About JetBlue Airways

JetBlue Airways Corporation (JetBlue) provides air transportation services. As of December 31, 2023, JetBlue served over 100 destinations across the United States, the Caribbean and Latin America, Canada and Europe. The company offers its customers a distinctive flying experience, which the company refers to as the ‘JetBlue Experience’. The company delivers award-winning service and product with low fares that focuses on the entire customer experience, from booking an itinerary to arrival at the final destination. JetBlue is the carrier of choice for the majority of travelers who have been underserved by other airlines. The company’s award winning service begins from the moment its customers purchase a ticket through one of the company’s distribution channels, such as www.jetblue.com, the company’s mobile application, or its reservations centers. Customers can purchase one of five branded fares: Blue Basic, Blue, Blue Plus, Blue Extra, and Mint, the company’s premium service. Each fare includes different offerings, such as early boarding, advance seat selections, free checked bags, no change fees, and additional TrueBlue points, with all fares, including the company’s core offering of free inflight entertainment, free high-speed wi-fi, 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. The company’s customers enjoy seats in a comfortable layout with the most legroom in the main cabin of all U.S. airlines, based on average fleet-wide seat pitch. The company’s Even More Space seats are available for purchase across its fleet, giving customers the opportunity to enjoy additional legroom. Customers on select coast-to-coast, the Caribbean and Latin American routes and all transatlantic flights have the option to purchase Mint, the company’s premium service. Each Mint seat includes a fully lie-flat bed with the company’s exclusive Tuft & Needle sleep experience. The company’s Mint customers also have access to an assortment of complimentary food, beverages and products, including a small-plates menu, artisanal snacks, alcoholic beverages, a blanket, pillows, an amenity kit and headphones. On select transatlantic and coast-to-coast flights, the company offers a reimagined version of its Mint experience with a completely refreshed cabin design featuring private suites with a sliding door and aisle access. Each of these select Mint aircraft also include two front row Mint Studios, which offer the largest TV on a U.S. airline and an extra seat and space to work, lounge and entertain. The company’s inflight entertainment system onboard its aircraft includes free live TV on select routes and premium movie channel offerings from JetBlue Features. The company’s entire fleet is equipped with Fly-Fi, a broadband product that allows gate-to-gate Wi-Fi at every seat. Customers also have access to the Fly-Fi Hub, a content portal where customers can access a wide range of additional content from their own personal devices. All customers may enjoy an assortment of free and unlimited name-brand snacks and non-alcoholic beverages. Because of the company’s network strength in leisure destinations, the company also sells vacation packages through its wholly owned subsidiary, JetBlue Travel Products, LLC (‘JBTP’), which offers one-stop, value-priced vacation services for self-directed packaged travel planning. These packages offer competitive fares for air travel on JetBlue along with a selection of JetBlue-recommended hotels and resorts, car rentals, and local attractions. The company works to provide a superior travel experience, including communicating openly and honestly with customers about delays and service disruptions. The company, like other airlines, has also committed to the government to provide services to mitigate customer inconveniences when the cause of cancellation or delay was due to circumstances in the company’s control. These services include rebooking at no additional cost, meal and/or meal/cash vouchers for flight delays over four hours, complimentary hotel accommodations if necessary, and complimentary ground transportation to and from hotels. Network The company is a predominately point-to-point system carrier with 95% of the company’s routes touching at least one of its six focus cities: New York, Boston, Fort Lauderdale-Hollywood, Orlando, Los Angeles and San Juan. All six of the company’s focus cities are in regions with a diverse mix of traffic. Leisure traveler focused airlines are often faced with high seasonality. As a result, the company continually works to manage its mix of customers to include both business travelers and travelers visiting friends and relatives (‘VFR’). As of December 31, 2023, the company served 115 destinations (‘BlueCities’) in 32 states, the District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, and 31 countries in the Caribbean and Latin America, Canada and Europe. In October 2023, the company announced new transatlantic seasonal service to Dublin from JFK and BOS, and Edinburgh from JFK, with all routes starting in 2024. The company also announced expansion of its Paris presence by launching new daily service from BOS to Paris and adding a second daily flight from JFK, with both routes starting in 2024. Airline Commercial Partnerships As of December 31, 2023, the company had 47 airline commercial partnerships. The company’s 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 NEA, which was designed to optimize the company’s respective networks at JFK, BOS, LaGuardia Airport (‘LaGuardia’), and Newark Liberty International Airport (‘Newark’). Following review and agreement by the DOT, JetBlue and American Airlines began implementing the NEA in July 2021. On September 21, 2021, the United States Department of Justice, along with the Attorneys General of six states and the District of Columbia filed suit against JetBlue and American Airlines seeking to enjoin the NEA, alleging that it violates Section 1 