events. Sanctions or tariffs imposed by the United States and other countries in response to such conflicts, ~~including the one in Ukraine,~~ may also adversely impact the financial markets and the global economy, and any economic countermeasures by the affected countries or others could exacerbate market and economic instability. There can be no assurance that further deterioration in credit and financial markets and confidence in economic conditions will not occur.

Furthermore, the United States economy recently encountered a material level of inflation. Increases in inflation may raise our costs for labor, materials and services, and other costs required to operate our business, and failure to secure these on reasonable terms may adversely impact our financial condition.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

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ITEM 1C. CYBERSECURITY

JetBlue places great importance on safety including cybersecurity, to protect against various threats. The Company's cybersecurity strategy prioritizes detection, analysis and response to cyber threats, effective management of cyber risks, and resilience against cyber incidents. Safety is the Company's #1 value, and the strength of our safety is supported by exercising vigilance in security, including cybersecurity.

We maintain a formal cybersecurity program with guidance drawn from the National Institute of Standards and Technology Cybersecurity Framework ("NIST CSF") and other industry standards. This does not imply that we meet any particular technical standards, specifications, or requirements, but rather that we use the NIST CSF as a guide to help us identify, assess, and manage cybersecurity risks relevant to our business.

Our program is designed to protect the confidentiality, integrity, and availability of information technology systems and data. The state of our program maturity and regulatory compliance is regularly reviewed by third-party cybersecurity auditors and assessors. Among the key features of our cybersecurity risk management processes are the following:

•policies and procedures designed to comply with data security and privacy obligations;

•security technology and tools deployed in our IT environment that help us to identify and manage critical cybersecurity risks, as well as to detect and respond to incidents;

•security awareness training offered to our workforce, and specialized incident response training for our cybersecurity team;

•a Security Operations Center that monitors and responds to incidents; and

•a third-party risk management program that includes diligence and contracting processes for ~~vendors~~business partners and service providers based on their respective function and risk profile.

~~JetBlue~~These ~~management~~processes help us manage cybersecurity risks but cannot eliminate them. JetBlue has overall responsibility for assessing and managing risks from cybersecurity threats to the Company and has an established cyber risk committee that consists of the Chief Executive Officer, Chief Financial Officer, Chief Legal Officer, Chief Information Officer and Chief Information Security Officer ("CISO"). Our CISO has primary responsibility for the design and execution of our cybersecurity risk management program, and helps the committee stay informed about and monitor the prevention, detection, mitigation, and remediation of cybersecurity risks and incidents through various means, including but not limited to briefings with internal security team members, threat intelligence obtained from public and private sources, and alerts and reports produced by security tools deployed in the IT environment. Our current CISO has nearly two decades of experience in IT risk and program management, threat intelligence, and cybersecurity governance; he also has several cybersecurity industry certifications and specialized training in cybersecurity. However, experience and governance cannot eliminate the cybersecurity risks described in Item 1A.

The CISO regularly briefs ~~the~~management's cyber risk governance committee to review and evaluate ~~potential~~cybersecurity threats and ~~cyber~~ risks to the Company. AThe ~~cyber~~Audit Committee, which has been delegated cybersecurity risk ~~update~~oversight isresponsibility ~~provided~~by the Board, receives an update on acybersecurity ~~quarterly~~matters ~~basis~~at toleast twice annually, and the ~~Audit~~full ~~Committee,~~Board ~~which~~receives ~~has~~cybersecurity ~~delegated~~updates ~~authority~~on ~~from~~an annual basis. The Audit Committee Chair and the Board ~~for~~received ~~cybersecurity~~additional updates, as appropriate, in connection with evolving risk, ~~oversight~~emerging threats, ~~and~~or ~~reports~~significant ~~are~~developments. ~~made~~The toAudit ~~the~~Committee ~~full~~also ~~Board~~receives onperiodic ancybersecurity ~~annual~~reporting, ~~basis.~~including metrics and key risk indicators, through regular meeting materials and supplements.

For ~~2024~~2025, we reported no material cybersecurity incidents affecting the confidentiality, integrity, or availability of data or information technology systems. We have not identified risks from known cybersecurity threats, including as a result of any prior cybersecurity incidents, that have materially affected or are reasonably likely to materially affect us, including our operations, business strategy, results of operations, or financial condition. We face certain ongoing risks from cybersecurity threats that, if realized, are reasonably likely to materially affect us, including our operations, business strategy, results of operations, or financial condition. ~~For~~We ~~further~~are ~~information,~~also ~~please see our risk factors titled "Our reputation and business may be harmed and we may be~~ subject to evolving legal ~~claims~~and ifregulatory ~~there~~requirements isregarding ~~disruption~~the toreporting ~~our~~and ~~information technology systems or loss, unlawful~~ disclosure ~~or misappropriation~~ of, orcybersecurity ~~unsanctioned access to~~incidents, ~~our~~including ~~customers',~~SEC ~~crewmembers'~~rules, ~~business~~which ~~partners'~~may orincrease our ~~own~~compliance ~~information~~obligations. orFor ~~other~~further ~~breaches of our~~ information, ~~security"~~see ~~and~~the ~~"Data~~risk ~~security~~factors ~~compliance~~under ~~requirements~~Item ~~could~~1A ~~increase~~titled ~~our~~"Cybersecurity ~~costs,~~ and ~~any~~Information ~~significant~~Security ~~data~~Risks" ~~breach could disrupt our operations~~ and ~~harm~~"Data ~~our~~Privacy ~~reputation, business, results of operations~~ and ~~financial~~Security ~~condition~~Compliance Risks."

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ITEM 2. PROPERTIES

Aircraft

As of December 31, ~~2024~~2025, our aircraft types and configurations consisted of the following (1), (2):

Aircraft	Seating Capacity	Owned ~~(2)~~	~~Operating~~Leased ~~Lease~~(3)	Total	Average Age in Years
Airbus A220	140	4259	—	4259	2
Airbus A320	150	1110	—	1110	2425
Airbus A320 Restyled	162	~~101~~106	1813	119	1920
Airbus A321	200	28	—	28	910
Airbus A321 with Mint®	159	35	—	35	89
Airbus A321neo	200	16	—	16	56
Airbus A321neo with Mint®	160	10	—	10	23
Airbus A321neoLR with Mint®	138	11	—	11	23
Embraer E190 (3)	100	10	8	18	16
		275	13	288	12
		264	26	290	12

(1) ~~Includes~~Excludes ~~aircraft that have been temporarily removed from service, including 11 aircraft grounded as of December 31, 2024, due to~~ the ~~required~~following ~~removal~~parked ~~of certain Pratt & Whitney engines for inspection and lack of engine availability. All~~ aircraft ~~temporarily removed from service are expected to return to operation in the future.~~:

~~(2)~~•eight ~~Total~~Embraer E190 owned aircraft ~~includes~~and ~~aircraft~~one ~~associated~~Airbus ~~with~~A321neo ~~sale-leaseback~~XLR ~~transactions~~variant ~~that~~owned ~~did~~aircraft ~~not~~contracted ~~qualify~~to assell ~~sales~~within ~~for~~one ~~accounting purposes~~year.

•three ~~(3)~~Embraer ~~Excludes~~E190 15leased ~~permanently parked~~ aircraft ~~owned by the Company, and five parked aircraft~~ awaiting lease return.

As•one ofpermanently ~~December 31,~~parked ~~2024,~~Airbus ~~our~~A320 ~~aircraft~~owned ~~leases had an average remaining term of approximately two years, with expiration dates between 2025 and 2028~~aircraft.

As•two ofAirbus ~~December 31,~~A321neo ~~2024, we had 106~~ aircraft onwith ~~order~~Mint® ~~and~~not ~~scheduled~~yet ~~for~~entered ~~delivery~~into ~~through 2033~~service. ~~Our future aircraft delivery schedule is as follows (1):~~

	Contractual Order Book
Year	Airbus A220	Airbus A321neo	Total
2025	20	4	24
2026	17	—	17
2027	5	—	5
2028	9	—	9
2029	7	—	7
Thereafter	—	44	44
Total (2)	58	48	106

(2) Includes aircraft that have been temporarily removed from service but are expected to return to operation in the future.

(13) ~~The~~Includes ~~aircraft~~10 ~~orders~~operating ~~stated~~and ~~above~~3 ~~represents~~finance ~~the current delivery schedule set forth in our Airbus order book as of December 31, 2024~~leases.

~~(2)~~As Inof ~~addition~~December 31, we2025, ~~have~~our ~~options~~aircraft toleases ~~purchase~~had 20an ~~A220-300~~average ~~aircraft~~remaining interm ~~2027~~of approximately 2 years, with expiration dates between 2026 and 2028.

As of December 31, 2025, we had 86 aircraft on order and scheduled for delivery through 2033. Our future aircraft delivery schedule is as follows:


	Contractual Order Book
Year	Airbus A220	Airbus A321neo (2)	Total
2026	14	1	15
2027	5	—	5
2028	11	—	11
2029	10	—	10
2030	1	3	4
Thereafter	—	41	41
Total (1)	41	45	86

(1) In addition, we have options to purchase 20 A220-300 aircraft in 2027 and 2028.

(2) Includes one Airbus A321neo XLR variant aircraft which has been contracted to sell following delivery of the aircraft. The aircraft is anticipated to deliver in the second quarter of 2026.

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Embraer E190 Fleet Transition

In 2025, as part of the Company's fleet transition plan, we retired our remaining Embraer E190 aircraft - marking nearly two decades of service and completing our transition to a more cost efficient and customer focused all-Airbus fleet. The Company entered into definitive agreements to sell our remaining owned Embraer E190 fleet, which included 25 airframes, 60 engines and the related Embraer E190 spare parts. These aircraft sales began in July 2025 and are expected to continue through the second quarter of 2026. In 2025, we sold Embraer E190 airframes, engines, as well as full flight simulators, and recorded a net gain of $32 million related to the E190 fleet transactions, which is included in other operating expenses on our consolidated statements of operations. As of December 31, 2025, we had 11 permanently parked Embraer E190 aircraft, of which eight are owned and three are awaiting lease return.

Ground Facilities

Airports

All of our airport facilities are under leases or other occupancy agreements. This space is leased directly or indirectly from the local airport authority on varying terms dependent on prevailing practices at each airport. Our passenger terminal service facilities consisting of ticket counters, gate space, operations support area, and baggage service offices generally have agreement terms ranging from less than one year to five years. They can contain provisions for periodic adjustments of rental rates, landing fees, and other charges applicable under the type of lease. Under some of these agreements, we are responsible for the maintenance, insurance, utilities, and certain other facility-related expenses and services.

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A summary of our most significant lease agreements is provided below:

•JFK - We have a lease agreement with the PANYNJ for Terminal 5 ~~until~~through November 2042, ~~but~~with ~~we have~~ the option to terminate the agreement in 2033. In 2012, we amended the lease to extend into the former Terminal 6 property in order to build T5i. In November 2022, we amended the lease to relinquish a portion of the former Terminal 6 property to allow for development of a new Terminal 6 by our development partner, JFK Millennium Partners ("JMP"). In 2025, we reassessed the lease term and concluded that we intend to utilize the facility through 2042 rather than exercise the early termination option in 2033. As a result, we adjusted the related right-of-use asset and corresponding lease liability to reflect the 2042 end date.

•BOS - In May 2005, we entered into a lease with Massachusetts Port Authority ("Massport") with a five-year term (and 20 automatic one-year renewals), for five gates in Terminal C, which expanded to 11 by November 2008. We have since entered into multiple amendments with Massport to continue to grow our footprint in Terminal C. As of December 31, ~~2024~~2025, we leased 30 gates in Boston. Our lease with Massport is scheduled to expire in April 2030.

We have entered into use arrangements at each of the airports we serve providing for the non-exclusive use of runways, taxiways, and other airport facilities. Landing fees under these agreements are typically based on the number of aircraft landings and the weight of the aircraft.

Other

We lease the following hangars and airport support facilities at our focus cities:

•New York - At JFK, we have a ground lease agreement which expires in 2030 for an aircraft maintenance hangar, an adjacent office, and warehouse facility, including a storage facility for aircraft parts. These facilities accommodate our technical support and catering operations. We also lease a building from the PANYNJ which is mainly used for ground equipment maintenance work.

•Boston - We have a ground and building lease agreement which expires in 2028 for an aircraft maintenance hangar and associated support space, with an option to extend for five additional years. We also have separate leases for facilities to accommodate our ground support equipment maintenance and catering operations.

•Orlando - We have a ground lease agreement for a hangar which expires in 2035. We also occupy a training center, JetBlue University, with a lease agreement expiring in 2035 which we use for training our pilots and inflight crewmembers, as well as support training for our technical operations and airport crewmembers. This facility is equipped with 1210 full flight simulators, 12 flight training devices, ~~four~~4 cabin trainers, a training pool, classrooms, and support areas.

The Lodge at the Orlando Support Center is adjacent to JetBlue University and is used for lodging our crewmembers when they attend training.

Our primary corporate office is located in Long Island City, New York, with our lease expiring in 2039. We have an additional support center located in Salt Lake City, Utah, with our lease expiring in 2028.

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We also maintain other facilities that are necessary to support our operations in the cities we serve.

ITEM 3. LEGAL PROCEEDINGS

In the ordinary course of our business, we are party to various legal proceedings and claims which we believe are incidental to the operation of our business. See Note 11 and Note 18 to our consolidated financial statements included in Part II., Item 8 of this Report for a discussion of material pending legal proceedings.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

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PART II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY; RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Information and Stockholder Matters

Our common stock is traded on the NASDAQ Global Select Market under the symbol JBLU. As of January 31, ~~2025~~2026, there were approximately ~~370~~350 holders of record of our common stock.

We have not paid cash dividends on our common stock and have no current intention to do so. Any future determination to pay cash dividends would be at the discretion of our Board, subject to applicable limitations under Delaware law or legislation. This decision would be dependent upon our results of operations, financial condition, and other factors deemed relevant by our Board.

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

We do not currently have a share repurchase program. Any future determination to enter into a share repurchase program will be at the discretion of the Board, subject to applicable legal limitations, and will depend upon our results of operations, financial condition, contractual restrictions and other factors deemed relevant by the Board. The acquisition of treasury stock reflected on our consolidated statement of cash flows for the year ended December 31, ~~2024~~2025, represents the return of shares to satisfy tax payments associated with crewmember stock compensation that vested during the period.

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Stock Performance Graph

This performance graph shall not be deemed "filed" with the SEC or subject to Section 18 of the Exchange Act, nor shall it be deemed incorporated by reference in any of our filings under the Securities Act.

The following graph compares the cumulative total stockholder return on our common stock to the cumulative total return of the S&P 500 Stock Index and the NYSE ARCA Airline Index from December 31, ~~2019~~2020 to December 31, ~~2024~~2025. The comparison assumes the investment of $100 on December 31, ~~2019~~2020 in our common stock and in each of the foregoing indices and assumes reinvestment of all dividends. The stock performance shown represents historical performance and is not representative of future stock performance.

	12/31/2019		12/31/2020		12/31/2021		12/31/2022		12/31/2023		12/31/2024
	12/31/2020		12/31/2021		12/31/2022		12/31/2023		12/31/2024		12/31/2025
JetBlue Airways Corporation	$	100	$	7898	$	7645	$	3538	$	3054	$	4231
S&P 500 Stock Index	100		~~116~~127		~~148~~102		~~119~~127		~~148~~157		182
NYSE ARCA Airline Index	100		7698		7464		4882		6281		6185

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ITEM 6. RESERVED

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read together with our consolidated financial statements and related notes included elsewhere in this Report. This discussion contains forward-looking statements based upon current plans, expectations and beliefs involving risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in Part I., Item 1A, "Risk Factors" and other parts of this Report.

We expect our operating results to fluctuate significantly from year-to-year and quarter-to-quarter in the future due to factors such as economic conditions, weather events, cost of aircraft fuel, geopolitical developments, regulatory issues, supply constraints, competition and various other factors, including those discussed in this Annual Report, many of which are outside of our control. Consequently, we believe ~~quarter~~year-over-~~quarter~~year comparisons of our operating results may not necessarily be meaningful; you should not rely on our results for any one ~~quarter~~year as an indication of our future performance. Except for uncertainty related to the cost of aircraft fuel, we expect our expenses to continue to increase from wage rate cost pressures, as we acquire additional aircraft, and as our fleet ages.

OVERVIEW

In ~~2024~~2025, we incurred a net loss of $~~795~~602 million, compared to a net loss of $~~310~~795 million in ~~2023~~2024, ana ~~increase~~decrease of $~~485~~193 million compared to the prior year. This ~~increase~~decrease is primarily due to the 2024 write off of Spirit-related costs for $532 million as a result of the termination of the Merger Agreement in March 2024, as well as lower current year fuel costs and benefits from our JetForward initiatives. The decrease was partially offset by a decrease in operating revenue due to softening demand compared to the prior year as well as higher costs related to maintenance materials and repairs and salaries, wages and benefits. Additionally, we incurred higher interest expense, primarily due to the financing of TrueBlue® loyalty program in August 2024.

~~Despite~~During 2025, we adjusted our business to navigate a ~~reduction~~challenging macro environment by identifying cost savings and proactively reducing capacity as demand softened. Tariff uncertainty weakened consumer demand which resulted in reduced air travel spending. In addition, the fourth quarter was marked by unexpected challenges due to operational disruptions related to the government shutdown, the Airbus airworthiness directive and two major weather events contributing to higher costs and reduced capacity. Despite these headwinds, we ~~progressed~~have continued to make progress on our ~~revenue~~JetForward initiatives, ~~during~~partially ~~the~~offsetting ~~year~~these operating margin impacts. We ~~saw~~introduced ~~revenue~~Blue ~~strength~~Sky, in our ~~premium~~collaboration ~~product~~with ~~offerings~~United Airlines, ~~with~~and ~~Even~~launched ~~More®~~reciprocal ~~Space,~~accrual ~~preferred~~and ~~seating,~~redemption of loyalty points. Our products and ~~Mint~~perks are increasingly positioned to capture premium revenue following the enhancement of EvenMore®, ~~performing~~the ~~well.~~continued ~~Also~~outperformance of preferred seating, ~~our~~the ~~Blue~~release ~~Basic~~of ~~carry-on~~our ~~bag~~premium ~~changes~~credit ~~implemented~~card ~~this~~and ~~year~~the ~~helped~~opening ~~bolster~~of our ~~revenue~~first-ever ~~results~~lounge at JFK. InOur ~~addition,~~network ~~improvements~~changes incontinued ~~our~~to ~~operational~~progress ~~metrics~~well ~~resulted~~and inwe ~~greater~~have ~~cost~~regained ~~efficiencies.~~our ~~Fuel~~position ~~prices~~as ~~declined~~Fort ~~over~~Lauderdale's ~~the~~largest ~~year~~airline with new routes and additional frequencies. Additionally, we ~~continued~~continue to make progress on ~~our~~the JetForward cost ~~savings~~program ~~programs,~~by ~~allowing~~implementing usAI toand ~~maintain~~data ~~low~~science ~~costs~~technology, ~~for~~executing ~~the~~operational ~~year~~initiatives, and strengthening efficiencies.

~~2024~~2025 Results

Our ~~2024~~2025 financial and operational highlights include the following:

•~~2024~~2025 system available seat miles ("ASMs" or "capacity") decreased by 31.56% compared to ~~2023~~2024.

•We generated $9.31 billion in operating revenue, a decrease of $~~336~~217 million, or 32.53% compared to ~~2023~~2024, primarily due to ~~lower~~softening ~~capacity~~demand.

•Operating expense ~~increased~~decreased by 15.23% year-over-year to $109.04 billion.

•Our operating expenses in ~~2024~~2025 and ~~2023~~2024 included the effects of special items. Excluding aircraft fuel, special items, and operating expenses related to our non-airline businesses, our ~~2024~~2025 adjusted operating expense (1) increased by 24.84% to $7.03 billion, year-over-year.

•Operating expense per available seat mile ("CASM") ~~increased~~decreased by 43.98% to 1514.0851 cents year-over-year.

•Excluding fuel, special items, and operating expenses related to our non-airline businesses, our cost per available seat mile ("CASM ex-fuel") (1) increased by 6.62% to 1011.552 cents year-over-year.

(1) Refer to our "Regulation G Reconciliation of Non-GAAP Financial Measures" at the end of this section for more information on this non-GAAP measure.

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Recent Developments

JetForward

~~In July 2024, JetBlue announced~~ JetForward, our strategic framework, is focused on four priority moves: delivering reliable and caring service, building the best east coast leisure network, offering products and perks customers value, and providing a secure financial future. Our JetForward plan, which is designed to support our long-term profitability goals, reflects various assumptions regarding factors that may impact our operational and financial performance. For further information on potential factors that could affect the success of our strategic initiatives, including JetForward, see Part I, Item 1A "Risk Factors."

The sections below highlight some additional changes made to support these priority moves during the year.

Reliable and Caring Service

On-time performance, as defined by the DOT, is arrival within 14 minutes of scheduled arrival time. In ~~2024~~2025, our system-wide on-time performance was 74.13% compared to 6774.41% in ~~2023~~2024. Our completion factor ~~increased~~remained tothe same at 98.6% in 2025 and 2024. ~~compared~~Net toPromoter ~~98.1%~~Score inincreased ~~2023.~~eight points year over year reflecting customer satisfaction driven by these operational reliability improvements.

WeBest ~~were~~East ~~ranked~~Coast ~~6th~~Leisure ~~overall in Wall Street Journal's 2024 Airline Rankings, a three spot improvement from 2023.~~Network

~~(1)~~We ~~Refer~~are tofocused ~~our~~on ~~"Regulation~~high-performing Gleisure, ~~Reconciliation of Non~~visiting-~~GAAP~~friends-and-relatives ~~Financial~~and ~~Measures"~~transcontinental atroutes ~~the~~in ~~end~~core ofgeographies ~~this~~like ~~section~~New ~~for~~York, ~~more~~New ~~information~~England, onFlorida, ~~this~~and ~~non-GAAP~~Puerto ~~measure~~Rico. 39

~~Table~~In of2025, ~~Contents~~we expanded our network by launching new service from Boston to two transatlantic locations, Madrid, Spain and Edinburgh, Scotland. We began new service to San Pedro Sula, Honduras; Wilmington, North Carolina; Norfolk, Virginia; Traverse City, Michigan; Vero Beach, Florida, and returned service to Daytona Beach, Florida. We added service from Tampa and Fort Myers to various destinations and expanded Boston service to Latin America and the Caribbean.

~~Best~~We ~~Coast~~regained ~~East~~our ~~Leisure~~position ~~Network~~as Fort Lauderdale's largest airline launching over 20 new routes and adding frequencies on a dozen others. Additionally, we expanded the availability of Fort Lauderdale Mint® and are selling up to 26 daily Mint® flights touching Fort Lauderdale this winter.

We ~~are~~further ~~committed~~strengthened toour ~~refocusing~~Mint® ~~our~~service ~~network~~by tolaunching ~~high-performing~~new ~~leisure,~~seasonal ~~visiting-friends-and-relatives~~Mint® ~~and~~service ~~transcontinental~~from ~~routes~~both inNewark ~~core~~and ~~geographies~~Orlando ~~like~~to ~~New~~Las ~~York~~Vegas, ~~New~~marking ~~England,~~the ~~Florida,~~first ~~and~~Mint® ~~Puerto~~service ~~Rico~~in Orlando.

