Jetblue Airways

2014 ANNUAL REPORT

Dear Fellow Shareholders:

JetBlue delivered strong financial results in 2014 including:

✓✓ Generating revenues of over $5.8 billion

✓✓ Growing net income by 38% year over year to an annual record of $232 million (which excludes the $241 million 

gain from sale of our subsidiary LiveTV). This marks our sixth consecutive year of profitability

✓✓ Continuing to strengthen our balance sheet and lowering our net-debt-to-capital ratio by 6.5 points

✓✓ Growing our return on invested capital, or ROIC, by one percentage point to 6.3%

Our financial performance was rewarded by the market as our stock price increased nearly 85% during 2014, 
outpacing the S&P 500’s yearly gain.

CEO Transition

In September 2014, we announced the retirement of Dave Barger effective February 15, 2015. Dave’s leadership 
at JetBlue, spanning over 16 years, shaped the company from start-up into a vibrant, exciting, and innovative 
organization committed to our mission to “inspire humanity” while fostering a unique culture built on a solid 
foundation of values. Dave has furthered the lives of so many Crewmembers, customers, partners and friends. 
It is an honor and a challenge to succeed Dave; he’s set a high bar.

Culture Matters

Culture is the foundation of our success and is what makes JetBlue unique. It’s that culture that inspires our 
16,000 Crewmembers to deliver outstanding customer service each day while embodying our key values. In 
2014, we were once again recognized for service excellence by J.D. Power, our tenth such award in a row! 
This recognition demonstrates the importance of our distinctive service and humanity driven culture and the 
difference each of our Crewmembers make. 

Further, we can see the benefits of our culture in our Net Promoter Scores (NPS). I firmly believe higher NPS 
scores translate to increased customer loyalty and a revenue premium.

Finally, the benefits of our unique culture extend into our communities; in 2014, JetBlue Crewmembers volunteered 
more than 100,000 hours to a wide array of local charities that truly make a difference. 

Differentiated Product

Although the specifics of our product offering have and must continue to evolve, our core focus on providing 
an excellent product and service at a reasonable price will not change. We remain focused on serving the 
underserved – both leisure and business customers who are not rewarded for loyalty by network airlines, seek 
more than what ultra-low cost carriers are willing to provide, and value a product with superior personal space 
and complimentary entertainment.

We will continue to innovate and invest in what matters most to our customers, such as Mint, our premium 
transcontinental service launched between New York (JFK) and Los Angeles (LAX) in June and between New 
York (JFK) and San Francisco (SFO) in October. Mint offers 16 seats with a fully lie-flat bed, an upgraded live 
television system with, among other features, 100 channels of DirecTV, complimentary food and beverage 
service and amenity kits – all delivered by exceptional inflight and airport Crewmembers. Customer response  has 
been astounding as reflected by strong NPS and year-over-year margin gains which are well above those of 
our other transcontinental markets. 

Our launch of Fly-Fi™, real broadband internet in the sky, is another example. This onboard innovation delivers 
an online experience much like you would expect at home or work. While other airlines look to charge customers 
for slower, bandwidth constrained wifi, our basic in-flight broadband internet has the ability to be used by 
everyone onboard and is provided free of charge. We plan to cover the broadband costs of Fly-Fi™ in 2015 
through corporate partnerships. Over time, we will be able to deliver more personalized and relevant content 
to our customers.

High-Value Geography

JetBlue’s high-value network continues to expand and diversify. We continue to maintain and grow a strong 
presence in highly populated, lucrative travel markets. This targeted growth has been and will continue to be 
accretive to shareholder returns.

In 2014, we started service to five new BlueCities; by the end of the year we served 87 BlueCities in 18 countries. 
All six of our focus cities were profitable in 2014. We see terrific opportunities for growth in the years ahead. 

As we look to 2015, most of our capacity growth is expected to be in the transcontinental market as we continue 
to rollout Mint and in Fort Lauderdale-Hollywood (FLL), which remains a central component of our long term, 
domestic and international growth strategy. JetBlue landed the first flight on FLL’s new runway in September and 
we look forward to benefiting over the next few years from major enhancements being made by the Broward 
County Aviation Department at that airport.

Another 2014 investment highlight was the opening of T5i, our international facility at JFK. T5i provides 
international customers the ability to arrive or transfer to other JetBlue flights within one terminal and includes 
six international arrivals gates and state-of-the-art customs and federal inspection facilities. Our facilities at 
JFK epitomize accessibility and convenience in New York with the maximum time to any gate from the TSA 
checkpoint of approximately five minutes. 

Competitive Costs

Maintaining our cost advantage over larger legacy airlines is an imperative to profitable growth without 
compromising our ability to provide an industry-leading product at an attractive fare. 

We have initiatives across the company to manage our costs and our 16,000 Crewmembers are energized 
to drive results from them. These initiatives range from fleet investments (like the introduction of Sharklets and 
Airbus A321s), to fuel conservation programs (such as single-engine taxi and a new flight planning solution), to 
maintenance changes (including expanding power-by-the-hour agreements and reducing inventory) to leveraging 
IT investments (such as our customer technology refresh).

Managing Our Capital

We continue to strengthen our balance sheet while investing for the future. In 2014, we reduced our overall debt 
balance while growing our fleet, improved our net-debt-to-capital ratio, and increased our liquidity including 
adding to our lines of credit and unencumbering additional aircraft.

As we look into 2015, we anticipate lower non-aircraft capital expenditures as we reap the benefits from prior 
investments such as T5i and technology programs. Additionally, we intend to pay for 2015 aircraft deliveries 
with cash on hand rather than with debt financing and will look to opportunistically pre-pay other debt.

Finally, in June we completed the sale of our wholly-owned subsidiary LiveTV to Thales Group which, among other 
financial benefits for JetBlue, lowered ongoing unit costs and reduced future capital expenditure requirements. 
Further, the proceeds from the sale were used to pre-pay nearly $300 million in debt, thereby reducing future 
interest expense. Additionally, JetBlue maintains its deep relationship with LiveTV, enabling us to continue to 
provide customers differentiated, industry-leading inflight entertainment and connectivity products.

A Look Ahead

At our 2014 Investor Day, we detailed our goal to improve our return on invested capital (ROIC) to greater than 
10% by the end of 2017. We outlined a number of specific initiatives including:

✓•  Fare Families: Beginning in the second quarter of 2015, customers will be able to choose between three 
fare options. The first will be designed for customers who do not plan to check a bag, while the latter two 
will offer one and two free checked bags, respectively, along with other benefits, such as additional TrueBlue 
points and increased flexibility. Fare families will enable JetBlue to tailor its offering to individual customers’ 
needs in a simple and transparent way while generating more than $200 million in incremental operating 
income by 2017.

✓• Cabin Refresh: Starting in 2016, JetBlue will refresh its A320 aircraft with cabin amenities similar to those on 
our A321 fleet. Specifically, the cabin will offer larger seatback screens with more entertainment options and 
power ports accessible to all customers. The reconfigured cabin will preserve JetBlue’s product advantage 
while helping to generate higher returns. Using lighter, more comfortable seats, JetBlue will be able to 
increase the number of seats on its planes while continuing to offer the most legroom in coach amongst all 
our domestic competitors.

✓• Other Strategic Initiatives: We expect incremental operating income from the evolution and maturation 
of previously announced programs, such as Even More, Mint, Fly-Fi, Getaways, partnerships and a new  
Co-Brand credit card agreement. 

✓• Cost Control: We expect our non-fuel unit costs to grow less than two percent in 2015 and over time. We 
anticipate benefiting from cost efficient growth from our new A321 aircraft and a Sharklet and cabin retrofit 
of our A320 fleet, offsetting costs from more heavy maintenance checks and landing gear overhauls. 

✓• Operational Performance: We operate in some of the busiest airspace in the country, which makes it all the 
more important for us to operate efficiently. To this end, we’ve made and will continue to make investments 
to improve our operational performance and reliability. We have teams dedicated to refining all aspects of the 
travel process, which we expect to improve NPS and reduce costs. We made good progress on improving 
our operational performance in 2014 and we intend to continue to build on that success.

✓• Targeted Growth: We are a growth company focused on margin and return accretive expansion. We will 
not grow simply to capture market share. Consequently, most of our growth is concentrated from our focus 
cities as they benefit from economies of scale.

✓• Fleet Optimization: In light of the capital efficient growth provided by the additional seats from our cabin 
refresh program and as a way to enhance free cash flow, we chose to defer 18 Airbus aircraft deliveries from 
2016-2018 to 2022-2023. This action reduced our expected capital expenditure by more than $900 million 
through 2017.

Executing on these key initiatives is a top priority shared by all JetBlue Crewmembers. Leveraging our unique 
culture and values, we will work together to meet these objectives and ensure long-term success. We are 
excited about where JetBlue is today and what we can achieve in the future. JetBlue will continue to innovate 
and evolve while staying true to our mission to Inspire Humanity. 

On behalf of our 16,000 engaged Crewmembers, thank you for your continued support.

Most sincerely,

Robin Hayes
President and Chief Executive Officer

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, 2014 

 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 
(State or other jurisdiction of incorporation or organization)
27-01 Queens Plaza North, Long Island City, New York
(Address, including zip code, of registrant’s principal executive offices)

87-0617894 
(I.R.S. Employer Identification No.)
11101
(Zip Code)

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

SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:
Title of each class
Common Stock, $0.01 par value
Participating Preferred Stock Purchase Rights

Name of each exchange on which registered
The NASDAQ Global Select Market

Indicate by check mark 

YES

NO

•• if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

•• if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
•• 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.
•• whether the registrant has submitted electronically and posted on its corporate Website, if any, every 
Interactive Data File required to be submitted and posted 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 and post such files).

•• if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not 
contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or 
information statements incorporated by reference in Part III of this Form 10-K or any amendment to this 
Form 10-K.

•• whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions 

of “large accelerated filer,” “accelerated filer’’ and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer 

Accelerated filer 

Non-accelerated filer 

Smaller reporting company 

•• whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

The aggregate market value of the registrant’s common stock held by non-affiliates of the registrant as of June 30, 2014 was approximately 
$2.6 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 30, 2015 was 310,856,091 shares.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Registrant’s Proxy Statement for its 2015 Annual Meeting of Stockholders, which is to be filed subsequent to the date hereof, 
are incorporated by reference into Part III of this Form 10-K.

Table of Contents

PART I 

06

ITEM 1. 

Business ��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������06
Overview ������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������06
2014 Operational Highlights ������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������06
The JetBlue Experience and Strategy ������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������07
Operations and Cost Structure ���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������09
Culture ������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������11
Regulation �������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������12
ITEM 1A.  Risk Factors ��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������14
Risks Related to JetBlue �����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������14
Risks Associated with the Airline Industry �����������������������������������������������������������������������������������������������������������������������������������������������������������������������������17
ITEM 1B.  Unresolved Staff Comments ������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������18
Properties ����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������18
ITEM 2. 
Legal Proceedings ����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������20
ITEM 3. 
ITEM 4.  Mine Safety Disclosures ���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������20
Executive Officers of the Registrant �����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������20

PART II 

21

ITEM 5.  Market for Registrant’s Common Equity; Related Stockholder Matters  

and Issuer Purchases of Equity Securities �������������������������������������������������������������������������������������������������������������������������������������������������������������������������21
Selected Financial Data ����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������23
ITEM 6. 
ITEM 7.  Management’s Discussion and Analysis of Financial Condition and Results of Operations ����������25
Overview ������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������25
Results of Operations ��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������26
Liquidity and Capital Resources������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������32
Contractual Obligations ��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������35
Off-Balance Sheet Arrangements �������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������36
Critical Accounting Policies and Estimates ��������������������������������������������������������������������������������������������������������������������������������������������������������������������������37
ITEM 7A.  Quantitative and Qualitative Disclosures About Market Risk �����������������������������������������������������������������������������������������������������������39
Financial Statements and Supplementary Data �����������������������������������������������������������������������������������������������������������������������������������������������������������������40
ITEM 8. 
Consolidated Balance Sheets �������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������40
Consolidated Statements of Operations ����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������42
Consolidated Statements of Comprehensive Income������������������������������������������������������������������������������������������������������������������������������������������43
Consolidated Statements of Cash Flows ��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������44
Consolidated Statements of Stockholders’ Equity ���������������������������������������������������������������������������������������������������������������������������������������������������45
Notes to Consolidated Financial Statements ��������������������������������������������������������������������������������������������������������������������������������������������������������������������46
Reports of Independent Registered Public Accounting Firm ��������������������������������������������������������������������������������������������������������������������64

ITEM 9. 

Changes in and Disagreements with Accountants on Accounting  
and Financial Disclosure ��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������66
ITEM 9A.  Controls and Procedures ������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������66
ITEM 9B.  Other Information ��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������66

02

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report    
 
PART III 

67

ITEM 10.  Directors, Executive Officers and Corporate Governance ���������������������������������������������������������������������������������������������������������������������67
Executive Compensation������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������67
ITEM 11. 
ITEM 12.  Security Ownership of Certain Beneficial Owners and Management  

and Related Stockholder Matters �������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������68
ITEM 13.  Certain Relationships and Related Transactions, and Director Independence ������������������������������������������������68
ITEM 14.  Principal Accounting Fees and Services ��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������68

PART IV 

69

ITEM 15. 

Exhibits and Financial Statement Schedules �����������������������������������������������������������������������������������������������������������������������������������������������������������������69

03

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JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportForward-Looking Information

Statements in this Form 10-K (or otherwise made by JetBlue or on 
JetBlue’s behalf) contain various forward-looking statements within the 
meaning of Section 27A of the Securities Act of 1933, as amended, or the 
Securities Act, and Section 21E of the Securities Exchange Act of 1934, 
as amended, or the Exchange Act, which represent our management’s 
beliefs and assumptions concerning future events. When used in this 
document and in documents incorporated herein by reference, the 
words “expects,” “plans,” “anticipates,” “indicates,” “believes,” “forecast,” 
“guidance,” “outlook,” “may,” “will,” “should,” “seeks,” “targets” and similar 
expressions are intended to identify forward-looking statements. 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, our extremely competitive 
industry; volatility in financial and credit markets which could affect our 
ability to obtain debt and/or lease financing or to raise funds through debt 
or equity issuances; volatility in fuel prices, maintenance costs and interest 
rates; our ability to implement our growth strategy; our significant fixed 
obligations and substantial indebtedness; our ability to attract and retain 
qualified personnel and maintain our culture as we grow; our reliance on 
high daily aircraft utilization; our dependence on the New York metropolitan 
market and the effect of increased congestion in this market; our reliance 
on automated systems and technology; our being subject to potential 
unionization, work stoppages, slowdowns or increased labor costs; our 

reliance on a limited number of suppliers; our presence in some international 
emerging markets that may experience political or economic instability or 
may subject us to legal risk; reputational and business risk from information 
security breaches; changes in or additional government regulation; changes 
in our industry due to other airlines’ financial condition; global economic 
conditions or an economic downturn leading to a continuing or accelerated 
decrease in demand for domestic and business air travel; the spread of 
infectious diseases; and external geopolitical events and conditions. 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. Although these expectations may change, we may 
not inform you if they do.

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 Item 1A of this 
report under “Risks Related to JetBlue” and “Risks Associated with the 
Airline Industry.” In light of these risks and uncertainties, the forward-looking 
events discussed in this report might not occur.

05

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report    
   
PART I

ITEM 1.  Business

Overview

General

JetBlue Airways Corporation, or JetBlue, is New York’s Hometown Airline™. 
In 2014, JetBlue carried over 32 million passengers with an average of 
825 daily flights and served 87 destinations in the United States, the 
Caribbean and Latin America.

JetBlue was incorporated in Delaware in August 1998, commenced service 
on February 11, 2000, and by the end of 2014 had grown to become the 
fifth largest passenger carrier in the U.S. based on available seat miles, or 
ASMs, as reported by these passenger airlines. We believe our differentiated 
product and culture combined with our competitive cost structure enables 
us to compete fiercely in the high-value geography we serve. Looking 
to the future, we plan to continue to grow in our high-value geography, 
invest in industry leading products and provide award winning service by 
our 15,500 dedicated employees, whom we refer to as Crewmembers. 
Going forward we believe we will continue to differentiate ourselves from 
the other airlines, enabling us to continue to attract a greater mix of 
customers and to allocate further profitable growth across our network. 
We are focused on driving to deliver solid results for our shareholders, 
our customers and our Crewmembers. 

As used in this Form 10-K, the terms “JetBlue”, the “Company”, “we”, 
“us”, “our” and similar terms refer to JetBlue Airways Corporation and 
its subsidiaries, unless the context indicates otherwise. 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, challenging and often 
volatile. It is uniquely susceptible to external factors such as downturns in 
domestic and international economic conditions, weather-related disruptions, 
the spread of infectious diseases, the impact of airline restructurings or 
consolidations, U.S. 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 passenger demand. The principal 
competitive factors in the airline industry include fares, brand and customer 
service, route networks, flight schedules, aircraft types, safety records, 
code-sharing and interline relationships, in-flight entertainment and 
connectivity systems and frequent flyer programs.

Price competition is strong in our industry and occurs through price 
discounting, fare matching, targeted sale promotions, ancillary fees and 
frequent flyer travel initiatives. All of these measures are usually matched 
by other airlines in order to maintain their competitive position. Our ability 
to meet this price competition depends on, among other things, our ability 
to operate at costs equal to or lower than our competitors.

Since 2001, the majority of traditional network airlines have undergone 
significant financial restructuring including bankruptcies, mergers and 
consolidations. These processes typically result in a lower cost structure 
through a reduction of labor costs, restructuring of commitments including 
debt terms, leases and fleet, modification or termination of pension plans, 
increased workforce flexibility and innovative offerings. These actions also 
have provided significant opportunities for realignment of route networks, 
alliances and frequent flyer programs. Each factor has had a significant 
influence on the industry’s improved profitability.

2014 Operational Highlights

We believe our differentiated product and culture, competitive costs 
and high-value geography relative to the other airlines contributed to 
our continued success in 2014. Our 2014 operational highlights include:

•• Product enhancements – Throughout 2014 we continued to invest in 
industry-leading products which we believe will continue to differentiate 
our product offering from the other airlines. In June 2014, we launched 
our premium transcontinental product called Mint™. It includes 16 fully 
lie-flat seats, four of which are in suites with a privacy door, a first in the 
U.S. domestic market. We continued to install our Fly-Fi™ in-flight internet 
service across our Airbus fleet. At the end of December 2014, all of our 
Airbus A321 aircraft and approximately 60% of our Airbus A320 aircraft 

had Fly-Fi™ installed. We anticipate retrofitting our Embraer fleet shortly 
after the completion of the Airbus fleet installation. At our Investor Day 
in November 2014, we announced that in the first half of 2015 we are 
expecting to roll out our new pricing model, Fare Families. Through Fare 
Families, we plan to offer customers a choice from fare options that contain 
a suite of products or services they need or value most when traveling.

•• Fleet – In November 2014, we deferred 13 Airbus A321 aircraft orders 
and eight Airbus A320 aircraft orders from 2016-2020 to 2020-2023. 
Of these deferrals, ten A321 aircraft orders were converted to Airbus 
A321 new engine option (A321neo) orders and five Airbus A320neo 
aircraft orders were converted to Airbus A321neo aircraft orders. We 

06

JETBLUE AIRWAYS CORPORATION - 2014 Annual Reportadditionally converted three Airbus A320 aircraft orders in 2016 to Airbus 
A321 aircraft orders. In 2014, we took delivery of nine Airbus A321 aircraft, 
all equipped with our Mint™ cabin layout.

•• Airport Infrastructure Investments – In November 2014, we opened 
T5i, an extension to our existing Terminal, or T5, at John F. Kennedy 
International Airport, or JFK, in New York City. This extension consists 
of six international arrivals gates, three of which are new and three of 
which are converted from the original terminal building. T5i further houses 
an international arrivals hall with U.S. Customs and Border Protection 
services for customers arriving on international flights. This addition 
to our terminal facilities at JFK allows our international customers to 
depart and arrive under the one roof and enhances the award-winning 
JetBlue Experience at all points along their journey. In September 2014, 
we announced the opening of a new USO Center in T5. The center was 
100% donated by JetBlue, Gensler, Turner Construction Company and 
the Port Authority of New York & New Jersey, or PANYNJ, as well as 
over 28 contractors and individual donors. The center will be open seven 
days a week, 365 days per year for any troops and their families to relax 
before or after flights and during layovers.

•• Network – We continued to expand and grow in our high-value geography 
in 2014. We are working with the local authorities of Broward County, 
Florida, who have commenced runway and terminal expansion plans 
at Fort Lauderdale-Hollywood Airport. These plans align with our future 

The JetBlue Experience and Strategy

We offer our customers a distinctive flying experience which we refer to 
as the “JetBlue Experience”. We believe we deliver award winning service 
that focuses on the customer experience from booking their itinerary to 
arrival at their final destination. Typically, our customers are neither high-
traffic business travelers nor ultra-price sensitive travelers. Rather, we 
believe we are the carrier of choice for the majority of travelers who have 
been underserved by other airlines as we offer differentiated product and 
award winning customer service.