of the Sherman Act. The court issued a decision on May 19, 2023, permanently enjoining the NEA. On July 5, 2023, the company announced that it does not plan to appeal the court’s determination that the NEA cannot continue as crafted, and instead had initiated a wind down of the NEA. On July 14, 2023, JetBlue and American Airlines announced that beginning on July 21, 2023, JetBlue customers will no longer be able to book new codeshare bookings on American Airlines and vice versa. On July 28, 2023, the court issued its Final Judgement and Order Entering Permanent Injunction (‘Final Injunction’). The Final Injunction, which took effect on August 18, 2023, sets forth, among other things, provisions for the prompt and certain termination of the NEA, including applicable dates for the termination of JetBlue and American Airlines' revenue-sharing arrangements and procedures governing the termination of any remaining slot-sharing agreements. Pursuant to the Final Injunction, JetBlue and American Airlines may not enter into any new alliance, partnership, joint venture, or other agreement with each other, if such agreement provides for revenue sharing, or for coordination of routes or capacity, in a manner substantially similar to the NEA for a period of ten years following the effectiveness of the Final Injunction. On September 25, 2023, American Airlines filed an appeal of the court's ruling. The wind down of the NEA is substantially complete, but remaining impacts could require the company to incur additional costs and therefore have an impact on the company’s financial condition and results of operations. In December 2022 and February 2023, four putative class actions lawsuits were filed in the United States District Court for the Eastern District of New York and the United States District Court for the District of Massachusetts, respectively, alleging that the NEA violates Sections 1 and 2 of the Sherman Act. Among other things, plaintiffs seek monetary damages on behalf of a putative class of direct purchasers of airline tickets from JetBlue and American Airlines and, depending on the specific case, other airlines on flights to or from four airports (JFK, BOS, LaGuardia, Newark) from July 16, 2020 through the present. Plaintiffs in these actions also seek to enjoin the NEA. JetBlue believes these lawsuits are without merit and has moved to dismiss the claims. Marketing JetBlue is a widely recognized and respected global brand. JetBlue created a new category in air travel and the company’s brand stands for offering a great product with low fares. The company markets its services through advertising and promotions in various media forms, including popular social media outlets. The company engages in large multi-market programs, local events, and sponsorships across the company’s route network, as well as mobile marketing programs. The company’s targeted public and community relations efforts reflect its commitment to the communities the company serves, promote brand awareness, and complement the company’s strong reputation. Distribution The company’s primary and preferred distribution channel to customers is through the company’s website, www.jetblue.com, its lowest cost channel. The company’s website allows it to more closely control and deliver the JetBlue Experience while also offering the full suite of JetBlue Fare Options, Even More Space and Speed, JetBlue Vacations, and other ancillary services. The company’s participation in a global distribution system (‘GDS’), supports its profitable growth, particularly in the business market. The company finds business customers are more likely to book through a travel agency or a booking product which relies on a GDS platform. The company participates in several major GDSs and online travel agents. Customer Loyalty Program TrueBlue is the company’s customer loyalty program designed to reward and recognize loyal customers. Members earn points with JetBlue, JetBlue Vacations, Paisly by JetBlue and select airline and travel partners. Members can redeem points for any JetBlue-operated flight or flight and hotel package, any time (no blackout dates). TrueBlue Mosaic is an additional program threshold for the company’s most loyal customers which features four levels, Mosaic 1, Mosaic 2, Mosaic 3 and Mosaic 4. In May 2023, the company launched a new TrueBlue Loyalty Program, bringing more choices and new perks for customers. The new program maintains most of TrueBlue's signature perks while also providing for new opportunities for customers to earn additional perks along the way to achieve Mosaic status. TrueBlue now offers tiles as the new way to track and measure progress toward Mosaic status. Tiles are earned based on a combination of travel spend and credit card spend. The new program is designed to provide even more TrueBlue members with the opportunity to get rewarded, even before achieving Mosaic status. The new TrueBlue also enhances the TrueBlue Mosaic program to include four distinct Mosaic levels, each featuring a Mosaic signature perk and an additional Mosaic perk you pick. The company has 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. The company’s co-branded credit cards in the United States are issued in partnership with Barclaycard on the MasterCard network. The company also has co-branded loyalty credit cards issued by Banco Popular de Puerto Rico and MasterCard in Puerto Rico, as well as Banco Popular Dominicano and MasterCard in the Dominican Republic. In 2023, JetBlue expanded its international co-brand portfolio by joining forces with CIBC First Caribbean International Bank, adding five new countries in the English-speaking Caribbean (Bahamas, Barbados, Jamaica, Trinidad & Tobago, and the Cayman Islands). These credit cards allow customers in Puerto Rico, the Dominican Republic, and the Caribbean to take full advantage of the company’s TrueBlue loyalty program. In 2023, the company also introduced enhancements