~~During~~We ~~2024,~~announced wefurther ~~redeployed~~expansion ~~approximately~~in ~~20%~~Europe ofby ~~our~~launching ~~network~~seasonal totransatlantic ~~focus~~routes onfrom ~~our~~Boston ~~core~~to ~~strengths.~~Barcelona, ~~These~~Spain ~~network changes included 15 station closures~~ and ~~over~~Milan, 50Italy, ~~route~~starting ~~exits~~in ~~and~~spring ~~the announcement of service to several new BlueCities~~2026.

We also opened a flight attendant crew base in San Juan, Puerto Rico in December 2024 with plans to open a pilot crew base in early 2025.

Products and Perks Customers Value

During the year, we made enhancements to our customer experience ~~to evolve with customer preferences. We are creating more options~~ by increasing the value of our product offerings and customer experience, and positioning ourselves to capture premium revenue.

We ~~introduced~~enhanced ~~preferred~~our ~~seating,~~EvenMore® ~~added~~product ~~new~~by ~~loyalty~~adding ~~partners,~~additional ~~and~~amenities ~~implemented~~such aas ~~baggage~~dedicated ~~policy~~overhead ~~update~~bin tospace, ~~the~~free ~~Blue~~alcohol, ~~Basic~~and ~~fare,~~a ~~which~~premium ~~now~~snack. ~~includes~~Additionally, aEvenMore® ~~free~~is ~~carry-on~~now ~~bag.~~selling Invia ~~2024~~global distribution systems, weproviding ~~also~~customers ~~expanded~~more ~~the~~opportunities ~~co-brand~~to ~~portfolio~~book ~~with~~our ~~the~~premium ~~announcement~~economy ofoffering on a ~~premium~~single ~~co-branded~~ticket ~~credit~~through ~~card,~~travel ~~which~~agents ~~launched~~and inonline ~~January~~travel ~~2025~~agencies.

We announced our collaboration with United Airlines. This collaboration is structured to give customers of both airlines even more options to find flights that fit their plans as well as new opportunities to ~~improve~~earn ~~the~~and ~~Even~~use ~~More~~MileagePlus® ~~Space~~miles ~~booking~~and ~~process~~TrueBlue® points across both airlines. Blue Sky includes a standard interline between JetBlue and ~~onboard~~United ~~soft~~Airlines, ~~product~~which ~~experience.~~is ~~Beginning~~expected into ~~January~~be implemented over time. In October 2025, ~~Even~~customers ~~More®~~became ~~Space~~eligible ~~was~~to ~~rebranded~~earn and redeem points across both JetBlue Airways and United Airlines loyalty programs. We are also now able to ~~EvenMore®~~reaccommodate customers across either airline in the event of a real-time cancellation or schedule change. In February 2026 we began to cross-merchandise flights on one another's website, and expect implementation to progress in 2026 at which ~~includes~~point ~~dedicated~~we ~~overhead~~plan ~~bin~~to ~~space~~introduce additional enhancements such as reciprocal benefits including priority boarding, ~~complimentary~~preferred ~~alcoholic~~and ~~beverages~~extra legroom seating, and ~~premium~~same-day ~~snack~~standby ~~options~~and flight changes, with anticipated implementation beginning in March 2026. Additionally, during the second quarter of 2026, we expect to begin selling United Airlines non-air ancillaries through Paisly. We plan to launch with car rentals, followed by cruises, vacation packages and travel insurance, with the expectation to be selling all ancillary products by the end of 2026.

We announced ~~plans for~~ the ~~opening~~rebranding of ~~airport~~JetBlue ~~lounges~~Travel atProducts ~~JFK~~to ~~Terminal~~Paisly, 5LLC ~~and~~("Paisly"). ~~BOS~~The ~~Terminal~~rebranding Cmarks a strategic milestone within JetBlue's JetForward strategy, as Paisly evolves into a full-service, tech-enabled managed travel services company. ~~The~~With ~~JFK~~a ~~lounge~~mission to deliver personalized, human-first experiences, Paisly is ~~expected~~positioned to ~~open~~serve innot ~~late~~only ~~2025~~JetBlue customers but also those of other airlines, starting with ~~the~~our ~~BOS~~collaboration ~~lounge~~with United Airlines, and is expected to ~~follow~~support ~~shortly~~a ~~thereafter~~growing range of partners across the broader travel landscape. The collaboration will contribute to our high-margin, high-growth Paisly business for the distribution of hotels, rental cars, cruises, travel insurance and packages under United's brand.

~~We also announced plans to introduce a new domestic first class cabin on all non-Mint® aircraft, beginning in 2026.~~ 42

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We expanded our co-brand portfolio with the launch of our premium credit card, which exceeded sign-up targets.

In December 2025, we opened BlueHouse, our first airport lounge, at JFK Terminal 5. The next BlueHouse location is scheduled to open at BOS Terminal C in 2026.

We announced that JetBlue was the first airline in the world to sign on with Amazon's Leo, an advanced low Earth orbit satellite broadband network, to bring even faster and more reliable connectivity to our onboard Wi-Fi. We expect to adopt Amazon Leo's cutting-edge technology on a portion of our fleet in 2027.

We plan to launch domestic first class in 2026, with a portion of our fleet planned to be completed by year-end and the vast majority to be complete by the end of 2027.

We were awarded the top airline for first and business class customer satisfaction in the J.D. Power 2025 North America Airlines Satisfaction Study. Additionally, our core product rose to second place for both economy and premium economy categories.

A Secure Financial Future

To secure our financial future and navigate near-term demand volatility, we ~~deferred~~are ~~approximately~~focused ~~$3.0 billion~~on ~~dollars~~maintaining ofa healthy liquidity position, executing cost discipline, and managing our fleet to drive capital ~~expenditures~~light ~~related~~growth. We continue to ~~Airbus~~make ~~aircraft~~progress ~~deliveries~~on the JetForward cost program by implementing AI and ~~raised~~data ~~significant~~science ~~financing~~technology to optimize planning, better manage disruptions, and enable greater customer self service. ~~These~~We ~~moves~~are modernizing fuel processes and are unlocking cost savings through technology, process and operational initiatives. Additionally, we strengthened efficiencies on our ~~liquidity~~fixed ~~position.~~support center costs.

Airbus Aircraft Deferral

On July 26, 2024, JetBlue and Airbus S.A.S. ("Airbus") entered into an amended delivery schedule pursuant to which we agreed to defer 44 Airbus A321neo aircraft originally scheduled for delivery from 2025 through 2029 to revised delivery dates of 2030 and beyond. This aircraft deferral shifted approximately $3.0 billion in capital expenditures to 2030 and beyond.

The Company is pursuing capital-light growth through extending the lives of certain A320 aircraft.

Liquidity

At December 31, ~~2024~~2025, we had $32.95 billion in liquidity, which included unrestricted cash, cash equivalents, ~~short-term investments,~~ and ~~long-term~~investment ~~marketable~~ securities. In addition, we had a $600 million Citibank line of credit.

For the year ended December 31, ~~2024~~2025, we ~~completed~~repaid ~~the~~$461 ~~following~~million on ~~financing~~our ~~transactions:~~outstanding debt and finance lease obligations.

•raised approximately $2.8 billion in proceeds through the issuance of 9.875% senior secured notes due 2031 ("TrueBlue® Notes") and borrowings under a new senior secured term loan facility due 2029 (the "TrueBlue® Term Loan Facility", collectively the "TrueBlue® Financings");

•issued $460 million of 2.50% convertible senior notes;

•issued $662 million in floating rate equipment notes;

•entered into $668 million of failed sale-leaseback transactions; and

•repaid $748 million on our outstanding debt and finance lease obligations, including the early retirement of $425 million related to our existing 0.50% convertible senior notes.

Refer to Note 3 to our consolidated financial statements included in Part II, Item 8 of this Report for additional information on these financing transactions.

Sustainability

In 2024, we signed a new commercial agreement to purchase SAF during the initial 12-month period, approximately 3.3 million gallons of blended sustainable aviation fuel (with an option to purchase up to an additional 13.3 million gallons). The SAF purchase began supplying JFK airport in the fourth quarter of 2024.

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We were also one of three airlines included in the purchase of SAF certificates, equal to about 50 million gallons of high-integrity SAF, or 500,000 tons, of abated CO e, through the Sustainable Aviation Buyers Alliance.

Pratt & Whitney

In July 2023, Pratt & Whitney, a division of RTX Corporation, announced the requirement, mandated by the FAA, for removal of certain engines for inspection due to a rare condition involving powdered metal used in the production of certain engine parts on the PW1100G and PW1500G engine types. These engines power our Airbus ~~A220~~A321neo and Airbus ~~A321neo~~A220 fleets. The powdered metal affects engines manufactured between October 2015 and September 2021. Those engines are now required to be inspected after they have reached a reduced number of cycles dependent on the fleet type. As a result of these required inspections and other engine ~~reliability~~durability deficiencies, we averaged nine aircraft on the ground in 2025 and as of December 31, ~~2024~~2025, we had 11four aircraft grounded due to lack of engine availability. The Company currently expects each removed engine to take approximately ~~360~~200 days tofor ~~complete~~the aPW1500G ~~shop~~engines ~~visit~~ and ~~return~~approximately to300 adays ~~serviceable~~for ~~condition.~~the WePW1100G ~~currently~~engines ~~expect~~to ~~aircraft~~complete ~~out~~a ofshop ~~service~~visit inand ~~2025~~return to ~~average~~a inserviceable ~~the mid-to-high teens~~condition.

~~Given~~We ~~that~~believe we ~~expect~~are topast ~~have~~the apeak ~~certain~~ number of ~~aircraft~~ groundings ~~into~~and ~~2025~~expect ~~and~~the ~~beyond,~~number weof ~~plan~~aircraft toon ~~continue~~the ground due to ~~assess~~lack ~~the~~of ~~resulting~~engine ~~impact~~availability onto ~~our~~be ~~future~~in ~~capacity~~mid-single ~~plans~~digits in 2026. We are currently working with Pratt & Whitney on a commercial resolution and any potential remediation steps ~~remains~~remain uncertain.

41Embraer E190 Fleet Transition



43

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RESULTS OF OPERATIONS

The following discussion is a comparison of the ~~2024~~2025 to ~~2023~~2024 results of operations. Refer to Part II., Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" of the Annual Report on Form 10-K for the year ended December 31, ~~2023~~2024 for detailed discussions comparing the ~~2023~~2024 to ~~2022~~2023 period.

~~2024~~2025 Compared to ~~2023~~2024

Overview

We reported a net loss of $~~795~~602 million, an operating loss of $~~684~~368 million and operating margin of (7.4.1)% for the year ended December 31, ~~2024~~2025. This compares to net loss of $~~310~~795 million, operating loss of $~~230~~684 million, and operating margin of (27.4)% for the year ended December 31, ~~2023~~2024. Our loss per share was $21.3066 for ~~2024~~2025 compared to a loss per share of $02.9330 for ~~2023~~2024.

Our ~~2024~~2025 and ~~2023~~2024 reported results included the effects of special items. Adjusting for these special items, our adjusted net loss (1) was $~~245~~593 million, adjusted operating loss (1) was $93338 million, and our adjusted operating margin (1) was (13.07)% for ~~2024~~2025. This compares to an adjusted net loss (1) of $~~151~~245 million, adjusted operating loss (1) of $3393 million, and an adjusted operating margin (1) of (01.30)% for ~~2023~~2024. Excluding special items, our adjusted loss per share (1) was $01.7164 for ~~2024~~2025 compared to an adjusted loss per share of $0.4571 for ~~2023~~2024.

Operating Revenues

(revenues in millions; percent changes based on unrounded numbers)							Year-over-Year Change
	2024			2023			$	%
	2025			2024			$	%
Passenger revenue	$	8,~~617~~336		$	98,~~008~~617		(~~391~~281)	(43.3)	%
Other revenue	~~662~~726			~~607~~662			5564	9.06
Total operating revenues	$	9,~~279~~062		$	9,~~615~~279		(~~336~~217)	(32.53)	%
Average fare	$	~~212~~211.7893		$	~~211~~212.7978		(0.9985)	(0.54)
Yield per passenger mile (cents)	15.6857			15.9268			(0.2411)	(10.57)
Passenger revenue per ASM (cents)	1312.0482			13.1504			(0.1122)	(01.87)
Operating revenue per ASM (cents)	1413.0494			14.04			—(0.10)	—(0.7)
Average stage length (miles)	1,~~287~~301			1,~~230~~287			5714	41.61
Revenue passengers (thousands)	4039,~~498~~336			4240,~~534~~498			(21,~~036~~162)	(42.89)
Revenue passenger miles (millions)	5453,~~958~~535			5654,~~578~~958			(1,~~620~~423)	(2.96)
Available seat miles (ASMs) (millions)	6665,~~082~~007			6866,~~497~~082			(21,~~415~~075)	(31.56)
Load factor	8382.24		%	8283.62		%		(0.68)		pts

Passenger revenue is our primary source of revenue which includes seat revenue and baggage fees, as well as revenue from our ancillary product offerings such as ~~Even More~~EvenMore® ~~Space~~. Passenger revenue, including certain ancillary fees directly related to passenger tickets, is recognized when the transportation is provided. Passenger revenue from unused tickets and passenger credits are recognized in proportion to flown revenue based on estimates of expected expiration or when the likelihood of the customer exercising his or her remaining rights becomes remote. Passenger revenue decreased for ~~2024~~2025 compared to ~~2023~~2024 by $~~391~~281 million, or 43.3%. This was mainly driven by a 31.56% reduction in capacity and a 2.9% reduction in revenue passengers.

Other revenue primarily consists of loyalty revenue from the non-transportation elements of the sale of TrueBlue® points. It also includes revenue from the sale of vacation packages, airport concessions, advertising revenue and ~~advertising~~lounge revenue. The year-over-year increase in other revenue of $5564 million, or 9.06%, was principally driven by an increase in TrueBlue® non-transportation revenue due to higher customer spend ~~as well as an increase in vacation bookings~~.

We measure capacity in terms of available seat miles, which represents the number of seats available for passengers multiplied by the number of miles the seats are flown. Yield, or the average amount one passenger pays to fly one mile, is calculated by dividing passenger revenue by revenue passenger miles. We attempt to increase passenger revenue by increasing our yield and also increasing our load factor of flights, when possible. Our objective is to optimize our fare mix to increase our overall revenue per available seat mile while continuing to provide our customers with competitive fares.

(1) Refer to our "Regulation G Reconciliation of Non-GAAP Financial Measures" at the end of this section for more information on this non-GAAP measure. 42

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Operating Expenses

(in millions; per ASM data in cents; percentages based on unrounded numbers)					Year-over-Year Change		Cents per ASM
	2024		2023		$	%	2024	2023	% Change
	2025		2024		$	%	2025	2024	% Change
Aircraft fuel	$	2,~~343~~057	$	2,~~807~~343	(~~464~~286)	(1612.52)	3.5516	43.1055	(1310.58)
Salaries, wages and benefits	3,~~263~~453		3,~~055~~263		~~208~~190	65.8	45.9431	4.4694	~~10.~~7.6
Landing fees and other rents	~~659~~658		~~657~~659		2(1)	(0.41)	1.0001	01.9600	4.1.5
Depreciation and amortization	~~655~~688		~~621~~655		3433	5.50	01.9806	0.9098	96.47
Aircraft rent	9274		~~126~~92		(3418)	(2719.21)	0.1412	0.1814	(2417.57)
Sales and marketing	~~328~~305		~~316~~328		12(23)	4(7.0)	0.5047	0.4650	7(5.85)
Maintenance, materials and repairs	~~628~~791		~~654~~628		~~(26)~~163	(426.1)0	01.9522	0.9695	(028.6)1
Special items	~~591~~30		~~197~~591		~~394~~(561)	NM (194.9)	0.8905	0.2989	NM(94.9)
Other operating expenses	1,~~404~~374		1,~~412~~404		(830)	(02.62)	2.1311	2.0613	3(0.16)
Total operating expenses	$	9,~~963~~430	$	9,~~845~~963	~~118~~(533)	1(5.23)	1514.0851	1415.3708	4(3.98)

(1) Not meaningful or greater than 100% change.

Aircraft Fuel and Related Taxes

Aircraft fuel decreased by $~~464~~286 million, or 1612.52%, in ~~2024~~2025 compared to ~~2023~~2024. The average fuel price decreased 129.13% in ~~2024~~2025 to $2.7549 per gallon and fuel consumption decreased by 43.92%, or 4427 million gallons.

Salaries, Wages and Benefits

Salaries, wages, and benefits increased by $~~208~~190 million, or 65.8%, in ~~2024~~2025, driven by wage rate increases. The wage rate increases were primarily ~~due~~driven toby ~~the~~a ~~new~~ pilot union contract ~~effective~~wage ~~March 1, 2023, which included an initial pay~~ rate increase of ~~14% and additional pay rate increases of 3% and~~ 9% ineffective August ~~2023 and August~~ 2024~~, respectively~~.

Depreciation and Amortization

Depreciation and amortization primarily includes owned and finance leased aircraft and spare engines, in-flight entertainment systems, airport leasehold improvements and software development. Depreciation and amortization increased $3433 million, or 5.50%, compared to the ~~2023~~2024 period. This increase was primarily driven by the induction of new aircraft and spare engines, partially offset by the retirement of the Embraer E190 fleet as part of the Company's fleet transition plan.

Aircraft Rent

Aircraft rent decreased by $3418 million, or 2719.21%, in ~~2024~~2025 compared to ~~the~~2024 ~~2023~~primarily ~~period~~ as a result of fewer leases for ~~the~~ Airbus A320 aircraft and ~~the~~ Embraer E190 aircraft. ~~The~~As ~~Company~~part ~~purchased~~of ~~certain~~the ~~Airbus~~Company's ~~A320~~fleet ~~aircraft~~transition ~~off~~plan, ~~lease and~~ certain Embraer E190 aircraft leases reached their lease expiration and were returned to the lessor. asThe ~~part~~decrease ofwas partially offset by an increase in the ~~Company's~~number ~~fleet~~of ~~transition~~leased ~~plan~~engines.

Sales and Marketing

Sales and marketing decreased by $23 million, or 7.0%, in 2025 compared to 2024, primarily due to lower credit card fees as a result of the reduction in passenger revenue.

Maintenance, Materials and Repairs

Maintenance, materials and repairs increased by $163 million, or 26.0%, in 2025 compared to 2024 primarily due to the timing and cost of Airbus A320 engine repairs.

Special Items

In 2025, special items included the following:

•$28 million relating to severance expenses; and

•$2 million relating to other special items.

In 2024, special items included the following:

•$532 million relating to Spirit-related costs;

•$26 million relating to union contract costs;

•$17 million relating to ~~voluntary~~severance ~~opt-out costs~~expenses;

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•$15 million relating to Embraer E190 fleet transition costs; and

•$1 million relating to other special items.

In 2023, special items included the following:

•$105 million related to union contract costs; and

•$92 million related to Spirit-related costs.

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Other Income (Expense)

(in millions; percent changes based on unrounded numbers)					Year-over-Year Change
	2024		2023		$		%
	2025		2024		$		%
Interest expense	$	(~~365~~588)	$	(~~210~~365)	$	(~~155~~223)	7360.38	%
Interest income	~~111~~127		70111		4116		5814.14
Capitalized interest	159		1915		(46)		(2142.2)
Gain (loss) on investments, net	~~(27)~~18		9(27)		~~(36)~~45		NM	(1)
Gain on debt extinguishments	22—		—22		(22)		NM
Other	3128		831		23(3)		NM(8.2)
Total other expense	$	(~~213~~406)	$	(~~104~~213)	$	(~~109~~193)	NM90.8	%

(1) Not meaningful or greater than 100% change.

Interest Expense

Interest expense increased by $~~155~~223 million, or 7360.38%, for ~~2024~~2025 compared to the same period in ~~2023~~2024. This increase was primarily due to ~~incremental aircraft failed sale-leaseback transactions, new equipment notes, and~~ the financing of our TrueBlue® program., ~~These increases were partially offset by commitment fees incurred in 2023 related to~~ the ~~$3.5~~issuance ~~billion~~of ~~Senior~~new ~~Secured~~equipment ~~Bridge~~notes ~~Facility but canceled~~ in ~~March~~ 2024, inand ~~connection~~additional ~~with~~finance ~~the~~lease ~~termination of the merger with Spirit~~obligations.

Interest Income

Interest income increased by $4116 million, or 5814.14%, for ~~2024~~2025 compared to the same period in ~~2023~~2024. This increase was primarily driven by an increase in ~~short~~interest related to short-term investments from the proceeds received from the TrueBlue® Financings.

Gain (Loss) on Investments, Net

Gain (loss) on investments, net resulted in $2718 million ~~loss~~gain for ~~2024~~2025. This ~~loss~~gain primarily relates to arealized ~~mark-to-market~~gains ~~adjustment~~from onmaturities ~~our preferred shares~~ of ~~one~~available-for-sale ~~of our JetBlue Ventures equity investments~~securities. For ~~2023~~2024, gain (loss) on investments resulted in a $927 million ~~gain~~loss primarily relating to a mark-to-market adjustment on ~~certain~~our preferred shares of one of our JetBlue Ventures equity ~~securities~~investments.

Gain on Debt Extinguishments

We did not record any gain or loss on debt extinguishments in 2025. Gain on debt extinguishments was $22 million for 2024. This gain was due to the early retirement on a portion of our 0.50% convertible senior notes, due 2026.

Other

Other income increased by $23 million for 2024 compared to the same period in 2023. This increase is primarily due to income recorded related to our share of equity method investees' financial results.

LIQUIDITY AND CAPITAL RESOURCES

The airline business is capital intensive. Our ability to successfully execute our growth plan is largely dependent on the continued availability of capital on attractive terms. In addition, our ability to successfully operate our business depends on maintaining sufficient liquidity. We believe we have adequate resources from a combination of cash and cash equivalents, investment securities on-hand, and available lines of credit. Additionally, our unencumbered assets could be an additional source of liquidity, if necessary.

In ~~July~~October ~~2024~~2025, we entered into an ~~amendment~~agreement towith Citibank, the ~~Second~~Administrative ~~Amended~~Agent ~~and~~of ~~Restated~~our ~~Credit~~$600 ~~and~~million ~~Guaranty~~revolving ~~Agreement~~credit ~~(the "Facility")~~facility, ~~dated~~to ~~July~~hold ~~29,~~in ~~2024,~~escrow ~~among~~funds ~~JetBlue,~~related ~~Citibank~~to ~~N.A., as administrative agent, and~~ the ~~lenders~~maturity ~~party~~of ~~thereto~~our ~~(the~~0.50% ~~"Second~~convertible ~~Amendment"),~~senior ~~which~~notes ~~modifies~~due ~~the~~2026 ~~Facility~~ to, ~~among~~maintain ~~other things, (i) extend~~ the ~~final~~facility ~~maturity~~expiration date of ~~the Facility to~~ October 21, 2029;. ~~(ii)~~The ~~adjust~~escrow ~~the~~account ~~margin~~was ~~and~~subsequently ~~the~~funded ~~minimum~~with ~~liquidity requirements of~~ the ~~Company;~~required ~~(iii)~~amount ~~replace~~of ~~the~~$100 ~~sustainability~~million ~~adjustment~~prior ~~mechanism;~~to ~~(iv)~~December ~~allow~~31, ~~for~~2025, ~~certain~~satisfying ~~additions~~the ofrequirement ~~eligible~~under ~~collateral;~~the Credit and ~~(v)~~Guaranty ~~remove~~Agreement ~~provisions~~of ~~relating to~~ the ~~terminated~~revolving ~~merger~~credit ~~agreement with Spirit~~facility.