Differentiated Product and Culture

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

Our award winning service begins from the moment our customers purchase 
a ticket from one of our distribution channels such as www.jetblue.com, 
our mobile applications or our reservations centers. In the first half of 2015, 
we are anticipating the role out of our new pricing model, Fare Families. 
Customers will be presented with a choice of fare options, with all fares 
including our core offering of free in-flight entertainment, free brand name 
snacks and free non-alcoholic beverages. Customers can choose to “buy 
up” to an option with additional offerings. We believe this system will allow 
customers to select the products or services they need or value the most 
when they travel, without paying for the things they don’t need or value.

Upon arrival at the airport our customers are welcomed by our dedicated 
Crewmembers and are able choose to purchase one of our ancillary options 
such as Even More™ Speed, which allows them to enjoy an expedited 
security experience in most domestic JetBlue locations.

Once onboard our aircraft, customers enjoy seats in a comfortable layout 
and the most legroom in the main cabin of all U.S. airlines, based on 
average fleet-wide seat pitch. Our Even More™ Space seats are available 
for purchase across our fleet, giving customers the opportunity to enjoy 
additional legroom. Customers on certain transcontinental flights have the 
option to purchase our premium service, Mint™, which has 16 fully lie-flat 
seats, including four that are in suites with privacy doors.

PART I   

ITEM 1 Business

plans of growing to 100 flights per day at Fort Lauderdale-Hollywood. 
In March 2014, we completed the purchase of 24 High Density Slots, 
or Slots, at Ronald Reagan National Airport in Washington, D.C., or 
Reagan National. Slots limit the air traffic in and out of high volume traffic 
airports located in the northeast corridor airspace during specific times. 
We started using these Slots in the second half of 2014 and continue 
to announce new route pairings.

•• TrueBlue and partnerships – We expanded our portfolio of commercial 
airline partnerships throughout the year and announced a code-sharing 
agreement with current partner El Al Airlines. In November 2014, South 
African Airways joined the TrueBlue loyalty program, with TrueBlue 
members now being able to earn points when they travel on any flight 
operated by South African Airways. In December 2014, we launched 
the TrueBlue points donation platform so members can now choose 
to donate points to a number of charities and non-profits. Each charity 
may then use the points for travel for their organization.

•• Customer Service – We were recognized by J.D. Power and Associates 
for the tenth consecutive year as the “Highest in Airline Customer 
Satisfaction among Low-Cost Carriers.” We were additionally recognized 
by Airline Ratings as the “Best Low Cost Airline – The Americas” receiving  
7/7 stars for safety, and 5/5 stars for our product offering for the second 
consecutive year.

Our in-flight entertainment system onboard our Airbus A320 and 
EMBRAER 190 aircraft includes 36 channels of free DIRECTV®, 100 channels 
of free SiriusXM® satellite radio and premium movie channel offerings 
from JetBlue Features®, our source of first run films. Customers on our 
Airbus A321 aircraft have access to 100 channels of DIRECTV® and 
100+ channels of SiriusXM® radio. Our Mint™ customers enjoy 15-inch 
flat screen televisions to experience our in-flight entertainment offerings. 
In December 2013, we began to retrofit our Airbus fleet with Fly-Fi™, 
a broadband product, with connectivity that is significantly faster than 
competing KU-band satellites and older ground to air technology. We 
expect installations to be completed on our Airbus fleet in the first half 
of 2015, after which we plan to begin installations on our EMBRAER  
190 fleet. In November 2014, we announced the introduction of Fly-Fi™ 
Hub, a content portal where customers can access a wide range of 
movies, television shows and additional content from their own personal 
devices. Current partners include Coursera, FOX, HarperCollins Publishers, 
National Geographic, Rouxbe and Time Inc. We expect to add PBS, 
Random House and The Wall Street Journal in the first quarter of 2015.

All customers may enjoy an assortment of free and unlimited brand name 
snacks and non-alcoholic beverages as well as having the option to 
purchase premium beverages and food selections. Our Mint™ customers 
have access to an assortment of complimentary food and beverages which 
include a small-plates menu, artisanal snacks and alcoholic beverages. 
All customers also have the option to purchase additional products such 
as a blanket or headphones.

Our Airbus A321 aircraft in a single cabin layout have 190 seats and 
those with our Mint™ offering have 159 seats. Our Airbus A320 aircraft 
have 150 seats while our EMBRAER 190 aircraft have 100 seats. At our 
Investor Day in November 2014, we announced a cabin refresh program 
across our fleet that we expect to commence in the second half of 2016. 
As part of this program we are expecting to increase the seat density on 
our Airbus A320 fleet.

In addition to our core products we also sell vacation packages through 
JetBlue Getaways™, a one-stop, value-priced vacation service 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 attractions.

07

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART I   
ITEM 1 Business

We work to provide a superior air travel experience, including communicating 
openly and honestly with customers about delays and service disruptions. 
We are the only major U.S. airline to have a Customer Bill of Rights. This 
program was introduced in 2007 to provide for compensation to customers 
who experience avoidable inconveniences as well as some unavoidable 
circumstances. It also commits us to high service standards and holds 
us accountable if we do not meet them. In 2014, we completed 97.7% 
of our scheduled flights. Unlike most other airlines, we have a policy of 
not overbooking flights.

Our customers have repeatedly indicated the distinctive JetBlue Experience 
is an important reason why they choose to fly us over other carriers. We 
measure and monitor customer feedback regularly which helps us to 
continuously improve customer satisfaction. One way we do so is by 
measuring our net promoter score, or NPS. This metric is used by companies 
in many industries to measure and monitor the customer experience. Many 
of the leading consumer brands that are recognized for great customer 
service receive high NPS scores. We believe a higher NPS score has 
positive effects on customer loyalty and leads to increased revenue.

Network/ High-Value Geography

We are a predominately point-to-point system carrier, with the majority 
of our routes touching at least one of our six focus cities of New York, 
Boston, Fort Lauderdale-Hollywood, Orlando, Long Beach and San

Juan, Puerto Rico. During 2014, over 86% of our customers flew on 
non-stop itineraries. 

Airlines with a strong leisure traveler focus are often faced with high 
seasonality. As a result, we are continually working to manage our mix of 
customers to include business travelers as well as travelers visiting friends 
and relatives, or 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 
optimize destinations, strengthen our network and increase unit revenues. 
All six of our focus cities are in regions with a diverse mix of traffic and 
were profitable in 2014.

As of December 31, 2014, our network served 87 BlueCities in 27 states, 
the District of Columbia, the Commonwealth of Puerto Rico, the U.S. 
Virgin Islands, and 17 countries in the Caribbean and Latin America. In 
2014, we commenced service to five new BlueCities including Curaçao, 
our 31st BlueCity in the Caribbean and Latin America. We also made 
tactical changes across our network by announcing new routes between 
existing BlueCities. We group our capacity distribution based upon 
geographical regions rather than on mileage or length of haul basis. 
The historic distribution for the past three years of available seat miles, 
or capacity, by region is:

Year Ended December 31,

2012
Capacity Distribution
27.2%
Caribbean & Latin America(1)
31.1  
Florida
28.6  
Transcontinental
4.9
East
5.0  
Central
3.2  
West
TOTAL
100.0%
(1)  Domestic operations as defined by the Department of Transport, or DOT, include Puerto Rico and the U.S. Virgin Islands, but for the purposes of the capacity distribution table above we have 

2014
31.4%
29.3  
26.3  
5.7
4.7  
2.6  
100.0%

2013
28.1%
30.9  
27.9  
5.0
5.2  
2.9  
100.0%

included these locations in the Caribbean and Latin America region.

Our network growth over the past few years has been focused on the business traveler in Boston as well as travelers to the Caribbean and Latin America 
region. Looking to the future we expect to focus on increasing our presence in Fort Lauderdale-Hollywood. We believe there is an opportunity at Fort 
Lauderdale-Hollywood to increase our operations to destinations throughout the Caribbean and Latin America. Our plan is supported by significant 
investment from the Broward County Aviation Department in the airport and surrounding facilities.

In 2015, we anticipate further expanding our network and have announced the following new destinations:

Destination
Cleveland, OH
Reno, NV
Grenada*
* subject to receipt of government operating authority

Service Scheduled to Commence
April 30, 2015
May 28, 2015
June 11, 2015

Airline Commercial Partnerships

Marketing

Airlines frequently participate in commercial partnerships with other carriers in 
order to provide inter-connectivity, code-sharing, coordinated flight schedules, 
frequent flyer program reciprocity and other joint marketing activities. As 
of December 31, 2014, we had 38 airline commercial partnerships. Our 
commercial partnerships typically begin as an interline agreement allowing 
a customer to book one itinerary with tickets on multiple airlines. During 
2014, we entered into eight new interline agreements. We strengthened 
the relationship with one of our existing partners, El Al Airlines, to include 
code-sharing. Code-sharing is a practice in which one airline places its 
name and flight number on flights operated by another airline. In 2015, we 
expect to continue to seek additional strategic opportunities through new 
commercial partners as well as assess ways to deepen select current airline 
partnerships. We plan do this by expanding code-share relationships and 
other areas of cooperation such as frequent flyer programs. We believe 
these commercial partnerships allow us to leverage our strong network 
and drive incremental traffic and revenue while improving off-peak travel.

JetBlue is a widely recognized and respected global brand. This brand 
has evolved into an important and valuable asset which identifies us 
as a safe, reliable, high value airline. Similarly, we believe customer 
awareness of our brand has contributed to the success of our marketing 
efforts. It enables us to promote ourselves as a preferred marketing 
partner with companies across many different industries.

We market our services through advertising and promotions in various 
media forms including popular social media outlets. We engage in 
large multi-market programs, local events and sponsorships as well 
as mobile marketing programs. Our targeted public and community 
relations efforts reflect our commitment to the communities we serve, 
as well as promoting brand awareness and complementing our strong 
reputation.

08

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportDistribution

Our primary and preferred distribution channel to customers is through 
our website, www.jetblue.com, our lowest cost channel. We additionally 
have mobile applications for both Apple and Android devices which 
have robust features including real-time flight information updates and 
mobile check-in for certain routes. Both of these channels are designed 
to enhance our customers’ travel experience and are in keeping with the 
JetBlue Experience. In the first half of 2015, we expect to introduce a new 
merchandising platform for www.jetblue.com with our business partner 
Datalex in addition to merchandising capabilities on our kiosks and in our 
self-service channels with our business partner IBM.

Our participation in global distribution systems, or GDS’s, 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 cost of sales through 
this channel is higher than through our website, the average fare purchased 
through GDS’s is generally higher and often covers the increased distribution 
costs. We currently participate in several major GDS’s and online travel 
agents, or OTAs. Due to the majority of our customers booking travel 
on our website, we maintain relatively low distribution costs despite our 
increased participation in GDS’s and OTA in recent years.

Customer Loyalty Program

TrueBlue® is our customer loyalty program designed to reward and recognize 
loyal customers. Members earn points based upon the amount paid for 
JetBlue flights and services from certain commercial partners. Our points 

Operations and Cost Structure

Historically our cost structure has allowed us to profitably price fares 
lower than many competitors and is a principal reason for our success. 
Our current cost advantage relative to some of our competitors is due to 
high aircraft utilization, new and efficient aircraft, relatively low distribution 
costs, and a productive workforce among other factors. Because our 
network initiatives and growth plans necessitate a low cost platform, we 
are continually focused on our competitive costs, operational excellence, 
efficiency improvements and in making investments that contribute and 
enhance the JetBlue Experience.

Route Structure

Our point-to-point system is the foundation of our operational structure. 
This structure allows us to optimize costs as well as accommodate 
customers’ preference for non-stop itineraries. Further, a vast majority of 
our operations are centered in and around 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.

•• New York metropolitan area – We are New York’s Hometown Airline™. 
The majority of our flights originate in the New York metropolitan area, 
the nation’s largest travel market. JFK is New York’s largest airport. We 
are the second largest airline at JFK as measured by domestic capacity 
and our operations accounted for more than 36% of seats offered on 
domestic routes from JFK. As JFK is a Slot controlled airport we have 
been able to continue to grow our operations by adding more seats 
per departure via the delivery of 13 Airbus A321 aircraft in total as of 
December 31, 2014, as well as continuing to optimize routes based upon 
load factor and costs. We operate out of T5 and in November 2014 we 
opened T5i, an international arrivals facility that expands our current  
T5 footprint. We believe T5i will enable us to increase operational 
efficiencies, provide savings, streamline our operations and improve the 
overall travel experience for our customers arriving from international 
destinations. We also serve New Jersey’s Newark Liberty International 
Airport, or Newark, New York’s LaGuardia Airport, or LaGuardia, Newburgh, 

PART I   

ITEM 1 Business

do not expire, the program has no black-out dates or seat restrictions, 
and any JetBlue destination can be booked if the TrueBlue® member has 
enough points to exchange for the value of an open seat. Mosaic is an 
additional level for our most loyal customers who either (1) fly a minimum 
of 30 times with JetBlue and acquire at least 12,000 base flight points 
within a calendar year, or (2) accumulate 15,000 base flight points within 
a calendar year. There were over 1.1 million TrueBlue one-way redemption 
awards flown during 2014, representing approximately 3% of our total 
revenue passenger miles. 

We currently have an agreement with American Express® under which 
they issue JetBlue co-branded American Express® credit cards to U.S. 
residents that allow cardmembers to earn TrueBlue® points. We also have 
co-branded loyalty credit cards with Banco Santander Puerto Rico and 
MasterCard® in Puerto Rico as well as with Banco Popular Dominicano 
and MasterCard® in the Dominican Republic. These cards allow customers 
in Puerto Rico and the Dominican Republic to take full advantage of our 
TrueBlue® loyalty program.

We have a separate agreement with American Express® allowing any 
American Express® cardholder to convert Membership Rewards® points into 
TrueBlue® points. We have separate agreements with other loyalty partners 
including hotels and car rental companies, who allow their customers to 
earn TrueBlue® points through participation in the partners’ programs. 
We intend to continue to develop the footprint of our co-branded credit 
cards and pursue other loyalty partnerships in the future.

NY’s Stewart International Airport and White Plains, NY’s Westchester 
County Airport. We are the leading carrier in number of flights flown per 
day between the New York metropolitan area and Florida.

•• Boston – We are the largest carrier in terms of flights and capacity at 
Boston’s Logan International Airport, or Boston. By the end of 2014 we 
flew to 54 non-stop destinations from Boston and served almost twice 
as many non-stop destinations than any other airline. Our operations 
accounted for more than 26% of all seats offered. We continue to capitalize 
on opportunities in the changing competitive landscape by adding routes, 
frequencies and increasing our relevance to local travelers. In 2014, we 
continued to see a boost in the Boston market with three airline partners 
starting international routes directly to Boston, bringing the total number 
of airline partners flying routes to Boston to 16 by the end of the year. Our 
plan is to grow Boston towards a target of 150 flights per day, which we 
expect to be strengthened with two airline partners already announcing 
international routes directly to Boston starting in 2015.

•• Caribbean and Latin America – At the end of 2014 we had 31 BlueCities 
in this region and we expect this number to continue to grow in the future. 
Our only focus city outside of the Continental U.S. is San Juan, Puerto 
Rico. We are the largest airline in Puerto Rico in terms of capacity with 
approximately 39% of all seats offered in 2014 flying to/from our three 
BlueCities. We are also the largest airline in terms of capacity serving 
the Dominican Republic with six BlueCities and approximately 21% of all 
seats offered in 2014. While the Caribbean and Latin American region is 
a growing part of our network, operating in these developing countries 
can present operational challenges, including working with less developed 
airport infrastructure, political instability and vulnerability to corruption.

•• Fort Lauderdale-Hollywood – We are the largest carrier in terms of 
capacity at Fort Lauderdale-Hollywood International Airport, with 
approximately 21% of all seats offered in 2014. During 2014, we added 
seven new destinations and grew departures by approximately 13%. Flying 
out of Fort Lauderdale-Hollywood instead of nearby Miami International 
Airport helps preserve our competitive cost advantage through lower 
cost per enplanement. In 2012, Broward County authorities commenced 
a multi-year, $2.3 billion refurbishment effort at the airport and surrounding 

09

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART I   
ITEM 1 Business

facilities including the construction of a new airfield. We operate out of 
Terminal 3 which is scheduled to be refurbished and connected to the 
upgraded and expanded international terminal by 2018. We expect 
the connection of these terminals will streamline operations for both 
Crewmembers and customers. Due to these factors, its ideal location 
between the U.S. and Latin America as well as South Florida’s high-
value geography, we intend to focus on Fort Lauderdale-Hollywood 
growth going forward.

•• Orlando – We are the second largest carrier in terms of capacity at 
Orlando International Airport, or Orlando, with more than 13% of all seats 
offered in 2014. Orlando was our most profitable focus city in 2014 with 
24 non-stop destinations and a growing mix of traffic including leisure, 
VFR and business travelers. Our centralized training center, known as 
JetBlue University, is based in Orlando. In 2013, we started construction 
of a facility adjacent to our training center that is intended to be used for 
lodging our Crewmembers when they attend training. We expect this 
facility to open to our Crewmembers in early 2015.

•• Los Angeles area – We are the eighth largest carrier in the Los Angeles 
area, operating from Long Beach Airport, or Long Beach, Los Angeles 
International Airport, or LAX, and Burbank’s Bob Hope Airport. We are 
the largest carrier in Long Beach, with almost 81% of all seats offered 
in 2014 being operated by JetBlue. We are currently working with the 
Long Beach community as well as Customs and Border Protection to 
explore the possibility of flying to international destinations from Long 
Beach in the future. In June 2014, we started operating our premium 
transcontinental service, Mint™, from LAX.

Our peak levels of traffic over the course of the year depend upon the 
route, with the East Coast to Florida/Caribbean peak from October 
through April and the West Coast peak in the summer months. Many of 
our areas of operations in the Northeast experience poor winter weather 
conditions, resulting in increased costs associated with de-icing aircraft, 
canceled flights and accommodating displaced customers. 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 Structure

We currently operate Airbus A321, Airbus A320 and EMBRAER 190 aircraft 
types. In 2014, our fleet had an average age of 7.8 years and operated an 
average of 11.8 hours per day. By scheduling and operating our aircraft 
more efficiently we are able to spread related fixed costs over a greater 
number of available seat miles. 

The reliability of our fleet is essential to ensuring our operations run efficiently 
and we are continually working with our aircraft and engine manufacturers 
to enhance our performance. In 2015, we expect to start retrofitting our 
Airbus aircraft with Sharklets®, a blended wingtip device designed to improve 

the aircraft’s aerodynamics. We anticipate that the use of Sharklets® will 
result in improved range and flight performance in addition to fuel savings. 
We are working with the Federal Aviation Administration, or FAA, in efforts 
towards implementing the Next Generation Air Transportation System, or 
NextGen, by 2020. In 2012, we equipped 35 of our Airbus A320 aircraft 
to test ADS-B Out, a satellite based technology aimed to facilitate the 
communication between pilots and air traffic controllers. Even though it 
is still in the testing phase we have already seen benefits from the ADS-B 
Out equipment. This includes being able to reroute flights over the Gulf 
of Mexico to avoid bad weather, an area where the current FAA radar 
coverage is not complete. NextGen technology is expected to improve 
operational efficiency in the congested airspaces in which we operate. In 
2012, we also became the first FAA certified Airbus A320 carrier in the 
U.S. to use satellite-based Special Required Navigation Performance 
Authorization Required, or RNP AR, approaches at two of JFK’s prime 
and most used runways, 13L and 13R.

Fleet Maintenance

Consistent with our core value of safety, our FAA-approved maintenance 
programs are administered by our technical operations department. We 
use qualified maintenance personnel and ensure they have comprehensive 
training. We maintain our 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 our line maintenance is handled by JetBlue technicians and 
inspectors. It consists of daily checks, overnight and weekly checks, “A” 
checks, diagnostics and routine repairs.

Heavy maintenance checks, or “C” checks, consist of a series of more 
complex tasks taking from one to four weeks to accomplish and are typically 
performed once every 15 months. All of our aircraft heavy maintenance 
work is performed by FAA-approved facilities such as Embraer, Pemco 
and Timco, and are subject to direct oversight by JetBlue personnel. We 
outsource heavy maintenance as the costs are lower than if we performed 
the tasks internally, including any inventory related costs.

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-approved repair stations. We have maintenance 
agreements with MTU Maintenance Hannover GmbH, or MTU, for our 
Airbus fleet engines and with GE (OEM) for our EMBRAER 190 aircraft 
engines. We also have an agreement with Lufthansa Technik AG for the 
repair, overhaul, modification and logistics of certain Airbus components. 
Many of our maintenance service agreements are based on a fixed cost 
per flying 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 organizations.

Aircraft Fuel

Aircraft fuel continues to be our largest expense. Its price and availability has been extremely volatile in the past due to global economic and geopolitical factors 
which we can neither control nor accurately predict. We use a third party fuel management service to procure most of our fuel. Our historical fuel consumption 
and costs for the years ended December 31 were:

Gallons consumed (millions)
Total cost (millions)(a)
Average price per gallon(a)
Percent of operating expenses
(a)  Total cost and average price per gallon each include related fuel taxes as well as effective fuel hedging gains and losses.