to its co-branded credit cards, enabling JetBlue Plus Card members to utilize points payback, which allows point redemption for a statement credit. In addition, JetBlue business card members can now participate in early boarding on JetBlue-operated flights. The company has various agreements with other loyalty partners, including financial institutions, hotels, and car rental companies, that allow their customers to earn TrueBlue points through participation in the company’s partners’ programs. The company intends to continue to develop the footprint of its co-branded credit cards and pursue other loyalty partnerships in the future. Route Structure A vast majority of the company’s operations are centered in the heavily populated Northeast corridor of the U.S., which includes the New York and Boston metropolitan areas. The company’s peak levels of traffic over the course of the typical year vary by route. Generally speaking, many of the company’s areas of operations in the Northeast experience ATC delays and weather-related disruptions resulting in increased costs associated with de-icing aircraft, canceling flights, and accommodating displaced customers. Many of the company’s Florida and Caribbean routes experience bad weather conditions in the summer and fall due to thunderstorms and hurricanes. Fleet Structure The company’s fleet consists of the following aircraft types: Airbus A220, Airbus A320, Airbus A320 Restyled, Airbus A321, Airbus A321 with Mint, Airbus A321neo, Airbus A321neo with Mint, Airbus A321neoLR with Mint, and Embraer E190. Fleet Maintenance Consistent with the company’s core value of safety, its Federal Aviation Administration (‘FAA’) approved maintenance programs are administered by the company’s technical operations department. The company uses qualified maintenance personnel who receive comprehensive training. The company maintains its aircraft and associated maintenance records in accordance with, if not exceeding, FAA regulations. Fleet maintenance work is divided into three categories: line maintenance, heavy maintenance, and component maintenance. The bulk of the company’s 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, 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 24-36 months. All of the company’s aircraft heavy maintenance work is performed by third party FAA-certified repair stations and are subject to direct oversight by JetBlue personnel. Component maintenance on equipment, such as engines, auxiliary power units, landing gears, pumps, and avionic computers are all performed by a number of different FAA-certified repair stations that are surveilled and approved by JetBlue. The company has fixed price agreements for the repair, overhaul, modification, and logistics of the company’s Airbus aircraft engines. The company has flight hour agreements for its Embraer E190, Airbus A220, and Airbus A321neo aircraft engines. Many of the company’s maintenance service agreements are based on a fixed cost per flight hour. 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 intentions of improving the travel, hospitality, and transportation industries. The investment focus of JBV is as follows: Seamless Customer Journey: Solutions that brighten the journey and enable a seamless travel experience throughout every part of the customer's trip. Reimagining the Accommodation Experience: Evolutions in hospitality, including alternative accommodations, and the underlying products and services that power the industry. Next-Generation Aviation Operations and Enterprise Tech: Innovations that enhance safety, improve operations, and drive enterprise-wide efficiencies. Innovation in Loyalty, Distribution, and Revenue: Technologies that personalize and diversify commerce, simplify payments, and improve revenue opportunities. Sustainable Travel: Advanced methods of measuring and reducing emissions, improved environmental protections, and game-changing transportation powered by alternative propulsion systems. 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. JetBlue 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. In 2021, JBTP launched Paisly by JetBlue, a travel website for booking individual travel components, with expanded access to all travelers in 2023. A key partnership extension in 2022 with Allianz Partners USA enables JetBlue customers to safeguard their travel plans with comprehensive travel insurance, covering both flights and vacation packages. Regulation Most of the company’s airline operations are regulated by the U.S. governmental agencies, including the U.S. Department of Transportation (DOT); Federal Aviation Administration (FAA); and Transportation Security Administration and the U.S. Customs and Border Protection. Federal regulations, administered by the FAA, manage congestion at four U.S. airports: Ronald Reagan Washington National, LaGuardia, Newark and JFK. Under federal law and DOT regulations, JetBlue must be controlled by the U.S. citizens. To the extent the company is subject to FCC (Federal Communications Commission) requirements, the company takes all necessary steps to comply with those requirements. Similarly, the company is subject to various market and consumer protection laws and regulations promulgated by the Federal Trade Commission (‘FTC’). Additionally, as a result of the company’s operations to Havana, Cuba, the company is required to comply with regulations promulgated by the U.S. Department of the Treasury's Office of Foreign Assets Control. As of September 2023, the company had suspended service to Havana. The company is a participant in the Civil Reserve Air Fleet Program, which permits the U.S. Department of Defense to utilize the company’s aircraft during national emergencies when the need for military airlift exceeds the capability of military aircraft. History JetBlue Airways Corporation was founded in 1998. The company was incorporated in Delaware in 1998 and commenced its service in 2000.