In ~~August~~the ~~2024~~future, we ~~raised~~may ~~approximately~~decide ~~$2.8~~to ~~billion~~seek inadditional ~~proceeds~~financing ~~through~~or ~~the~~to ~~issuance~~further increase our capital resources by issuing shares of ~~the~~our ~~TrueBlue®~~capital ~~Financings~~stock, ~~which~~offering indebt ~~each~~or ~~case~~other ~~are~~equity ~~secured~~securities byor ~~collateral~~refinancing ~~consisting~~outstanding ofdebt ~~assets~~or ~~related~~securities. toIssuing additional shares of our ~~TrueBlue®~~capital ~~loyalty~~stock, ~~program.~~other Weequity ~~also~~securities ~~raised~~or ~~$460~~additional ~~million~~securities inconvertible ~~proceeds~~into ~~through~~equity may dilute the ~~issuance~~economic and voting rights of ~~2.50%~~our ~~convertible~~existing ~~senior~~stockholders, ~~notes~~reduce the market price of our common stock, ~~due~~or ~~2029~~both. ~~The~~Our ~~initial~~debt ~~net~~agreements ~~proceeds~~contain ~~from~~various ~~the~~affirmative, ~~2.50%~~negative and financial covenants and complying with certain of these covenants, or entering into agreements with

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~~convertible~~additional ~~senior~~covenants, ~~notes~~may ~~were~~restrict ~~used~~our ability to ~~retire~~pursue aour ~~portion~~strategy ofor ~~our~~otherwise ~~existing~~constrain 0our operations.~~50%~~ ~~convertible~~Failure ~~senior~~to ~~notes~~comply with these covenants could lead to an event of default under the agreements, ~~due~~which ~~2026~~may result in, among other things, an acceleration of outstanding obligations under such agreements. ~~Refer~~Our decision to ~~Note~~issue 3securities toin any future offering will depend on market conditions and other factors beyond our ~~consolidated~~control, ~~financial~~which ~~statements~~may ~~included~~adversely inaffect ~~Part~~the IIavailability, ~~Item~~amount, 8timing, or nature of ~~this~~our ~~Report~~future ~~for~~offerings. ~~additional~~As ~~information~~a onresult, ~~these~~holders ~~financing~~of ~~transactions~~our common stock bear the risk that our future offerings may reduce the market price of our common stock and dilute their percentage ownership.

InAs ~~the future, we may decide to seek additional financing or to further increase our capital resources by issuing shares~~ of ~~our capital stock~~December 31, ~~offering debt or other equity securities or refinancing outstanding debt or securities. Issuing additional shares of our capital stock~~2025, ~~other~~we ~~equity~~had ~~securities~~unrestricted ~~or additional securities convertible into equity may dilute the economic and voting rights of our existing stockholders~~cash, ~~reduce~~cash ~~the market price of our common stock~~equivalents, ~~or both. Our debt agreements contain various affirmative, negative~~ and ~~financial~~investment ~~covenants~~securities ~~and complying with certain~~ of ~~these~~$2.5 ~~covenants~~billion, orwhich ~~entering~~we ~~into~~believe ~~agreements~~will ~~with~~be ~~additional~~sufficient ~~covenants, may restrict our ability~~ to ~~pursue~~satisfy our ~~strategy~~liquidity orneeds ~~otherwise~~for ~~constrain~~at ~~our~~least ~~operations.~~the ~~Failure~~next totwelve ~~comply~~months ~~with~~from ~~these~~the ~~covenants~~date ~~could lead to an event~~ of ~~default~~this ~~under the agreements~~Report, ~~which~~and ~~may~~we ~~result~~expect ~~in, among other things, an acceleration of outstanding obligations under such agreements. Our decision~~ to ~~issue~~meet ~~securities in any future offering will depend on market conditions and other factors beyond~~ our ~~control,~~long-term ~~which~~liquidity ~~may~~needs ~~adversely~~with ~~affect the availability, amount, timing, or nature of~~ our ~~future~~projected ~~offerings.~~cash Asfrom ~~a result~~operations, ~~holders~~available oflines ~~our common stock bear the risk that our future offerings may reduce the market price~~ of ~~our~~credit ~~common stock~~ and ~~dilute~~debt ~~their percentage ownership~~financing.

As of December 31, 2024, our unrestricted cash, cash equivalents, short-term investments, and long-term marketable securities of $3.9 billion, which we believe will be sufficient to satisfy our liquidity needs for at least the next twelve months from the date of this Report, and we expect to meet our long-term liquidity needs with our projected cash from operations, available lines of credit and debt financing.

We believe a healthy liquidity position is a crucial element of our ability to weather any part of the economic cycle while continuing to execute on our plans for profitable growth and increased returns. Our goal is to continue to be diligent with our liquidity, maintain financial flexibility, and be prudent with capital spending.

Analysis of Cash Flows

We had unrestricted cash and cash equivalents of $1.9 billion as of December 31, ~~2024~~2025. This compares to $1.29 billion and $1.02 billion as of December 31, ~~2023~~2024 and ~~2022~~2023, respectively. We held both short and long-term investments in ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023. These investments totaled $~~2.0~~531 ~~billion~~million as of December 31, ~~2024~~2025 compared to $~~564~~2.0 ~~million~~billion and $~~522~~564 million as of December 31, ~~2023~~2024 and ~~2022~~2023, respectively.

Operating Activities

Cash ~~provided~~used byin operating activities was $~~144~~94 million in ~~2024~~2025. This compares to cash provided by operating activities of $~~400~~144 million in ~~2023~~2024 and $~~379~~400 million in ~~2022~~2023. The decrease in operating cash flow is ~~driven~~primarily bydue ~~higher~~to operating losses ~~due~~(adjusted tofor ~~lower~~non-cash ~~revenue~~items, asprimarily aprior ~~result~~year ofSpirit ~~capacity~~termination ~~reduction.~~costs ~~The~~and ~~decrease~~depreciation isand ~~also~~amortization ~~due~~expenses, toas ~~the~~well ~~change~~as ingains ~~working~~associated ~~capital~~with ~~and~~flight ~~the~~equipment ~~Spirit~~transactions) ~~merger~~offset ~~termination.~~by change in operating assets and liabilities.

Investing Activities

Cash ~~used~~provided inby investing activities totaled approximately $658 million in 2025, and cash used in investing activities totaled $3.1 billion, and $1.4 billion, ~~and $908 million~~ in 2024, ~~2023,~~ and ~~2022~~2023, respectively.

During ~~2024~~2025, flight equipment capital expenditures included $~~1.3~~833 ~~billion~~million related to the purchase of aircraft and spare engines as well as aircraft interior modifications. Flight capital expenditures also included $8196 million in spare part purchases and $44 million in aircraft pre-delivery deposits payments. Other property and equipment capital expenditures included ground equipment purchases and facility improvements for $~~121~~149 million. Investing activities for the current year also included $1.5 billion in net ~~purchases~~proceeds offrom investment securities, ~~$141~~and ~~million in aircraft pre-delivery deposits payments,~~ $30279 million of proceeds primarily from ~~the~~eight sale ~~of assets and sale~~-leaseback transactions, the sales of Embraer E190 airframes and ~~$22~~Embraer ~~million~~E190 inengines, ~~Spirit~~and ~~shareholder~~other ~~payments~~flight equipment.

During ~~2023~~2024, flight equipment capital expenditures included $~~946~~1.3 ~~million~~billion related to the purchase of aircraft and spare engines as well as aircraft interior modifications. Flight capital expenditures also included $6381 million in spare part purchases and $141 million in aircraft pre-delivery deposits payments. Other property and equipment capital expenditures included ground equipment purchases and facility improvements for $~~119~~121 million. Investing activities for ~~2023~~2024 also included $~~131~~1.5 ~~million~~billion in ~~Spirit~~net ~~shareholder~~purchases ~~payments~~of investment securities, $7830 million inof ~~flight~~proceeds ~~equipment~~from ~~pre~~the sale of assets and sale-~~delivery~~leaseback ~~deposits~~transactions, and $4222 million in ~~net~~Spirit ~~purchases~~shareholder ~~of investment securities~~payments.

During ~~2022~~2023, flight equipment capital expenditures included $~~571~~946 million related to the purchase of aircraft and spare engines as well as aircraft interior modifications. Flight capital expenditures also included $6463 million ~~for~~in spare part purchases and $78 million in flight equipment pre-delivery deposits. Other property and equipment capital expenditures included ground equipment purchases and facility improvements for $~~132~~119 million. Investing activities infor ~~2022~~2023 also included ~~the net proceeds of~~ $~~321~~131 million ~~from our investment securities, $297 million~~ in Spirit shareholder payments and $~~156~~42 million in ~~flight~~net ~~equipment~~purchases ~~pre-delivery~~of ~~deposits~~investment securities.

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Financing Activities

Financing activities during the year primarily consisted of the following proceeds:

• $~~2.8~~52 ~~billion~~million ~~in proceeds~~ from the ~~TrueBlue®~~issuance ~~Financings;~~of common stock related to our crewmember stock purchase plan.

Financing activities during 2025 also included the following payments:

•$461 million on our outstanding debt and finance lease obligations; and

•$8 million for the acquisition of treasury stock, which represents the return of shares to satisfy tax payments associated with crewmember stock compensation that vested during the period.

Financing activities during 2024 primarily consisted of the following proceeds:

•$2.8 billion in proceeds from the TrueBlue® Financings;

•$662 million in floating rate equipment notes;

•$460 million from the issuance of 2.50% convertible senior notes;

•$668 million in proceeds from failed sale-leaseback transactions; and

•$60 million in proceeds from the issuance of common stock related to our crewmember stock purchase plan.

These proceeds were partially offset by debt repayments of $748 million on our outstanding debt and finance lease obligations, which included the following repayments:

•$402 million on our 0.550% convertible senior notes;

•$244 million on our term loan debt;

•$96 million on our failed sale-leaseback obligations; and

•$6 million on our finance lease obligations.

Financing activities during 2024 also included $6 million for the acquisition of treasury stock, which represents the return of shares to satisfy tax payments associated with crewmember stock compensation that vested during the period. It also ~~includes~~included $66 million in financing fees related to new debt agreements in 2024.

Financing activities during 2023 primarily consisted of the following proceeds:

•$1.3 billion in proceeds from failed sale-leaseback transactions;

•$78 million in proceeds from long-term debt; and

•$53 million in proceeds from the issuance of common stock related to our crewmember stock purchase plan.

These proceeds were partially offset by debt repayments of $347 million on our outstanding debt and finance lease obligations, which included the following repayments:

•$322 million on our term loan debt;

•$24 million on our failed sale-leaseback obligations; and

•$1 million on our finance lease obligations.

Financing activities during 2023 also included $4 million for the acquisition of treasury stock, which represents the return of shares to satisfy tax payments associated with crewmember stock compensation that vested during the period. It also ~~includes~~included $4 million in financing fees related to new debt agreements in 2023 and the extension of our $600 million revolving credit facility agreement.

Financing activities during 2022 primarily consisted of debt repayments of $369 million on our outstanding debt and finance lease obligations, which included the following repayments and extinguishments:

•$351 million on our term loan debt;

•$11 million towards early extinguishment of debt;

•$6 million on our failed sale-leaseback obligations; and

•$1 million on our finance lease obligations.

These principal payments were partially offset by:

•$52 million in proceeds from the issuance of common stock related to our crewmember stock purchase plan.

Financing activities during 2022 also included $37 million in financing fees, of which $35 million relate to the $3.5 billion Senior Secured Bridge Facility to support the purchase of Spirit, and $6 million used for the acquisition of treasury stock, which represents the return of shares to satisfy tax payments associated with crewmember stock compensation that vested during the period.

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Capital Resources

Depending on market conditions, we may use a mix of cash and debt financing for aircraft scheduled for delivery in ~~2025~~2026. For deliveries after ~~2025~~2026, although we believe debt and/or lease financing should be available to us, we cannot give any assurance that we will be able to secure financing on attractive terms, if at all.

We have a revolving line of credit with Morgan Stanley for up to approximately $200 million. This line of credit is secured by a portion of our investment securities held by Morgan Stanley and the borrowing amount may vary accordingly. This line of credit bears interest at a floating rate based upon the London Interbank Offered Rate ("LIBOR"), or such replacement index as the bank may determine from time to time in accordance with the terms of the agreement, plus a margin. We did not borrow under this facility in 2024, 2023 or 2022. 48

WeTable ~~have a revolving Credit and Guaranty Agreement with Citibank N.A. as the administrative agent, for up to $600 million (the "Revolving Facility"). The term~~ of the Revolving Facility runs through October 2029. Borrowings under the Revolving Facility bear interest at a variable rate equal to the Secured Overnight Financing Rate ("SOFR"), plus a margin. The Revolving Facility is secured by spare parts, aircraft, simulators, and certain other assets as permitted thereunder. The Revolving Facility includes covenants that require us to maintain certain minimum balances in unrestricted cash, cash equivalents, and unused commitments available under revolving credit facilities. In addition, the covenants restrict our ability to, among other things, dispose of certain collateral, or merge, consolidate, or sell assets. As of and for the years ended December 31, 2024, 2023 and 2022, we did not have a balance outstanding or any borrowings under the Revolving Facility.Contents

We have ~~the~~a ~~TrueBlue®~~revolving ~~Term~~line ~~Loan~~of ~~Facility~~credit with ~~Barclays~~Morgan ~~Bank~~Stanley ~~PLC, as administrative agent, and Wilmington Trust, National Association, as collateral administrator,~~ for up to approximately $~~765~~200 million~~, with the Company and JetBlue Loyalty, LP as co-borrowers~~. ~~The~~This ~~term~~line of ~~the~~credit ~~TrueBlue® Term Loan Facility runs through August 2029. The TrueBlue® Term Loan Facility~~ is ~~guaranteed~~secured by ~~certain of the Company's subsidiaries and secured, on~~ a ~~pari~~portion ~~passu~~of ~~basis~~our ~~with~~investment ~~the~~securities ~~TrueBlue®~~held ~~Notes,~~ by aMorgan ~~first~~Stanley ~~lien~~and ~~on certain collateral in connection with~~ the ~~Company's~~borrowing ~~customer~~amount ~~loyalty~~may ~~program,~~vary ~~TrueBlue®~~accordingly. ~~The~~This ~~loans~~line ~~under~~of ~~the~~credit ~~TrueBlue®~~bears ~~Term Loan Facility bear~~ interest at a ~~variable~~floating rate ~~equal~~based toupon ~~Term SOFR (as defined in~~ the ~~agreement~~London ~~governing~~Interbank ~~the~~Offered ~~TrueBlue®~~Rate ~~Term Loan Facility) plus an applicable margin~~ (~~subject to a Term SOFR floor~~"LIBOR"), or ~~another~~such replacement index ~~rate~~as ~~plus~~the anbank ~~applicable~~may ~~margin.~~determine ~~The~~from ~~TrueBlue®~~time ~~Term Loan Facility is subject~~ to ~~quarterly~~time ~~amortization payments beginning~~ in ~~December~~accordance ~~2024. The TrueBlue® Term Loan Facility contains customary affirmative, negative and financial covenants including compliance~~ with ~~certain~~the ~~debt~~terms ~~service coverage ratios and minimum liquidity requirements as well as events~~ of ~~default. As of and for~~ the ~~year ended December 31~~agreement, ~~2024,~~plus ~~we had~~ a ~~$763~~margin. ~~million~~We ~~balance~~did ~~outstanding~~not borrow under ~~the~~this ~~TrueBlue®~~facility ~~Term~~in ~~Loan~~2025, ~~Facility~~2024 or 2023.

We have a revolving Credit and Guaranty Agreement with Citibank N.A. as the administrative agent, for up to $600 million (the "Revolving Facility"). The term of the Revolving Facility runs through October 2029. Borrowings under the Revolving Facility bear interest at a variable rate equal to the Secured Overnight Financing Rate ("SOFR"), plus a margin. The Revolving Facility is secured by spare parts, aircraft, simulators, and certain other assets as permitted thereunder. The Revolving Facility includes covenants that require us to maintain certain minimum balances in unrestricted cash, cash equivalents, and unused commitments available under revolving credit facilities. In addition, the covenants restrict our ability to, among other things, dispose of certain collateral, or merge, consolidate, or sell assets. As of and for the years ended December 31, 2025, 2024 and 2023, we did not have a balance outstanding or any borrowings under the Revolving Facility.

We have the TrueBlue® Term Loan Facility with Barclays Bank PLC, as administrative agent, and Wilmington Trust, National Association, as collateral administrator, for up to $765 million, with the Company and JetBlue Loyalty, LP as co-borrowers. The term of the TrueBlue® Term Loan Facility runs through August 2029. The TrueBlue® Term Loan Facility is guaranteed by certain of the Company's subsidiaries and secured, on a pari passu basis with the TrueBlue® Notes, by a first lien on certain collateral in connection with the Company's customer loyalty program, TrueBlue®. The loans under the TrueBlue® Term Loan Facility bear interest at a variable rate equal to Term SOFR (as defined in the agreement governing the TrueBlue® Term Loan Facility) plus an applicable margin (subject to a Term SOFR floor), or another index rate plus an applicable margin. The TrueBlue® Term Loan Facility is subject to quarterly amortization payments beginning in December 2024. The TrueBlue® Term Loan Facility contains customary affirmative, negative and financial covenants including compliance with certain debt service coverage ratios and minimum liquidity requirements as well as events of default. As of and for the year ended December 31, 2025, we had a $755 million balance outstanding under the TrueBlue® Term Loan Facility.

Working Capital

We had working capital deficit of $~~377~~1.2 ~~million~~billion as of December 31, ~~2024~~2025 compared to a ~~deficit~~working capital surplus of $~~1.5~~377 ~~billion~~million as of December 31, ~~2023~~2024. Our working capital ~~increased~~decreased by $1.85 billion primarily due to fewer investment securities and an increase in ~~cash~~current ~~and~~maturities ~~investment~~of ~~securities~~long-term ~~from~~debt, ~~raising~~partially ~~$2.8~~offset ~~billion~~by inan ~~proceeds~~increase ~~from~~in ~~the~~prepaid ~~TrueBlue®~~expenses ~~Financings~~ and ~~raising~~other. ~~$460 million~~The increase in ~~proceeds~~current ~~from~~maturities ~~the~~of ~~issuance~~long-term ofdebt is due to the 2Company's 0.50% convertible senior notes., ~~These~~with ~~increases~~a ~~were~~principal ~~offset~~amount inof ~~part by~~ $~~748~~ 325 million, becoming current in ~~payments~~2025. onThe ~~our~~increase ~~outstanding~~in ~~debt~~prepaid expenses and ~~finance~~other ~~lease~~is ~~obligations~~due to an increase in held for sale assets primarily related to permanently parked airframes, ~~which~~engines, ~~included~~and anrelated ~~early~~spare ~~retirement~~parts ofexpected ato ~~portion~~sell ofwithin ~~our~~one ~~0.50%~~year, ~~convertible~~as ~~senior~~well ~~notes~~as an increase in tax receivables.

Working capital deficits can be customary in the airline industry since a large portion of air traffic liability is classified within current liability.

We expect to meet our obligations as they become due through available cash, investment securities, and internally generated funds, supplemented, as necessary, by financing activities which may be available to us. We cannot predict what the effect on our business might be from future developments related to the extremely competitive environment in which we operate, or from events beyond our control, such as volatile fuel prices, economic conditions, weather-related disruptions, airport infrastructure challenges, the spread of infectious diseases, the impact of other airline bankruptcies, restructurings or consolidations, U.S. or international military actions, acts of terrorism, or other external geopolitical events and conditions. We believe there is sufficient liquidity available to us to meet our cash requirements for at least the next 12 months.

Debt and Finance Leases

As part of our efforts to effectively manage our balance sheet, we expect to continue to actively manage our debt balances. Our approach to debt management includes managing the mix of fixed and floating rate debt, annual maturities of debt, and the weighted average cost of debt. Additionally, our unencumbered assets allow some flexibility in managing our cost of debt and capital requirements.

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Other

InOn February ~~2022~~27, 2025, we filed an automatic shelf registration statement with the SEC. This registration statement replaces the previous one, which expired in February 2025. Under this shelf registration statement, we may offer and sell from time to time common stock, preferred stock, debt securities, depository shares, warrants, stock purchase contracts, stock purchase units, subscription rights, and pass-through certificates. We may utilize this shelf registration statement, or a replacement filed with the SEC, in the future to raise capital to fund the continued development of our products and services, the commercialization of our products and services, to repay indebtedness, or for other general corporate purposes. The warrants issued byin ~~JetBlue~~connection towith ~~Treasury~~the ~~under~~various ~~the~~federal ~~Acts~~government support programs were made, and any issuances of our underlying common stock are expected to be made, in reliance on the exemption from the registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"), for transactions not involving a public offering.

None of our lenders or lessors are affiliated with us.

CONTRACTUAL OBLIGATIONS

Our material cash requirements for known contractual and other obligations as of December 31, ~~2024~~2025 includes the following (in millions):

	Payments due in
	2025		2026		2027		2028		2029		Thereafter		Total
	2026		2027		2028		2029		2030		Thereafter		Total
Debt and finance lease obligations (1)	$	~~937~~1,314	$	~~1,247~~950	$	~~908~~1,028	$	~~986~~2,227	$	~~2,188~~957	$	5,~~719~~010	$	11,~~985~~486
Operating lease obligations	~~132~~139		~~108~~128		96110		8289		7584		~~301~~938		~~794~~1,488
Flight equipment purchase obligations	981		690		288		410		321		3,754		6,444
Flight equipment purchase obligations (2)	641		302		519		444		398		3,375		5,679
Other obligations (2)	397		372		376		425		290		9		1,869
Other obligations (3)	352		409		431		280		307		—		1,779
Total	$	2,~~447~~446	$	21,~~417~~789	$	12,~~668~~088	$	13,~~903~~040	$	21,~~874~~746	$	9,~~783~~323	$	2120,~~092~~432

The amounts stated above do not include additional obligations incurred as a result of financing activities executed after December 31, ~~2024~~2025, except as otherwise noted.

(1)The interest rates are fixed for $6.86 billion of our debt and finance lease obligations, with the remaining $1.79 billion having floating interest rates. The estimated floating rate is equal to SOFR plus an applicable margin based on December 31, ~~2024~~2025 rates. The weighted average maturity of all of our debt was 76 years as of December 31, ~~2024~~2025.

(2)~~Amounts~~Committed ~~primarily~~expenditures for our firm aircraft and spare engines include ~~non~~estimated amounts for contractual price escalations and pre-~~cancelable~~delivery ~~commitments~~deposits. We expect to meet our pre-delivery deposit requirements for ~~flight~~our ~~equipment~~aircraft ~~maintenance,~~by ~~construction~~paying ~~and~~cash ~~information~~or ~~technology~~by using short-term borrowing facilities for deposits generally required six to 24 months prior to delivery. Any pre-delivery deposits paid by the issuance of notes are fully repaid at the time of delivery of the related aircraft.