2014
639  
$ 1,912  
2.99  
$
36.1%  

2013
604  
$ 1,899  
3.14  
$
37.9%  

2012
563  
$ 1,806  
3.21  
$
39.2%

We attempt to protect ourselves against the volatility of fuel prices by entering into a variety of derivative instruments. These include swaps, caps, collars, 
and basis swaps with underlyings of jet fuel, crude and heating oil. We also use fixed forward price agreements, or FFPs, which allow us to lock in the 
price of fuel for specified quantities and at specified locations in future periods.

10

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report 
 
 
 
PART I   

ITEM 1 Business

Financial Health

LiveTV

We strive to maintain financial strength and a cost structure that enables 
us to grow profitably and sustainably. In the first years of our history, we 
relied upon financing activities to fund much of our growth. Starting in 2007, 
as our airline matured, growth has largely been funded through internally 
generated cash from operations. Since 2010, while we have invested 
over $3.2 billion in capital assets, we have also generated approximately 
$3.5 billion in cash from operations, resulting in over $285 million in free 
cash flow. Our improving financial results have resulted in better credit 
ratings, which have in turn resulted in more attractive financing terms when 
we do not purchase assets for cash. Since 2010, we have also reduced 
our total debt balance by nearly $1.1 billion.

LiveTV, LLC, or LiveTV, was formerly a wholly owned subsidiary of JetBlue. 
It provides in-flight entertainment and connectivity solutions for various 
commercial airlines including JetBlue. In June 2014, we sold LiveTV and 
its subsidiaries LTV Global, Inc, and LiveTV International, Inc., to Thales 
Holding Corporation, or Thales. In September 2014, following the receipt 
of regulatory approval, we sold LiveTV Satellite Communications, LLC, a 
subsidiary of LiveTV, to Thales. Following the completion of these sales, 
these LiveTV operations ceased to be subsidiaries of JetBlue and are no 
longer presented in our consolidated financial statements. JetBlue, ViaSat 
Inc. and LiveTV have worked together to develop and support in-flight 
broadband connectivity for JetBlue which is being marketed as Fly-Fi™. 
JetBlue expects to continue to be a significant customer of LiveTV through 
its in-flight entertainment and onboard connectivity products and services.

Culture

Our People

Our success depends on our Crewmembers delivering the best customer 
service experience in the sky and on the ground. One of our competitive 
strengths is a service orientated culture grounded in our five key values 
of safety, caring, integrity, passion and fun. We believe a highly productive 
and engaged workforce enhances customer loyalty which in turn increases 
shareholder returns. Our goal is to hire, train and retain a diverse workforce 
of caring, passionate, fun and friendly people who share our mission to 
inspire humanity.

Our culture is first introduced to new Crewmembers during the screening 
process and then at an extensive new hire orientation program. The 
orientation focuses on the JetBlue strategy and emphasizes the importance 
of customer service, productivity and cost control. We provide continuous 
training for our Crewmembers including technical training, a specialized 
captain leadership training program unique in the industry, a leadership 
program for current company managers, an emerging managers program, 
regular training focused on the safety value and front line training for our 
customer service teams. Our growth plans necessitate and facilitate 
opportunities for talent development.

We believe a direct relationship between Crewmembers and our leadership 
is in the best interest of our Crewmembers, our customers and our 
shareholders. Except for our pilots, our Crewmembers do not have third-
party representation. In April 2014, JetBlue pilots elected to be solely 
represented by the Air Line Pilots Association, or ALPA. The National 
Mediation Board, or NMB, has certified ALPA as the representative body 
for JetBlue pilots and we plan to work with ALPA to reach our first collective 
bargaining agreement. 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 renews for an 
additional five-year term, unless the Crewmember is terminated for cause 
or the Crewmember elects not to renew. Pursuant to these employment 
agreements, 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 to continue their benefits. We believe that through 
these agreements we provide what we believe to be industry-leading job  
protection language. We believe these agreements provide JetBlue and 
Crewmembers flexibility and allow us to react to Crewmember needs 
more efficiently than collective bargaining agreements.

Another aspect of the direct relationship with our Crewmembers are 
our Values Committees. These Value Committees are made up of peer-
elected frontline Crewmembers from each of our major work groups, 
except pilots. They represent the interests of our workgroups and help 
us run our business in a productive and efficient way. We believe this 
direct relationship drives higher levels of engagement and alignment with 
JetBlue’s strategy, culture and overall goals.

We believe the efficiency and engagement of our Crewmembers is a result of 
our flexible and productive work rules. We are cognizant of the competition 
for productive labor in key industry positions and new government rules 
requiring higher qualifications as well as more restricted hours that may 
result in potential labor shortages in the upcoming years.

Our leadership team communicates on a regular basis with all Crewmembers 
in order to maintain this direct relationship with our people and to keep 
them informed about news, strategy updates and challenges affecting the 
airline. Effective and frequent communication throughout the organization 
is fostered through various means including email messages from our CEO 
and other senior leaders at least weekly, weekday news updates to all 
Crewmembers, employee engagement surveys, a quarterly Crewmember 
magazine and active leadership participation in new hire orientations. 
Leadership is also heavily involved in periodic open forum meetings across 
our network, called “pocket sessions” which are often videotaped and 
posted on our intranet. By soliciting feedback for ways to improve our 
service, teamwork and work environment, our leadership team works 
to keep Crewmembers engaged and makes our business decisions 
transparent. Additionally we believe cost and revenue improvements are 
best recognized by Crewmembers on the job.

Our average number of full-time equivalent employees, excluding 
employees of LiveTV, LLC, for the year ended December 31, 2014 
consisted of 2,609 pilots, 2,769 flight attendants, 3,626 airport operations 
personnel, 540 technicians (whom other airlines may refer to as mechanics), 
1,120 reservation agents, and 2,616 management and other personnel. 
For the year ended December 31, 2014, we employed an average 
of 11,352 full-time and 3,982 part-time employees.

Crewmember Programs

We are committed to supporting our Crewmembers through a number 
of programs including:

•• Crewmember Resource Groups (CRGs) – These are groups of 
Crewmembers formed to act as a resource for both the group members as 
well as JetBlue. The groups serve as an avenue to embrace and encourage 
different perspectives, thoughts and ideas. At the end of 2014, we had 
three CRGs in place: JetPride, Women in Flight, and Vets in Blue. Starting 
in 2015, we will have a new CRG for anyone interested in Latin cultures.

•• JetBlue Crewmember Crisis Fund (JCCF) – This organization was 
formed in 2002 as a non-profit corporation and recognized by the IRS as 
of that date as a tax-exempt entity. JCCF was created to assist JetBlue 
Crewmembers and their immediate family members (IRS Dependents) in 
times of crisis. Funds for JCCF grants come directly from Crewmembers via 
a tax-deductible payroll deduction. The assistance process is confidential 
with only the fund administrator and coordinator knowing the identity of 
the Crewmembers in need.

11

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART I   
ITEM 1 Business

•• Lift Recognition Program – Formed in 2012, this Crewmember 
recognition program encourages Crewmembers to celebrate their 
peers for living JetBlue’s values by sending e-thanks through an on-
line platform. On a periodic basis our Executive Leadership Team, or 
ELT, hosts an event for the Crewmembers that received the highest 
Lift award recognitions in each quarter of the year. In 2014, we saw 
almost 84,000 Lift nominations.

Community Programs

JetBlue is strongly committed to supporting the communities and BlueCities 
we serve through a variety of community programs including:

•• Corporate Social Responsibility (CSR) – The CSR team was 
established to support not-for-profit organizations focusing on youth 
and education, environment, and community in the BlueCities we 
serve. The team organizes and supports community service projects, 
charitable giving and non-profit partnerships such as KaBOOM! and 
Soar with Reading.

•• JetBlue Foundation – Organized in 2013 as a non-profit corporation, this 
foundation is a JetBlue-sponsored organization to advance aviation-related 
education and to continue our efforts to put aviation on the map as a 
top career choice for students. We intend to do this by igniting interest 
in science, technology, engineering and mathematics. The foundation is 
legally independent from JetBlue and has a Board of Directors as well as 
an Advisory Committee, both of which are made up of Crewmembers. 
The foundation is recognized by the IRS as a tax-exempt entity.

•• USO Center T5/JFK – Continuing our tradition of proudly supporting the 
men, women and families of the military, in September 2014 we opened 
a USO Center in T5 at JFK. The Center is open seven days a week, 365 
days per year for military members and their families traveling on any 
airline at JFK, not just JetBlue. This brand new center is fully stocked 
with computers, televisions, gaming devices/stations, furniture, iPads, 
food and beverages and much more. In conjunction with leading airport 
design firm Gensler, Turner Construction Company, the PANYNJ and more 
than 28 contractors and individual donors, 100% of the space, services, 
labor and materials were donated to ensure the USO would be free of 
any financial burden. Crewmembers donate time to help run the center.

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 
U.S. Most of our airline operations are regulated by U.S. governmental 
agencies including:

also has law enforcement powers and the authority to issue regulations, 
including in cases of national emergency, without a notice or comment 
period. 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 regulations.

DOT – The DOT primarily regulates economic issues affecting air service 
including, but not limited to, certification and fitness, insurance, consumer 
protection and competitive practices. They set the requirement that carriers 
cannot permit domestic flights to remain on the tarmac for more than three 
hours. The DOT also requires that the advertised price for an airfare or a 
tour package including airfare, e.g., a hotel/air vacation package, has to 
be the total price to be paid by the customer, including all government 
taxes and fees. It has the authority to investigate and institute proceedings 
to enforce its economic regulations and may assess civil penalties, revoke 
operating authority and seek criminal sanctions.

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, we cannot fly to 
new destinations without the prior authorization of the FAA. After providing 
notice and a hearing, it 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 on-site representatives and performs frequent 
spot inspections of our aircraft, employees and records. It 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 windshear 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.

TSA – The TSA operates under the Department of Homeland Security and 
is responsible for all civil aviation security. This includes passenger and 
baggage screening, cargo security measures, airport security, assessment 
and distribution of intelligence, and security research and development. It 

Taxes & Fees – The airline industry is one of the most heavily taxed in 
the U.S., with taxes and fees accounting for approximately 16% of the 
total fare charged to a customer. Airlines are obligated to fund all of these 
taxes and fees regardless of their ability to pass these charges on to the 
customer. The TSA sets the September 11, or 9/11, Security Fee which 
is passed to the customer. On July 21, 2014, the 9/11 Security Fee was 
increased from $2.50 per enplanement, with a maximum of $5 per one-way 
trip, to $5.60 per enplanement, regardless of the number of connecting 
flights. On December 19, 2014, the fee was amended and a round trip 
has been limited to a maximum of $11.20.

State and Local – We are subject to state and local laws and regulations 
in a number of states in which we operate and the regulations of various 
local authorities operating the airports we serve.

Airport Access – JFK, LaGuardia, Newark and Reagan National are 
Slot-controlled airports subject to the “High Density Rule” and successor 
rules issued by the FAA. These rules were implemented due to the high 
volume of traffic at these popular airports located in the northeast corridor 
airspace. The 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 airspace congestion. 
We additionally have Slots at other Slot-controlled airports governed by 
unique local ordinances not subject to the High Density Rule, including 
Westchester County Airport in White Plains, NY and Long Beach (California) 
Municipal Airport.

Airport Infrastructure – The northeast corridor of the U.S. contains some 
of the most congested airspaces in the world. The airports in this region 
are some of the busiest in the country, the majority of which are more 
than 60 years old. Due to high usage and aging infrastructure, issues 
arise at these airports that are not necessarily seen in other parts of the 
country. Starting in 2015, a heavily utilized runway at JFK is scheduled 
to be refurbished. The Central Terminal refurbishment at LaGuardia has 
been delayed and is still to be scheduled. Once underway, it is expected 
to be refurbished in phases over six years.

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. We currently operate international service to Aruba, 
the Bahamas, Barbados, Bermuda, the Cayman Islands, Colombia, Costa 

12

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART I   

ITEM 1 Business

Rica, Curaçao, the Dominican Republic, Haiti, Jamaica, Mexico, Peru, Saint 
Lucia, St. Maarten, Trinidad and Tobago and the Turks and Caicos Islands. 
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 applicable foreign government.

We believe we are operating in material compliance with DOT, FAA, TSA 
and applicable international regulations as well as 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.

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 military.

Other

Environmental – We are subject to various federal, state and local laws 
relating to the protection of the environment. This includes 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 and Long Beach airports in 
California, 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 Long Beach 
and San Diego are in compliance with the noise curfew limits, but on 
occasion when we experience irregular operations we may violate these 
curfews. We have agreed to a payment structure with the Long Beach 
City Prosecutor for any violations which we pay quarterly to the Long 
Beach Public Library Foundation. The payment is based on the number 
of infractions in the preceding quarter. This local ordinance has not had, 
and we believe it will not have, a negative effect on our operations.

We use our JetBlue Sustainability program on www.jetblue.com/green/ to 
educate our customers and Crewmembers about environmental issues 
and to inform the public about our environmental protection initiatives. 
Our most recent corporate sustainability report for 2013 is available on 
our website and addresses our environmental programs, including those 
aimed at curbing greenhouse emissions, our recycling efforts and our 
focus on corporate social responsibility.

Foreign Ownership – Under federal law and DOT regulations, we must 
be controlled by U.S. citizens. In this regard, our president and at least 
two-thirds of our board of directors must be U.S. citizens. Further, no 
more than 24.99% of our outstanding common stock may be voted by 
non-U.S. citizens. We believe we are currently in compliance with these 
ownership provisions.

Other Regulations – All airlines are subject to certain provisions of 
the Communications Act of 1934 due of their extensive use of radio 
and other communication facilities. They are also required to obtain an 
aeronautical radio license from the FCC. To the extent we are subject 
to FCC requirements, we take all necessary steps to comply with those 
requirements. Our labor relations are covered under Title II of the Railway 

Where You Can Find Other Information

Insurance

We carry insurance of types 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. As a result 
of the terrorist attacks of September 11, 2001, aviation insurers significantly 
reduced the amount of insurance coverage available to commercial airlines 
for liability to persons other than employees or passengers for claims 
resulting from acts of terrorism, war or similar events. This is known as 
war risk coverage. At the same time, these insurers significantly increased 
the premiums for aviation insurance in general. The U.S. government 
agreed to provide commercial war-risk insurance for U.S. based airlines, 
covering losses to employees, passengers, third parties and aircraft. This 
coverage ended in December 2014. As of July 2014, JetBlue obtained 
comparable coverage in the commercial market as part of our overall hull 
and liability insurance coverage.

Iran Sanctions Disclosure

Pursuant to Section 13(r) of the Securities Exchange Act of 1934, or the 
Exchange Act, if during 2014, JetBlue or any of its affiliates engaged in certain 
transactions with Iran or with persons or entities designated under certain 
executive orders, JetBlue would be required to disclose information regarding 
such transactions in our Annual Report as required under Section 219 
of the Iran Threat Reduction and Syria Human Rights Act of 2012, or ITRA. 
During 2014, JetBlue did not engage in any reportable transactions with 
Iran or with persons or entities related to Iran.

Deutsche Lufthansa AG, or Lufthansa, is a stockholder of approximately 
15% of JetBlue’s outstanding shares of common stock and has two 
representatives on our Board of Directors. Accordingly, it may be deemed 
an “affiliate” of JetBlue, as the term is defined in Exchange Act Rule 12b-2. 
In response to our inquiries, Lufthansa informed us it does not engage in 
transactions that would be disclosable under ITRA Section 219. However, 
Lufthansa informed us it does provide air transportation services from 
Frankfurt, Germany to Tehran, Iran pursuant to Air Transport Agreements 
between the respective governments. Accordingly, Lufthansa may have 
agreements in place to support such air transportation services with the 
appropriate agencies or entities, such as landing or overflight fees, handling 
fees or technical/refueling fees. In addition, there may be additional civil 
aviation related dealings with Iran Air as part of typical airline to airline 
interactions. In response to our inquiry, Lufthansa did not specify the 
total revenue it receives in connection with the foregoing transactions, but 
confirmed the transactions are not prohibited under any applicable laws.

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 at the SEC’s website 

at www.sec.gov. You may obtain and copy any document we furnish or 
file with the SEC at the SEC’s public reference room at 100 F Street, NE, 
Room 1580, Washington, D.C. 20549. You may obtain information on 
the operation of the SEC’s public reference facilities by calling the SEC 
at 1-800-SEC-0330. You may request copies of these documents, upon 
payment of a duplicating fee, by writing to the SEC at its principal office 
at 100 F Street, NE, Room 1580, Washington, D.C. 20549.

13

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART I   
ITEM 1A Risk Factors

ITEM 1A. Risk Factors

Risks Related to JetBlue

We operate in an extremely competitive industry.

The domestic airline industry is characterized by low profit margins, high 
fixed costs and significant price competition in an increasingly concentrated 
competitive field. 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. 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 profitable growth strategy, 
which would harm our business.

Furthermore, there have been numerous mergers and acquisitions within 
the airline industry including, for example, the recent combinations of 
American Airlines and US Airways, United Airlines and Continental Airlines, 
and Southwest Airlines and AirTran Airways. In the future, our industry 
composition may continue to change. Any business combination could 
significantly alter industry conditions and competition within the airline industry 
and could cause fares of our competitors to be reduced. Additionally, 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, our 
business could be materially adversely affected.

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 and are our single largest operating expense. Historically, fuel 
costs have been subject to wide price fluctuations based on geopolitical 
factors as well as supply and demand. 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. 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 
if the price of crude oil falls below specified benchmarks. 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 

14

result in a curtailment of scheduled services and could have a material 
adverse effect on our financial condition and results of operations.

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

As of December 31, 2014, our debt of $2.23 billion accounted for 47% of 
our total capitalization. In addition to long-term debt, we have a significant 
amount of other fixed obligations under operating leases related to our 
aircraft, airport terminal space, other airport facilities and office space. As of 
December 31, 2014, future minimum payments under noncancelable leases 
and other financing obligations were approximately $2.00 billion for 2015 
through 2019 and an aggregate of $1.36 billion for the years thereafter. 
Terminal 5 at JFK is under a lease with the PANYNJ that ends on the 
28th anniversary of the date of beneficial occupancy of T5i. The minimum 
payments under this lease are being accounted for as a financing obligation 
and have been included in the future minimum payment totals above.

As of December 31, 2014, we had commitments of approximately  
$6.67 billion to purchase 127 additional aircraft and ten spare engines through 
2023, including estimated amounts for contractual price escalations. We 
may incur additional debt and other fixed obligations as we take delivery 
of new aircraft and other equipment and continue to expand into new 
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 high level of debt and other fixed obligations could:

•• impact our ability to obtain additional financing to support capital expansion 
plans 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 significantly more interest expense than we currently 
do if rates were to increase, since approximately 25% of our debt has 
floating interest rates; and

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

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART I   

ITEM 1A Risk Factors

Our substantial indebtedness may limit our ability to incur additional 
debt to obtain future financing needs.

We typically finance our aircraft through either secured debt or lease 
financing. The impact on financial institutions from the global economic 
conditions may adversely affect the availability and cost of credit to JetBlue 
as well as to prospective purchasers of our aircraft 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 strategy or otherwise constrain our 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 and many of these warranties 
have expired. If any maintenance provider with whom we have a flight 
hour agreement fails to perform or honor such agreements, we will incur 
higher interim maintenance costs until we negotiate new agreements.

Furthermore, as our fleet ages, we expect to implement various fleet 
modifications over the next several years to ensure our aircrafts’ continued 
efficiency, modernization, brand consistency and safety. Our plans to refresh 
our older Airbus aircraft and the addition of Sharklets®, for example, may 
require significant modification time. These fleet modifications may require 
significant investment over several years, including taking aircraft out of 
service for several weeks at a time.

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

As our employees’ tenure with JetBlue matures, our salaries, wages and 
benefits costs increase. As our overall workforce ages, we expect our 
medical and related benefits to increase, despite an increased corporate 
focus on Crewmember wellness.

We may be subject to unionization, work stoppages, slowdowns or 
increased labor costs and the unionization of the Company’s pilots could 
result in increased labor costs.

Our business is labor intensive and the unionization of any of our employees 
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 employees could unionize at any time, 
which would require us to negotiate in good faith with the employee 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 employees. 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. On 
April 22, 2014, approximately 74% of our pilots voted to be represented 
by the Airlines Pilot Association, or ALPA. In the first quarter of 2015, 
we intend to begin negotiations with the union regarding a collective 
bargaining agreement. If we are unable to reach agreement on the terms 
of a collective bargaining agreement in the future, or we experience wide-
spread employee dissatisfaction, we could be subject to adverse actions. 
Any of these events could result in increased labor costs or reduced 
efficiency, which could have a material adverse effect on the Company’s 
business, financial condition and results of operations.

There are risks associated with our presence in some of our international 
emerging markets, including political or economic instability and failure 
to adequately comply with existing legal and regulatory requirements.

Expansion to new international emerging markets may have risks due to 
factors specific to those markets. Emerging markets are countries which 
have less developed economies and are vulnerable to economic and political 
instability, such as significant fluctuations in gross domestic product, interest 

and currency exchange rates, civil disturbances, government instability, 
nationalization and expropriation of private assets, trafficking and the 
imposition of taxes or other charges by governments. The occurrence of 
any of these events in markets served by us and the resulting instability 
may adversely affect our business.

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 employees with regard to business ethics, 
anti-corruption policies and many key legal requirements; however, there 
can be no assurance our employees or third party service providers in such 
locations will adhere to our code of business ethics, anti-corruption 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 employees 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.