Flight equipment purchase obligations include obligations for one Airbus A321neo XLR variant aircraft that has been contracted to sell following delivery of the aircraft. The aircraft is anticipated to deliver in the second quarter of 2026.

(3)Amounts primarily include non-cancelable commitments for flight equipment maintenance, construction and information technology.

Debt and Finance Lease Obligations

As of December 31, ~~2024~~2025, we were in compliance with the material covenants of our debt and lease agreements.

In August 2024, JetBlue co-issued with JetBlue Loyalty, LP, the TrueBlue® Notes and TrueBlue® Term Loan Facility. The agreements governing the TrueBlue® Notes and TrueBlue® Term Loan Facility ~~contains~~contain affirmative, negative and financial covenants including compliance with certain debt service coverage ratios and minimum liquidity requirements. These agreements also contain events of default, including a cross-default to other material indebtedness.

We have $6160 million of restricted cash pledged under standby letters of credit related to certain leases that will expire at the end of the related lease terms. Approximately 6561% of our owned property and equipment and intangible assets at net book value were pledged or committed to be pledged as security under various loan agreements.

~~Operating Lease Obligations~~50

As of December 31, 2024, we had operating lease obligations for 26 aircraft with lease terms that expire between 2025 and 2028. Our aircraft lease agreements contain termination provisions which include standard maintenance and return conditions. Our policy is to record these lease return conditions when they are probable and the costs can be estimated. As of December 31, 2024, the average age of our operating fleet was 12 years. We also lease airport terminal space and other airport facilities in each of our markets, as well as office space and other equipment. Minimum ground and facility rents at JFK totaling $535 million are included in the commitments table above as operating lease obligations. In November 2022, we amended the lease to relinquish a portion of the former Terminal 6 property to allow for development of a new Terminal 6 by our development partners JMP through a $65 million letter of credit in exchange for 5% ownership. This amount is included in restricted cash on the consolidated balance sheets as of December 31, 2024.

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WeOperating ~~have~~Lease a long term lease for our primary corporate office in Long Island City until 2039. We have a one-time option to terminate the lease in 2034. At the end of the initial lease term, we have the option to renew the lease for either one renewal term of 10 years, or two renewal terms of five years each. The total committed expenditure for the lease through 2039 is approximately $81 million. Obligations

As of December 31, 2025, we had operating lease obligations for 10 aircraft with lease terms that expire between 2027 and 2028. Our aircraft lease agreements contain termination provisions which include standard maintenance and return conditions. Our policy is to record these lease return conditions when they are probable and the costs can be estimated. As of December 31, 2025, the average age of our operating fleet was 12 years. We also lease airport terminal space and other airport facilities in each of our markets, as well as office space and other equipment.

We have a lease agreement with the PANYNJ for terminal 5 through November 2042 with the option to terminate the agreement in 2033. In November 2022, we amended the lease to relinquish a portion of the former Terminal 6 property to allow for development of a new Terminal 6 by our development partners, JFK Millennium Partners ("JMP") through a $65 million letter of credit in exchange for 5% ownership. This amount is included in restricted cash on the consolidated balance sheets as of December 31, 2025. In 2025 we reassessed the lease term and concluded that we intend to utilize the facility through 2042 rather than exercise the early termination option in 2033. As a result, we adjusted the related right-of-use asset and corresponding lease liability to reflect the 2042 end date. Minimum ground and facility rents at JFK totaling $1.2 billion are included in the commitments table above as operating lease obligations.

We have a long term lease for our primary corporate office in Long Island City until 2039. We have a one-time option to terminate the lease in 2034. At the end of the initial lease term, we have the option to renew the lease for either one renewal term of 10 years, or two renewal terms of five years each. The total committed expenditure for the lease through 2039 is approximately $76 million.

Flight Equipment Purchase Obligations

Our firm aircraft orders include the following aircraft (1):

Year	Airbus A220	Airbus A321neo (3)	Total
2025	20	4	24
2026	14	1	15
2026	17	—	17
2027	5	—	5
2028	911	—	911
2029	710	—	710
Thereafter	—	44	44
2030	1	3	4
Total (2)	58	48	106
Thereafter	—	41	41
Total (2)	41	45	86

(1) Our committed future aircraft deliveries are subject to change based on modifications to the contractual agreements or changes in the delivery schedules.

(2) In addition, we have options to purchase 20 A220-300 aircraft in 2027 and 2028.

~~Committed~~(3) ~~expenditures~~Includes ~~for~~one ~~our~~Airbus ~~firm~~A321neo ~~aircraft~~XLR ~~and~~variant ~~spare~~aircraft ~~engines~~which ~~include~~has ~~estimated~~been ~~amounts~~contracted ~~for contractual price escalations and pre-delivery deposits. We expect~~ to ~~meet~~sell ~~our~~following ~~pre-~~delivery ~~deposit~~of ~~requirements~~the ~~for~~aircraft. ~~our~~The aircraft byis ~~paying~~anticipated ~~cash or by using short-term borrowing facilities for deposits generally required six~~ to ~~24 months~~deliver ~~prior~~in ~~to delivery. Any pre-delivery deposits paid by~~ the ~~issuance~~second ofquarter ~~notes are fully repaid at the time~~ of ~~delivery of the related aircraft~~2026.

Depending on market conditions, we may use a mix of cash and debt financing for aircraft scheduled for delivery in future years. Although we believe debt and/or lease financing should be available to us, we cannot give any assurance that we will be able to secure financing on attractive terms, if at all. To the extent we cannot secure financing on terms we deem attractive, we may be required to pay in cash, further modify our aircraft acquisition plans, or incur higher than anticipated financing costs.

Other Obligations

Our Terminal at JFK, T5, is governed by a lease agreement we entered into with the PANYNJ in 2005. We are responsible for making various payments under the lease. This includes ground rents for the terminal site which began at the time of the lease execution in 2005 and facility rents which commenced in October 2008 upon our occupancy of T5. The facility rents are based on the number of passengers enplaned out of the terminal, subject to annual minimums. The PANYNJ reimbursed us for construction costs of this project in accordance with the terms of the lease, except for approximately $76 million in leasehold improvements provided by us. In 2012, we amended this lease to include additional ground space for our international arrivals facility, T5i, which we opened in November 2014.

OFF-BALANCE SHEET ARRANGEMENTS

We have determined that we hold a variable interest in, but are not the primary beneficiary of, certain pass-through trusts. The beneficiaries of these pass-through trusts are the purchasers of equipment notes issued by us to finance the acquisition of aircraft. Each trust maintains a liquidity facility whereby a third party agrees to make payments sufficient to pay up to 18 months of interest on the applicable certificates if a payment default occurs.

We have also made certain guarantees and indemnities to other unrelated parties that are not reflected on our consolidated balance sheets, which we believe will not have a significant impact on our results of operations, financial condition or cash flows. We have no other off-balance sheet arrangements. See Notes 3, 4, and 11 to our consolidated financial statements included in Part II., Item 8, for a more detailed discussion of our variable interests and other contingencies, including guarantees and indemnities.

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CLIMATE CHANGE

Concern over climate change has led to significant U.S. and international legislative and regulatory efforts to reduce GHG emissions, including our aircraft and ground operations emissions. Below is a discussion of the regulations that are relevant to JetBlue and the efforts we have taken to address climate change.

Carbon Offsetting and Reduction Scheme for International Aviation ("CORSIA")

In October 2016, ICAO passed a resolution adopting CORSIA, which is a global, market-based measure for the airline industry to achieve carbon-neutral growth for international flying beyond 2020. Annual international emissions reporting is required via CORSIA as of the 2019 reporting year, and offsetting compliance is being implemented through multiple phases that began in 2021. ICAO continues to develop details regarding implementation and, while we expect compliance with CORSIA will increase our operating costs, the anticipated cost of compliance with CORSIA is uncertain due to a number of factors, including the volatility in demand for international air travel, regulatory uncertainty, and uncertainty in the supply and price of eligible carbon offsets or low-carbon aircraft fuels.

GHG emission standards

In January 2021, the USEPA promulgated a final rule implementing the 2017 ICAO aircraft engine GHG emission standards, which will apply to larger business and commercial jet aircraft with either new design types (not previously certified by the FAA) or existing design types that are in production as of January 1, 2028. Pursuant to the Clean Air Act, the FAA issued a final rule in February 2024 to implement these standards, introducing new fuel efficiency certification regulations. These regulations became effective in April 2024 and apply to airplanes manufactured after January 1, 2028, as well as to uncertified large business and commercial jet aircrafts.

Sustainable Aviation Fuel Tax Credit & Clean Fuel Production Credit

One of the various programs within the Inflation Reduction Act of 2022 (the "IRA") was the creation of a tax credit for SAF. The SAF credit applies to a qualified fuel mixture containing sustainable aviation fuel for certain sales or uses in calendar years 2023 and 2024. The credit provides for a $1.25 credit for each gallon of SAF in a qualified mixture, which must have a minimum reduction of 50% in lifecycle greenhouse gas emissions. Additionally, there is a supplemental credit of one cent for each percent that the reduction exceeds 50%, for a total credit range of $1.25 to $1.75 per gallon. Though this credit (40B SAF Tax Credit) has been a meaningful development to stimulate the production of SAF, making it more affordable and widely available, the tax credit will only be available through the end of 2024. In 2025, the IRA 40B will be replaced by the Clean Fuel Production Credit (45Z), which will apply to qualifying transportation fuel produced between 2025 and 2027. Beginning January 1, 2025, the Treasury Department will offer tax credits for the production and sale of low emission transportation fuels, including SAF. The tax credit amount is $0.20 per gallon for non-aviation fuel and $0.35 per gallon for SAF. For facilities that satisfy the prevailing wage and apprenticeship requirements, the credit amount is $1.00 per gallon for non-aviation fuel and $1.75 per gallon for SAF. For any taxable year, the IRA 45Z is equal to the applicable credit amount per gallon multiplied by the fuel's carbon dioxide emissions factor. We believe tax credits like 40B and 45Z are an important step in helping the U.S. airline industry reach its goal of achieving net-zero carbon emissions by 2050, as well as our own goal of net zero emissions by 2040. Given the new administration in 2025, we expect some uncertainty around the specifics of these tax credits (requirements, longevity, disbursement, etc.) looking forward.

SAF Mandates

There are also growing initiatives to mandate use of SAF or otherwise reduce GHG emissions associated with various aircraft design types. For more information, see our risk factor titled "We may be affected by global climate change or by legal, regulatory or market responses to such changes."

In October 2023, the European Commission reached an agreement on the ReFuelEU Aviation initiative. Included in this mandate is supplying a minimum share of SAF at all EU airports – starting at 2% by 2025, 6% by 2030 and 20% by 2035, up to 70% by 2050. Of these amounts, 1.2% in 2030, and 5% in 2035 must be power to liquid ("PtL") or E-Fuels, increasing to 35% by 2050. This agreement is a step towards the implementation of the "Fit for 55" legislative package to reduce greenhouse gas emissions by at least 55% by 2030. We can also expect a SAF mandate in the UK starting January 1, 2025, structured similarly to the EU mandate, with a slightly different timescale, ramp-up of SAF volumes, and non-compliance structure. Additionally, France defined its SAF roadmap in 2019, which includes SAF consumption objectives of 2% by 2025, 5% by 2030 and 50% in 2050. Though the obligated party is the fuel provider, JetBlue has worked with its fuel partners throughout Europe & the UK to proactively plan for SAF requirements. JetBlue has similarly worked alongside our partner airlines to preemptively understand reporting requirements and expectations of the various airlines.

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California Climate Disclosure Laws

In 2023, the state of California passed several climate disclosure laws that could impact our operations. These laws require specific disclosures on the amount of Scope 1, 2 and 3 GHG emissions created by an organization, as well as disclosures around climate-related risks and the associated response to those risks, for any entity doing business in California with annual revenue in excess of $1 billion. The potential impacts to our business are not known at this time, but additional costs can be expected in relation to these disclosures. Implementation is expected to be required beginning in 2026. California also adopted a third law requiring disclosure of certain information related to greenhouse gas emissions reduction claims and the purchase or sale of voluntary carbon offsets, which may require us to incur additional costs.

EU Emissions Trading Scheme

Following the EU's adoption of the Emissions Trading System ("ETS") in 2009, a policy to regulate GHG emissions with subsequent emissions allowances, exemptions have been extended to airlines with flights originating or landing outside of the European Economic Area ("EEA") through 2026. In future years, however, the European Commission may decide to integrate all extra-EU flights into the EU ETS which may result in an adverse effect to our business, including to the extent we must navigate conflicting legal requirements such as pursuant to the US's EU ETS Prohibition Act.

Other Related Risks

We investigate means of mitigating climate risk exposure from a physical and transitional risk perspective. Physical risks include, the number of extreme weather events, such as hurricanes, typhoons, wildfires, and rainstorms, which are generally expected to increase in frequency and severity as our climate warms. Occurrences of these extreme weather events may result in flight cancellations, delays, and diversions, impacting our operations and thus adversely affecting our financial results and conditions. Additionally, as stakeholders across our industry are increasingly developing new expectations, behaviors, regulations and technologies that are changing the way we do business, we are evaluating the way our operations will potentially be impacted from financial and operational challenges as we, and our partners, transition into a low-carbon system. However, risks may manifest in ways that we have not foreseen or are otherwise not able to wholly mitigate.

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CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation of our consolidated financial statements in conformity with generally accepted accounting principles in the United States ("GAAP") requires management to adopt accounting policies as well as make estimates and judgments to develop amounts reported in our financial statements and accompanying notes. We maintain a thorough process to review the application of our accounting policies and to evaluate the appropriateness of the estimates that are required to prepare our financial statements. We believe our estimates and judgments are reasonable; however, actual results and the timing of recognition of such amounts could differ from those estimates. In addition, estimates routinely require adjustment based on changing circumstances and the receipt of new or better information.

Critical accounting policies and estimates are defined as those that are reflective of significant judgments and uncertainties that could potentially result in materially different results under different assumptions and conditions. The policies and estimates discussed below have been reviewed with our independent registered public accounting firm and with the Audit Committee of our Board of Directors. For a discussion of these and other significant accounting policies, see Note 1 to our consolidated financial statements included in Part II., Item 8.

Passenger Revenue

The majority of passenger tickets sold are non-refundable. Non-refundable fares may be canceled prior to the scheduled departure date for a credit for future travel. Refundable fares may be canceled at any time prior to the scheduled departure date. Failure to cancel a refundable fare prior to departure will result in the cancellation of the original ticket and an issuance of a credit for future travel. ~~Passenger~~Most passenger credits can be used for future travel up to aone year from the date of booking. Passenger breakage revenue from unused tickets and passenger credits will be recognized in proportion to flown revenue based on estimates of expected expiration when the likelihood of the customer exercising his or her remaining rights becomes remote. Breakage revenue consists of tickets that remain unused past the departure date, have continued validity, and are expected to ultimately expire unused, as well as passenger credits that are not expected to be redeemed prior to expiration. JetBlue uses estimates based on historical experience of expired tickets and credits and considers other factors that could impact future expiration patterns of tickets and credits. Tickets which do not have continued validity past the departure date are recognized as revenue after the scheduled departure date has lapsed.

Loyalty Program

Customers may earn points under our customer loyalty program, TrueBlue®, based on the fare paid and fare product purchased for a flight. Customers can also earn points through business partners such as credit card companies, hotels, car rental companies, and our participating airline partners.

Points Earned From a Ticket Purchase. When a TrueBlue® member travels, we recognize a portion of the fare as revenue and defer in air traffic liabilities the portion that represents the value of the points net of spoilage, or breakage. We allocate the transaction price to each performance obligation on a relative standalone selling price basis. We determine the standalone selling price of TrueBlue® points issued using the redemption value approach. To maximize the use of observable inputs, we utilize the actual ticket value of the tickets purchased with TrueBlue® points. The liability is relieved and passenger revenue is recognized when the points are redeemed and the free travel is provided.

Points Sold to TrueBlue® Partners. Our most significant contract to sell TrueBlue® points is with our co-branded credit card partner Barclays. Co-branded credit card partnerships have the following identified performance obligations: air transportation; use of the JetBlue brand name, and access to our frequent flyer customer lists; advertising; and other airline benefits. In determining the estimated standalone selling price, for co-branded credit card partnerships, JetBlue considers multiple inputs, methods, and assumptions, including: discounted cash flows; estimated redemption value, net of fulfillment discount; points expected to be awarded and redeemed; estimated annual spending by cardholders; estimated annual royalty for use of JetBlue's frequent flyer customer lists; and estimated utilization of other airline benefits. Payments are typically due monthly based on the volume of points sold during the period, and the terms of our marketing contracts are generally from one to ten years. The overall consideration received is allocated to each performance obligation based on its relative standalone selling price. The air transportation element is deferred and recognized as passenger revenue when the points are redeemed. The other elements are recognized as other revenue when the performance obligations related to those services are satisfied, which is generally the same period as when consideration is received from the participating company.



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Amounts allocated to the air transportation element which are initially deferred include a portion that are expected to be redeemed during the following twelve months (included within air traffic liability on our consolidated balance sheets), and a portion that are not expected to be redeemed during the following twelve months (included within air traffic liability - non-current on our consolidated balance sheets). We periodically update this analysis and adjust the split between current and non-current liabilities as appropriate.

Points earned by TrueBlue® members never expire. TrueBlue® members can pool points between small groups of people, branded as Points Pooling™. Breakage is estimated using historical redemption patterns to determine a breakage rate. Breakage rates used to estimate breakage revenue are evaluated annually. Changes to breakage estimates impact revenue recognition prospectively.

Accounting for Long-Lived Assets

In accounting for long-lived assets, we make estimates about the expected useful lives, projected residual values, and the potential for impairment. In estimating useful lives and residual values of our aircraft, we have relied upon actual industry experience with the same or similar aircraft types and our anticipated utilization of the aircraft. Changing market prices of new and used aircraft, government regulations, and changes in our maintenance program or operations could result in changes to these estimates.

Our long-lived assets are evaluated for impairment when events and circumstances indicate the assets may be impaired. Indicators include operating or cash flow losses, significant decreases in market value, or changes in technology.

ToWhen ~~determine~~events ifand ~~impairment~~circumstances ~~exists~~indicate ~~for~~that our aircraft used in operations may be impaired, we ~~group~~determine if impairment exists by grouping our aircraft by fleet- type (the lowest level for which there are identifiable cash flows) and then ~~estimate~~estimating their future cash flows based on projections of capacity, aircraft age, maintenance requirements, and other relevant conditions. An impairment occurs when the sum of the estimated undiscounted future cash flows is less than the aggregate carrying value of the fleet. The impairment loss recognized is the amount by which the fleet's carrying value exceeds its estimated fair value.

Refer to Note 1713 to our consolidated financial statements included in Part II., Item 8 for further details of our impairment charges.



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REGULATION G RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

We report our financial results in accordance with GAAP; however, we present certain non-GAAP financial measures in this Report. Non-GAAP financial measures are financial measures that are derived from the consolidated financial statements, but that are not presented in accordance with GAAP. We present these non-GAAP financial measures because we believe they provide useful supplemental information that enables a meaningful comparison of our results to others in the airline industry and our prior year results. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, our financial performance measures prepared in accordance with GAAP. Further, our non-GAAP information may be different from the non-GAAP information provided by other companies. The information below provides an explanation of each non-GAAP financial measure used in this Report and shows a reconciliation of ~~each~~certain ~~such~~ non-GAAP financial ~~measure~~measures to its most directly comparable GAAP financial measure.

Operating Expenses, excluding Fuel, Other Non-Airline Operating Expenses, and Special Items ("Operating Expenses ex-fuel") and Operating Expense ex-fuel per Available Seat Mile ("CASM ex-fuel")

Operating Expense per Available Seat Mile ("CASM") is a common metric used in the airline industry. Our CASM for the relevant periods are summarized in the table below. We exclude aircraft fuel, operating expenses related to other non-airline businesses, such as Paisly (f/k/a JetBlue ~~Technology~~Travel ~~Ventures~~Products) and JetBlue ~~Travel~~Technology ~~Products~~Ventures (JBV), and special items from total operating expenses to determine Operating Expenses ex-fuel, which is a non-GAAP financial measure, and we exclude the same items from CASM to determine CASM ex-fuel, which is also a non-GAAP financial measure. We believe the impact of these special items distorts our overall trends and that our metrics are more comparable with the presentation of our results excluding such impact.

Special items for ~~2024~~2025 include ~~Spirit-related~~severance ~~costs,~~expenses ~~union contract costs, voluntary opt-out costs, Embraer E190 fleet transition costs,~~ and other special items.

Special items for ~~2023~~2024 ~~include~~included Spirit-related costs, ~~and~~ union contract costs, severance expenses, Embraer E190 fleet transition costs, and other special items.

Special items for ~~2022~~2023 ~~include~~included ~~Spirit-related costs,~~ union contract costs and ~~Embraer~~Spirit-related ~~E190 fleet transition~~ costs.

We believe Operating Expenses ex-fuel and CASM ex-fuel are useful for investors because they provide investors the ability to measure our financial performance excluding items that are beyond our control, such as fuel costs, which are subject to many economic and political factors, as well as items that are not related to the generation of an available seat mile, such as operating expense related to certain non-airline businesses and special items. We believe these non-GAAP measures are more indicative of our ability to manage airline costs and are more comparable to measures reported by other major airlines.

The table below provides a reconciliation of our total operating expenses (GAAP measure) to Operating Expenses ex-fuel, and our CASM to CASM ex-fuel for the periods presented.

NON-GAAP FINANCIAL MEASURERECONCILIATION OF OPERATING EXPENSE AND OPERATING EXPENSE PER ASM (CASM), EXCLUDING FUEL
(in millions; per ASM data in cents)	~~2024~~2025				~~2023~~2024				~~2022~~2023
	$		per ASM		$		per ASM		$		per ASM
Total operating expenses	$	9,~~963~~430	1514.0851		$	9,~~845~~963	1415.3708		$	9,~~456~~845	14.6737
Less:
Aircraft fuel	2,~~343~~057		3.5516		2,~~807~~343		43.1055		32,~~190~~807		4.9510
Other non-airline expenses	6065		0.0910		6460		0.09		5564		0.0809
Special items	~~591~~30		0.8905		~~197~~591		0.2989		~~113~~197		0.1829
Operating expenses, excluding fuel	$	67,~~969~~278	1011.5520		$	6,~~777~~969	910.8955		$	6,~~098~~777	9.4689
Percent change			6.62	%			46.6	%

With respect to JetBlue's CASM ex-fuel guidance, we are unable to provide a reconciliation of the non-GAAP financial measure to GAAP CASM, the most directly comparable GAAP measure, because the quantification of certain excluded items reflected in the CASM ex-fuel guidance cannot be calculated or predicted at this time without unreasonable efforts. The reconciling information that is unavailable would include a forward-looking range of financial performance measures beyond our control, such as fuel costs, which are subject to many economic and political factors. For the same reasons, we are unable to address the probable significance of the unavailable information, which could have a potentially unpredictable and potentially significant impact on our future GAAP financial results.

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Operating Expense, Operating Loss, Operating Margin, Pre-tax Loss, Pre-tax Margin, Net Loss and Loss per Share, excluding Special Items, Gain (Loss) on Investments and Gain on Debt Extinguishments

Our GAAP results in the applicable periods were impacted by ~~credits and~~ charges that ~~are~~were deemed special items.

Special items for ~~2024~~2025 include ~~Spirit-related~~severance ~~costs,~~expenses ~~union contract costs, voluntary opt-out costs, Embraer E190 fleet transition costs,~~ and other special items.

Special items for ~~2023~~2024 ~~include~~included Spirit-related costs, ~~and~~ union contract costs, severance expenses, Embraer E190 fleet transition costs, and other special items.

Special items for ~~2022~~2023 ~~include~~included ~~Spirit costs,~~ union contract costs and ~~Embraer~~Spirit-related ~~E190 fleet transition~~ costs.

Certain ~~net~~ gains and losses on our investments, net were also excluded from our 2025, 2024 and 2023 non-GAAP results. Additionally, the gain on debt extinguishments ~~were~~was also excluded from our 2024, ~~2023 and 2022~~ non-GAAP results.

We believe the impact of these items distort our overall trends and that our metrics are more comparable with the presentation of our results excluding the impact of these items. The table below provides a reconciliation of our GAAP reported amounts to the non-GAAP amounts excluding the impact of these items for the periods presented.

NON-GAAP FINANCIAL MEASURERECONCILIATION OF OPERATING EXPENSE, OPERATING LOSS, OPERATING MARGIN, PRE-TAX LOSS, ADJUSTED PRE-TAX MARGIN, NET LOSS, LOSS PER SHARE, EXCLUDING SPECIAL ITEMS, GAIN (LOSS) ON INVESTMENTS AND GAIN ON DEBT EXTINGUISHMENTS
NON-GAAP FINANCIAL MEASURERECONCILIATION OF OPERATING EXPENSE, OPERATING LOSS, OPERATING MARGIN, PRE-TAX LOSS, PRE-TAX MARGIN, NET LOSS, LOSS PER SHARE, EXCLUDING SPECIAL ITEMS, GAIN (LOSS) ON INVESTMENTS AND GAIN ON DEBT EXTINGUISHMENTS
	Year Ended December 31,
(in millions except percentages)	~~2024~~2025			~~2023~~2024			~~2022~~2023
Total operating revenues	$	9,~~279~~062		$	9,~~615~~279		$	9,~~158~~615
RECONCILIATION OF OPERATING EXPENSE
Total operating expenses	$	9,~~963~~430		$	9,~~845~~963		$	9,~~456~~845
Less: Special items	~~591~~30			~~197~~591			~~113~~197
Total operating expenses excluding special items	$	9,~~372~~400		$	9,~~648~~372		$	9,~~343~~648
RECONCILIATION OF OPERATING LOSS
Operating loss	$	(~~684~~368)		$	(~~230~~684)		$	(~~298~~230)
Add back: Special items	~~591~~30			~~197~~591			~~113~~197
Operating loss excluding special items	$	(93338)		$	(3393)		$	(~~185~~33)
RECONCILIATION OF OPERATING MARGIN
Operating margin	(7.4.1)		%	(27.4)		%	(32.34)		%
Operating loss excluding special items	$	(93338)		$	(3393)		$	(~~185~~33)
Total operating revenues	9,~~279~~062			9,~~615~~279			9,~~158~~615
Adjusted operating margin	(13.07)		%	(01.30)		%	(2.0.3)		%
RECONCILIATION OF PRE-TAX LOSS
Loss before income taxes	$	(~~897~~774)		$	(~~334~~897)		$	(~~437~~334)
Add back: Special items	~~591~~30			~~197~~591			~~113~~197
Less: Gain (loss) on investments, net	~~(27)~~18			9(27)			(9)
Less: Gain on debt extinguishments	22—			—22			—
Loss before income taxes excluding special items, gain (loss) on investments and gain on debt extinguishments	$	(~~301~~762)		$	(~~146~~301)		$	(~~315~~146)
RECONCILIATION OF PRE-TAX MARGIN
Pre-tax margin	(98.75)		%	(39.57)		%	(43.85)		%
Loss before income taxes excluding special items	$	(~~301~~762)		$	(~~146~~301)		$	(~~315~~146)
Total operating revenues	9,~~279~~062			9,~~615~~279			9,~~158~~615
Adjusted pre-tax margin	(38.24)		%	(13.52)		%	(31.45)		%

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NON-GAAP FINANCIAL MEASURE
RECONCILIATION OF OPERATING EXPENSE, OPERATING LOSS, OPERATING MARGIN, PRE-TAX LOSS, PRE-TAX MARGIN, NET LOSS, LOSS PER SHARE, EXCLUDING SPECIAL ITEMS, NET GAIN (LOSS) ON INVESTMENTS AND GAIN ON DEBT EXTINGUISHMENTS (CONTINUED)
RECONCILIATION OF OPERATING EXPENSE, OPERATING LOSS, OPERATING MARGIN, PRE-TAX LOSS, PRE-TAX MARGIN, NET LOSS, LOSS PER SHARE, EXCLUDING SPECIAL ITEMS, GAIN (LOSS) ON INVESTMENTS AND GAIN ON DEBT EXTINGUISHMENTS (CONTINUED)
(in millions except per share amounts)	Year Ended December 31,
	2024		2023		2022
	2025		2024		2023
RECONCILIATION OF NET LOSS
Net loss	$	(~~795~~602)	$	(~~310~~795)	$	(~~362~~310)
Add back: Special items	~~591~~30		~~197~~591		~~113~~197
Less: Income tax benefit related to special items	457		3145		1931
Less: Gain (loss) on investments, net	~~(27)~~18		9(27)		(9)
Less: Income tax benefit (expense) related to gain (loss) on investments, net	6(4)		~~(2)~~6		1(2)
Less: Gain on debt extinguishments	22—		—22		—
Less: Income tax expense related to gain on debt extinguishments	~~(5)~~—		—(5)		—
Net loss excluding special items, gain (loss) on investments and gain on debt extinguishments	$	(~~245~~593)	$	(~~151~~245)	$	(~~260~~151)
CALCULATION OF LOSS PER SHARE
Loss per common share
Basic	$	(21.3066)	$	(02.9330)	$	(10.1293)
Add back: Special items	10.7108		01.5971		0.3559
Less: Income tax expense related to special items	0.13		0.09		0.06
Less: Income tax benefit related to special items	0.02		0.13		0.09
Less: Gain (loss) on investments, net	(0.~~08)~~05		(0.0308)		(0.03)
Less: Income tax benefit (expense) related to gain (loss) on investments, net	(0.0201)		(0.~~01)~~02		—(0.01)
Less: Gain on debt extinguishments	~~0.06~~—		—0.06		—
Less: Income tax expense related to gain on debt extinguishments	~~(0.01)~~—		—(0.01)		—
Basic excluding special items, gain (loss) on investments and gain on debt extinguishments	$	(01.7164)	$	(0.4571)	$	(0.8045)
Diluted	$	(21.3066)	$	(02.9330)	$	(10.1293)
Add back: Special items	10.7108		01.5971		0.3559
Less: Income tax benefit related to special items	0.1302		0.0913		0.0609
Less: Gain (loss) on investments, net	(0.~~08)~~05		(0.0308)		(0.03)
Less: Income tax benefit (expense) related to gain (loss) on investments, net	(0.0201)		(0.~~01)~~02		—(0.01)
Less: Gain on debt extinguishments	~~0.06~~—		—0.06		—
Less: Income tax expense related to gain on debt extinguishments	~~(0.01)~~—		—(0.01)		—
Diluted excluding special items, gain (loss) on investments and gain on debt extinguishments	$	(01.7164)	$	(0.4571)	$	(0.8045)

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Glossary of Airline terminology

Airline terminology used in this section and elsewhere in this Report:

•Aircraft utilization - The average number of block hours operated per day per aircraft for the total fleet of aircraft.

•Available seat miles - The number of seats available for passengers multiplied by the number of miles the seats are flown.

•Average fare - The average one-way fare paid per flight segment by a revenue passenger.

•Average fuel cost per gallon - Total aircraft fuel costs, including related taxes, into-plane, transportation, airport fuel flowage, storage fees and effective portion of fuel hedging, divided by the total number of fuel gallons consumed.

•Average stage length - The average number of miles flown per flight.

•Fuel efficiency (ASMs per fuel gallon) - Available seat miles divided by the total number of fuel gallons consumed.

•Load factor - The percentage of aircraft seating capacity actually utilized, calculated by dividing revenue passenger miles by available seat miles.

•Operating expense per available seat mile - Operating expenses divided by available seat miles.

•Operating expense per available seat mile, excluding fuel - Operating expenses, less aircraft fuel, other non-airline expenses, and special items, divided by available seat miles.

•Operating revenue per available seat mile - Operating revenues divided by available seat miles.

•Passenger revenue per available seat mile - Passenger revenue divided by available seat miles.

•Revenue passengers - The total number of paying passengers flown on all flight segments.

•Revenue passenger miles - The number of miles flown by revenue passengers.

•Yield per passenger mile - The average amount one passenger pays to fly one mile.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The risk inherent in our market risk sensitive instruments and positions is the potential loss arising from adverse changes to the price of fuel and interest rates as discussed below. The sensitivity analyses presented do not consider the effects such adverse changes may have on the overall economic activity, nor do they consider additional actions we may take to mitigate our exposure to such changes. Variable-rate leases are not considered market sensitive financial instruments and, therefore, are not included in the interest rate sensitivity analysis below. Actual results may differ from the sensitivity analyses. See Notes 1, 4 and 13 to our consolidated financial statements included in Part II., Item 8 for accounting policies and additional information.

Aircraft ~~fuel~~ Fuel

Our results of operations are affected by changes in the price and availability of aircraft fuel. Market risk is estimated as a hypothetical 10% increase in the December 31, ~~2024~~2025 cost per gallon of fuel. Based on projected ~~2025~~2026 fuel consumption, such an increase would result in an increase to aircraft fuel expense of $~~211~~200 million in ~~2025~~2026. As of December 31, ~~2024~~2025, we did not have any outstanding fuel hedging contracts.

Interest

Our earnings are affected by changes in interest rates due to the impact those changes have on interest expense from variable-rate debt instruments and on interest income generated from our cash and investment balances. The interest rate is fixed for $6.86 billion of our debt and finance lease obligations, with the remaining $1.79 billion having floating interest rates. If interest rates were on average 100 basis points higher in ~~2025~~2026 than they were during ~~2024~~2025, our annual interest expense would increase by approximately $1819 million. This amount is determined by considering the impact of the hypothetical change in interest rates on our variable rate debt.

If interest rates were to average 100 basis points lower in ~~2025~~2026 than they were during ~~2024~~2025, our interest income from cash and investment balances would ~~decrease~~increase by approximately $1317 million. This amount is determined by considering the impact of the hypothetical change in interest rates on the balances of our money market funds and short-term, interest-bearing investments for the trailing twelve-month period.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of JetBlue Airways Corporation

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of JetBlue Airways Corporation (the Company) as of December 31, ~~2024~~2025 and ~~2023~~2024, the related consolidated statements of operations, comprehensive loss, stockholders'’ equity and cash flows for each of the three years in the period ended December 31, ~~2024~~2025, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, ~~2024~~2025 and ~~2023~~2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, ~~2024~~2025, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company'’s internal control over financial reporting as of December 31, ~~2024~~2025, based on criteria established in Internal Control-—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 1412, ~~2025~~2026 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company'’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

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Loyalty Program - Breakage
Description of the Matter						As discussed in Note 1 to the consolidated financial statements, under the customer loyalty program, the Company issues points to customers based upon the fare paid for a ticket purchase or through sales to business partners, including the Company’s co-branded credit card partners. The Company defers a portion of the transaction price allocable to points issued and recognizes revenue when the points are redeemed for travel. The Company estimates breakage for issued points using historical redemption patterns and records revenue for points that are not expected to be redeemed. Estimates of breakage are evaluated annually, and changes to breakage estimates prospectively impact Passenger revenue and Air traffic liability. The balance of the Company’s Air traffic liability associated with the loyalty program was $1.12 billion at December 31, ~~2024~~2025.Auditing management’s estimates and calculations used in its accounting for the loyalty program is significant to our audit as the related impact to Passenger revenue and Air traffic liability is material and sensitive to changes in the breakage rate. The estimate of breakage by management requires the Company to forecast redemption patterns, which involves the application of judgment and estimation. As a result, auditing the Company’s accounting for the loyalty program breakage estimate was complex and highly judgmental.
How We Addressed the Matter in Our Audit						We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company’s accounting for the loyalty program, including controls over management'’s estimation of breakage rates and review of the significant assumptions underlying the determination of estimated redemption patterns.Our audit procedures included, among others, evaluating the significant assumptions and the accuracy and completeness of the underlying data used in management'’s ~~calculation~~calculations including the total number of points issued to and redeemed by customers. We involved our valuation professionals to assist us in our evaluation of the methodology used by the Company to estimate expected redemption patterns. We performed a sensitivity analysis of management’s estimate of points expected to be redeemed to evaluate the impact on Passenger revenue and Air traffic liability. We also tested the calculation used to determine the amount recognized as revenue for the period.

/s/ Ernst & Young LLP

We have served as the Company'’s auditor since 2001.

New York, New York

February 1412, ~~2025~~2026

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Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of JetBlue Airways Corporation

Opinion on Internal Control Over Financial Reporting

We have audited JetBlue Airways Corporation’s internal control over financial reporting as of December 31, ~~2024~~2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, JetBlue Airways Corporation (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, ~~2024~~2025, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, ~~2024~~2025 and ~~2023~~2024, the related consolidated statements of operations, comprehensive loss, stockholders’ equity and cash flows for each of the three years in the period ended December 31, ~~2024~~2025, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) and our report dated February 1412, ~~2025~~2026 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed 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. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

New York, New York

February 1412, ~~2025~~2026

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JETBLUE AIRWAYS CORPORATION

CONSOLIDATED BALANCE SHEETS

(in millions, except per share data)

December 31,

2024

2023

2025

2024

ASSETS

CURRENT ASSETS

Cash and cash equivalents

1,~~921~~946

1,~~166~~921

Investment securities

~~1,689~~213

~~401~~1,689

Receivables, less allowance (2024 - $6; 2023 - $3)

348

336

Receivables, less allowance (2025 - $6; 2024 - $6)

372

348

Inventories, less allowance (2024 - $43; 2023 - $35)

158

109

Spare parts, aircraft fuel and supplies, less allowance (2025 - $37; 2024 - $43)

193

158

Prepaid expenses and other

142

148

Restricted cash and cash equivalents

100

—

Total current assets

4,258

2,160

Prepaid expenses and other

414

142

Total current assets

3,238

4,258

PROPERTY AND EQUIPMENT

Flight equipment

14,~~103~~957

1214,~~796~~103

Pre-delivery deposits for flight equipment

~~315~~177

~~393~~315

Total flight equipment and pre-delivery deposits, gross

1415,~~418~~134

1314,~~189~~418

Less accumulated depreciation

4,~~243~~436

4,~~021~~243

Total flight equipment and pre-delivery deposits, net

10,~~175~~698

910,~~168~~175

Other property and equipment, gross

1,~~342~~377

1,~~310~~342

Less accumulated depreciation

~~861~~884

~~803~~861

Total other property and equipment, net

~~481~~493

~~507~~481

Total property and equipment, net

1011,~~656~~191

910,~~675~~656

OPERATING LEASE ASSETS

~~550~~868

~~593~~550

OTHER ASSETS

Investment securities

~~336~~318

~~163~~336

Restricted cash and cash equivalents

~~227~~249

~~151~~227

Intangible assets, net of accumulated amortization (2024 - $580; 2023 - $518)

399

349

Intangible assets, net of accumulated amortization (2025 - $622; 2024 - $580)

415

399

Other

~~415~~291

~~762~~415

Total other assets

1,~~377~~273

1,~~425~~377

TOTAL ASSETS

16,~~841~~570

1316,~~853~~841

See accompanying notes to consolidated financial statements.

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JETBLUE AIRWAYS CORPORATION

CONSOLIDATED BALANCE SHEETS

(in millions, except per share data)

December 31,

2024

2023

2025

2024

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

Accounts payable

~~619~~655

~~641~~619

Air traffic liability

1,~~572~~669

1,~~463~~572

Accrued salaries, wages and benefits

~~663~~680

~~591~~663

Other accrued liabilities

~~542~~550

~~509~~542

Current operating lease liabilities

9379

~~117~~93

Current maturities of long-term debt and finance lease obligations

~~392~~769

~~307~~392

Total current liabilities

34,~~881~~402

3,~~628~~881

LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS

87,~~147~~729

48,~~409~~147

LONG-TERM OPERATING LEASE LIABILITIES

~~510~~839

~~547~~510

DEFERRED TAXES AND OTHER LIABILITIES

Deferred income taxes

~~633~~447

~~743~~633

Air traffic liability - non-current

~~653~~704

~~740~~653

Other

~~376~~329

~~449~~376

Total deferred taxes and other liabilities

1,~~662~~480

1,~~932~~662

COMMITMENTS AND CONTINGENCIES (Notes 10 & 11)

STOCKHOLDERS' EQUITY

Preferred stock, $0.01 par value; 25 shares authorized, none issued

—

Common stock, $0.01 par value; 900 shares authorized, 513 and 499 shares issued and, 353 and 339 shares outstanding at 2024 and 2023, respectively

Common stock, $0.01 par value; 900 shares authorized, 532 and 513 shares issued and, 370 and 353 shares outstanding at 2025 and 2024, respectively

Treasury stock, at cost; 160 and 159 shares at 2024 and 2023, respectively

(2,005)

(1,999)

Treasury stock, at cost; 162 and 160 shares at 2025 and 2024, respectively

(2,013)

(2,005)

Additional paid-in capital

3,~~320~~412

3,~~221~~320

Retained earnings

~~1,319~~717

21,~~114~~319

Accumulated other comprehensive income (loss)

2(1)

~~(4)~~2

Total stockholders' equity

2,~~641~~120

32,~~337~~641

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

16,~~841~~570

1316,~~853~~841

See accompanying notes to consolidated financial statements.

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JETBLUE AIRWAYS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share data)

Years Ended December 31,

2024

2023

2022

2025

2024

2023

OPERATING REVENUES

Passenger

8,~~617~~336

98,~~008~~617

89,~~586~~008

Other

~~662~~726

~~607~~662

~~572~~607

Total operating revenues

9,~~279~~062

9,~~615~~279

9,~~158~~615

OPERATING EXPENSES

Aircraft fuel

2,~~343~~057

2,~~807~~343

32,~~190~~807

Salaries, wages and benefits

3,~~263~~453

3,~~055~~263

23,~~747~~055

Landing fees and other rents

~~659~~658

~~657~~659

~~544~~657

Depreciation and amortization

~~655~~688

~~621~~655

~~585~~621

Aircraft rent

9274

~~126~~92

~~114~~126

Sales and marketing

~~328~~305

~~316~~328

~~289~~316

Maintenance, materials and repairs

~~628~~791

~~654~~628

~~591~~654

Special items

~~591~~30

~~197~~591

~~113~~197

Other operating expenses

1,~~404~~374

1,~~412~~404

1,~~283~~412

Total operating expenses

9,~~963~~430

9,~~845~~963

9,~~456~~845

OPERATING LOSS

(~~684~~368)

(~~230~~684)

(~~298~~230)

OTHER INCOME (EXPENSE)

Interest expense

(~~365~~588)

(~~210~~365)

(~~166~~210)

Interest income

~~111~~127

70111

2170

Capitalized interest

159

1915

1819

Gain (loss) on investments, net

~~(27)~~18

9(27)

(9)

Gain on debt extinguishments

22—

—22

—

Other

3128

831

~~(3)~~8

Total other expense

(~~213~~406)

(~~104~~213)

(~~139~~104)

LOSS BEFORE INCOME TAXES

(~~897~~774)

(~~334~~897)

(~~437~~334)

Income tax benefit

~~102~~172

24102

7524

NET LOSS

(~~795~~602)

(~~310~~795)

(~~362~~310)

LOSS PER COMMON SHARE

Basic

(21.3066)

(02.9330)

(10.1293)

Diluted

(21.3066)

(02.9330)

(10.1293)

See accompanying notes to consolidated financial statements.

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JETBLUE AIRWAYS CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(in millions)

	Years Ended December 31,
	2024		2023		2022
	2025		2024		2023
NET LOSS	$	(~~795~~602)	$	(~~310~~795)	$	(~~362~~310)
Changes in fair value of available-for-sale investment securities and derivative instruments, net of reclassifications into earnings, net of taxes of $1, $2, and $0 in 2024, 2023, and 2022, respectively	6		(4)		—
Changes in fair value of available-for-sale investment securities and derivative instruments, net of reclassifications into earnings, net of taxes of $1, $1, and $2 in 2025, 2024, and 2023, respectively	(3)		6		(4)
Total other comprehensive income (loss)	6(3)		~~(4)~~6		—(4)
COMPREHENSIVE LOSS	$	(~~789~~605)	$	(~~314~~789)	$	(~~362~~314)

See accompanying notes to consolidated financial statements.

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JETBLUE AIRWAYS CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

	Years Ended December 31,
	2024		2023		2022
	2025		2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(~~795~~602)	$	(~~310~~795)	$	(~~362~~310)
Adjustments to reconcile net loss to net cash provided by operating activities:
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Deferred income taxes	(~~110~~183)		(27110)		(7327)
Depreciation and amortization	~~655~~688		~~621~~655		~~585~~621
Special items, non-cash	450		—		52
Spirit special items, non-cash	—		450		—
Gain on debt extinguishments	~~(22)~~—		—(22)		—
Stock-based compensation	3940		39		3039
Gain on sale-leaseback transactions	(17)		—		—
Gain on flight equipment transactions, net	(99)		(17)		—
Unrealized (gains) losses on investments	21(2)		—21		12—
Changes in certain operating assets and liabilities:
Decrease (increase) in receivables	4		(3)		(111)
(Increase) decrease in receivables	(22)		4		(3)
Decrease in inventories, prepaid and other	2		67		201
(Increase) decrease in inventories, prepaid and other	(63)		2		67
Increase (decrease) in air traffic liability	~~(10)~~116		(~~145~~10)		30(145)
Increase (decrease) in accounts payable and other accrued liabilities	~~(28)~~36		~~141~~(28)		26141
Other, net	(453)		17(45)		~~(11)~~17
Net cash provided by operating activities	144		400		379
Net cash (used in) provided by operating activities	(94)		144		400
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(1,~~478~~078)		(1,~~128~~478)		(~~767~~1,128)
Pre-delivery deposits for flight equipment	(~~141~~44)		(78141)		(~~156~~78)
Purchase of held-to-maturity investments	(~~752~~142)		(69752)		(~~142~~69)
Proceeds from the maturities of held-to-maturity investments	~~582~~84		12582		212
Purchase of available-for-sale securities	(~~1,778~~480)		(~~474~~1,778)		(~~473~~474)
Proceeds from the sale of available-for-sale securities	~~487~~2,041		~~489~~487		~~934~~489
Payment for Spirit Airlines acquisition	~~(22)~~—		(~~131~~22)		(~~297~~131)
Proceeds from the sale of assets and sale-leaseback transactions	30279		1230		—12
Other, net	(82)		(118)		(911)
Net cash used in investing activities	(3,080)		(1,378)		(908)
Net cash provided by (used in) investing activities	658		(3,080)		(1,378)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of long-term debt, net of issuance costs	~~3,793~~—		783,793		—78
Proceeds from failed sale-leaseback transactions	~~668~~—		~~1,331~~668		—1,331
Proceeds from issuance of common stock	6052		5360		5253
Repayment of long-term debt and finance lease obligations	(~~748~~461)		(~~347~~748)		(~~369~~347)
Acquisition of treasury stock	(68)		(46)		(64)
Other, net	—		~~(4)~~—		(374)
Net cash provided by (used in) financing activities	3,767		1,107		(360)
Net cash (used in) provided by financing activities	(417)		3,767		1,107
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS	831		129		(889)
INCREASE IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS	147		831		129
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period	12,~~317~~148		1,~~188~~317		21,~~077~~188
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period (1)	$	2,~~148~~295	$	12,~~317~~148	$	1,~~188~~317
SUPPLEMENTAL CASH FLOW INFORMATION
Cash payments for interest, net	$	(~~230~~427)	$	(80230)	$	(~~124~~80)
Cash proceeds (payments) for income taxes, net	(2)		49(2)		4549
NON-CASH TRANSACTIONS
Operating lease assets acquired under operating leases	$	58417	$	4658	$	3146
Flight equipment acquired under finance leases	~~122~~400		—122		—
(1) Refer to the table below for a reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents.