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

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 allows us to generate more revenue from our aircraft and 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 and unscheduled maintenance. 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.

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, would 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, Westchester County Airport or Newburgh’s 
Stewart International Airport as either their origin or destination. We have 
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, negative public perception of New York City, 
terrorist attacks or significant price or tax increases linked to increases in 
airport access costs and fees imposed on passengers.

15

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART I   
ITEM 1A Risk Factors

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

We are dependent on automated systems and technology to operate our 
business, enhance customer service 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 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 the third party providers of our current automated systems and 
data center infrastructure for technical support. If the 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, if they were to 
occur, could result in the loss of important data, increase our expenses, 
decrease our revenues and generally harm our business and reputation. 
Furthermore, our automated systems cannot be completely protected 
against events beyond our control, including natural disasters, computer 
viruses, 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 as well as requiring 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 and reputation.

We may be impacted by increases in airport expenses relating to 
infrastructure and facilities.

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 relevant airports. 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 
relevant airport authority and we could be subject to increases in costs on 
a regular basis with or without our approval.

In addition, our operations concentrated in older airports may be harmed if 
the infrastructure at those airports fails to operate as expected due to age, 
overuse or significant unexpected weather events.

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

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

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

We make extensive use of online services and centralized data processing, 
including through third party service providers. The secure maintenance and 
transmission of customer and employee information is a critical element 
of our operations. Our information technology and other systems and 
those of service providers or business partners, that maintain and transmit 

16

customer information, may be compromised by a malicious third party 
penetration of our network security, or of a third party service provider 
or business partner, or impacted by deliberate or inadvertent actions or 
inactions by our employees, or those of a third party service provider or 
business partner. As a result, personal information may be lost, disclosed, 
accessed or taken without consent.

We transmit confidential credit card information by way of secure private 
retail networks and rely on encryption and authentication technology licensed 
from third parties to provide the security and authentication necessary to 
effect secure transmission and storage of confidential information, such 
as customer credit card information. The Company has made significant 
efforts to secure its computer network. If any compromise of our security 
or computer network were to occur, it could have a material adverse effect 
on the reputation, business, operating results and financial condition of 
the Company, and could result in a loss of customers. Additionally, any 
material failure by the Company to achieve or maintain compliance with 
the Payment Card Industry, or PCI, security requirements or rectify a 
security issue may result in fines and the imposition of restrictions on the 
Company’s ability to accept credit cards as a form of payment.

Any such loss, disclosure or misappropriation of, or access to, customers’, 
employees’ or business partners’ information or other breach of our 
information security can result in legal claims or legal proceedings, including 
regulatory investigations and actions, may have a negative impact on 
our reputation, may lead to regulatory enforcement actions against us, 
and may 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. The regulations in this area are 
developing and evolving. International regulation adds complexity as we 
expand our service and include more passengers from other countries.

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.

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 the 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 may be affected by a pilot shortage. We may be 
required to increase wages and/or benefits in order to attract and retain 
qualified personnel or risk considerable employee turnover. If we are unable 
to hire, train and retain qualified employees, our business could be harmed 
and we may be unable to implement our growth plans.

In addition, as we hire more people and grow, we believe it may be increasingly 
challenging to continue to hire people who will maintain our company culture. 
One of our competitive strengths is our service-oriented company culture 
which emphasizes friendly, helpful, team-oriented and customer-focused 
employees. 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 continue to grow, we may be unable to identify, hire 
or retain enough people who meet the above criteria, including those in 
management or other key positions. Our company culture could otherwise 
be adversely affected by our growing operations and geographic diversity. 
If we fail to maintain the strength of our company culture, our competitive 
ability and our business may be harmed.

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART I   

ITEM 1A Risk Factors

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. Substantial claims resulting from 
an accident in excess of our related insurance coverage would harm our 
business and financial results. Moreover, any aircraft accident or incident, 
even if fully insured, could cause a public perception we are less safe or 
reliable than other airlines which would harm our business.

An ownership change could limit our ability to use our net operating loss 
carryforwards for U.S. income tax purposes.

As of December 31, 2014, we had approximately $446 million of federal 
net operating loss carryforwards for U.S. income tax purposes that begin 
to expire in 2025. Section 382 of the Internal Revenue Code imposes 
limitations on a corporation’s ability to use its net operating loss carryforwards 
if it experiences an “ownership change”. Similar rules and limitations may 
apply for state income tax purposes. In the event an “ownership change” 
were to occur in the future, our ability to utilize our net operating losses 
could be limited.

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

The JetBlue brand name symbolizes 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 employees, 
contractors or agents could tarnish our reputation and reduce the value of 
our brand. 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.

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 2023. 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 would prohibit us from 
adopting new technologies on an expedited basis.

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 occurring on the Florida routes 
between October and April and on our western routes during the summer. 
Actions of our competitors may also contribute to fluctuations in our results. 
We are more susceptible to adverse weather conditions, including snow 
storms and hurricanes, as a result of our operations being concentrated on 
the East Coast, than some of our competitors. In Q1 2014, for example, 
Winter Storm Hercules and other winter weather resulted in approximately 
4,100 flight cancellations. Our Florida and Caribbean operations are subject 
to hurricanes. As we enter new markets we could be subject to additional 
seasonal variations along with any competitive responses to our entry by 
other airlines. Price changes in aircraft fuel as well as the timing and amount 
of maintenance and advertising expenditures 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 subject to the risks of having a limited number of suppliers for 
our aircraft, engines and our Fly-Fi™ product.

Our current dependence on three types of aircraft and engines for all of 
our flights makes us vulnerable to significant problems associated with the 
International Aero Engines, or IAE V2533-A5 engine on our Airbus A321 
fleet, the International Aero Engines, or IAE V2527-A5 engine on our 
Airbus A320 fleet and the General Electric Engines CF-34-10 engine on 
our EMBRAER 190 fleet. This could include design defects, mechanical 
problems, contractual performance by the manufacturers, or adverse 
perception by the public which would result in customer avoidance or in 
actions by the FAA resulting in an inability to operate our aircraft. 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 LiveTV, LLC. An integral component of the Fly-Fi™ system 
is the antenna, which is supplied to us by LiveTV. If LiveTV 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.

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 

Risks Associated with the Airline Industry

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

Fundamental and permanent changes in the domestic airline industry have 
been ongoing over the past several years 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 employees, 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. The 
global economic recession and related unfavorable general economic 
conditions, such as higher unemployment rates, a constrained credit 
market, housing-related pressures, and increased business operating costs 
can reduce spending for both leisure and business travel. 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 assure you the occurrence of these 
events, or potential changes resulting from these events, will not harm 
our business or the industry.

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 a terrorist attack, whether or not successful, the industry 
would likely experience increased security requirements and significantly 
reduced demand. We cannot assure you these actions, or consequences 
resulting from these actions, will not harm our business or the industry.

17

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART I   
ITEM 1B Unresolved Staff Comments

Changes in government regulations imposing 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. In 
the last several 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, 
regulations, taxes and airport rates and charges have been proposed from 
time to time that could significantly increase the cost of airline operations or 
reduce the demand for air travel. If adopted or materially amended, these 
measures could have the effect of raising ticket prices, reducing air travel 
demand and/or revenue and increasing costs. We cannot assure you these 
and other laws or regulations enacted in the future will not harm our business.

In addition, the U.S. Environmental Protection Agency, or EPA, has proposed 
changes to underground storage tank regulations that could affect certain 
airport fuel hydrant systems. In addition to the proposed EPA and state 
regulations, several U.S. airport authorities are actively engaged in efforts 
to limit discharges of de-icing fluid to local groundwater, often by requiring 
airlines to participate in the building or reconfiguring of airport de-icing facilities.

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

Many of our airline operations are regulated by governmental agencies, 
including the FAA, the DOT, the CBP, the TSA and others. If the federal 
government were to experience issues in reaching budgetary consensus in the 

future resulting in mandatory furloughs and/or other budget constraints, 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.

Compliance with future environmental regulations may harm our business.

Many aspects of airlines’ operations are subject to increasingly stringent 
environmental regulations, and growing concerns about climate change 
may result in the imposition of additional regulation. 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 passengers, which could adversely affect our 
business. Although it is not expected 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 
the costs of complying with environmental regulations in the future will not 
have such an effect.

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

Any outbreak of a disease affecting travel behavior could have a material 
adverse impact on airlines. In addition, outbreaks of disease could result in 
quarantines of our personnel or an inability to access facilities or our aircraft, 
which could adversely affect our operations. 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.

ITEM 1B. Unresolved Staff Comments

None.

ITEM 2.  Properties

Aircraft

As of December 31, 2014, we operated a fleet consisting of 13 Airbus A321 aircraft, 130 Airbus A320 aircraft and 60 EMBRAER 190 aircraft as summarized 
in the table below:

Aircraft
Airbus A320
Airbus A321
EMBRAER 190

Seating 
Capacity
150
190 / 159(1)
100

Owned
96
11
30
137

Capital  
Leased
4
2
—
6

Operating 
Leased
30
—
30
60

Total
130
13
60
203

Average Age  
in Years
9.3
0.6
6.2
7.8

(1)  Our Airbus A321 with a single cabin layout has a seating capacity of 190 seats. Our Airbus A321 with our Mint™ premium service has a seating capacity of 159 seats.

As of December 31, 2014, our aircraft leases have an average remaining term of approximately 7 years, with expiration dates between 2016 and 2026. 
We have the option to extend most of these leases for additional periods or to purchase the aircraft at the end of the related lease term. All but 39 of 
our 137 owned aircraft are subject to secured debt financing and all of our 33 spare engines are owned.

18

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportIn November 2014, we amended our purchase agreement with Airbus by deferring 13 Airbus A321 aircraft orders and eight Airbus A320 aircraft orders 
from 2016-2020 to 2020-2023. Of these deferrals, ten Airbus A321 aircraft orders were converted to Airbus A321 new engine option (A321neo) orders 
and five Airbus A320neo aircraft orders were converted to Airbus A321neo aircraft orders. We additionally converted three Airbus A320 aircraft orders 
in 2016 to Airbus A321 aircraft orders.

As of December 31, 2014, we had 127 aircraft on order, which are scheduled for delivery through 2023. Our future aircraft delivery schedule is as follows:

PART I   

ITEM 2 Properties

Year
2015
2016
2017
2018
2019
2020
2021
2022
2023

Airbus
A320neo
—
—
—
—
—
6
16
3
—
25

Airbus
A321
12
10
10
1
—
—
—
—
—
33

Airbus 
A321neo
—
—
—
6
15
9
—
13
2
45

EMBRAER
190
—
—
—
—
—
10
7
7
—
24

Total
12
10
10
7
15
25
23
23
2
127

Ground Facilities

Airports

Other

All of our facilities at the airports we serve 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 practice at 
each airport. Our terminal passenger service facilities 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.

Our most significant lease agreements relate to our airport facilities at JFK, 
followed by our facilities at Boston:

•• JFK – We have a lease agreement with the PANYNJ for T5. We have 
the option to terminate the agreement in 2033, five years prior to the 
end of the original scheduled lease term of October 2038. In December 
2010, we executed a supplement to this lease agreement for the T6 
property, our original base of operations at JFK, for a term of five years, 
which afforded us the exclusive right to develop on the T6 property. In 
2012, we commenced construction of T5i, an expansion to T5 that we 
use as an international arrival facility. Another supplement of the original  
T5 lease was executed in 2013. The lease, as amended, now incorporates 
a total of approximately 19 acres of space for our T5 facilities. The  
T5i section of T5 opened to customers in November 2014.

•• Boston – We had an initial five year lease agreement with Massport for 
five gates in Terminal C that started on May 1, 2005, and allowed JetBlue 
to grow to 11 gates by 2008. We negotiated an extension clause as of 
May 1, 2010 whereby the lease had 20 successive one-year automatic 
renewals, each from May 1 through to April 30. With the continued growth 
of our operations in Boston, we increased the number of leased gates 
from Massport to 16 and signed an amendment with them in May 2014 
to lease an additional eight gates and related support spaces in Terminal 
C that were previously occupied by United Airlines. As of December 31, 
2014, we lease 20 gates in Terminal C. We plan to add the remaining 
four gates and related support spaces gradually to accommodate our 
operational needs.

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.

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 relating to an aircraft maintenance hangar, an adjacent office 
and warehouse facility, and an adjacent storage facility for aircraft parts. 
These facilities accommodate our technical support operations. We also 
occupy a building from the PANYNJ which is mainly used for ground 
equipment maintenance work.

•• Boston – We have a ground lease agreement which expires in 2017 
relating to a building which includes an aircraft maintenance hangar and 
support space. We also have a lease for a facility to accommodate our 
ground support equipment maintenance.

•• Orlando – We have a ground lease agreement which expires in 2035 
relating to a hangar. Previously, the hangar was shared between LiveTV, 
our former subsidiary, and JetBlue. When LiveTV was sold in June 
2014, JetBlue took over the entire hangar complex. We also occupy a 
training center with a lease agreement that expires in 2035 which we 
use for the initial and recurrent training of our pilots and in-flight crew, 
as well as support training for our technical operations and airport 
crew. This facility is equipped with six full flight simulators, nine cabin 
trainers, a training pool, classrooms and support areas. In 2013, we 
began construction of a lodging facility adjacent to our training center. 
We anticipate that our Crewmembers will utilize this lodging facility 
for overnight accommodation when attending the training center. It 
is expected that the facility will be opened in 2015, with the lease 
agreement expiring in 2035.

Our primary corporate offices are located in Long Island City, New York, 
with our lease expiring in 2023. Our offices in Salt Lake City, Utah contain a 
core team of Crewmembers who are responsible for group sales, customer 
service, at-home reservation agent supervision, disbursements and certain 
other finance functions. The lease for Salt Lake City expires in 2022. We 
also maintain other facilities that are necessary to support our operations 
in the cities we serve.

19

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART I   
ITEM 3 Legal Proceedings

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. Other than as described under Note 12-Contingencies to our consolidated financial statements included in Part II, Item 8 of this Annual Report 
on Form 10-K, we believe the ultimate outcome of these proceedings to which we are currently a party will not have a material adverse effect on our 
business, financial position, results of operations or cash flows.

ITEM 4.  Mine Safety Disclosures

Not applicable.

Executive Officers of the Registrant

Certain information concerning JetBlue’s executive officers as of the date 
of this report follows. There are no family relationships between any of 
our executive officers.

David Barger, age 57, is our Chief Executive Officer. He has served in 
this capacity since May 2007 and was our President from August 1998 to 
September 2007 and June 2009 to December 2013. He is also a member 
of our Board of Directors. As previously announced, effective February 15, 
2015, he will step down from both his role as Chief Executive Officer and 
a member of our Board of Directors. He previously served as our Chief 
Operating Officer from August 1998 to March 2007. From 1992 to 1998, 
Mr. Barger served in various management positions with Continental 
Airlines, including Vice President, Newark hub. He held various director 
level positions at Continental Airlines from 1988 to 1995. From 1982 to 
1988, Mr. Barger served in various positions with New York Air, including 
Director of Stations.

Robin Hayes, age 47, is our President. He was promoted to this role on 
January 1, 2014, having previously served as our Executive Vice President 
and Chief Commercial Officer since he joined us in August 2008. He 
will succeed David Barger as Chief Executive Officer and will become a 
member of our Board of Directors effective February 16, 2015. He joined 
JetBlue after nineteen years at British Airways. In his last role at British 
Airways, Mr. Hayes served as Executive Vice President for The Americas 
and before that he served in a number of operational and commercial 
positions in the UK and Germany.

Mark D. Powers, age 61, is our Chief Financial Officer, a position he has 
held since April 2012. Mr. Powers joined us in July 2006 as Treasurer 
and Vice President, Corporate Finance. He was promoted to Senior Vice 
President, Treasurer in 2007. Prior to joining JetBlue, Mr. Powers was 
an independent advisor to several aviation-related companies and has 
held a number of positions in both the finance and legal departments of 
Continental Airlines, Northwest Airlines and General Electric’s jet engine unit.

James Hnat, age 44, is our Executive Vice President Corporate Affairs, 
General Counsel and Secretary and has served in this capacity since 
April 2007. Previously, he served as our Senior Vice President, General 
Counsel and Assistant Secretary from March 2006, as General Counsel and 
Assistant Secretary from February 2003 to March 2006 and as Associate 
General Counsel from June 2001 to January 2003. Prior to joining JetBlue, 
Mr. Hnat worked as an attorney at Milbank, Tweed, Hadley & McCloy 
LLP, where he specialized in aircraft finance transactions and at Condon 
& Forsyth LLP where he specialized in airline defense litigation. Mr. Hnat 
is a member of the bar of New York and Massachusetts.

Alexander Chatkewitz, age 50, is our Vice President and Chief Accounting 
Officer, a position he has held since December 2014. Prior to joining 
JetBlue, Mr. Chatkewitz worked at Philip Morris International, where he 
served as Vice President & Controller - Financial Reporting & Accounting 
Research since 2008. Prior to Phillip Morris, he served for a decade as 
Altria Group’s Vice President Assistant Controller - Financial Reporting & 
Consolidations. Mr. Chatkewitz also held positions at Marsh & McLennan 
Companies as well as the audit practice of Deliotte & Touche.

20

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report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. The table below shows the high and low sales prices for 
our common stock.

2014 Quarter Ended
March 31
June 30
September 30
December 31
2013 Quarter Ended
March 31
June 30
September 30
December 31

$

$

High

9.37
10.88
12.73
15.90

7.01
7.28
6.93
9.20

$

$

Low

8.32
7.63
10.40
9.41

5.70
5.95
6.04
6.57

As of January 30, 2015, there were approximately 536 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 of Directors, subject to applicable limitations under Delaware law. This decision would be dependent upon our results 
of operations, financial condition and other factors deemed relevant by our Board of Directors.

Purchases of Equity Securities by the Issuer and Affiliated Purchases

In September 2012, the Board authorized a five year share repurchase program of up to 25 million shares. As of December 31, 2014, 13.3 million shares 
remain available for repurchase under the program. During 2014 the following shares were repurchased under the program:

Total Number of 
Shares Purchased

Total number of shares purchased as 
part of publicly announced program

Maximum number of shares that may 
yet to be purchased under the program

Period
April 2014
May 2014
September 2014
TOTAL
(1)  During May 2014, JetBlue repurchased 855,000 shares of its common stock pursuant to its share repurchase program in a series of open-market transactions at an average price of 
$8.65 per share. In addition, JetBlue received an initial delivery of 5,079,365 shares as a part of its $60 million ASR agreement. On September 9, 2014, the ASR was settled and JetBlue 
received an additional 423,304 shares. The total number of shares purchased under the ASR was 5,502,669 shares, with an average price paid per share of $10.90.

719,875
5,934,365
423,304
7,077,544

719,875
5,934,365(1)
423,304(1)

13,314,886

7,077,544

Average price 
paid per share
$   8.43
$ 10.57
$ 10.90

The program may be commenced or suspended from time to time without prior notice. Shares repurchased under our share repurchase program are 
purchased in open market transactions and are held as treasury stock.

21

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART II   
ITEM 5 Market for Registrant’s Common Equity; Related Stockholder Matters and Issuer Purchases of Equity Securities

Convertible Debt Redemption

During the fourth quarter of 2014, all holders of our 6.75% Convertible Debentures due 2039 (Series A) elected to convert their holdings into shares of 
our common stock at a rate of 204.6036 shares per $1,000 debenture for a total of approximately 15.5 million shares.

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 of 1933, as amended.

The following line graph compares the cumulative total stockholder return on our common stock with the cumulative total return of the Standard & 
Poor’s 500 Stock Index and the NYSE Arca Airline Index from December 31, 2010 to December 31, 2014. The comparison assumes the investment of 
$100 in our common stock and in each of the foregoing indices and reinvestment of all dividends. The stock performance shown represents historical 
performance and is not representative of future stock performance.

In $

260

240

220

200

180

160

140

120

100

80

60

12/31/10

12/31/11

12/31/12

12/31/13

12/31/14

JetBlue Airways Corporation

S&P 500 Stock Index

NYSE Arca Airline Index(1)

12/31/2014
240
JetBlue Airways Corporation
178
S&P 500 Stock Index
NYSE Arca Airline Index(1)
222
(1)  As of December 31, 2014, the NYSE Arca Airline Index consisted of Air Canada, Alaska Air Group Inc., Allegiant Travel Company, American Airlines Group, Inc., Delta Air Lines, Inc., JetBlue 

12/31/2012
87
118
94

12/31/2011
79
102
69

12/31/2010
100
100
100

12/31/2013
129
157
148

$

$

$

$

$

Airways Corporation, Republic Airways Holding, Inc., Southwest Airlines Company, Transat A.T. Inc. (Cl B), United Continental Holdings Inc. and WestJet Airlines Ltd.

22

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportITEM 6.  Selected Financial Data

The following financial information for the five years ended December 31, 2014 has been derived from our consolidated financial statements. This 
information should be read in conjunction with the consolidated financial statements and related notes thereto included elsewhere in this report.