See accompanying notes to consolidated financial statements.

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JETBLUE AIRWAYS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(in millions)
	December 31,
	2024		2023		2022
	2025		2024		2023
Cash and cash equivalents	$	1,~~921~~946	$	1,~~166~~921	$	1,~~042~~166
Restricted cash and cash equivalents (2)	~~227~~349		~~151~~227		~~146~~151
Total cash, cash equivalents, restricted cash, and restricted cash equivalents	$	2,~~148~~295	$	12,~~317~~148	$	1,~~188~~317

(2) Restricted cash and restricted cash equivalents primarily consists of principal and interest payments held as a reserve associated with the financing of the TrueBlue® program, funds held in escrow for principal repayment of 0.50% convertible senior notes pursuant to the Citibank Line of Credit agreement, funds held for workers compensation obligations and various letters of credit.

See accompanying notes to consolidated financial statements.

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JETBLUE AIRWAYS CORPORATION

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(in millions)

	Common Stock Issued Shares Amount			Treasury Stock Shares Amount			AdditionalPaid-InCapital		RetainedEarnings		AccumulatedOtherComprehensiveIncome (Loss)		Total
Balance at December 31, 2021	478	$	5	158	$	(1,989)	$	3,047	$	2,786	$	—	$	3,849
Net loss	—	—		—	—		—		(362)		—		(362)
Vesting of restricted stock units	1	—		1	(6)		—		—		—		(6)
Stock compensation expense	—	—		—	—		30		—		—		30
Stock issued under Crewmember Stock Purchase Plan	7	—		—	—		52		—		—		52
Balance at December 31, 2022	486	$	5	159	$	(1,995)	$	3,129	$	2,424	$	—	$	3,563
Net loss	—	—		—	—		—		(310)		—		(310)
Other comprehensive loss	—	—		—	—		—		—		(4)		(4)
Vesting of restricted stock units	2	—		—	(4)		—		—		—		(4)
Stock compensation expense	—	—		—	—		39		—		—		39
Stock issued under Crewmember Stock Purchase Plan	11	—		—	—		53		—		—		53
Balance at December 31, 2023	499	$	5	159	$	(1,999)	$	3,221	$	2,114	$	(4)	$	3,337
Net loss	—	—		—	—		—		(795)		—		(795)
Other comprehensive income	—	—		—	—		—		—		6		6
Vesting of restricted stock units	2	—		1	(6)		—		—		—		(6)
Stock compensation expense	—	—		—	—		39		—		—		39
Stock issued under Crewmember Stock Purchase Plan	12	—		—	—		60		—		—		60
Balance at December 31, 2024	513	$	5	160	$	(2,005)	$	3,320	$	1,319	$	2	$	2,641
Net loss	—	—		—	—		—		(602)		—		(602)
Other comprehensive loss	—	—		—	—		—		—		(3)		(3)
Vesting of restricted stock units	4	—		2	(8)		—		—		—		(8)
Stock compensation expense	—	—		—	—		40		—		—		40
Stock issued under Crewmember Stock Purchase Plan	15	—		—	—		52		—		—		52
Balance at December 31, 2025	532	$	5	162	$	(2,013)	$	3,412	$	717	$	(1)	$	2,120

See accompanying notes to consolidated financial statements.

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JETBLUE AIRWAYS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JetBlue Airways Corporation ("JetBlue") is New York's Hometown Airline®. We believe our differentiated product and service offerings combined with our competitive cost advantage enables us to effectively compete in the high-value geography we serve. As of December 31, ~~2024~~2025, we served ~~over~~112 ~~100~~ destinations ~~throughout~~across the United States, Latin America, the Caribbean, Canada, and Europe.

Note 1 - Summary of Significant Accounting Policies

Basis of Presentation

JetBlue provides air transportation services across the United States, Latin America, the Caribbean, Canada, and Europe. Our consolidated financial statements have been prepared in accordance with ~~accounting principles~~ generally accepted accounting principles in the United States ("GAAP"), and include the accounts of JetBlue and our subsidiaries. All majority-owned subsidiaries are consolidated with all intercompany transactions and balances being eliminated.

~~We have reclassified certain prior period balances to conform to the current period presentation.~~ Unless otherwise noted, all amounts disclosed are stated before consideration of income taxes.

Use of Estimates

The preparation of our consolidated financial statements and accompanying notes in conformity with GAAP requires us to make certain estimates and assumptions. Actual results could differ from those estimates.

Fair Value

The Fair Value Measurements and Disclosures Topic of the Financial Accounting Standards Board (the "FASB") Accounting Standards Codification® ("ASC" or the "Codification") establishes a framework for measuring fair value and requires enhanced disclosures about fair value measurements. This topic clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The topic also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs. Refer to Note 13 for more information.

Cash and Cash Equivalents

Our cash and cash equivalents include short-term, highly liquid investments which are readily convertible into cash. These investments include money market securities, commercial paper, and time deposits with maturities of three months or less when purchased.

Restricted Cash and Cash Equivalents

Restricted cash and cash equivalents primarily consists of money held as a reserve for principal and interest payments associated with the financing of the TrueBlue® program, cash held in escrow related to the Citibank revolving credit facility, and letters of credit. The letters of credit relate to a certain number of leases, which will expire at the end of the related lease terms as well as a $65 million letter of credit relating to our 5% ownership in JFK Millennium Partners ("JMP"), a private entity that will finance, develop, and operate ~~John F. Kennedy International Airport ("~~JFK") Terminal 6. Additionally, we ~~have~~had cash pledged inrelated ~~connection~~to ~~with~~funds held for workers compensation obligations and other business partner agreements, which ~~pledges~~ will expire according to the terms of the ~~applicable~~ related ~~agreement~~agreements.

Accounts Receivable

Accounts receivable are carried at cost, which primarily consist of amounts due from credit card companies related to sales of tickets for future travel and amounts due from our co-branded credit card partners. We estimate an allowance for expected credit losses based on known troubled accounts, if any, and historical experience of losses incurred, as well as current and expected conditions.

Investment Securities

Investment in Debt Securities

Investments in debt securities consist of available-for-sale investment securities and held-to-maturity investment securities. Realized gains and losses are recorded using the specific identification method in gain (loss) investments, net inon the consolidated statements of operations. Unrealized gains and losses on available-for-sale securities are reflected in accumulated other comprehensive income (loss) on the consolidated balance sheets. Refer to Note 13 for an explanation of the fair value hierarchy structure and Note 14 for more information.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Investment in Equity Securities

Equity method investments. Investments in which we can exercise significant influence are accounted for using the equity method in accordance with ASC Topic 323, Investments - Equity Method and Joint Ventures of the Codification.

Equity investment securities. Our equity investment securities include investments in common stocks of publicly traded companies which are stated at fair value.

Equity investments. Our wholly owned subsidiary, JetBlue Technology Ventures LLC, has equity investments in emerging companies which do not have readily determinable fair values and are accounted for using a measurement alternative.

TWA Hotel. We have an approximate 10% ownership interest in the TWA Flight Center Hotel at JFK, and it is accounted for under the measurement alternative in other assets section of the consolidated balance sheets.

Refer to Note 14 for more information.

Derivative Instruments

As part of our risk management strategy, we periodically purchase energy derivatives. Our derivative instruments include fuel hedge contracts, such as jet fuel call options and call option spreads, which are stated at fair value, net of any collateral postings. Derivative instruments are included in other current assets on our consolidated balance sheets. As of December 31, ~~2024~~2025, we did not have any outstanding fuel hedging contracts. Refer to Note 12 for more information.

~~Inventories~~ Spare Parts, Aircraft Fuel and Supplies

~~Inventories~~Expendable ~~consist of expendable~~ aircraft spare parts and supplies ~~that~~ are stated at average cost, aswhile ~~well as~~ aircraft fuel ~~that~~ is accounted for on a first-in, first-out basis. These items are expensed when used or consumed. An allowance for obsolescence on aircraft spare parts and supplies is provided over the remaining useful life of the related aircraft fleet.

Property and Equipment

We record property and equipment at cost and depreciate to an estimated residual value on a straight-line basis over the asset's estimated useful life. We capitalize additions, asset modifications which extend the useful life or enhance performance, as well as interest related to pre-delivery deposits used to acquire new aircraft and the construction of our facilities.

Estimated useful lives and residual values for property and equipment are summarized as follows:

Property and Equipment Type	Estimated Useful Life	Residual Value
Aircraft (1)	25 years	20	%
Inflight entertainment systems	5-10 years	0	%
Aircraft equipment	5-12 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	Lower of lease term or economic life	0	%

(1) The ~~estimated remaining useful life of our Embraer E190 fleet is less than 1 year with an average residual value of 12%. In addition, the~~ Company is pursuing capital-light growth and as a result ~~certain~~the ~~Airbus A320 airframes were extended to an~~ estimated useful ~~life~~lives of ~~between~~certain 33Airbus toA320 35airframes ~~years~~were ~~with~~extended anbeyond ~~average~~25 ~~residual value of $1~~years.~~5 million.~~

Property under finance leases is initially recorded at an amount equal to the present value of future minimum lease payments which is computed on the basis of our incremental borrowing rate or, when known, the interest rate implicit in the lease. Amortization of property under finance leases is on a straight-line basis over the expected useful life to their estimated residual values and is included in depreciation and amortization expense on our consolidated statements of operations.

We record impairment losses on long-lived assets used in operations when events and circumstances indicate the ~~assets~~asset groups may be impaired and the undiscounted future cash flows estimated to be generated by the asset groups are less than the asset groups' net book value. If impairment occurs, the loss is measured by comparing the fair value of the asset to its carrying amount.

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WeFor ~~did~~property ~~not~~and ~~record~~equipment ~~any~~classified as held for sale, we discontinue depreciation and record impairment losses ~~for~~if the ~~years~~fair ~~ended~~value ~~December 31,~~less ~~2024~~cost ~~and~~to ~~2023~~sell is lower than the carrying amount of those assets. InFor ~~2022~~the year ended December 31, 2025, we recorded a $5213 million in impairment ~~losses~~loss ~~relating~~related to ~~our~~assets ~~Embraer~~classified ~~E190~~as ~~fleet~~held ~~transition.~~for ~~These~~sale, ~~losses~~which ~~were~~is ~~attributed~~included toin ~~aircraft~~other ~~and~~operating ~~related~~expenses ~~spare~~on ~~parts~~our ~~including~~consolidated statement of operations. We did not record any impairment losses for the ~~ones~~years ~~under~~ended ~~operating~~December 31, ~~leases~~2024 and 2023. Refer to Note 1713 for additional information.

~~For property and equipment classified as held for sale, we discontinue depreciation and record impairment losses if the fair value is lower than the carrying amount of those assets.~~ As of December 31, 2025 and 2024, we had $138 million and $33 million, respectively, classified as held for sale within prepaid expenses and other in current assets on the consolidated balance sheets. ~~These~~Refer ~~assets are primarily Embraer E190 aircraft and Airbus A320 spare engines permanently parked and expected~~ to ~~sell~~Note ~~within~~10 ~~the~~for ~~next~~additional ~~12 months~~information.

Software

We capitalize certain costs related to the acquisition and development of computer software. We amortize these costs using the straight-line method over the estimated useful life of the software, which is generally five years. The net book value of computer software, which is included in intangible assets on our consolidated balance sheets, was $~~138~~152 million and $~~157~~138 million as of December 31, ~~2024~~2025 and ~~2023~~2024, respectively. Amortization expense related to computer software was $7266 million, $6272 million, and $5162 million for the years ended December 31, ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023, respectively. As of December 31, ~~2024~~2025, amortization expense related to computer software is expected to be as follows (in millions):

	Amortization Expense
2025	$	54
2026	$	55
2026	38
2027	46
2027	29
2028	31
2028	14
2029	15
2029	3
2030	5

Indefinite-Lived Intangible Assets

Our indefinite-lived intangible assets consist primarily of acquired slots at certain high density airports which results in no amortization of expense. Slots are the rights to take-off or land at a specific airport during a specified time of day and are a means by which airport capacity and congestion can be managed. We evaluate our indefinite-lived intangible assets for impairment on an annual basis, or more frequently as needed when events and circumstances indicate an impairment may exist. Impairment indicators include operating or cash flow losses as well as various market factors to determine if events and circumstances could reasonably have affected the fair value. As of December 31, ~~2024~~2025 and ~~2023~~2024, our indefinite-lived intangible assets, which are included in intangible assets on our consolidated balance sheets, were $139 million. We performed an impairment assessment as of December 31, ~~2024~~2025 and determined our indefinite-lived intangible assets were not impaired.

Passenger Revenue

Ticket sales and related ancillary fees are initially deferred in air traffic liability. Air traffic liability represents tickets sold but not yet flown, credits which can be used for future travel, and a portion of the liability related to our TrueBlue® loyalty program. The transaction price is allocated to each performance obligation identified in a passenger ticket based on a relative standalone ~~basis~~selling price. Passenger revenue, including certain ancillary fees directly related to passenger tickets, is recognized when transportation is provided. Taxes that we are required to collect from our customers, including foreign and U.S. federal transportation taxes, security taxes, and airport facility charges, are excluded from passenger revenue. Those taxes and fees are recorded as a liability upon collection and are relieved from the liability upon remittance to the applicable governmental agency.

The majority of passenger tickets sold are non-refundable. Non-refundable fares may be canceled prior to the scheduled departure date for a credit for future travel. Refundable fares may be canceled at any time prior to the scheduled departure date. Failure to cancel a refundable fare prior to departure will result in the cancellation of the original ticket and an issuance of a credit for future travel. ~~Passenger~~Most passenger credits can be used for future travel up to one year from the date of booking. Passenger breakage revenue from unused tickets and passenger credits will be recognized in proportion to flown revenue based on estimates of expected expiration when the likelihood of the customer exercising his or her remaining rights becomes remote. Breakage revenue consists of tickets that remain unused past the departure date, have continued validity, and are expected to ultimately expire unused, as well as passenger credits that are not expected to be redeemed prior to expiration. JetBlue uses estimates based on historical experience of expired tickets and credits and considers other factors that could impact future expiration patterns of tickets and credits. Tickets which do not have continued validity past the departure date are recognized as revenue after the scheduled departure date has lapsed.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Passenger ticket costs primarily include credit card fees, commissions paid, and global distribution systems booking fees. Costs are allocated entirely to the purchased travel services and are capitalized until recognized when travel services are provided to the customer.

Loyalty Program

Points Earned From a Ticket Purchase. When a TrueBlue® member travels, we recognize a portion of the fare as revenue and defer in air traffic liability the portion that represents the value of the points net of spoilage, or breakage. The transaction price is allocated to each performance obligation on a relative standalone selling price basis. We determine the ~~relative~~ standalone selling price of TrueBlue® points issued using the redemption value approach. To maximize the use of observable inputs, we utilize the actual ticket value of the tickets purchased with TrueBlue® points. The liability is relieved and passenger revenue is recognized when points are redeemed and free travel is provided.

Points Sold to TrueBlue® Partners. Our most significant contract to sell TrueBlue® points is with our co-branded credit card partner. Co-branded credit card partnerships have the following identified performance obligations: air transportation; use of the JetBlue brand name and access to our frequent flyer customer lists; advertising; and other airline benefits. In determining the ~~relative~~ standalone selling price for co-brand credit card arrangements, JetBlue considered multiple inputs, methods and assumptions, including: discounted cash flows; estimated redemption value, net of fulfillment discount; points expected to be awarded and redeemed; estimated annual spending by cardholders; estimated annual royalty for use of JetBlue's frequent flyer customer lists; and estimated utilization of other airline benefits. Payments are typically due monthly based on the volume of points sold during the period, and the terms of our contracts are generally from one to ten years. The overall consideration received is allocated to each performance obligation based on its relative standalone selling price. The air transportation element is deferred and recognized as passenger revenue when the points are redeemed. The other elements are recognized as other revenue when the performance obligations related to those services are satisfied, which is generally the same period as when consideration is received from the participating company.

Aircraft Fuel

Aircraft fuel consists of the cost of jet fuel, related taxes, into-plane, transportation, airport fuel flowage, and storage fees. It also includes realized gains and losses arising from fuel derivatives.

Airframe and Engine Maintenance and Repairs

Regular airframe maintenance for owned and leased flight equipment is expensed as incurred unless covered by a third-party long-term flight hour service agreement. We have separate service agreements in place covering scheduled and unscheduled repairs of certain airframe line replacement unit components as well as engines in our fleet. Certain of these agreements are under a power-by-the-hour agreement, which requires monthly payments at rates based on either the number of operating aircraft cycles or engine flight hours each month in exchange for a predetermined maintenance program. These power-by-the-hour agreements, if they meet certain criteria, transfer risk to the third-party service provider and therefore, are expensed based on actual flight hours or aircraft cycles occurring each period.

Advertising Costs

Advertising costs, which are included in sales and marketing on our consolidated statements of operations, are expensed as incurred. Advertising expense was $7976 million in ~~2024~~2025, $6679 million in ~~2023~~2024, and $5966 million in ~~2022~~2023.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Share-Based Compensation

We record compensation expense for share-based awards based on the grant date fair value of those awards. Share-based compensation expense includes an estimate for pre-vesting forfeitures. Each vesting portion of an award is recognized over the requisite service periods of the awards on a straight-line basis. Refer to Note 7 for more information.

Income Taxes

We account for income taxes utilizing the liability method. Deferred income taxes are recognized for the tax consequences of temporary differences between the tax and financial statement reporting bases of assets and liabilities. A valuation allowance for deferred tax assets is provided unless realization of the asset is judged by us to be more likely than not. Our policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. Refer to Note 8 for more information.

Recently Issued Accounting Pronouncements

Recently Adopted Standards

Accounting Standards Update 2023-09—Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09)

ASU 2023-09 requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. ASU 2023-09 requires disaggregation of the effective tax rate reconciliation at a threshold of 5% of our federal rate of 21%. Income taxes paid (net of refunds received) ~~will~~is be required to be disaggregated by federal, state and foreign jurisdictions. The disaggregation is based on a quantitative threshold of 5% of total income taxes paid, net of refunds received. Income (loss) before income tax benefit (expense) is also required to be disaggregated between domestic and foreign jurisdictions. ASU 2023-09 eliminates the requirement to disclose ~~the~~details ~~cumulative amounts~~ of ~~temporary~~tax ~~differences~~positions ~~not~~for ~~recognized~~which ~~due~~the toamount ~~deferred~~of unrecognized tax ~~liabilities.~~benefits ~~The~~may ~~standard~~significantly isincrease ~~effective~~or ~~for~~decrease ~~fiscal~~in ~~years~~the ~~beginning~~next ~~after~~12 ~~December 15, 2024~~months. The ~~standard~~Company ~~will~~has beadopted ~~applied~~the ~~prospectively,~~standard ~~with~~effective ~~the~~December ~~option~~31, to2025 ~~apply~~ on a ~~retrospective~~prospective basis., ~~Early~~and ~~adoption~~it isdid ~~permitted. The Company is evaluating the new standard but does~~ not ~~expect it to~~ have a material impact on the Company’'s ~~results~~consolidated ~~of operations or~~ financial ~~position~~statements.

~~Accounting~~ Standards ~~Update~~Effective ~~2023-07—Segment~~in ~~Reporting~~Future ~~(Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07)~~Years

~~ASU~~Accounting ~~2023-07~~Standards ~~requires~~Update a2024-03 ~~reporting~~— ~~entity~~Income toStatement ~~disclose~~— ~~significant~~Reporting ~~segment~~Comprehensive ~~expense~~Income ~~categories~~— ~~and~~Expense ~~other~~Disaggregation ~~segment~~Disclosures ~~items for each reportable segment on an annual and interim basis. Annual disclosures about a segments income~~ (~~loss~~Subtopic 220-40): ~~will~~Disaggregation ~~be required on an interim basis. We adopted this standard effective December 31, 2024, and it did not have a material impact on our results~~ of ~~operations~~Income orStatement ~~financial~~Expenses ~~position.~~(ASU ~~Refer to Note 16 for more information.~~ 2024-03)

ASU 2024-03 requires entities to disclose disaggregated information regarding specific expense categories in the notes to the financial statements for both interim and annual periods. The standard is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027. The standard will be applied prospectively, with the option to apply on a retrospective basis. Early adoption is permitted. The Company is evaluating the new standard but does not expect it to have a material impact on the Company's consolidated financial statements.

Accounting Standards Update 2025-06—Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06)

ASU 2025-06 updates the accounting guidance for internal-use software costs. The standard removes references to development stages and requires capitalization of software costs when management has authorized and committed to funding the software project, it is probable that the project will be completed, and the software will be used to perform the function intended. The standard is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. The standard may be applied prospectively, retrospectively, or using a modified transition method. Early adoption is permitted. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements.

Note 2 - Revenue Recognition

The Company categorizes revenue recognized from contracts with its customers by revenue source as we believe it best depicts the nature, amount, timing, and uncertainty of our revenue and cash flow. The following table provides revenue recognized by revenue source for the years ended December 31, ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023 (in millions):

	Twelve Months Ended December 31,
	2024		2023		2022
Passenger revenue
Passenger travel	$	7,983	$	8,403	$	8,078
Loyalty revenue - air transportation	634		605		508
Other revenue
Loyalty revenue	464		422		391
Other revenue	198		185		181
Total operating revenue	$	9,279	$	9,615	$	9,158

TrueBlue® is our customer loyalty program designed to reward and recognize our customers. TrueBlue® points earned from ticket purchases are recorded as a reduction to Passenger travel within passenger revenue. Amounts presented in Loyalty revenue - air transportation represent revenue recognized when TrueBlue® points have been redeemed and travel has occurred. Loyalty revenue within other revenue primarily consists of the non-air transportation elements from the sale of TrueBlue® points.