ITEM 6 Selected Financial Data

PART II   

Statements of Operations Data (dollars in millions):
Operating revenues
Operating expenses:

Aircraft fuel and related taxes
Salaries, wages and benefits(1)
Landing fees and other rents
Depreciation and amortization
Aircraft rent
Sales and marketing
Maintenance materials and repairs

Other operating expenses(2)
Total operating expenses

Operating income
Other income (expense)(3)(4)
Income before income taxes
Income tax expense
NET INCOME
Earnings per common share:

Basic
Diluted

Other Financial Data:
Operating margin
Pre-tax margin(4)
Ratio of earnings to fixed charges
Net cash provided by operating activities
Net cash used in investing activities
Net cash provided by (used in) financing activities
(1) 
(2) 

2014

2013

2012

2011

2010

Year Ended December 31,

$

5,817

$

5,441

$

4,982

$

4,504

$

3,779

1,912
1,294
321
320
124
231
418

682
5,302
515
108
623
222
401

1.36
1.19

8.9%
10.7%
3.59x
912
(379)
(417)

$

$
$

$

1,899
1,135
305
290
128
223
432

601
5,013
428
(149)
279
111
168

0.59
0.52

7.9%
5.1%
2.05x
758
(476)
(239)

$

$
$

$

1,806
1,044
277
258
130
204
338

549
4,606
376
(167)
209
81
128

0.45
0.40

7.5%
4.2%
1.75x
698
(867)
(322)

$

$
$

$

1,664
947
245
233
135
199
227

532
4,182
322
(177)
145
59
86

0.31
0.28

7.1%
3.2%
1.52x
614
(502)
96

$

$
$

$

1,115
891
228
220
126
179
172

515
3,446
333
(172)
161
64
97

0.36
0.31

8.8%
4.3%
1.59x
523
(696)
(258)

$

$
$

$

In 2010, we incurred approximately $9 million in one-time implementation expenses related to our new customer service system.
In 2014, we sold a spare engine for a gain of approximately $3 million. In 2013, we had a gain of $7 million on the sale of the Airfone business by LiveTV and sold three spare engines 
resulting in gains of approximately $2 million. In 2012, we sold six spare engines and two aircraft resulting in gains of approximately $10 million and LiveTV terminated a customer contract 
resulting in a gain of approximately $8 million. In 2010, we recorded an impairment loss of $6 million related to the spectrum license held by our LiveTV subsidiary. In 2010, we also incurred 
approximately $13 million in one-time implementation expenses related to our new customer service system.

(3)  We recorded $3 million, $3 million, $1 million and $6 million in losses on the early extinguishment of debt in 2014, 2013, 2012 and 2011 respectively. 
(4) 

In 2014, we had a gain of $241 million from the sale of LiveTV. Pre-tax margin excluding the gain on the sale of LiveTV is 6.6%.

23

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART II   
ITEM 6 Selected Financial Data

Balance Sheet Data (in millions):
Cash and cash equivalents
Investment securities
Total assets
Total debt
Common stockholders’ equity

$

2014

341
427
7,839
2,233
2,529

As of December 31,

2013

2012

2011

2010

$

225
516
7,350
2,585
2,134

$

182
685
7,070
2,851
1,888

$

673
591
7,071
3,136
1,757

$

465
628
6,593
3,033
1,654

2014

2013

2012

2011

2010

Year Ended December 31,

24,254
28,279
34,744

26,370
30,698
37,232

32,078
37,813
44,994

30,463
35,836
42,824

28,956
33,563
40,075

Operating Statistics (unaudited):
Revenue passengers (thousands)
Revenue passenger miles (millions)
Available seat miles (ASMs) (millions)
Load factor
Aircraft utilization (hours per day)
Average fare
Yield per passenger mile (cents)
Passenger revenue per ASM (cents)
Operating revenue per ASM (cents)
Operating expense per ASM (cents)
Operating expense per ASM, excluding fuel (cents)
Operating expense per ASM, excluding fuel and profit 
sharing (cents)
Airline operating expense per ASM (cents)(5)
Departures
Average stage length (miles)
Average number of operating aircraft during period
Average fuel cost per gallon, including fuel taxes
Fuel gallons consumed (millions)
Average number of full-time equivalent employees(5)
(5)  Excludes results of operations and employees of LiveTV, LLC, which are unrelated to our airline operations and are immaterial to our consolidated operating results. As of June 10, 2014, 

84.0%
11.8
$ 166.57
14.13
11.88
12.93
11.78
7.53

83.7%
11.9
$ 163.19
13.87
11.61
12.71
11.71
7.28

83.8%
11.8
$ 157.11
13.55
11.35
12.43
11.49
6.99

82.4%
11.7
$ 154.74
13.29
10.96
12.10
11.23
6.76

81.4%
11.6
$ 140.69
12.07
9.82
10.88
9.92
6.71

7.48
11.70
294,800
1,088
196.2
2.99
639
13,280

6.76
11.06
243,446
1,091
164.9
3.17
525
11,532

6.71
9.71
225,501
1,100
153.5
2.29
486
10,959

6.98
11.34
264,600
1,085
173.9
3.21
563
12,035

7.25
11.56
282,133
1,090
185.2
3.14
604
12,447

$

$

$

$

$

employees of LiveTV, LLC are no longer part of JetBlue.

Glossary of Airline terminology

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

 • Operating expense per available seat mile, excluding fuel – Operating 

 • 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 fuel 
taxes 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.

 • 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.

expenses, less aircraft fuel, divided by available seat miles.

 • Operating expense per available seat mile, excluding fuel and profit 
sharing – Operating expenses, less aircraft fuel and profit sharing, 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.

24

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report 
 
 
 
 
 
 
 
 
 
 
 
 
 
ITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations

PART II   

ITEM 7.  Management’s Discussion and Analysis of 

Financial Condition and Results of Operations

Overview

In 2014, we experienced the continuation of uncertain economic conditions, ongoing fuel price volatility, and the persistent competitiveness of the airline 
industry. Even with these external factors, 2014 was one of the most profitable years in our history. We generated operating revenue growth of almost 
7% year over year and reported our highest ever net income, including the gain on the sale of our subsidiary, LiveTV. We are committed to delivering 
a safe and reliable JetBlue Experience for our customers as well as increasing returns for our shareholders. We believe our continued focus on cost 
discipline, product innovation and network enhancements, combined with our service excellence, will drive our future success.

2014 Financial Highlights

 • We reported our highest ever net income of $401 million, an increase  
of $233 million compared to 2013. This included the after tax gain 
on sale of our subsidiary, LiveTV, of $169 million for the year ended 
December 31, 2014.

 • Net income excluding the after tax gain on sale of LiveTV totaled 
$232 million, an increase of $64 million compared to the net income in 2013.

 • We generated over $5.8 billion in operating revenue. Our ancillary revenue 
continues to be a source of significant revenue growth, primarily driven 
by customer demand for our Even More™ products as well as changes 
to our fee structure.

 • Operating margin increased by 1 point to 8.9% and we improved our 

return on invested capital, or ROIC, by 1 point to 6.3%. 

 • Our earnings per diluted share were $1.19 and includes $0.49 of impact 
from the after tax gain on the sale of LiveTV. Excluding the sale, our 
earnings per diluted share reached $0.70.

2016-2020 to 2020-2023. Of these deferrals, ten Airbus A321 aircraft 
orders were converted to Airbus A321 new engine option (A321neo) 
orders and five Airbus A320neo aircraft orders were converted to Airbus 
A321neo aircraft orders. We additionally converted three Airbus A320 
aircraft orders in 2016 to Airbus A321 aircraft orders.

Airport Infrastructure Investments

During 2014, we completed our construction of T5i, the new international 
arrival extension to T5 at JFK. The creation of a new dedicated site to 
handle U.S. Customs and Border Protection checks at T5 will eliminate 
the need for our international customers to arrive at JFK’s T4. We expect 
this will result in a more efficient process and a better JetBlue Experience 
for both our customers and Crewmembers. T5i opened to our customers 
in November 2014.

 • We generated $912 million in cash from operations.

Network

 • Operating expenses per available seat mile increased 0.6% to 11.78 cents. 
Excluding fuel and profit sharing, our cost per available seat mile increased 
3.2% in 2014.

Company Initiatives

Strengthening of our Balance Sheet

Throughout 2014, we continued to focus on strengthening our balance 
sheet. We ended the year with unrestricted cash, cash equivalents and 
short-term investments of $708 million and undrawn lines of credit of 
$600 million. Our unrestricted cash, cash equivalents and short-term 
investments is at approximately 12% of trailing twelve months revenue. We 
reduced our overall debt balance by $352 million, including a prepayment 
for approximately $299 million of outstanding principal that had been 
secured by 14 Airbus A320 aircraft. This prepayment used some of 
the proceeds from the sale of LiveTV in 2014. We have increased the 
number of unencumbered aircraft and spare engines in 2014 bringing total 
unencumbered aircraft to 39 and spare engines to 33 as of December 31, 
2014. In 2014, the holders of our 6.75% Convertible Debentures due 
2039 (Series A) converted their securities into approximately 15.5 million 
shares of our common stock. During 2014, we repurchased approximately 
7.1 million shares of our common stock for approximately $73 million 
under our share repurchase program.

Aircraft

During 2014, we took delivery of nine Airbus A321 aircraft. In November 
2014, we amended our purchase agreement with Airbus by deferring  
13 Airbus A321 aircraft orders and eight Airbus A320 aircraft orders from 

As part of our ongoing network initiatives and route optimization efforts 
we continued to make schedule and frequency adjustments throughout 
2014. We added five new BlueCities to our network: Savannah, GA, 
Port of Spain, Trinidad and Tobago, Detroit, MI, Hyannis, MA (seasonal) 
and Willemstad, Curaçao. We also added new routes between existing 
BlueCities. In March 2014, we completed the purchase of 24 Slots at 
Reagan National for $75 million. We started using these Slots in the second 
half of 2014 and continue to announce new route pairings.

Outlook for 2015

We believe we will continue to improve our year over year margins and 
increase returns for our shareholders in 2015. We further plan to add 
new destinations and route pairings based upon market demand, having 
previously announced three new BlueCities for the first half of 2015. We are 
continuously looking to expand our other ancillary revenue opportunities, 
improve our TrueBlue loyalty program and deepen our portfolio of commercial 
partnerships. We also remain committed to investing in infrastructure and 
product enhancements which will enable us to reap future benefits. We 
intend to continue to opportunistically pre-purchase outstanding debt 
when market conditions and terms are favorable.

For the full year 2015, we estimate our operating capacity will increase by 
approximately 7.0% to 9.0% over 2014 with the addition of 12 Airbus A321 
aircraft to our operating fleet. We are expecting our cost per available seat 
mile, excluding fuel and profit sharing, for 2015 to increase approximately 
0.0% to 2.0% over 2014.

25

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART II   
ITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations

Results of Operations

Year 2014 compared to Year 2013

Overview

We reported net income of $401 million, an operating income of $515 million 
and an operating margin of 8.9% for the year ended December 31, 2014. 
This compares to net income of $168 million, an operating income of $428 
million and an operating margin of 7.9% for the year ended December 31, 
2013. Diluted earnings per share were $1.19 for 2014 compared to $0.52 
for the same period in 2013. Net income for the year ended December 
31, 2014 includes the after tax gain on the sale of LiveTV of approximately 
$169 million, or $0.49 per diluted share.

Approximately 80% of our operations are centered in and around the heavily 
populated northeast corridor of the U.S., which includes the New York 
and Boston metropolitan areas. During the first three months of 2014, this 
area experienced one of the coldest winters in 20 years, with New York 
and Boston each experiencing over 57 inches of snow. These weather 
conditions led to the cancellation of approximately 4,100 flights, nearly 
double the amount we canceled in the whole of 2013. These cancellations 
resulted in a negative impact on our first quarter 2014 seat revenue as 
well as ancillary revenue such as change fees due to our policy of waiving 
these fees during severe weather events.

Operating Revenues

(Revenue in millions)
Passenger Revenue
Other Revenue
Operating Revenues

Average Fare
Yield per passenger mile (cents)
Passenger revenue per ASM (cents)
Operating revenue per ASM (cents)
Average stage length (miles)
Revenue passengers (thousands)
Revenue passenger miles (millions)
Available Seat Miles (ASMs) (millions)
Load Factor

Year-over-Year Change

2014
5,343
474
5,817

$

$

$ 166.57
14.13
11.88
12.93
1,088
32,078
37,813
44,994

2013
4,971
470
5,441

$

$

$ 163.19
13.87
11.61
12.71
1,090
30,463
35,836
42,824

84.0%

83.7%

$

$

$

$
372
4
376

3.38
0.26
0.27
0.22
(2)
1,615
1,977
2,170

%
7.5
0.7
6.9

2.1
1.9
2.3
1.7
(0.2)
5.3
5.5
5.1
0.3 pts

Passenger revenue is our primary source of revenue and accounted for 
over 92% of our total operating revenues for the year ended December 
31, 2014. As well as seat revenue, passenger revenue includes revenue 
from our ancillary product offerings such as EvenMore™ Space. Revenues 
generated from international routes, including Puerto Rico, accounted for 
30% of our passenger revenues in 2014. Revenue is recognized either 
when transportation is provided or after the ticket or customer credit 
expires. 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 primarily by increasing our yield per flight which produces higher 
revenue per available seat mile, or RASM. Our objective is to optimize our 
fare mix to increase our overall average fare while continuing to provide 
our customers with competitive fares.

In 2014, the increase in passenger revenues was mainly attributable to a 
5% increase in capacity and a 2% increase in yield. Our largest ancillary 
product remains the EvenMore™ Space seats, generating approximately 
$200 million in revenue, an increase of over 16% compared to 2013.

The primary component of Other Revenue is the fees from reservation 
changes and excess baggage charged to customers in accordance with our 
published policies. We also include the marketing component of TrueBlue 
point sales, on-board product sales, transportation of cargo, Charters, 
ground handling fees of other airlines and rental income. Our subsidiary, 
LiveTV was sold in June 2014 and any third party revenues earned for the 
sale of in-flight entertainment systems and on-going services provided for 
these systems before this date are included in Other Revenue.

In 2014, Other Revenue increased by $4 million compared to 2013. While 
there was a $42 million increase in revenues mainly from fees, Getaways™ 
sales, the marketing component of TrueBlue point sales and on-board 
product sales, this was offset by a $38 million reduction in third party 
LiveTV revenue as a result of the sale of LiveTV in June 2014.

26

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations

PART II   

Operating Expenses

(in millions; per ASM data in cents)
Aircraft fuel and related taxes
Salaries, wages and benefits
Landing fees and other rents
Depreciation and amortization
Aircraft rent
Sales and marketing
Maintenance, materials and repairs
Other operating expenses
TOTAL OPERATING EXPENSES

2014
$ 1,912
1,294
321
320
124
231
418
682
$ 5,302

2013
1,899
1,135
305
290
128
223
432
601
5,013

$

$

Year-over-Year Change
%
0.7
14.1
5.3
10.2
(3.4)
3.4
(3.4)
13.5
5.7

$
13
159
16
30
(4)
8
(14)
81
$ 289

2014
4.25
2.88
0.71
0.71
0.28
0.51
0.93
1.51
11.78

per ASM

2013 % Change
(4.1)
4.43
8.7
2.65
—
0.71
4.4
0.68
(6.7)
0.30
(1.9)
0.52
(7.9)
1.01
7.1
1.41
0.6
11.71

Aircraft Fuel and Related Taxes

Aircraft fuel and related taxes remains our largest expense category, 
representing 36% of our total operating expenses in 2014 compared 
to 38% in 2013. Even though the average fuel price decreased 5% in 
2014 to $2.99 per gallon, our fuel expenses increased by $13 million as 
we consumed 35 million more gallons of aircraft fuel compared to 2013. 
This was mainly due to our increase in capacity and was offset slightly 
by our higher than anticipated flight cancellations during the first quarter 
of 2014 as a result of the harsh winter weather. Based on our expected 
fuel volume for 2015, a 10% per gallon increase in the cost of aircraft fuel 
would increase our annual fuel expense by approximately $175 million. 

In 2014, we recorded fuel hedge losses of $30 million compared to  
$10 million in fuel hedge losses in 2013 which were recorded in the aircraft 
fuel and related taxes category. Fuel derivatives not qualifying as cash flow 
hedges in 2014 resulted in a gain of $2 million compared to losses of less 
than $1 million in 2013 which were recorded in interest income and other. 
Accounting ineffectiveness on fuel derivatives classified as cash flow hedges 
resulted in losses of less than $1 million in both 2014 and 2013 and were 
recorded in interest income and other. We are unable to predict what the 
amount of ineffectiveness will be related to these instruments, or the potential 
loss of hedge accounting which is determined on a derivative-by-derivative 
basis, due to the volatility in the forward markets for these commodities.

Salaries, Wages and Benefits

Salaries, Wages and Benefits are our second largest expense, representing 
approximately 24% of our total operating expenses in 2014 compared 
to 23% in 2013. During 2014, the average number of full-time equivalent 
employees increased by 7% and the average tenure of our Crewmembers 
increased to 6.2 years, both of which contributed to a $159 million, or 14.1%, 
increase compared to 2013. Retirement Plus contributions, which equate 
to 5% of all of our eligible Crewmembers wages, increased by $4 million 
and our 3% retirement contribution for a certain portion of our FAA-licensed 
Crewmembers, which we refer to as Retirement Advantage, increased 
by $3 million. Our profit sharing is calculated as 15% of adjusted pre-tax 
income, reduced by the Retirement Plus contributions and special items. 
This resulted in $25 million of profit sharing expense in 2014 compared 
to $12 million in 2013. The increasing tenure of our Crewmembers, rising 
healthcare costs and efforts to maintain competitiveness in our overall 
compensation packages present cost pressures. 

We agreed to provide our pilots with a 20% pay increase in their base rate 
over three years starting in 2014. In January 2014, the FAA’s rule amending 
the FAA’s flight, duty, and rest regulations became effective. Among other 
things, the new rule requires a ten hour minimum rest period prior to a 
pilot’s flight duty period; mandates a pilot must have an opportunity for 
eight hours of uninterrupted sleep within the rest period; and imposes new 
pilot “flight time” and “duty time” limitations based upon report times, the 
number of scheduled flight segments, and other operational factors. We 
have hired additional pilots to address the requirements of the new rule.

Depreciation and Amortization

Depreciation and amortization increased $30 million, or 10%, primarily 
due to having an average of 137 owned and capital leased aircraft in 

2014 compared to 125 in 2013. We also had an additional $13 million in 
amortization expense during 2014 as a result of a change in the expected 
useful lives of certain software.

Maintenance, Materials and Repairs

Maintenance, materials and repairs are generally expensed when incurred 
unless covered by a long-term flight hour services contract. The average 
age of our aircraft in 2014 was 7.8 years which is relatively young compared 
to our competitors. However, as our fleet ages our maintenance costs will 
increase significantly, both on an absolute basis and as a percentage of 
our unit costs, as older aircraft require additional, more expensive repairs 
over time. We had an average of 11.0 additional total operating aircraft 
in 2014 compared to 2013.

In 2014, maintenance, materials and repairs decreased by $14 million, 
or 3% compared to 2013 as we had higher engine related costs for our 
EMBRAER 190 aircraft in 2013. In the latter half of 2013, we finalized a 
flight-hour based maintenance and repair agreement for these engines 
and in 2014 we amended our flight-hour based agreements to include 
other certain services. These amendments are expected to result in 
better planning of maintenance activities. While our maintenance costs 
will increase as our fleet ages, we expect we will benefit from these new 
maintenance agreements for our fleet.

Other Operating Expenses

Other operating expenses consist of the following categories: outside 
services (including expenses related to fueling, ground handling, skycap, 
security and janitorial services), insurance, personnel expenses, cost of 
goods sold to other airlines by LiveTV, professional fees, on-board supplies, 
shop and office supplies, bad debts, communication costs and taxes 
other than payroll and fuel taxes. Other operating expenses increased 
by $81 million, or 14%, compared to 2013 mainly due to an increase in 
outside services. As our capacity and number of departures grew in 2014, 
our related variable handling costs also increased. Additionally, we had 
higher personnel expenses relating to the harsh winter weather in the first 
quarter of the year such as lodging and per diem. Non-recurring items in 
2014 included the sale of an engine for a gain of $3 million and a gain of 
$4 million relating to a one-time legal settlement. In 2013, we had a gain 
of approximately $2 million relating to the sale of three spare engines as 
well as a gain of approximately $7 million relating to the sale of LiveTV’s 
investment in the Airfone business.

Income Taxes

Our effective tax rate was 36% in 2014 and 40% in 2013. Our 2014 
effective tax rate differs from the statutory income tax rate primarily 
due to the release of the $19 million tax benefit related to the utilization 
of a capital loss carryforward. This capital loss carryforward was able 
to be utilized due to the sale of our subsidiary, LiveTV. The rate is also 
affected by state income taxes and the non-deductibility of certain 
items for tax purposes. The relative size of these items compared to our 
2014 pre-tax income of $623 million and our 2013 pre-tax income of  
$279 million also affect the rate.

27

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART II   
ITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations

Year 2013 compared to Year 2012 

Overview

We reported net income of $168 million, an operating income of $428 million and an operating margin of 7.9% for the year ended December 31, 2013. 
This compares to net income of $128 million, an operating income of $376 million and an operating margin of 7.5% for the year ended December 31, 
2012. Diluted earnings per share were $0.52 for 2013 compared to $0.40 for the same period in 2012.

Operating Revenues

(Revenues in millions)
Passenger Revenue
Other Revenue
Operating Revenues

Average Fare
Yield per passenger mile (cents)
Passenger revenue per ASM (cents)
Operating revenue per ASM (cents)
Average stage length (miles)
Revenue passengers (thousands)
Revenue passenger miles (millions)
Available Seat Miles (ASMs) (millions)
Load Factor

Year-over-Year Change

2013
4,971
470
5,441

$

$

$ 163.19
13.87
11.61
12.71
1,090
30,463
35,836
42,824

2012
4,550
432
4,982

$

$

$ 157.11
13.55
11.35
12.43
1,085
28,956
33,563
40,075

83.7%

83.8%

$

$

$

$
421
38
459

6.08
0.32
0.26
0.28
5
1,507
2,273
2,749

%
9.3%
8.8
9.2

3.9%
2.4
2.3
2.2
0.5
5.2
6.8
6.9
(0.1) pts

Passenger revenue accounted for 91% of our total operating revenues in 2013 and was our primary source of revenue. Revenues generated from 
international routes, including Puerto Rico, accounted for 28% of our passenger revenues in 2013 compared to 27% in 2012. In 2013, the increase in 
passenger revenues of 9% was mainly attributable to the increased capacity and increase in yield. Our largest ancillary product remained the EvenMore™ 
Space seats, generating approximately $170 million in revenue. This was an increase of approximately 13% over 2012.

$

Year-over-Year Change
$
93
91
28
32
(2)
19
94
52
407

%
5.1
8.7
10.1
12.5
(1.5)
9.2
28.0
9.5
8.8

$

2013
4.43
2.65
0.71
0.68
0.30
0.52
1.01
1.41
11.71

per ASM
2012
4.50
2.60
0.69
0.65
0.33
0.51
0.84
1.37
11.49

% Change
(1.6)
1.9
2.9
4.6
(9.1)
2.0
20.2
2.9
1.9

Operating Expenses

(in millions; per ASM data in cents)
Aircraft fuel and related taxes
Salaries, wages and benefits
Landing fees and other rents
Depreciation and amortization
Aircraft rent
Sales and marketing
Maintenance, materials and repairs
Other operating expenses
TOTAL OPERATING EXPENSES

2013
$ 1,899
1,135
305
290
128
223
432
601
$ 5,013

2012
1,806
1,044
277
258
130
204
338
549
4,606

$

$

28

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations

PART II   

Aircraft Fuel and Related Taxes

Maintenance, Materials and Repairs

Aircraft fuel and related taxes remained our largest expense category, 
representing 38% of our total operating expenses in 2013 compared 
to 39% in 2012. Even though the average fuel price decreased 2% in 
2013 to $3.14 per gallon, our fuel expenses increased by $93 million as 
we consumed 41 million more gallons of aircraft fuel compared to 2012, 
mainly due to our increased capacity. 

In 2013, we recorded $10 million in fuel hedge losses compared to 2012 
when we recorded $10 million in effective fuel hedge gains. Fuel derivatives 
not qualifying as cash flow hedges in 2013 resulted in losses of less than 
$1 million compared to $3 million in losses in 2012 which were recorded 
in interest income and other. Accounting ineffectiveness on fuel derivatives 
classified as cash flow hedges resulted in losses of less than $1 million 
in 2013 and 2012 and were recorded in interest income and other. We 
are unable to predict what the amount of ineffectiveness will be related 
to these instruments, or the potential loss of hedge accounting which is 
determined on a derivative-by-derivative basis, due to the volatility in the 
forward markets for these commodities.

Salaries, Wages and Benefits

Salaries, Wages and Benefits were our second largest expense, representing 
approximately 23% of our total operating expenses in 2013 and 2012. 
During 2013, the average number of full-time equivalent employees 
increased by 5% and the average tenure of our Crewmembers increased 
to 6.1 years, both of which contributed to a $91 million, or 9%, increase 
compared to 2012. Retirement Plus contributions, which equate to 5% 
of all of our eligible Crewmembers wages, increased by $4 million and 
our 3% retirement contribution for a certain portion of our FAA-licensed 
Crewmembers, which we refer to as Retirement Advantage, increased 
by $6 million. Our increased profitability resulted in $12 million of profit 
sharing expense in 2013 compared to $3 million in 2012.

Non-GAAP Financial Measures

We sometimes use non-GAAP measures that are derived from the 
consolidated financial statements, but that are not presented in accordance 
with generally accepted accounting principles in the U.S., or U.S. GAAP. We 
believe these non-GAAP measures provide a meaningful comparison of our 
results to others in the airline industry and our prior year results. Investors 

Costs per Available Seat Mile (Non-GAAP)

Costs per available seat mile, or CASM, is a common metric used in the 
airline industry. Our CASM for 2014 and 2013 are summarized in the table 
below. We exclude aircraft fuel and related taxes and profit sharing from 
operating cost per available seat mile to determine CASM ex-fuel and profit 
sharing. We believe that CASM ex-fuel and profit sharing provides investors 
the ability to measure financial performance excluding items beyond our 
control, such as (i) fuel costs, which are subject to many economic and 

Maintenance, materials and repairs are generally expensed when incurred, 
unless covered by a long-term flight hour services contract. The average 
age of our aircraft in 2013 was 7.1 years and we had an average of 11.3 
additional operating aircraft in 2013 compared to 2012.

In 2013, maintenance materials and repairs increased by $94 million as 
we had higher engine related costs for our EMBRAER 190 aircraft. In 
the latter half of 2013, we finalized a flight-hour based maintenance and 
repair agreement for these engines, which is expected to result in better 
planning of maintenance activities.

Other Operating Expenses

Other operating expenses increased by $52 million, or 9%, compared to 
2012 due to an increase in outside services. As our capacity and number of 
departures grew in 2013, our related variable handling costs also increased. 
Additionally we had higher information technology related costs due to 
increases in volume and usage. Non-recurring items in 2013 included a 
gain of approximately $2 million relating to the sale of three spare aircraft 
engines as well as a gain of approximately $7 million relating to the sale 
of LiveTV’s investment in the Airfone business. In 2012 we sold six spare 
engines and two EMBRAER 190 aircraft resulting in gains of approximately 
$10 million as well as the termination of a customer by LiveTV resulting in 
a gain of approximately $8 million.

Income Taxes

Our effective tax rate was 40% in 2013 and 39% in 2012. Our effective 
tax rate differs from the statutory income tax rate primarily due to state 
income taxes and the non-deductibility of certain items for tax purposes. 
It is also affected by the relative size of these items to our 2013 pre-tax 
income of $279 million and our 2012 pre-tax income of $209 million.

should consider these non-GAAP financial measures in addition to, and 
not as a substitute for, our financial performance measures prepared in 
accordance with U.S. GAAP. Further, our non-GAAP information may be 
different from the non-GAAP information provided by other companies.

political factors beyond our control, and (ii) profit sharing, which is sensitive 
to volatility in earnings. We believe this measure is more indicative of our 
ability to manage costs and is more comparable to measures reported 
by other major airlines. We are unable to reconcile such projected CASM 
ex-fuel and profit sharing as the nature or amount of excluded items are 
only estimated at this time.

Reconciliation of Operating expense per ASM, excluding fuel and profit sharing

(in millions, per ASM data in cents)
Total operating expenses
Less: Aircraft fuel and related taxes
Operating expenses, excluding fuel
Less: Profit sharing
OPERATING EXPENSE, EXCLUDING FUEL  
& PROFIT SHARING

$

2014
$
5,302
1,912
3,390
25

per ASM
11.78
4.25
7.53
0.05

$

2013
$
5,013
1,899
3,114
12

per ASM
11.71
4.43
7.28
0.03

$

3,365

7.48

$

3,102

7.25

Per ASM
Year-over-Year Change

%
0.6
(4.1)
3.5
66.6

3.2

29

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART II   
ITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations

Net Income and Pre-Tax Income, excluding special items (Non-GAAP)

We exclude special items from net income and pre-tax income as we believe the exclusion of these items is helpful to investors to evaluate JetBlue’s 
recurring core operational performance in the periods shown. Therefore, we adjust for these amounts. Special items excluded in the tables below 
showing the reconciliation of net income and pre-tax income include the gain on the sale of JetBlue’s wholly-owned subsidiary LiveTV due to the non-
recurring nature of this item.

Reconciliation of Net Income, Income before Income Taxes and EPS excluding Special Items

(in millions, except per share amounts)
Income before income taxes
Less: Gain on sale of subsidiary
Income before income taxes excluding special items
Less: Income tax expense
Add back: Income tax relating to gain on sale of subsidiary(a)
Net Income excluding special items

Basic:
Earnings per common share
Less: Special items, net of tax
Earnings per common share excluding special items

Twelve Months Ended December 31,

2014
623
241
382
222
72
232

1.36
0.57
0.79

$

$

$
$
$

2013
279
—
279
111
—
168

0.59
—
0.59

$

$

$
$
$

Diluted:
Earnings per common share
Less: Special items, net of tax
Earnings per common share excluding special items
(a)  The capital gain generated from the sale of LiveTV allowed JetBlue to utilize a capital loss carryforward which resulted in the release of a valuation allowance related to the capital loss 

0.52
—
0.52

1.19
0.49
0.70

$
$
$

$
$
$

deferred tax asset of $19 million.

30

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations

PART II   

Quarterly Results of Operations

The following table sets forth selected financial data and operating statistics for the four quarters ended December 31, 2014. The information for each 
of these quarters is unaudited and has been prepared on the same basis as the audited consolidated financial statements appearing elsewhere in this 
Form 10-K.

Statements of Operations Data (dollars in millions):
Operating revenues
Operating expenses:

Aircraft fuel and related taxes
Salaries, wages and benefits
Landing fees and other rents
Depreciation and amortization
Aircraft rent
Sales and marketing
Maintenance materials and repairs
Other operating expenses
Total operating expenses

Operating income
Other income (expense)(1)
Income before income taxes
Income tax expense
NET INCOME
Operating margin
Pre-tax margin

March 31, 
2014

June 30, 
2014

September 30, 
2014

December 31, 
2014

Three Months Ended

$

1,349

$

1,493

$

1,529

$

1,446

464
329
77
78
31
54
94
181
1,308
41
(35)
6
2
4
3.1%
0.5%

$

497
316
83
77
31
69
102
177
1,352
141
204
345
115
230
9.4%
23.1%

$

515
318
88
79
31
59
109
166
1,365
164
(32)
132
53
79
10.7%
8.6%

$

436
331
73
86
31
49
113
158
1,277
169
(29)
140
52
88
11.7%
9.7%

$

$

$

7,987
9,392
11,436

7,333
8,662
10,419

8,179
9,632
11,386

8,579
10,127
11,752

Operating Statistics (unaudited):
Revenue passengers (thousands)
Revenue passenger miles (millions)
Available seat miles ASM (millions)
Load factor
Aircraft utilization (hours per day)
Average fare
Yield per passenger mile (cents)
Passenger revenue per ASM (cents)
Operating revenue per ASM (cents)
Operating expense per ASM (cents)
Operating expense per ASM, excluding fuel (cents)
Operating expense per ASM, excluding fuel and profit sharing (cents)
Airline operating expense per ASM (cents)(2)
Departures
Average stage length (miles)
Average number of operating aircraft during period
Average fuel cost per gallon, including fuel taxes
Fuel gallons consumed (millions)
Average number of full-time equivalent employees(2)
(1) 
(2)  Excludes results of operations and employees of LiveTV, LLC, which are unrelated to our airline operations and are immaterial to our consolidated operating results. As of June 10, 2014, 

83.1%
11.4
167.69
14.20
11.80
12.95
12.55
8.10
8.10
12.36
68,152
1,095
193.0
3.14
148
13,072
In the second quarter of 2014, we had a gain of approximately $242 million on the sale of LiveTV. 

82.1%
11.5
166.17
14.13
11.61
12.64
11.17
7.35
7.23
11.17
74,526
1,088
200.4
2.70
162
13,446

84.6%
12.0
167.80
14.25
12.05
13.12
11.88
7.51
7.51
11.73
74,917
1,088
193.9
3.09
161
13,251

86.2%
12.0
164.80
13.96
12.03
13.00
11.61
7.22
7.13
11.61
77,205
1,082
197.4
3.05
169
13,351

$

$

$

$

$

$

employees of LiveTV, LLC are no longer part of JetBlue.

31

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PART II   
ITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations

Although we experienced revenue growth in 2014, this trend may not 
continue. We expect our expenses to continue to increase significantly 
as we acquire additional aircraft, as our fleet ages and as we expand the 
frequency of flights in existing markets as well as enter into new markets. 
Accordingly, the comparison of the financial data for the quarterly periods 
presented may not be meaningful. In addition, we expect our operating 

results to fluctuate significantly from quarter-to-quarter in the future as a result 
of various factors, many of which are outside our control. Consequently, 
we believe quarter-to-quarter comparisons of our operating results may 
not necessarily be meaningful and you should not rely on our results for 
any one quarter as an indication of our future performance.

Liquidity and Capital Resources

The airline business is capital intensive. Our ability to successfully execute 
our profitable growth plans 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 two available lines of 
credit. Additionally, as of December 31, 2014, we had 39 unencumbered 
aircraft and 33 unencumbered spare engines which we believe could be 
an additional source of liquidity, if necessary. 

We believe a healthy cash balance is crucial to 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, maintaining financial flexibility and allowing for 
prudent capital spending. We expect these goals will lead to improved 
returns for our shareholders. As of December 31, 2014, our cash and 
cash equivalents balance increased by 52% to $341 million. We believe 
our current level of unrestricted cash, cash equivalents and short-term 
investments of approximately 12% of trailing twelve months revenue, 
combined with our $600 million in available lines of credit and portfolio of 
unencumbered assets, provides us with a strong liquidity position and the 

potential for higher returns on cash deployment. We believe we have taken 
several important actions during 2014 in solidifying our strong balance 
sheet and overall liquidity position. Our highlights for 2014 included:

 • Reduced our overall debt balance by $352 million. 

 • Prepaid approximately $308 million in debt resulting in 14 Airbus A320 
aircraft and five spare engines becoming unencumbered. The majority 
of this prepayment was from the proceeds of the sale of LiveTV in June 
2014. This will result in 2015 interest expense savings of $7 million and 
total interest expense savings of $28 million.

 • Increased the number of unencumbered aircraft from 23 as of 

December 31, 2013, to 39 as of December 31, 2014.

 • In March 2014, we completed a $226 million Enhanced Equipment 
Trust Certificate offering, or EETC, in pass-through certificates which 
was secured by 14 previously unencumbered Airbus A320 aircraft. This 
coincided with the final payment on the Series 2004-1 EETC of $188 
million which resulted in 13 Airbus A320 aircraft becoming unencumbered. 

 • We took delivery of nine Airbus A321 aircraft, two of which were financed 

with capital leases. 

32

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations

PART II   

Return on Invested Capital (Non-GAAP)

Return on invested capital, or ROIC, is an important financial metric which 
we believe provides meaningful information as to how well we generate 
returns relative to the capital invested in our business. During 2014, our 
ROIC improved to 6.3%. We are committed to taking appropriate actions 
which will allow us to continue to improve ROIC while adding capacity and 
continuing to grow. At our Investor day in November 2014, we forecast 
that we believe we will improve ROIC to at least 10% by the end of 2017. 

Reconciliation of Return on Invested Capital (Non-GAAP)

(in millions, except as otherwise noted)
Numerator
Operating Income
Add: Interest income (expense) and other
Add: Interest component of capitalized aircraft rent(a)

Subtotal

Less: Income tax expense impact
Operating Income After Tax, Adjusted

Denominator
Average Stockholders’ equity
Average total debt
Capitalized aircraft rent(a)
Invested Capital

We believe this non-GAAP measure provides a meaningful comparison 
of our results to the airline industry and our prior year results. Investors 
should consider this non-GAAP financial measure in addition to, and 
not as a substitute for, our financial performance measures prepared in 
accordance with GAAP.

Twelve Months Ended December 31,

2014

515
1
65
581
226
355

$

$

$ 2,331

2,409  
869  

$ 5,609

$

$

$

2013

428
(1)
67
494
194
300

2,011
2,718  
899  

$

5,628

RETURN ON INVESTED CAPITAL
(a) Capitalized Aircraft Rent
Aircraft rent, as reported
Capitalized aircraft rent (7 * Aircraft rent)(b)
Interest component of capitalized aircraft rent (Imputed interest at 7.5%)
(b)   In  determining  the  Invested  Capital  component  of  ROIC  we  include  a  non-GAAP  adjustment  for  aircraft  operating  leases,  as  operating  lease 
obligations are not reflected on our balance sheets but do represent a significant financing obligation. In making the adjustment we used a multiple 
of seven times our aircraft rent as this is the multiple which is routinely used within the airline community to represent the financing component of 
aircraft operating lease obligations.

124
869
65

128
899
67

5.3%

6.3%

$

$

Analysis of Cash Flows

We had cash and cash equivalents of $341 million as of December 31, 2014. This compares to $225 million and $182 million as of December 31, 2013 
and 2012 respectively. We held both short and long term investments in 2014, 2013 and 2012. Our short-term investments totaled $367 million as of 
December 31, 2014 compared to $402 million and $549 million as of December 31, 2013 and 2012 respectively. Our long-term investments totaled 
$60 million as of December 31, 2014 compared to $114 million and $136 million as of December 31, 2013 and 2012 respectively. 

Operating Activities

Cash flows provided by operating activities totaled $912 million in 2014 
compared to $758 million in 2013 and $698 million in 2012. There was a 
$154 million increase in cash flows from operating activities in 2014 compared 
to 2013. During 2014 we saw a 5% increase in capacity, a 2% increase 
in average fares and a 5% decrease in the price of fuel which all helped to 
improve operating cash flows. We additionally recognized a gain on sale of 
our subsidiary, LiveTV, of $241 million. The $60 million increase in cash flows 
from operations in 2013 compared to 2012 was primarily a result of the 4% 
increase in average fares and a 7% increase in capacity and a decrease of 
2% in fuel prices. As of December 31, 2014, our unrestricted cash, cash 
equivalents and short-term investments as a percentage of trailing twelve 
months revenue was approximately 12%. We rely primarily on cash flows 
from operations to provide working capital for current and future operations.

Investing Activities 

During 2014, capital expenditures related to our purchase of flight equipment 
included $127 million for flight equipment deposits, $298 million for the purchase 

of seven new Airbus A321 aircraft, $33 million for spare part purchases, 
$79 million for flight equipment work-in-progress, and $1 million relating to 
other activities. Capital expenditures also include the purchase of the Slots 
at Reagan National for $75 million, other property and equipment including 
ground equipment purchases and facilities improvements for $224 million and 
LiveTV in-flight entertainment equipment inventory for $20 million. Investing 
activities also include the proceeds from the sale of LiveTV for $393 million 
and the net proceeds of $81 million from the sale of investment securities.

During 2013, the capital expenditure for seven new EMBRAER 190 
aircraft, three new Airbus A320 aircraft and four new Airbus A321 aircraft 
was $365 million. We additionally paid $22 million for flight equipment 
deposits and $54 million for spare parts. Capital expenditures for other 
property and equipment, including ground equipment purchases, facilities 
improvements and LiveTV in-flight entertainment equipment inventory 
were $196 million. LiveTV sold its investment in the Airfone business with 
proceeds of $8 million. Investing activities also include the net sale of  
$161 million in investment securities.

33

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PART II   
ITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations

During 2012, capital expenditures related to our purchase of flight equipment 
included $344 million for seven new Airbus A320 aircraft, four new 
EMBRAER 190 aircraft and five spare engines. It also included $283 million 
for flight equipment deposits, including a $200 million prepayment in 
exchange for favorable pricing terms, and $32 million for spare part 
purchases. Capital expenditures for other property and equipment, including 
ground equipment purchases, facilities improvements and LiveTV in-flight 
entertainment equipment inventory were $166 million, which included the 
final $32 million for the 16 slots we purchased at LaGuardia and Reagan 
National in 2011 and $17 million for T5i, which was paid for using cash 
from operations. The receipt of $46 million in proceeds from the sale of 
two EMBRAER 190 aircraft and six spare engines is included in investing 
activities. Investing activities also include the net purchase of $104 million 
in investment securities.

We currently anticipate 2015 capital expenditures to be between $810 million 
and $860 million, including approximately $660 million for aircraft and 
predelivery deposits. The remaining capital expenditures of approximately 
$150 million to $200 million relate to non-aircraft projects such as the 
customer technology refresh, the expansion of our facilities at Boston 
and updates to our IT infrastructure.

Financing Activities

Financing activities during 2014 consisted of the scheduled repayment of 
$394 million relating to debt and capital lease obligations and $308 million 
of debt prepayment. We issued $342 million in fixed rate equipment notes 
secured by 18 aircraft, acquired $82 million in treasury shares, including 
$73 million related to our share buyback program and $9 million in shares 
withheld for tax purposes upon vesting of RSUs. We repaid $14 million in 
principal related to our construction obligation for T5. We issued $41 million 
in common stock mainly due to stock options being exercised as our 
stock price continued to increase in 2014. In the future we may issue, in 
one or more offerings, debt securities, pass-through certificates, common 
stock, preferred stock and/or other securities.