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	Twelve Months Ended December 31,
	2025		2024		2023
Passenger revenue
Passenger travel	$	7,667	$	7,983	$	8,403
Loyalty revenue - air transportation	669		634		605
Other revenue
Loyalty revenue	521		464		422
Other revenue	205		198		185
Total operating revenue	$	9,062	$	9,279	$	9,615

Contract Liabilities

Our contract liabilities primarily consist of ticket sales for which transportation has not yet been provided, unused credits available to customers, and outstanding loyalty points available for redemption (in millions):

	December 31, 2024		December 31, 2023
	December 31, 2025		December 31, 2024
Air traffic liability - passenger travel	$	1,073	$	1,099
Air traffic liability - passenger travel (1)	$	1,123	$	1,073
Air traffic liability - loyalty program (air transportation)	1,~~125~~227		1,~~072~~125
Deferred revenue - passenger travel and loyalty program travel (1)	389		455
Deferred revenue - passenger travel and loyalty program travel (2)	334		389
Deferred revenue - other (2)	27		32
Deferred revenue - other (3)	25		27
Total	$	2,~~614~~709	$	2,~~658~~614

(1) ~~Included~~The ~~within~~balance ~~other~~as ~~accrued~~of ~~liabilities~~December 31, ~~and~~2025 includes a $2 million travel bank liability recognized within other liabilities on our consolidated balance sheets.

(2) Included within ~~air~~other ~~traffic~~accrued ~~liability~~liabilities and other liabilities on our consolidated balance sheets.

~~During~~(3) ~~the~~Included ~~years~~within ~~ended~~air ~~December 31,~~traffic ~~2024 and 2023, we recognized passenger revenue of $1.1 billion and $1.2 billion, respectively, which was included in passenger travel~~ liability aton ~~the~~our ~~beginning~~consolidated ofbalance ~~the respective periods~~sheets.

During each of the years ended December 31, 2025 and 2024, we recognized passenger revenue of $1.1 billion, which was included in passenger travel liability at the beginning of the respective periods.

The Company elected the practical expedient that allows entities to not disclose the amount of the remaining transaction price and its expected timing of recognition for passenger tickets if the contract has an original expected duration of one year or less or if certain other conditions are met. We elected to apply this practical expedient to our contract liabilities relating to passenger travel and ancillary services as our tickets or any related passenger credits expire generally one year from the date of booking.

TrueBlue® points are combined into one homogeneous pool and are not separately identifiable. As such, the revenue is comprised of points that were part of the air traffic liability balance at the beginning of the period as well as points that were issued during the period.

The table below presents the activity of the current and non-current air traffic liability for our loyalty program, and includes points earned and sold to participating companies for the years ended December 31, 2024 and 2023 (in millions):

Balance at December 31, 2022	$	1,000
TrueBlue® points redeemed passenger	(605)
TrueBlue® points redeemed other	(24)
TrueBlue® points earned and sold	701
Balance at December 31, 2023	1,072
TrueBlue® points redeemed passenger	(634)
TrueBlue® points redeemed other	(26)
TrueBlue® points earned and sold	713
Balance at December 31, 2024	$	1,125

The timing of our TrueBlue® point redemptions can vary; however, the majority of points are redeemed within approximately two years of the date of issuance.

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Balance at December 31, 2023	$	1,072
TrueBlue® points redeemed passenger	(634)
TrueBlue® points redeemed other	(26)
TrueBlue® points earned and sold	713
Balance at December 31, 2024	1,125
TrueBlue® points redeemed passenger	(669)
TrueBlue® points redeemed other	(40)
TrueBlue® points earned and sold	811
Balance at December 31, 2025	$	1,227

The timing of our TrueBlue® point redemptions can vary; however, the majority of points are redeemed within approximately two years of the date of issuance.

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Note 3 - Long-term Debt, Short-term Borrowings, and Finance Lease Obligations

Long-term debt and finance lease obligations and the related weighted average contractual interest rate at December 31, ~~2024~~2025 and ~~2023~~2024 consisted of the following (in millions):

	December 31, 2024				December 31, 2023
	December 31, 2025				December 31, 2024
Secured Debt
Fixed rate special facility bonds, due through 2036	$	43	5.0	%	$	43	5.0	%
Fixed rate enhanced equipment notes:
2019-1 Series AA, due through 2032	~~452~~424		2.8	%	~~481~~452		2.8	%
2019-1 Series A, due through 2028	~~141~~132		3.0	%	~~150~~141		3.0	%
2019-1 Series B, due through 2027	5845		8.1	%	7158		8.1	%
2020-1 Series A, due through 2032	~~469~~428		4.1	%	~~511~~469		4.1	%
2020-1 Series B, due through 2028	~~100~~82		7.8	%	~~118~~100		7.8	%
Fixed rate equipment notes, due through 2028	~~219~~127		4.30	%	~~323~~219		4.3	%
Floating rate equipment notes, due through 2036 (1)	~~742~~673		76.47	%	~~109~~742		7.4	%
Aircraft failed sale-leaseback transactions, due through 2036 (1)	2,~~221~~103		76.09	%	12,~~649~~221		7.0	%
TrueBlue® senior secured notes, due through 2031	1,~~988~~990		9.9	%	—1,988		—9.9	%
TrueBlue® senior secured term loan facility, due through 2029 (1)	~~749~~744		98.98	%	—749		—9.9	%
Finance leases	~~116~~449		56.83	%	—116		—5.8	%
Unsecured Debt
Unsecured CARES Act Payroll Support Program loan, due through 2030	259		2.0	%	259		2.0	%
Unsecured Consolidated Appropriations Act Payroll Support Program Extension loan, due through 2031	144		2.0	%	144		2.0	%
Unsecured American Rescue Plan Act of 2021 Payroll Support loan, due through 2031	132		2.0	%	132		2.0	%
0.50% convertible senior notes, due through 2026	325		0.5	%	~~750~~325		0.5	%
2.50% convertible senior notes, due through 2029	460		2.5	%	—460		—2.5	%
Total debt and finance lease obligations	$	8,~~618~~560			$	48,~~740~~618
Less: Debt issuance costs	(7962)				(2479)
Less: Current maturities	(~~392~~769)				(~~307~~392)
Long-term debt and finance lease obligations	$	87,~~147~~729			$	48,~~409~~147

(1) Certain debt bears interest at a floating rate equal to Secured Overnight Financing Rate ("SOFR"), plus a margin.

Fixed Rate Specialty Bonds, Due Through 2036

In November 2005, the Greater Orlando Aviation Authority ("GOAA") issued special purpose airport facilities revenue bonds to JetBlue as reimbursement for certain airport facility construction and other costs. In April 2013, GOAA issued $42 million in special purpose airport facility revenue bonds to refund the bonds issued in 2005. The proceeds from the refunded bonds were loaned to us and we recorded the issuance of $43 million, net of $1 million premium, as long-term debt on our consolidated balance sheets.

Fixed Rate Enhanced Equipment Notes

We have financed certain aircraft with Enhanced Equipment Trust Certificates ("EETCs"). One of the benefits of this structure is being able to finance several aircraft at one time, rather than individually. The structure of EETC financing is that we create pass-through trusts in order to issue pass-through certificates. The proceeds from the issuance of these certificates are then used to purchase equipment notes which are issued by us and are secured by our aircraft. These trusts meet the definition of a variable interest entity ("VIE"), as defined in Topic 810, Consolidation of the FASB Codification, and must be considered for consolidation in our financial statements. Our assessment of our EETCs considers both quantitative and qualitative factors including the purpose for which these trusts were established and the nature of the risks in each. The main purpose of the trust

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structure is to enhance the credit worthiness of our debt obligation through certain bankruptcy protection provisions and liquidity facilities, and also to lower our total borrowing cost. We concluded that we are not the primary beneficiary in these trusts because our involvement in them is limited to principal and interest payments on the related notes, the trusts were not set up to pass along variability created by credit risk to us and the likelihood of our defaulting on the notes. Therefore, we have not consolidated these trusts in our financial statements.

2019-1 Equipment Notes

In November 2019, we completed a public placement of equipment notes in an aggregate principal amount of $772 million secured by 25 Airbus A321 aircraft. The equipment notes were issued in two series: (i) Series AA, bearing interest at the rate of 2.75% per annum in the aggregate principal amount equal to $589 million, and (ii) Series A, bearing interest at the rate of 2.95% per annum in the aggregate principal amount equal to $183 million. Principal and interest are payable semi-annually.

In August 2020, we completed a public placement of equipment notes in an aggregate principal amount of $115 million bearing interest at a rate of 8.00% per annum. These equipment notes are secured by the 25 Airbus A321 aircraft included in the collateral pool of our 2019-1 Series AA and Series A offerings completed in November 2019. Principal and interest are payable semi-annually.

2020-1 Equipment Notes

In August 2020, we completed a public placement of equipment notes in an aggregate principal amount of $808 million secured by 24 Airbus A321 aircraft. The equipment notes were issued in two series: (i) Series A, bearing interest at the rate of 4.00% per annum in the aggregate principal amount equal to $636 million, and (ii) Series B, bearing interest at the rate of 7.75% per annum in the aggregate principal amount equal to $172 million. Principal and interest are payable semi-annually.

Fixed Rate Equipment Notes, Due Through 2028

In 2018 and 2019, we issued fixed rate equipment notes of $567 million and $219 million, respectively. In 2022, we prepaid approximately $11 million of debt on fixed rate equipment notes. These notes mature on an aircraft-by-aircraft basis from September 2022 through December 2028 and as of December 31, ~~2024~~2025 are secured by 2312 Airbus aircraft.

Floating Rate Equipment Notes, Issued in 2024

In 2024, we issued $662 million in floating rate equipment notes. Debt incurred matures on an aircraft-by-aircraft basis from December 2027 through November 2036, with principal and interest payable quarterly in arrears.

Aircraft Failed Sale-Leaseback Transactions, Issued in 2024

In 2024, we entered into $668 million of aircraft failed sale-leaseback transactions. Debt incurred under these failed sale-leasebacks matures on an aircraft-by-aircraft basis from January 2034 through December 2036. These sale-leasebacks did not qualify as sales for accounting purposes. The assets associated with these transactions remain on our consolidated balance sheets within property and equipment and the related liabilities under the lease are classified within debt and finance ~~leases~~lease obligations. These transactions are treated as cash from financing activities on our consolidated statements of cash flows.

TrueBlue® Financings

TrueBlue® Senior Secured Notes

In August 2024, JetBlue and JetBlue Loyalty, LP ("Loyalty LP" and, together with the Company, the "TrueBlue® Issuers") co-issued $2.0 billion aggregate principal amount of senior secured notes due 2031 (the "TrueBlue® Notes"). The TrueBlue® Notes bear interest at a rate of 9.875% per annum, in each case payable quarterly in arrears beginning in December 2024. The TrueBlue® Notes are scheduled to mature in September 2031, unless earlier redeemed or repurchased by the TrueBlue® Issuers.

The TrueBlue® Notes were issued under an indenture (the "TrueBlue® Indenture"), dated as of August 27, 2024, by and among the TrueBlue® Issuers, the guarantors party thereto (the "Guarantors") and Wilmington Trust, National Association, as trustee. The TrueBlue® Notes were sold pursuant to a purchase agreement, dated August 13, 2024, by and among the TrueBlue® Issuers, the Guarantors and Goldman Sachs & Co. LLC and Barclays Capital Inc., as representatives of the several initial purchasers identified therein.

The TrueBlue® Notes are fully and unconditionally guaranteed on a senior secured basis, jointly and severally, by each of the Guarantors. The TrueBlue® Notes and the TrueBlue® Note guarantees are secured, together with all outstanding obligations

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

under the TrueBlue® Term Loan Facility (as defined below), by a first lien on certain collateral in connection with the Company’'s customer loyalty program, TrueBlue® (the "Collateral").

At any time prior to August 27, 2027, the TrueBlue® Issuers may redeem the TrueBlue® Notes, in whole or in part, at a price equal to 100% of the principal amount thereof, plus an applicable "make-whole" premium. On or after August 27, 2027, the TrueBlue® Issuers may redeem the TrueBlue® Notes, in whole or in part, at the applicable redemption prices described in the Indenture. No sinking fund is provided for the TrueBlue® Notes, which means the TrueBlue® Issuers are not required to set aside funds periodically for redemption or retirement of the TrueBlue® Notes. Upon the occurrence of certain circumstances, the TrueBlue® Issuers will prepay a pro rata portion of the TrueBlue® Notes.

The TrueBlue® Indenture contains customary affirmative, negative and financial covenants including compliance with certain debt service coverage ratios and minimum liquidity requirements as well as events of default. In the case of an event of default with respect to the TrueBlue® Issuers and/or the Guarantors arising from specified events of bankruptcy or insolvency, all outstanding TrueBlue® Notes will become due and payable immediately without further action or notice.

TrueBlue® Senior Secured Term Loan Facility

InAs previously disclosed, in August 2024, the Company and Loyalty LP entered into a ~~new~~ senior secured term loan credit and guaranty agreement among the Company and Loyalty LP, as co-borrowers, the Guarantors, the lenders party thereto, Barclays Bank PLC, as administrative agent, and Wilmington Trust, National Association, as collateral administrator, for a $765 million senior secured term loan facility (the "TrueBlue® Term Loan Facility") due 2029. The TrueBlue® Term Loan Facility is guaranteed by the Guarantors and secured, on a pari passu basis with the TrueBlue® Notes, by the Collateral. The loans under the TrueBlue® Term Loan Facility bear interest at a variable rate equal to Term SOFR plus an applicable margin (subject to a Term SOFR floor), or another index rate plus an applicable margin. ~~The TrueBlue® Term Loan Facility is subject to quarterly amortization payments beginning in December 2024.~~

~~The~~On ~~TrueBlue®~~February ~~Term~~28, ~~Loan Facility also contains mandatory prepayment provisions~~2025, ~~which~~the ~~may~~Company ~~require~~entered into the ~~co-borrowers,~~First inAmendment ~~certain instances,~~ to ~~prepay obligations owing under~~ the TrueBlue® Term Loan Facility ~~or other priority lien debt in connection with~~, ~~among~~which ~~other~~amended ~~things, dispositions of collateral or a change of control. Any prepayment of~~ the ~~loans~~interest ~~under~~rate ~~the TrueBlue® Term Loan Facility prior~~ to ~~the~~SOFR ~~maturity~~plus ~~date (other than as a result of~~ an ~~early~~applicable ~~amortization~~margin ~~event, an event~~ of ~~default or certain other mandatory prepayment events thereunder) may require the TrueBlue® Issuers to pay a prepayment premium~~4.75%.

The TrueBlue® Term Loan Facility also contains mandatory prepayment provisions, which may require the co-borrowers, in certain instances, to prepay obligations owed under the TrueBlue® Term Loan Facility or other priority lien debt in connection with, among other things, dispositions of collateral or a change of control. Any prepayment of the loans under the TrueBlue® Term Loan Facility prior to the maturity date (other than as a result of an early amortization event, an event of default or certain other mandatory prepayment events thereunder) may require the TrueBlue® Issuers to pay a prepayment premium.

The TrueBlue® Term Loan Facility contains covenants and events of default substantially similar to those applicable to the TrueBlue® Notes, including a cross-default to other material indebtedness including the TrueBlue® Notes.

Federal Payroll Support Programs, Due Through 2031

As a result of the adverse economic impact of COVID-19, in 2020 and 2021 we received assistance under various payroll support programs provided by the federal government.

CARES Act – Payroll Support Program

On March 27, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"). Under the CARES Act, assistance was made available to the aviation industry in the form of direct payroll support (the "Payroll Support Program") and secured loans (the "Loan Program").

On April 23, 2020, we entered into a Payroll Support Program Agreement (the "PSP Agreement") under the CARES Act with the United States Department of the Treasury ("Treasury") governing our participation in the Payroll Support Program. Under the Payroll Support Program, Treasury provided us with a total of approximately $963 million (the "Payroll Support Payments") consisting of $704 million in grants and $259 million in unsecured term loans. The loans have a 10-year term and bear interest on the principal amount outstanding at an annual rate of 1.00% until April 23, 2025, and the applicable SOFR plus 2.00% thereafter until April 23, 2030. The principal amount may be repaid at any time prior to maturity at par. As part of the agreement, JetBlue issued to Treasury warrants to acquire more than 2.7 million shares of our common stock under the program at an exercise price of $9.50 per share.

Consolidated Appropriations Act – Payroll Support Program 2

On January 15, 2021, we entered into a Payroll Support Program Extension Agreement (the "PSP Extension Agreement") with Treasury governing our participation in the federal Payroll Support Program for passenger air carriers under the United States Consolidated Appropriations Act, 2021 (the "Payroll Support Program 2"). Treasury provided us with a total of approximately $580 million (the "Payroll Support 2 Payments") under the program, consisting of $436 million in grants and

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States Consolidated Appropriations Act, 2021 (the "Payroll Support Program 2"). Treasury provided us with a total of approximately $580 million (the "Payroll Support 2 Payments") under the program, consisting of $436 million in grants and $144 million in unsecured term loans, with funding received on January 15, 2021, March 5, 2021 and April 29, 2021. The loans have a 10-year term and bear interest on the principal amount outstanding at an annual rate of 1.00% until January 15, 2026, and the applicable SOFR plus 2.00% thereafter until January 15, 2031. In consideration for the Payroll Support 2 Payments, we issued warrants to purchase approximately 1.0 million shares of our common stock to Treasury at an exercise price of $14.43 per share.

American Rescue Plan Act – Payroll Support Program 3

On May 6, 2021, we entered into a Payroll Support 3 Agreement (the "PSP3 Agreement") with Treasury governing our participation in the federal payroll support program for passenger air carriers under Section 7301 of the American Rescue Plan Act of 2021 (the "Payroll Support Program 3"). Treasury provided us with a total of approximately $541 million (the "Payroll Support 3 Payments") under the program, consisting of $409 million in grants and $132 million in unsecured term loans. The loans have a 10-year term and bear interest on the principal amount outstanding at an annual rate of 1.00% until May 6, 2026, and the applicable SOFR plus 2.00% thereafter until May 6, 2031. In consideration for the Payroll Support 3 Payments, we issued warrants to purchase approximately 0.7 million shares of our common stock to Treasury at an exercise price of $19.90 per share.

The warrants associated with each of the payroll support programs described above will expire 5 years after issuance and will be exercisable either through net cash settlement or net share settlement, at our option, in whole or in part at any time.

Our funding from all payroll support grants were fully utilized as of December 31, 2021.

0.50% Convertible Senior Notes, Due Through 2026

In March 2021, we completed a private offering for $750 million of 0.50% convertible notes due 2026. The notes are general senior unsecured obligations and will rank equal in right of payment with all of our existing and future senior unsecured indebtedness and senior in right of payment to our existing and future subordinated debt. The notes will effectively rank junior in right of payment to any of our existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness and are structurally subordinated to all of our indebtedness and other liabilities. The net proceeds from this offering were approximately $734 million.

Holders of the notes may convert them into shares of our common stock subsequent to June 30, 2021 but prior to January 1, 2026 only under certain circumstances (such as upon the satisfaction of the sale price condition, the satisfaction of the trading price condition, notice of redemption, or specified corporate events) and thereafter at any time at a rate of 38.5802 shares of common stock per $1,000 principal amount of notes, which corresponds to an initial conversion price of approximately $25.92 per share. The conversion rate is subject to adjustment upon the occurrence of certain specified events, including, but not limited to, the issuance of certain stock dividends on common stock, the issuance of certain rights or warrants, subdivisions, combinations, distributions of capital stock, indebtedness or assets, cash dividends, and certain issuer tender or exchange offers.

On or after January 1, 2026 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their notes at any time, regardless of the foregoing circumstances.

Upon conversion, the notes will be settled in cash up to the aggregate principal amount of the notes to be converted and, at our election, in shares of our common stock, cash or a combination of cash and shares of our common stock in respect of the remainder, if any, of our conversion obligation.

We are not required to redeem or retire the notes periodically. We may, at our option, redeem any of the notes for cash at a redemption price of 100% of their principal amount, plus accrued and unpaid interest at any time on or after April 1, 2024 if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which we provide notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which we provide a notice of redemption to the holders.

We evaluated the conversion feature of this note offering for embedded derivatives in accordance with ASC 815, Derivatives and Hedging, and the substantial premium model in accordance with ASC 470, Debt. Based on our assessment, separate accounting for the conversion feature of this note offering is not required.

A portion of the net proceeds from the issuance of the 2.50% convertible senior notes, described in the section below, were used to retire $425 million of our existing 0.50% convertible senior notes, due 2026. As a result of this retirement, we ~~recognized a gain on debt extinguishment of $22 million in 2024. This gain was included within other income (expense) on our consolidated statements of operations.~~

For 2024, the effective interest rate of the 0.50% convertible senior notes was 0.50%. Interest expense recognized in 2024 was $6 million, of which $3 million was related to the amortization of debt issuance costs and $3 million was due to contractual 79

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~~interest~~recognized ~~expense.~~a ~~Interest~~gain ~~expense~~on ~~recognized~~debt inextinguishment ~~each~~ of ~~2023 and 2022 was~~ $7 22 million, ofin ~~which~~2024. $3This ~~million~~gain was ~~related~~included towithin ~~the~~other ~~amortization~~income of(expense) ~~debt~~on ~~issuance~~our ~~costs~~consolidated ~~and~~statements $4of ~~million was due to contractual interest expense~~operations.

For 2025, the effective interest rate of the 0.50% convertible senior notes was 0.50%. Interest expense recognized in 2025 was $3 million, of which $2 million was related to the amortization of debt issuance costs and $1 million was due to contractual interest expense. Interest expense recognized in 2024 was $6 million, of which $3 million was related to the amortization of debt issuance costs and $3 million was due to contractual interest expense. Interest expense recognized in 2023 was $7 million, of which $3 million was related to the amortization of debt issuance costs and $4 million was due to contractual interest expense.

The following table provides information relating to the principal amount and unamortized debt issuance costs of the 0.50% Convertible Senior Notes (in millions):

	December 31, 2024		December 31, 2023
	December 31, 2025		December 31, 2024
Principal amount	$	325	$	~~750~~325
Less: Unamortized debt issuance costs	2—		82
Net carrying amount	~~323~~$	325	~~742~~$	323

2.50% Convertible Senior Notes, Due through 2029

In August 2024, we issued $460 million of 2.50% convertible senior notes due in September 2029, consisting of an initial $400 million offering and a subsequent $60 million option, under an indenture, dated as of August 16, 2024 with Wilmington Trust, National Association, as trustee. Interest is payable semi-annually in arrears in March and September of each year, beginning in March 2025. The notes are general unsecured senior obligations and will rank equal in right of payment with our existing and future senior unsecured indebtedness and senior in right of payment to our existing and future subordinated debt. The notes will effectively rank junior in right of payment to any of our existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness and are structurally subordinated to all indebtedness and other liabilities of our subsidiaries.

Holders of the notes may convert them into shares of our common stock subsequent to December 31, 2024 but prior to June 1, 2029 only under certain enumerated circumstances, such as upon the satisfaction of the sale price condition, the satisfaction of the trading price condition, notice of redemption, or specified corporate events,. ~~and~~The ~~thereafter~~initial atconversion ~~any~~rate ~~time~~of ~~upon~~163.3987 ~~conversion,~~shares ~~the~~of ~~notes~~common ~~will~~stock beper ~~settled~~$1,000 inprincipal ~~cash~~amount upof notes, corresponds to ~~the~~an ~~aggregate~~initial ~~principal~~conversion ~~amount~~price of ~~the~~approximately ~~notes~~$6.12 toper beshare. ~~converted~~The ~~and,~~conversion atrate ~~our~~is ~~election,~~subject into ~~shares~~adjustment upon the occurrence of ~~our~~certain ~~common~~specified ~~stock~~events, ~~cash~~including, orbut anot ~~combination~~limited ofto, ~~cash~~the ~~and~~issuance ~~shares~~ of ~~our~~certain stock dividends on common stock, inthe ~~respect~~issuance of ~~the~~certain ~~remainder~~rights or warrants, ifsubdivisions, ~~any~~combinations, distributions of ~~our~~capital ~~conversion~~stock, ~~obligation~~indebtedness or assets, cash dividends and certain issuer tender or exchange offers.