Financing activities during 2013 consisted of scheduled maturities of 
$392 million of debt and capital lease obligations. We issued $350 million in 
fixed rate equipment notes secured by 12 aircraft and prepaid $94 million 
in high-interest debt secured by four Airbus A320 aircraft and $119 million 
relating to our 2006 Spare Parts EETC. It also included the refunding of our 
Series 2005 GOAA bonds with proceeds of $43 million from the issuance 
of new 2013 GOAA bonds, the repayment of $13 million in principal related 
to our construction obligation for T5 and the acquisition of $8 million in 
treasury shares primarily related to our share repurchase program and 
the withholding of taxes upon the vesting of RSUs.

Financing activities during 2012 consisted of scheduled maturities of 
$198 million of debt and capital lease obligations, the pre-payment of 
$185 million in high-cost debt secured by seven Airbus A320 aircraft 
and the repayment of $35 million of debt related to two EMBRAER 
190 aircraft which we sold in 2012. It also included the proceeds of 
$215 million in non-public floating rate aircraft-related financing secured 
by four Airbus A320 aircraft and four EMBRAER 190 aircraft and the 
net repayment of $88 million under our available lines of credit. We 
additionally repaid $12 million in principal related to our construction 
obligation for T5 and $26 million in treasury shares primarily related to 
our share repurchase program and the withholding of taxes upon the 
vesting of restricted stock units.

In November 2012, we filed an automatic shelf registration statement with 
the SEC. Under this universal shelf registration statement, we have the 
capacity to offer and sell from time to time debt securities, pass-through 
certificates, common stock, preferred stock and/or other securities. The 
net proceeds of any securities we sell under this registration statement 
may be used to fund working capital and capital expenditures, including 
the purchase of aircraft and construction of facilities on or near airports. 
Through to December 31, 2014, we had not issued any securities under 
this registration statement and at this time we have no plans to sell 
any such securities under this registration statement. We may utilize 
this universal shelf registration statement in the future to raise capital 

to fund the continued development of our products and services, the 
commercialization of our products and services or for other general 
corporate purposes.

None of our lenders or lessors are affiliated with us.

Capital Resources

We have been able to generate sufficient funds from operations to meet 
our working capital requirements and we have historically financed our 
aircraft through either secured debt or lease financing. As of December 
31, 2014, we operated a fleet of 203 aircraft which included five Airbus 
A321 aircraft and 34 Airbus A320 aircraft that were unencumbered. Of 
the remaining aircraft, 60 were financed under operating leases, six were 
financed under capital leases and 98 were financed by private and public 
secured debt. Additionally we have 33 unencumbered spare engines. 
Approximately 53% of our property and equipment is pledged as security 
under various loan arrangements. 

Dependent on market conditions, we anticipate paying cash for the 12 
Airbus A321 aircraft scheduled for delivery in 2015. 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. Although we believe debt and/or lease financing 
should be available to us if needed, we cannot give assurance we will be 
able to secure financing on terms attractive to us, if at all.

Working Capital

We had a working capital deficit of $736 million as of December 31, 
2014 compared to a deficit of $818 million as of December 31, 2013 
and a deficit of $508 million as of December 31, 2012. Working capital 
deficits can be customary in the airline industry since air traffic liability 
is classified as a current liability. Our working capital deficit decreased 
$82 million in 2014 mainly due to several factors including a decrease in 
the balances of current debt maturities as well as an overall increase in 
our cash balances. These were slightly offset by an increase in air traffic 
liability. Also contributing to our working capital deficit as of December 
31, 2014 is $60 million in marketable investment securities classified 
as long-term assets, including $48 million related to a deposit made to 
lower the interest rate on the debt secured by two aircraft. These funds 
on deposit are readily available to us; however, if we were to draw upon 
this deposit, the interest rates on the debt would revert to the higher 
rates in effect prior to the re-financing.

In 2012, we entered into a revolving line of credit with Morgan Stanley for 
up to $100 million which was subsequently increased to $200 million in 
December 2012. 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 of interest 
based upon the London Interbank Offered Rate, or LIBOR, plus a margin. 
During 2013, we borrowed $190 million on this line of credit, which was 
fully repaid, leaving the line undrawn as of December 31, 2013. During 
2014, we did not borrow on this facility and the line was undrawn as of 
December 31, 2014.

In April 2013, we entered into a Credit and Guaranty Agreement which 
consisted of a revolving credit up to $350 million and letter of credit facility 
with Citibank, N.A. as the administrative agent. In November 2014, we 
increased the Credit Facility to $400 million. Borrowing under the Credit 
Facility bears interest at a variable rate equal to LIBOR, plus a margin. 
The Credit Facility is scheduled to terminate in 2018. The Credit Facility is 
secured by take-off and landing slots at JFK, Newark, LaGuardia, Reagan 
National and certain other assets. The Credit Facility includes covenants 
that require us to maintain certain minimum balances in unrestricted 
cash, cash equivalents, and unused commitments available under all 
revolving credit facilities. In addition, the covenants restrict our ability to 
incur additional indebtedness, issue preferred stock or pay dividends. 
During 2014, we did not borrow on this facility and the line was undrawn 
as of December 31, 2014.

34

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations

PART II   

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, as they may be available to us. We 
expect to generate positive working capital through our operations. 
However, we cannot predict what the effect on our business might be from 
the extremely competitive environment we are operating in or from events 
beyond our control, such as volatile fuel prices, economic conditions, 
weather-related disruptions, the spread of infectious diseases, the impact 
of airline bankruptcies, restructurings or consolidations, U.S. military actions 
or acts of terrorism. We believe the working capital available to us will be 
sufficient to meet our cash requirements for at least the next 12 months.

Debt and Capital Leases

Our scheduled debt maturities are expected to increase over the next 
five years, with a scheduled peak in 2016 of $464 million. As part of our 
efforts to effectively manage our balance sheet and improve ROIC, we 
expect to continue to actively manage our debt balances. Our approach 
to debt management includes managing the mix of fixed vs. floating rate 
debt, annual maturities of debt and the weighted average cost of debt. 
We intend to continue to opportunistically pre-purchase outstanding debt 
when market conditions and terms are favorable as well as when excess 
liquidity is available. The proceeds from the sale of LiveTV were allocated to 
debt reduction and share buybacks which are ROIC accretive. Additionally, 
our unencumbered assets, including 39 aircraft and 33 engines, allow 
some flexibility in managing our cost of debt and capital requirements.

Reconciliation of Free Cash Flow (Non-GAAP)

In March 2014, we completed a private placement EETC offering of 
$226 million in pass-through certificates that was secured by 14 of our 
unencumbered Airbus A320 aircraft. This funding coincided with the 
final scheduled principal payments of $188 million associated with our 
March 2004 EETC Class G-2 certificates, which resulted in 13 Airbus 
A320 aircraft becoming unencumbered. In June 2014, we used some of 
the proceeds from the sale of LiveTV and prepaid $299 million of floating 
rate outstanding principal secured by 14 Airbus A320 aircraft which are 
now unencumbered.

During 2014, we entered into two Airbus A321 aircraft capital leases for 
approximately $76 million. These capital leases are included in our total 
debt and capital lease obligations and the aircraft are included in property 
and equipment.

Free Cash Flow (Non-GAAP)

The table below reconciles cash provided by operations determined in 
accordance with U.S. GAAP to Free Cash Flow, a non-GAAP measure. 
Management believes that Free Cash Flow is a relevant metric in measuring 
our financial strength and is useful in assessing our ability to fund future 
capital commitments and other obligations. Investors should consider this 
non-GAAP financial measure in addition to, and not as a substitute for, our 
financial measures prepared in accordance with U.S. GAAP.

(in millions)

Net cash provided by operating activities

2014

$ 912 

2013

$ 758 

2012

$ 698 

2011

$ 614 

2010

$ 523 

Year Ended December 31,

Capital expenditures(a)

Predelivery deposits for flight equipment

(806)

(127)

(933)

(615)

(22)

(637)

(542)

(283)

(825)

(480)

(44)

(524)

(249)

(50)

(299)

Free Cash Flow
(a)  The capital expenditures in 2014 includes two capital leases for approximately $76 million which are classified as a non-cash financing activity in the consolidated statements 

$ (21)

$ 121

$ (127)

$ 224

90

$

of cash flows.

Contractual Obligations

Our noncancelable contractual obligations at December 31, 2014 include:

2015

Total

(in millions)
Long-term debt and capital lease 
obligations(1)
Lease commitments
Flight equipment obligations
Other obligations(2)
TOTAL
(1) 
(2)  Amounts include noncancelable commitments for the purchase of goods and services.

$ 2,895
1,495
6,675
4,195
$ 15,260

375
235  
610
785  

2,005

$

$

Includes actual interest and estimated interest for floating-rate debt based on December 31, 2014 rates.

Payments due in
2017

2016

$

560
170
545
640
$ 1,915

$

300
140
595
590
$ 1,625

2018

2019

Thereafter

$

295
135
520
590
$ 1,540

$

285
115
935
545
$ 1,880

$ 1,080  
700  
3,470
1,045
$ 6,295

The interest rates are fixed for $1.7 billion of our debt and capital lease 
obligations, with the remaining $0.5 billion having floating interest rates. 
The floating interest rates adjust either quarterly or semi-annually based 
on LIBOR. The weighted average maturity of all of our debt was 7 years 
as of December 31, 2014. 

As of December 31, 2014, we believe we were in compliance with all 
of our covenants in relation to our debt and lease agreements and 53% 
of our owned property and equipment were pledged as security under 
various loan agreements.

35

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report 
 
 
 
 
 
 
 
 
 
 
 
 
PART II   
ITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations

We have operating lease obligations for 60 aircraft with lease terms that 
expire between 2016 and 2026. Five of these leases have variable-rate 
rent payments which adjust semi-annually based on LIBOR. 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. 

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 
approximately $33 million of restricted assets pledged under standby 
letters of credit related to certain of our leases which will expire at the end 
of the related leases. As of December 31, 2014, the average age of our 
operating fleet was 7.8 years.

We modified our long-term order book in November 2014 and our firm aircraft order as of December 31, 2014 is as follows:

Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
TOTAL

Airbus
A320 neo
—
—
—
—
—
6
16
3
—
25

Airbus  
A321
12
10
10
1
—
—
—
—
—
33

Airbus  
A321 neo
—
—
—
6
15
9
—
13
2
45

EMBRAER 
190
—
—
—
—
—
10
7
7
—
24

Total
12
10
10
7
15
25
23
23
2
127

Committed expenditures for our firm aircraft and spare engines include 
estimated amounts for contractual price escalations and predelivery 
deposits. We expect to meet our predelivery deposit requirements for 
our aircraft by paying cash or by using short-term borrowing facilities 
for deposits required six to 24 months prior to delivery. Any predelivery 
deposits paid by the issuance of notes are fully repaid at the time of 
delivery of the related aircraft.

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 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 2013, we amended this lease to include additional 
ground space for our international arrivals facility, T5i, which we opened 
in November 2014. For financial reporting purposes, the T5 project is 

being accounted for as a financing obligation, with the constructed 
asset and related liability being reflected on our consolidated balance 
sheets. The T5i project was accounted for at cost. Minimum ground 
and facility rents for this terminal totaling $833 million are included in 
the commitments table above as lease commitments and financing 
obligations.

We enter into individual employment agreements with each of our 
non-unionized FAA-licensed Crewmembers, 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 the 
Crewmember is terminated for cause or the Crewmember elects not to 
renew it. Pursuant to these agreements, these Crewmembers can only 
be terminated for cause. In the event of a downturn in our business 
requiring a reduction in flying and related work hours, we are obligated to 
pay these Crewmembers a guaranteed level of income and to continue 
their benefits. As we are not currently obligated to pay this guaranteed 
income and benefits, no amounts related to these guarantees are 
included in the contractual obligations table above. Our pilots voted to 
be represented by ALPA during 2014.

Off-Balance Sheet Arrangements

None of our operating lease obligations are reflected on our consolidated 
balance sheets. Although some of our aircraft lease arrangements are 
with variable interest entities, as defined by the Consolidations topic 
of the Codification, none of them require consolidation in our financial 
statements. The decision to finance these aircraft through operating leases 
rather than through debt was based on an analysis of the cash flows and 
tax consequences of each financing alternative and a consideration of 
liquidity implications. We are responsible for all maintenance, insurance 
and other costs associated with operating these aircraft. However, we 
are not obligated to provide any residual value or other guarantees to 
our lessors.

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 2, 3 and 12 to our consolidated financial 
statements for a more detailed discussion of our variable interests and 
other contingencies, including guarantees and indemnities.

36

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report 
 
 
 
 
 
 
 
 
 
ITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations

PART II   

Critical Accounting Policies and Estimates

The preparation of our consolidated financial statements in conformity 
with U.S. 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 accounting policies, see Note 1 to our consolidated 
financial statements.

Passenger revenue

Passenger ticket sales are initially deferred in air traffic liability. The air 
traffic liability also includes customer credits issued and unused tickets 
whose travel date has passed. Credit for unused tickets and customer 
credits can each be applied towards another ticket within 12 months of 
the original scheduled service or 12 months from the issuance of the 
customer credit. Revenue is recognized when transportation is provided 
or when a ticket or customer credit expires. We also defer in the air traffic 
liability account an estimate for customer credits issued in conjunction 
with the JetBlue Airways Customer Bill of Rights that we expect to be 
ultimately redeemed. These estimates are based on historical experience 
and are periodically evaluated, and adjusted if necessary, based on 
actual credit usage.

Frequent flyer accounting 

We utilize a number of estimates in accounting for our TrueBlue customer 
loyalty program, or TrueBlue. We record a liability for the estimated 
incremental cost of outstanding points earned from JetBlue purchases 
that we expect to be redeemed. This liability was $24 million and  
$19 million as of December 31, 2014 and 2013, respectively. The estimated 
cost includes incremental fuel, insurance, passenger food and supplies, 
and reservation costs. We adjust this liability, which is included in air traffic 
liability, based on points earned and redeemed, changes in the estimated 
incremental costs associated with providing travel and changes in the 
TrueBlue program. Customers earn points based on the value paid for 
a trip rather than the length of the trip. In addition, there is no longer an 
automatic generation of a travel award once minimum award levels are 
reached, but instead the points are maintained in the account until used 
by the member. In June 2013, we amended the program so points earned 
by members never expire. This change has resulted in a reassessment 
of our assumptions used in calculating the liability and our estimate of 
the points that remain unused, the breakage, has been reduced by 
approximately $5 million in 2013. In October 2013, we introduced the 
pooling of points between small groups of people, branded as Family 
PoolingTM. We believe Family PoolingTM did not have a material impact 
on the annual breakage calculation at year-end. We did not make any 
changes to our frequent flyer accounting in 2014. Periodically we evaluate 
our assumptions for appropriateness, including comparison of the cost 
estimates to actual costs incurred as well as the expiration and redemption 
assumptions to actual experience. Changes in the minimum award levels 
or in the lives of the awards would also require us to reevaluate the liability, 
potentially resulting in a significant impact in the year of change as well 
as in future years.

Points in TrueBlue can also be sold to participating companies, including 
credit card and car rental companies. These sales are accounted for as 
multiple-element arrangements, with one element representing the fair value 
of the travel that will ultimately be provided when the points are redeemed 
and the other consisting of marketing related activities we conduct with 
the participating company. The fair value of the transportation portion of 
these point sales is deferred and recognized as passenger revenue when 
transportation is provided. The marketing portion, which is the excess of 
the total sales proceeds over the estimated fair value of the transportation 
to be provided, is recognized in other revenue when the points are sold. 
Deferred revenue for points sold and not redeemed is recognized as revenue 
when management determines the probability of redemption is remote. 
Deferred revenue was $162 million and $131 million at December 31, 
2014 and 2013, respectively. We did not record any revenue in relation to 
points expiration in 2014 compared to $2 million in 2013.

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. Changes in expected useful lives of certain assets have 
resulted in an additional $13 million of depreciation and amortization 
expense during 2014.

Our long-lived assets are evaluated for impairment at least annually or 
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. As our assets are all relatively 
new and we continue to have positive operating cash flows, we have 
not identified any significant impairment related to our long-lived assets 
at this time.

Intangible assets

Our intangible assets consist of acquired take-off and landing Slots at 
certain domestic airports. Slots are rights to take-off or land at a specific 
airport during a specific time period during the day and are a means by 
which airport capacity and congestion can be managed. The Federal 
government controls Slots at four domestic airports under the High 
Density rule, including Reagan National Airport in Washington D.C. and 
LaGuardia and JFK Airports in New York City. In accounting for our Slot-
related intangible assets we make estimates about their expected useful 
lives. In December 2013, due to recent regulatory and market activities 
stemming from the auctioning of slots at LaGuardia and Reagan National 
airports, we reassessed the useful lives of these assets and concluded 
that Slots at High Density Airports are indefinite lived intangible assets 
and will no longer amortize them. Slots at other airports will continue to 
be amortized on a straight-line basis over their expected useful lives of 
up to 15 years. We incurred amortization expense of $5 million in 2013 
and $4 million in 2012 for Slots at High Density Airports. Changes in our 
operations, government regulations or demand for air travel at these 
airports could result in changes to these estimates.

We evaluate our intangible assets for impairment at least annually or when 
events and circumstances indicate they may be impaired. Indicators 
include operating or cash flow losses as well as significant decreases in 
market value.

37

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART II   
ITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations

The Derivatives and Hedging topic is a complex accounting standard. It 
requires us to develop and maintain a significant amount of documentation 
related to:

(1) our fuel hedging program and fuel management approach.

(2) statistical analysis supporting a highly correlated relationship between 
the underlying commodity in the derivative financial instrument and the risk 
being hedged, i.e. aircraft fuel, on both a historical and prospective basis.

(3) cash flow designation for each hedging transaction executed, to be 
developed concurrently with the hedging transaction.

This documentation requires us to estimate forward aircraft fuel prices 
since there is no reliable forward market for aircraft fuel. These prices are 
developed through the observation of similar commodity futures prices, 
such as crude oil and/or heating oil, and adjusted based on variations to 
those like commodities. Historically, our hedges have settled within 24 
months; therefore, the deferred gains and losses have been recognized 
into earnings over a relatively short period of time.

Lease accounting 

We operate airport facilities, office buildings and aircraft under operating 
leases with minimum lease payments. We recognize the costs associated 
with these agreements as rent expense on a straight-line basis over the 
expected lease term. Within the provisions of certain leases there are 
minimum escalations in payments over the base lease term. There are 
also periodic adjustments of lease rates, landing fees, and other charges 
applicable under such agreements, as well as renewal periods. The 
effects of the escalations and other adjustments have been reflected in 
rent expense on a straight-line basis over the lease term. This includes 
renewal periods when it is deemed to be reasonably assured at the 
inception of the lease that we would incur an economic penalty for not 
renewing. The amortization period for leasehold improvements is the term 
used in calculating straight-line rent expense or their estimated economic 
life, whichever is shorter.

Derivative instruments used for aircraft fuel 

We utilize financial derivative instruments to manage the risk of 
changing aircraft fuel prices. We do not purchase or hold any derivative 
instrument for trading purposes. As of December 31, 2014, we had a net  
$51 million liability related to the net fair value of these derivative instruments; 
the majority of which are not traded on a public exchange. Fair values 
are determined using commodity prices provided to us by independent 
third parties. When possible, we designate these instruments as cash 
flow hedges for accounting purposes, as defined by the Derivatives and 
Hedging topic of the Codification which permits the deferral of the effective 
portions of gains or losses until contract settlement.

38

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportITEM 7A Quantitative and Qualitative Disclosures About Market Risk

PART II   

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. See Notes 1, 2 and 13 
to our consolidated financial statements for accounting policies and additional information.

Aircraft 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, 2014 cost per gallon of fuel. Based on projected 2015 fuel consumption, such an increase would result in an increase to aircraft 
fuel expense of approximately $175 million in 2015. This is compared to an estimated $202 million for 2014 measured as of December 31, 2013. As 
of December 31, 2014 we had hedged approximately 17% of our projected 2015 fuel requirements. All hedge contracts existing as of December 31, 
2014 settle by December 31, 2015. 

The financial derivative instrument agreements we have with our counterparties may require us to fund all, or a portion of, outstanding loss positions 
related to these contracts prior to their scheduled maturities. The amount of collateral posted, if any, is periodically adjusted based on the fair value of 
the hedge 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 $1.7 billion of our debt and capital lease obligations, 
with the remaining $0.5 billion having floating interest rates. If interest rates were on average 100 basis points higher in 2015 than they were during 
2014, our interest expense would increase by approximately $7 million. This is determined by considering the impact of the hypothetical change in 
interest rates on our variable rate debt.

If interest rates were an average 10% lower in 2015 than they were during 2014, our interest income from cash and investment balances would remain 
relatively constant. This is similar to the relative constant level of interest income for 2014 measured as of December 31, 2013. These amounts are 
determined by considering the impact of the hypothetical interest rates on our cash equivalents and investment securities balances as of December 31, 
2014 and 2013.

Convertible Debt 

On December 31, 2014, our $154 million aggregate principal amount of convertible debt had a total estimated fair value of $524 million, based on 
quoted market prices. If there was a 10% increase in our stock price, the fair value of this debt would have been $576 million as of December 31, 2014.