~~The~~On ~~initial~~or ~~conversion~~after ~~rate~~June ~~of 163.3987 shares of common stock per $~~1,~~000~~ ~~principal~~2029 ~~amount~~until ofthe ~~notes,~~close ~~corresponds to an initial conversion price~~ of ~~approximately~~business ~~$6.12~~on ~~per share. The conversion rate is subject to adjustment upon~~ the ~~occurrence~~second ofscheduled ~~certain~~trading ~~specified~~day ~~events,~~immediately ~~including,~~preceding ~~but not limited to,~~ the ~~issuance~~maturity ~~of certain stock dividends on common stock~~date, ~~the~~holders ~~issuance~~may ofconvert ~~certain~~their ~~rights~~notes orat ~~warrants,~~any ~~subdivisions~~time, ~~combinations,~~regardless ~~distributions~~ of ~~capital~~the ~~stock,~~foregoing ~~indebtedness or assets, cash dividends and certain issuer tender or exchange offers~~circumstances.

We are not required to redeem or retire the notes periodically. We may, at our option, redeem any of the notes for cash at a redemption price of 100% of their principal amount, plus accrued and unpaid interest at any time on or after September 1, 2027 until the 45th scheduled trading day before the maturity date, under certain circumstances. Additionally, holders may under specified conditions, have the right to require the Company to repurchase all or a portion of the notes for a cash price equal to 100% of the principal amount of the notes to be repurchased plus accrued and unpaid interest, if any.

We have evaluated the conversion feature of this note offering for embedded derivatives in accordance with ASC 815, Derivatives and Hedging, and ASC 470, Debt. Based on our assessment, separate accounting for the conversion feature of this note offering is not required.

For ~~2024~~2025, the effective interest rate of the $460 million 2.50% convertible senior notes was 2.6054%. With respect to these notes, for the year ended December 31, ~~2024~~2025, we recognized interest expense of $14 million, of which $2 million was due to the amortization of debt issuance costs and $12 million was due to contractual interest expense. Interest expense recognized in 2024 was $5 million, of which $1 million was ~~due~~related to the amortization of debt issuance costs and $4 million was due to contractual interest expense.

~~The following table provides information relating to the principal amount and unamortized debt issuance costs of the 2.50% Convertible Senior Notes (in millions):~~80

	December 31, 2024
Principal amount	$	460
Less: Unamortized debt issuance costs	10
Net carrying amount	$	450

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JETBLUE AIRWAYS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table provides information relating to the principal amount and unamortized debt issuance costs of the 2.50% Convertible Senior Notes (in millions):


	December 31, 2025		December 31, 2024
Principal amount	$	460	$	460
Less: Unamortized debt issuance costs	8		10
Net carrying amount	$	452	$	450

General Debt Matters

In ~~2024~~2025, we made principal payments of $~~748~~461 million on our outstanding debt and finance lease obligations.

As of December 31, ~~2024~~2025, we were in compliance with the covenants of our debt and lease agreements.

We did not record any gain or loss on debt extinguishments in 2025. In 2024, we recognized a $22 million gain on the early extinguishment of debt. ~~There~~In ~~were no early debt extinguishments in~~ 2023, ~~and~~ debt payoffs resulted in immaterial extinguishment expense ~~in 2022~~.

Maturities of our debt and finance leases, net of debt issuance costs, for the next five years are as follows (in millions):

	Maturities
2025	$	376
2026	$	755
2026	705
2027	411
2027	389
2028	516
2028	492
2029	1,768
2029	1,744
2030	589
Thereafter	4,~~833~~459

As of December 31, ~~2024~~2025, aircraft, engines, intangible assets, other equipment, and facilities with a net book value of $7.3 billion were pledged as security under various financing arrangements. Cash payments for interest related to debt and finance lease obligations, less interest income cash receipts, were $~~230~~427 million, $80230 million, and $~~124~~80 million in ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023, respectively.

Fair Value of Debt

The carrying amounts and estimated fair values of our long-term debt, net of debt issuance costs, at December 31, ~~2024~~2025 and ~~2023~~2024 were as follows (in millions):

December 31, 2024

December 31, 2023

December 31, 2025

December 31, 2024

Carrying Value

Estimated Fair Value (1)

Carrying Value

Estimated Fair Value (1)

Total Debt

8,~~539~~498

87,~~337~~829

48,~~716~~539

48,~~691~~337

(1) The estimated fair values of our publicly held long-term debt are classified as Level 2 in the fair value hierarchy. The fair values of our non-public debt are estimated using a discounted cash flow analysis based on our borrowing rates for instruments with similar terms and therefore classified as Level 3 in the fair value hierarchy. ~~The fair values of our other financial instruments approximate their carrying values.~~ Refer to Note 13 for an explanation of the fair value hierarchy structure.

Short-term Borrowings

Citibank Line of Credit

As previously disclosed, on October 21, 2022, JetBlue entered into the $600 million Second Amended and Restated Credit and Guaranty Agreement (the "Facility"), among JetBlue, Citibank N.A., as administrative agent, and the lenders party thereto. This line of credit bears interest at a rate equal to the Alternate Base Rate ("ABR") plus a margin, or SOFR plus a margin.

On July 29, 2024, the Company entered into the Second Amendment to the Second Amended and Restated Credit and Guaranty Agreement, which modifies the Facility to, among other things, (i) extend the final maturity of the Facility to October 21, 2029; provided that if the Company’s 0.50% convertible senior notes due 2026 are not extended, refinanced or paid off, subject to a specified minimum outstanding principal amount thereof, then the Facility expiration will be automatically shortened to December 31, 2025; (ii) adjust the margin and the minimum liquidity requirements of the Company; (iii) replace the sustainability adjustment mechanism; (iv) allow for certain additions of eligible collateral; and (v) remove provisions relating to the terminated merger agreement with Spirit Airlines, Inc. ("Spirit").81

As of and for the years ended December 31, 2024 and 2023, we did not have a balance outstanding or any borrowings under the Facility.

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JETBLUE AIRWAYS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

On July 29, 2024, the Company entered into the Second Amendment to the Second Amended and Restated Credit and Guaranty Agreement, which modifies the Facility to, among other things, (i) extend the final maturity of the Facility to October 21, 2029; provided that if the Company's 0.50% convertible senior notes due 2026 were not extended, refinanced or paid off, subject to a specified minimum outstanding principal amount thereof, then the Facility expiration will be automatically shortened to December 31, 2025; (ii) adjust the margin and the minimum liquidity requirements of the Company; (iii) replace the sustainability adjustment mechanism; (iv) allow for certain additions of eligible collateral; and (v) remove provisions relating to the terminated merger agreement with Spirit Airlines, Inc. ("Spirit").

On October 27, 2025, we entered into an agreement with Citibank, N.A. to hold funds required to meet the specified minimum outstanding principal amount in escrow in order to maintain the Facility expiration date of October 21, 2029. The escrow account was funded with the required amount of $100 million prior to December 31, 2025, satisfying the requirements under the amended Facility.

As of and for the years ended December 31, 2025 and 2024, we did not have a balance outstanding or any borrowings under the Facility.

Morgan Stanley Line of Credit

We have a revolving line of credit with Morgan Stanley for up to approximately $200 million. This line of credit is secured by a portion of our investment securities held by Morgan Stanley and the amount available to us under this line of credit may vary accordingly. This line of credit bears interest at a floating rate based upon LIBOR (or such replacement index as the bank shall determine from time to time in accordance with the terms of the agreement), plus a margin. As of and for the years ended December 31, ~~2024~~2025 and ~~2023~~2024, we did not have a balance outstanding or any borrowings under this line of credit.

2022 $3.5 Billion Senior Secured Bridge Facility

JetBlue entered into a Second Amended and Restated Commitment Letter (the "Commitment Letter"), dated July 28, 2022, with Goldman Sachs Bank USA; BofA Securities, Inc.; Bank of America, N.A.; BNP Paribas; Credit Suisse AG, New York Branch; Credit Suisse Loan Funding LLC; Credit Agricole Corporate and Investment Bank; Natixis, New York Branch; Sumitomo Mitsui Banking Corporation; and MUFG Bank, Ltd. (collectively, the "Commitment Parties"), pursuant to which the Commitment Parties committed to provide a senior secured bridge facility in an aggregate principal amount of up to $3.5 billion to finance the acquisition of Spirit under the Agreement and Plan of Merger (the "Merger Agreement"). The Commitment Letter was terminated on March 4, 2024. Prior to its termination, we did not have a balance outstanding or any borrowings under this facility. Please refer to Note 18 for additional details on the termination of the Merger Agreement.

Note 4 - Leases

Operating lease assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. When available, we use the rate implicit in the lease to discount lease payments to present value. For leases that do not provide a readily determinable implicit rate, we estimate our incremental borrowing rate to discount the lease payments based on information available at lease commencement.

Leases with a term of 12 months or less are not recorded on the balance sheet. Our lease agreements do not contain any residual value guarantees. For facility leases, we account for the lease and non-lease components as a single lease component.

The table below presents the lease-related assets and liabilities recorded on our consolidated balance sheets as of December 31, ~~2024~~2025 and ~~2023~~2024 (in millions):

As of December 31,

2024

2023

2025

2024

Assets

Classification on Balance Sheet

Operating lease assets

~~550~~868

~~593~~550

Finance lease assets

Property and equipment, net

~~115~~444

—115

Total lease assets

~~665~~1,312

~~593~~665

Liabilities

Classification on Balance Sheet

Current:

Operating lease liabilities

Current operating lease liabilities

9379

~~117~~93

Finance lease liabilities

Current maturities of long-term debt and finance lease obligations

1579

—15

Long-term:

Operating lease liabilities

Long-term operating lease liabilities

~~510~~839

~~547~~510

Finance lease liabilities

Long-term debt and finance lease obligations

~~101~~370

—101

Total lease liabilities

~~719~~1,367

~~664~~719

8182

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JETBLUE AIRWAYS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

	As of December 31,
	2024		2023
	2025		2024
Weighted average remaining lease term (in years)
Operating leases	814		8
Finance leases	76		—7
Weighted average discount rate
Operating leases	7.10	%	7.1	%
Finance leases	56.83	%	—5.8	%

Flight Equipment Leases

We operated a fleet of ~~290~~288 aircraft as of December 31, ~~2024~~2025. Of our fleet, 2610 aircraft were accounted for as operating leases and ~~none~~three were accounted for as finance leases. These ~~operating~~ aircraft leases generally have long durations. ~~with~~The remaining terms on these leases as of ~~two~~December 31, ~~months~~2025 are one month to ~~four~~three years. As of December 31, ~~2024~~2025, we had 1234 and 2641 spare engines accounted for as finance leases and operating leases, respectively.

The Company completed eight and two engine sale-leaseback transactions for the ~~year~~years ended December 31, 2025 and 2024, respectively, which resulted in a gain of $84 million and $17 million, which is included within other operating expenses on our consolidated ~~statement~~statements of operations. These sale-leasebacks are accounted for as operating leases and are included in operating lease assets and operating lease liabilities on our consolidated balance sheets. There were no sale-leaseback transactions for the ~~years~~year ended December 31, 2023 ~~and 2022~~.

We have purchase options for eight of our aircraft leases at the end of their lease terms. These purchase options are at fair market value and have a one-time option during the term at fixed amounts that were expected to approximate the fair market value at lease inception.

We did not record any impairment losses for the year ended December 31, 2024 and 2023. In 2022, we recorded $52 million in impairment losses relating to our Embraer E190 fleet transition. These losses were attributed to aircraft and related spare parts including the ones under operating leases. Refer to Note 17 for further details.

Facility Leases

Our facility leases are primarily for space at the airports we serve. These leases are classified as operating leases and reflect our use of passenger terminal service facilities consisting of ticket counters, gate space, operations support area, and baggage service offices. We lease space directly or indirectly from the local airport authority on varying terms dependent on prevailing practices at each airport. The remaining terms of our airport leases vary from ~~one~~two ~~month~~months to 1417 years. Our leases at certain airports contain provisions for periodic adjustments of rental rates based on the operating costs of the airports or the frequency of use of the facilities. Some of these leases also include renewal options and/or termination options that are factored into our determination of lease payments when appropriate. Because of the variable nature of the rates, these leases are not recorded as operating lease assets and operating lease liabilities on our consolidated balance sheets.

We also have leases for our corporate offices, training center, and various hangars and airport support facilities at our focus cities.

Other Ground and Property Equipment

We lease certain IT assets, ground support equipment, and various other pieces of equipment. The lease terms of our ground support equipment are less than 12 months. The amount of other equipment we have is not significant.

82Lease Costs

The table below presents certain information related to our lease costs during the years ended December 31, 2025, 2024, and 2023 (in millions):


	2025		2024		2023
Operating lease cost	$	133	$	139	$	167
Short-term lease cost	5		5		2
Finance lease cost:
Amortization of assets	27		7		—
Interest on lease liabilities	16		3		—
Variable lease cost	594		607		614
Sublease income	(20)		(23)		(20)
Total net lease cost	$	755	$	738	$	763

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JETBLUE AIRWAYS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Lease Costs

The table below presents certain information related to our lease costs during the years ended December 31, 2024, 2023, and 2022 (in millions):

	2024		2023		2022
Operating lease cost	$	139	$	167	$	158
Short-term lease cost	5		2		1
Finance lease cost:
Amortization of assets	7		—		—
Interest on lease liabilities	3		—		—
Variable lease cost	607		614		500
Sublease income	(23)		(20)		(20)
Total net lease cost	$	738	$	763	$	639

Other Information

The table below presents supplemental cash flow information related to leases during the years ended December 31, 2025, 2024, and 2023 (in millions):

	2024		2023		2022
	2025		2024		2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	~~162~~155	$	~~168~~162	$	~~154~~168
Operating cash flows for finance leases	316		—3		—
Financing cash flows for finance leases	667		26		12

Lease Commitments

The table below presents scheduled future minimum lease payments for operating and finance leases recorded on our consolidated balance sheets, as of December 31, ~~2024~~2025 (in millions):

	As of December 31, 2024
	As of December 31, 2025
	Operating Leases		Finance Leases
2025	$	132	$	21
2026	$	139	$	105
2026	108		21
2027	128		60
2027	96		21
2028	110		60
2028	82		21
2029	89		60
2029	75		21
2030	84		60
Thereafter	~~301~~938		34219
Total minimum lease payments	$	~~794~~1,488	$	~~139~~564
Less: amount of lease payment representing interest	(~~191~~570)		(23115)
Present value of future minimum lease payment	$	~~603~~918	$	~~116~~449
Less: current obligations under leases	(9379)		(1579)
Long-term lease obligations	$	~~510~~839	$	~~101~~370

Note 5 - Stockholders' Equity

As of December 31, ~~2024~~2025, we had a total of 4019.72 million shares of common stock reserved for issuance. These shares are primarily related to our equity incentive plans. Refer to Note 7 for further details on our share-based compensation.

As of December 31, ~~2024~~2025, we had a total of ~~160~~161.38 million shares of treasury stock.

The treasury stock reflected on our consolidated statement of cash flows and consolidated statement of stockholders' equity for the year ended December 31, ~~2024~~2025 represents the return of shares to satisfy tax payments associated with crewmember stock compensation that vested during the period.

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Note 6 - Loss Per Share

Basic income (loss) per share is calculated by dividing net income (loss) by the weighted average number of shares outstanding. Diluted ~~loss~~income per share is calculated similarly but includes potential dilution from restricted stock units, the crewmember stock purchase plan, convertible notes, warrants issued under various federal payroll support programs, and any other potentially dilutive instruments using the treasury stock and if converted method. Anti-dilutive common stock equivalents excluded from the computation of diluted loss per share amounts were 4.4 million, 2.0 million, and 1.8 million for the years ended December 31, 2024, 2023, and 2022 respectively.

Anti-dilutive common stock equivalents excluded from the computation of diluted loss per share amounts were 7.4 million, 4.4 million, and 2.0 million for the years ended December 31, 2025, 2024, and 2023, respectively.

The following table shows how we computed basic and diluted loss per common share for the years ended December 31 (dollars and share data in millions):

	2024		2023		2022
	2025		2024		2023
Net loss	$	(~~795~~602)	$	(~~310~~795)	$	(~~362~~310)
Weighted average basic shares	~~346~~362.01		~~332~~346.90		~~323~~332.69
Effect of dilutive securities	—		—		—
Weighted average diluted shares	~~346~~362.01		~~332~~346.90		~~323~~332.69
Loss per common share
Basic	$	(21.3066)	$	(02.9330)	$	(10.1293)
Diluted	$	(21.3066)	$	(02.9330)	$	(10.1293)

Note 7 - Share-Based Compensation

We have various equity incentive plans under which we have granted stock awards to our eligible crewmembers and members of our Board of Directors ("Board"). For the years ended ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023, stock awards were granted under the JetBlue Airways Corporation 2020 Omnibus Equity Incentive Plan, ("2020 Plan").

Unrecognized stock-based compensation expense was approximately $3537 million as of December 31, ~~2024~~2025. This amount relates to a total of 810.67 million in unvested restricted stock units ("RSUs"), performance stock units ("PSUs"), and deferred stock units ("DSUs") that were outstanding under our 2020 Plan. We expect to recognize this stock-based compensation expense over a weighted average period of approximately 1920 months.

The total stock-based compensation expense, which is included within salaries, wages and benefits on our consolidated statements of operations, for the years ended December 31, ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023 was $3940 million, $39 million, and $3039 million, respectively.

2020 Omnibus Equity Incentive Plan

On May 14, 2020, our stockholders approved the 2020 Plan. Upon inception, the 2020 Plan had 10.5 million shares of our common stock reserved for issuance. In May 2023 and 2024, our stockholders approved an additional 10.0 million and 15.0 million shares of common stock, respectively, to be reserved for issuance under the plan, bringing the total authorized shares reserved for issuance over the term of the 2020 Plan to 35.5 million. The 2020 Plan, by its terms, will terminate no later than May 2030. Under this plan, we grant RSUs to certain crewmembers and members of our Board. The vesting periods for the RSUs vary by grant but are no less than one year. We also grant DSUs to members of our Board and PSUs to certain members of our leadership team.

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The following is a summary of RSU activity under the 2020 Plan for the year ended December 31, ~~2024~~2025 (in millions except per share data):

	Shares	Weighted Average Grant Date Fair Value
Nonvested at beginning of year	67	$	87.9041
Granted	46	65.6894
Vested	(24)	107.2981
Forfeited	(1)	76.4148
Nonvested at end of year	78	$	76.4137

The total intrinsic value, determined as of the date of vesting, for all RSUs under the 2020 Plan that vested during the year ended December 31, ~~2024~~2025 was $1622 million.

No DSUs were granted during the year ended December 31, 2025. During the years ended December 31, 2024, ~~2023,~~ and ~~2022~~2023, we granted a nominal amount of DSUs. The vesting period for DSUs under the 2020 Plan is either one or three years of service. Once vested, shares are issued six months and one day following a Director’'s departure from the Board.

In 2025, 2024, and 2023, we granted 2.5 million, 1.5 million, and 1.8 million, respectively, of PSUs to certain members of our leadership team, payment of which ~~are~~is based upon achievements of certain performance criteria. ~~No PSUs were granted in 2022.~~

Crewmember Stock Purchase Plans

Additionally, we have our JetBlue Airways Corporation Crewmember Stock Purchase Plan ("CSPP"), which our stockholders approved in May 2020, that is available to all eligible crewmembers.

At inception, the CSPP had 17.5 million shares of our common stock reserved for issuance. In May 2023 and 2024, our stockholders approved an additional 10.0 million and 25.0 million shares of common stock, respectively, bringing the total authorized shares of common stock reserved for issuance over the term of the CSPP to 52.5 million shares. The CSPP, by its terms, will terminate no later than May 2030.

Our CSPP has a series of six-month offering periods, with a new offering period beginning on the first business day of May and November each year. Crewmembers can enroll in the CSPP nearly year-round, with the exception of specific blackout dates. Enrollment is effective at the start of the next offering period. Crewmembers may contribute up to 10% of their pay towards the purchase of common stock via payroll deductions. Purchase dates occur on the last business day of April and October each year. The purchase price is the closing stock price on the day before the purchase date, less a 15% discount. The compensation cost relating to the discount is recognized over the offering period. The total expense recognized relating to our CSPP for the ~~year~~years ended December 31, 2025, 2024, ~~was~~and ~~approximately~~2023, ~~$11~~respectively, ~~million~~was ~~and~~approximately $9 million, in$11 ~~each of the years ended December 31~~million, ~~2023~~ and ~~2022~~$9 million. Under the plan, crewmembers purchased 1214.28 million, 1112.2 million, and 611.42 million new shares for the years ended December 31, ~~2024~~2025, ~~2023~~2024, and ~~2022~~2023, respectively, at weighted average prices of $43.9054, $4.6790, and $84.0767 per share, respectively.

Under the CSPP, should we be acquired by merger or sale of substantially all of our assets, or by sale of more than 50% of our outstanding voting securities, all outstanding purchase rights will automatically be exercised immediately prior to the effective date of the acquisition at a price equal to 85% of the fair market value per share immediately prior to the acquisition.

Taxation

The Compensation-Stock Compensation topic of the FASB Codification requires deferred taxes be recognized on temporary differences that arise with respect to stock-based compensation attributable to nonqualified stock options and awards. However, no tax benefit is recognized for stock-based compensation attributable to incentive stock options, or CSPP shares until there is a disqualifying disposition, if any, for income tax purposes. A portion of our historical stock-based compensation was attributable to CSPP shares; therefore, our effective tax rate was subject to fluctuation.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 8 - Income Taxes

Our income tax benefit (expense) consisted of the following for the years ended December 31 (in millions):

	2024		2023		2022
	2025		2024		2023
Deferred:
Federal	$	93158	$	4393	$	8643
State	2825		628		~~(13)~~6
Foreign	~~(11)~~—		(2211)		—(22)
Deferred income tax benefit	~~110~~183		27110		7327
Current:
Federal	—		1—		31
State	—(3)		1—		—1
Foreign	(8)		(58)		(15)
Current income tax benefit (expense)	(8)		(3)		2
Current income tax expense	(11)		(8)		(3)
Total income tax benefit	$	~~102~~172	$	24102	$	7524

On March 27, 2020, the CARES Act was enacted in response to the COVID-19 pandemic. The CARES Act permits net operating loss ("NOL") carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. As of December 31, ~~2024~~2025, the Company has filed an application for refund.

Our income tax benefit reconciles to the amount computed below by applying the U.S. federal statutory income tax rate to our loss before income taxes for the years ended December 31 as follows (in millions):

	2024				2023				2022
	2025						2024					2023
Income tax benefit at statutory rate	$	~~188~~163	21.0	%	$	70	$	188	$21.0	92	%	$	70	21.0	%
State income tax, net of federal benefit	28				7				(13)
State income tax, net of federal benefit (a)
Nondeductible expenses	(13)				(14)

Filing Compare · JETBLUE AIRWAYS CORP