39

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART II   
ITEM 8 Financial Statements and Supplementary Data

ITEM 8.  Financial Statements and Supplementary Data

JetBlue Airways Corporation

Consolidated Balance Sheets

(in millions, except share data)
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Investment securities
Receivables, less allowance (2014-$6; 2013-$6)
Inventories, less allowance (2014-$8; 2013-$6)
Prepaid expenses
Deferred income taxes
Other

Total current assets

PROPERTY AND EQUIPMENT
Flight equipment
Predelivery deposits for flight equipment

Less accumulated depreciation

Other property and equipment
Less accumulated depreciation

Assets constructed for others
Less accumulated depreciation

Total property and equipment

OTHER ASSETS
Investment securities
Restricted cash
Other

Total other assets

TOTAL ASSETS

December 31,

2014

2013

$

$

341
367
136
46
135
174
1
1,200

6,233
207
6,440
1,354
5,086
816
252
564
561
139
422
6,072

60
61
446
567
7,839

$

225
402
129
48
126
120
6
1,056

5,778
181
5,959
1,185
4,774
688
251
437
561
116
445
5,656

114
57
467
638
$ 7,350

See accompanying notes to consolidated financial statements.

40

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ITEM 8 Financial Statements and Supplementary Data

PART II   

JetBlue Airways Corporation

Consolidated Balance Sheets

(in millions, except share data)
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable
Air traffic liability
Accrued salaries, wages and benefits
Other accrued liabilities
Current maturities of long-term debt and capital leases

Total current liabilities

LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS

CONSTRUCTION OBLIGATION

DEFERRED TAXES AND OTHER LIABILITIES
Deferred income taxes
Other

Total non-current liabilities

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS’ EQUITY
Preferred stock, $0.01 par value; 25,000,000 shares authorized, none issued
Common stock, $0.01 par value; 900,000,000 shares authorized, 368,883,960 and 346,489,574 shares 
issued and 309,871,309 and 295,587,126 shares outstanding at 2014 and 2013, respectively
Treasury stock, at cost; 59,012,651 and 50,902,448 shares at 2014 and 2013, respectively
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss

Total stockholders’ equity

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

December 31,
2014

$

208 
973 
203 
287 
265 
1,936 

1,968 

487 

832 
87 
919 

— 

4 
(125)
1,711
1,002
(63)
2,529
$ 7,839 

2013  

180  
825  
171  
229  
469  
1,874  

2,116  

501  

605  
120  
725  

—  

3  
(43)
1,573
601
—
2,134
7,350  

$

$

See accompanying notes to consolidated financial statements.

41

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PART II   
ITEM 8 Financial Statements and Supplementary Data

JetBlue Airways Corporation

Consolidated Statements of Operations

(in millions, except per share amounts)
OPERATING REVENUES
Passenger
Other

Total operating revenues

OPERATING EXPENSES
Aircraft fuel and related taxes
Salaries, wages and benefits
Landing fees and other rents
Depreciation and amortization
Aircraft rent
Sales and marketing
Maintenance, materials and repairs
Other operating expenses
Total operating expenses

OPERATING INCOME

OTHER INCOME (EXPENSE)
Interest expense
Capitalized interest
Interest income (expense) and other
Gain on sale of subsidiary

Total other income (expense)

INCOME BEFORE INCOME TAXES
Income tax expense
NET INCOME
EARNINGS PER COMMON SHARE
Basic
Diluted

Years Ended December 31,

$

2014

5,343 
474
5,817

1,912
1,294
321
320
124
231
418
682
5,302

515

(148)
14
1
241
108

623
222
401

1.36 
1.19

$

$
$

2013

4,971 
470 
5,441 

1,899 
1,135 
305 
290 
128 
223 
432 
601 
5,013 

428

(161)
13
(1)
—
(149)

279
111
168

0.59
0.52

$

$

$
$

2012

4,550 
432 
4,982 

1,806 
1,044 
277 
258 
130 
204 
338 
549 
4,606 

376

(176)
8
1
—
(167)

209
81
128

0.45
0.40

$

$

$
$

See accompanying notes to consolidated financial statements.

42

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ITEM 8 Financial Statements and Supplementary Data

PART II   

JetBlue Airways Corporation

Consolidated Statements of Comprehensive Income

(in millions)
NET INCOME
Changes in fair value of derivative instruments, net of reclassifications into earnings  
(net of $(40), $5, and $5 of taxes in 2014, 2013 and 2012, respectively)

Total other comprehensive income (loss)

COMPREHENSIVE INCOME

Years Ended December 31,

2014
$ 401

(63)
(63)
$ 338

2013
$ 168

8
8
$ 176

2012
$ 128

7
7
$ 135

See accompanying notes to consolidated financial statements.

43

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report 
 
 
 
 
 
PART II   
ITEM 8 Financial Statements and Supplementary Data

JetBlue Airways Corporation

Consolidated Statements of Cash Flows

(in millions)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
Adjustments to reconcile net income to net cash provided by operating activities:

Deferred income taxes
Depreciation
Amortization
Stock-based compensation
Losses on sale of assets, debt extinguishment and customer contract termination
Gain on sale of subsidiary
Collateral (paid) returned for derivative instruments

Changes in certain operating assets and liabilities:

Decrease (Increase) in receivables
Decrease (Increase) in inventories, prepaid and other
Increase in air traffic liability
Increase in accounts payable and other accrued liabilities

Other, net

Net cash provided by operating activities

CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
Predelivery deposits for flight equipment
Proceeds from the sale and disposition of assets
Proceeds from sale of subsidiary
Assets constructed for others
Purchase of held-to-maturity investments
Proceeds from the maturities of held-to-maturity investments
Purchase of available-for-sale securities
Proceeds from the sale of available-for-sale securities
Other, net

Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from:

Issuance of common stock
Issuance of long-term debt
Short-term borrowings and lines of credit

Repayment of:

Long-term debt and capital lease obligations
Short-term borrowings and lines of credit
Construction obligation
Acquisition of treasury stock
Other, net

Net cash used in financing activities

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

$

See accompanying notes to consolidated financial statements.

44

Years Ended December 31,

2014

2013

2012

$

401  

$

168

$

128

212  
263  
62 
20 
—
(241)
(49)

1
3 
148 
68 
24  

912

(730)
(127)
8
393
—
(361)
379
(335)
398
(4)
(379)

41
342
—

(702)
—
(14)
(82)
(2)
(417)

116
225
341

107
258
48
14
(1)
—
8

(22)
(23)
132
52
17
758

(615)
(22)
8
—
—
(234)
300
(413)
508
(8)
(476)

10
393
190

(612)
(190)
(13)
(8)
(9)
(239)

43
182
225

$

76
230
39
13
(17)
—
8

1
38
66
92
24
698

(542)
(283)
46
—
(2)
(444)
434
(532)
438
18
(867)

9
215
375

(418)
(463)
(12)
(26)
(2)
(322)

(491)
673
182

$

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report 
   
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ITEM 8 Financial Statements and Supplementary Data

PART II   

JetBlue Airways Corporation

Consolidated Statements of Stockholders’ Equity

(in millions)
Balance at December 31, 2011
Net income
Changes in comprehensive income
Vesting of restricted stock units
Stock compensation expense
Stock issued under Crewmember 
stock purchase plan
Shares repurchased under 2012 
share repurchase plan
Other
Balance at December 31, 2012
Net income
Changes in comprehensive income
Vesting of restricted stock units
Stock compensation expense
Stock issued under Crewmember 
stock purchase plan
Shares repurchased under 2012 
share repurchase plan
Convertible debt redemption
Other
Balance at December 31, 2013
Net income
Changes in comprehensive income
Vesting of restricted stock units
Exercise of stock options
Stock compensation expense
Stock issued under Crewmember 
stock purchase plan
Shares repurchased under 2012 
share repurchase plan
Convertible debt redemption
Other
Balance at December 31, 2014

Common 
Shares
327
—
—
2
—

2

—
—
331
—
—
2
—

2

—
12
—
347
—
—
3
2
—

2

—
15
—
369

Common 
Stock

Treasury 
Shares

$ 3
  —
  —
  —
  —

  —

  —
—
3
  —
  —
  —
  —

  —

  —
  —
  —
3
  —
  —
  —
  —
  —

  —

  —
1
  —
$ 4

45
—
—
1
—

—

4
—
50
—
—
1
—

—

—
—
—
51
—
—
1
—
—

—

7
—
—
59

Treasury 
Stock
$

(8)
—
—
(4)
—

Additional 
Paid-In 
Capital
$ 1,472
—
—
—
13

Retained 
Earnings
$ 305
128
—
—
—

Accumulated 
Other 
Compre-
hensive 
Income 
(Loss)

$ (15)
  —  
7
  —  
  —  

Total
$ 1,757
128
7
(4)
13

—

(23)
—
(35)
—
—
(5)
—

—

(3)
—
—
(43)
—
—
(9)
—
—

—

7

—
3
1,495
—
—
—
14

10

—
55
(1)
1,573
—
—
—
22
20

19

—

—
—
433
168
—
—
—

—

—
—
—
601
401
—
—
—
—

—

(73)
—
—
$ (125)

—
76
1
$ 1,711

—
—
—
$1,002

  —  

7

  —  
—
(8)
  —  
8
  —  
  —  

(23)
3
1,888
168
8
(5)
14

  —  

10

  —  
  —  
  —  
  —  
  —  
(63)
  —  
  —  
  —  

(3)
55
(1)
2,134
401
(63)
(9)
22
20

  —  

19

  —  
—
  —  
$ (63)

(73)
77
1
$ 2,529

See accompanying notes to consolidated financial statements.

45

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PART II   
ITEM 8 Financial Statements and Supplementary Data

JetBlue Airways Corporation

Notes to Consolidated Financial Statements

December 31, 2014

JetBlue Airways Corporation, or 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, 2014, we served 
87 destinations in 27 states, the District of Columbia, the Commonwealth 

of Puerto Rico, the U.S. Virgin Islands, and 17 countries in the Caribbean 
and Latin America. We sold our wholly owned subsidiary, LiveTV, LLC, 
or LiveTV, during 2014 and it continues to provide in-flight entertainment 
systems and internet connectivity to JetBlue as part of two new service 
agreements.

NOTE 1 

Summary of Significant Accounting Policies

Basis of Presentation

Restricted Cash

JetBlue predominately provides air transportation services across the United 
States, Caribbean and Latin America. Our consolidated financial statements 
have been prepared in accordance with accounting principles generally 
accepted in the U.S., or U.S. GAAP, and include the accounts of JetBlue 
and our subsidiaries. All majority-owned subsidiaries are consolidated 
on a line by line basis, with all intercompany transactions and balances 
being eliminated. In June 2014, LiveTV, LLC (and LTV Global, Inc, and 
LiveTV International, Inc., subsidiaries of LiveTV, LLC) were sold to Thales 
Holding Corporation, or Thales, and ceased to be subsidiaries of JetBlue. 
In September 2014, LiveTV Satellite Communications, LLC was sold to 
Thales and ceased to be a subsidiary of JetBlue. Following the close of 
the sales on June 10, 2014 and September 25, 2014, the transferred 
LiveTV operations are no longer presented in our consolidated financial 
statements. Refer to Note 8 for more details on the sale. Air transportation 
services accounted for substantially all of the Company’s operations in 
2014, 2013 and 2012. Accordingly, segment information is not provided 
for LiveTV operations before the sale.

Use of Estimates
The preparation of our consolidated financial statements and accompanying 
notes in conformity with U.S. GAAP require 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’s, or FASB, Accounting Standards 
Codification™, or 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 14 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 and commercial papers with maturities of three months 
or less when purchased.

Restricted cash primarily consists of security deposits, funds held in escrow 
for estimated workers’ compensation obligations and performance bonds 
for aircraft and facility leases.

Accounts and Other Receivables

Accounts and other receivables are carried at cost. They primarily consist 
of amounts due from credit card companies associated with sales of tickets 
for future travel. We estimate an allowance for doubtful accounts based on 
known troubled accounts, if any, and historical experience of losses incurred.

Investment Securities

Investment securities consist of available-for-sale investment securities 
and held-to-maturity investment securities. When sold, we use a specific 
identification method to determine the cost of the securities.

Available-for-sale investment securities 

Our available-for-sale investment securities include highly liquid investments 
such as certificates of deposits with maturities between three and twelve 
months which are stated at fair value.

Held-to-maturity investment securities 

Our held-to-maturity investments consist of investment-grade interest 
bearing instruments, primarily corporate bonds, which are stated at 
amortized cost. We do not intend to sell these investment securities and 
the contractual maturities are not greater than 24 months. Those with 
maturities less than twelve months are included in short-term investments 
on our consolidated balance sheets. Those with remaining maturities in 
excess of twelve months are included in long-term investments on our 
consolidated balance sheets. We did not record any material gains or 
losses on these securities during the years ended December 31, 2014, 
2013 or 2012. The estimated fair value of these investments approximated 
their carrying value as of December 31, 2014 and 2013.

Also included in our held-to-maturity investment securities as of 
December 31, 2014 are deposits made to lower the interest rate on the 
debt secured by two aircraft as discussed in Note 2. These funds on 
deposit are readily available to us and are invested with a bank with a 
deposit maturity within the next 12 months. If we were to draw upon this 
deposit, the interest rates on the debt would revert to the higher rates 
in effect prior to the re-financing. As such, we have classified these time 
deposits as long-term held-to-maturity investments to reflect our intent to 
hold them in connection with the maturity of the associated debt.

46

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportThe carrying values of investment securities consisted of the following at December 31, 2014 and 2013 (in millions):

ITEM 8 Financial Statements and Supplementary Data

PART II   

Available-for-sale securities
Time deposits
Commercial paper

Held-to-maturity securities
Corporate bonds
Time deposits

TOTAL

2014

2013

$

$

125  
—  
125  

254  
48  
302  
427

$

70  
118  
188  

275  
53  
328  

$ 516

Derivative Instruments

Derivative instruments, including fuel hedge contracts, fuel basis swap 
agreements and interest rate swap agreements are stated at fair value, 
net of any collateral postings. Derivative instruments are included in other 
current assets and other current liabilities in our consolidated balance 
sheets. Refer to Note 13 for more information.

Inventories

Inventories consist of expendable aircraft spare parts and supplies that are 
stated at average cost as 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 is provided over 
the remaining useful life of the related aircraft fleet.

Property and Equipment

We record our property and equipment at cost and depreciate these assets 
on a straight-line basis over their estimated useful lives to their estimated 
residual values. We capitalize additions, modifications enhancing the 
operating performance of our assets, the interest related to predelivery 
deposits used to acquire new aircraft and the construction of our facilities.

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

Aircraft
In-flight entertainment systems
Aircraft parts
Flight equipment leasehold improvements
Ground property and equipment
Leasehold improvements—other
Buildings on leased land

Estimated Useful Life
25 years
5-10 years
Fleet life
Lower of lease term or economic life
2-10 years
Lower of lease term or economic life
Lease term

Residual Value
20%
0%
10%
0%
0%
0%
0%

Property under capital 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 capital leases is 
on a straight-line basis over the expected useful life and is included in 
depreciation and amortization expense.

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

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 
between five and ten years. The net book value of computer software, 
which is included in other assets on our consolidated balance sheets, 
was $73 million and $70 million as of December 31, 2014 and 2013 
respectively. Amortization expense related to computer software was 
$39 million, $18 million and $13 million for the years ended December 31, 
2014, 2013 and 2012 respectively. The increase in amortization expense 
during 2014 is mainly due to accelerated amortization expense as a 

result of a change in the expected useful lives of certain software. As of 
December 31, 2014, amortization expense related to computer software 
is expected to be approximately $27 million in 2015, $15 million in 2016, 
$13 million in 2017, $9 million in 2018, and $5 million in 2019.

Intangible Assets

Our intangible assets consist primarily of acquired take-off and landing 
slots, or Slots, at certain domestic airports. Slots are the rights to take-off 
or land at a specific airport during a specific time period of the day and 
are a means by which airport capacity and congestion can be managed. 
We account for Slots at High Density Airports, including Reagan National 
Airport in Washington, D.C., LaGuardia Airport, and JFK Airport, both in New 
York City as indefinite life intangible assets which results in no amortization 
expense. Slots at other airports are amortized on a straight-line basis over 
their expected useful lives of up to 15 years. As of December 31, 2013, 
we changed our estimated lives for Slots at High Density Airports from 
15 years to indefinite life. We incurred amortization expense of $5 million 
and $4 million related to Slots at High Density Airports for the years ended 
December 31, 2013 and 2012 respectively.

In March 2014, we completed the purchase of 24 additional Slots at 
Reagan National for $75 million. We started using these Slots in the 
second half of 2014 and continue to announce new routes. Consistent 
with our accounting treatment for Slots at all High Density Airports, we 
have assigned these assets an indefinite life.

47

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PART II   
ITEM 8 Financial Statements and Supplementary Data

Passenger Revenue

Passenger revenue is recognized when the transportation is provided or 
after the ticket or customer credit issued upon payment of a change fee 
expires. It is recognized net of the taxes that we are required to collect 
from our customers, including federal transportation taxes, security taxes 
and airport facility charges. Tickets sold but not yet recognized as revenue 
and unexpired credits are included in air traffic liability.

Loyalty Program

We account for our customer loyalty program, TrueBlue®, by recording a 
liability for the estimated incremental cost of outstanding points earned 
from JetBlue purchases that we expect to be redeemed. The estimated 
cost includes incremental fuel, insurance, passenger food and supplies 
and reservation costs. We adjust this liability, which is included in air traffic 
liability, based on points earned and redeemed, points that will ultimately 
go unused, or breakage, changes in the estimated incremental costs 
associated with providing travel and changes in the TrueBlue® program. 
This liability was $24 million and $19 million as of December 31, 2014 
and 2013, respectively. We estimate breakage based on historical point 
redemptions. In June 2013, we amended the program so points earned 
by members never expire. As a result of this change, our estimate for the 
breakage decreased resulting in a $5 million reduction in revenue and a 
corresponding increase in air traffic liability in 2013. In October 2013, we 
introduced the pooling of points between small groups of people, branded 
as Family Pooling™. We believe Family Pooling™ has not had a material 
impact on the breakage calculation at year-end. We did not make any 
changes to our frequent flyer accounting in 2014.

Points in TrueBlue® can also be sold to participating companies, including 
credit card and car rental companies. These sales are accounted for as 
multiple-element arrangements, with one element representing the fair 
value of the travel that will ultimately be provided when the points are 
redeemed and the other consisting of marketing related activities that we 
conduct with the participating company. The fair value of the transportation 
portion of these point sales is deferred and recognized as passenger 
revenue when transportation is provided. The marketing portion, which 
is the excess of the total sales proceeds over the estimated fair value of 
the transportation to be provided, is recognized in other revenue when 
the points are sold. TrueBlue® points sold to participating companies 
which are not redeemed are recognized as revenue when management 
determines the probability of redemption is remote. Deferred revenue 
was $162 million and $131 million at December 31, 2014 and 2013, 
respectively. We recorded no revenue related to point expirations during 
2014 and $2 million, and $5 million during 2013 and 2012, respectively.

Upon the re-launch of the TrueBlue® program in November 2009, we 
extended our co-branded credit card and membership rewards participation 
agreements. In connection with these extensions, we received a one-time 
payment of $37 million, which we deferred and are recognizing as other 
revenue over the term of the agreement through 2015. We recognized 
approximately $7 million of revenue related to this one-time payment 
during 2014, 2013 and 2012, respectively. In connection with exclusive 
benefits to be introduced for our co-branded credit card, we received a 
one-time payment of $6 million during 2012, which we have deferred and 
will recognize as other revenue over the remaining term of the agreement. 
For the year ended December 31, 2014, we have recorded $1 million of 
revenue related to this one-time payment.

LiveTV Commercial Agreements

LiveTV provides in-flight entertainment solutions for various commercial 
airlines. These solutions include equipment and related installation as well 
as agreements for ongoing service and support. In June 2014, we sold 

48

LiveTV and until this time we accounted for the equipment agreements 
as operating leases, with related revenue recognized ratably over the 
term of the related customer agreement in accordance with the Revenue 
Recognition-Multiple-Element Arrangements topic of the Codification. This 
determination was principally as a result of the long term nature of these 
agreements and the resulting uncertainties surrounding the total costs 
to provide ongoing equipment maintenance and upkeep throughout the 
contractual term. We accounted for payments for ongoing service and 
support ratably over the term of the related customer contract. Before 
the sale of LiveTV, customer advances that were to be applied in the next 
12 months were included in other current liabilities on our consolidated 
balance sheets while those beyond 12 months were included in other 
liabilities. As of December 31, 2014, no LiveTV balances are included in 
our consolidated balance sheets.

Airframe and Engine Maintenance and Repair

Regular airframe maintenance for owned and leased flight equipment is 
charged to expense as incurred unless covered by a third-party long-term 
flight hours service agreement. We have separate service agreements in 
place covering scheduled and unscheduled repairs of certain airframe line 
replacement unit components as well as the engines in our fleet. These 
agreements, whose original terms generally range from ten to 15 years, 
require monthly payments at rates based either on the number of cycles 
each aircraft was operated during each month or the number of flight 
hours each engine was operated during each month, subject to annual 
escalations. These power by the hour agreements transfer certain risks, 
including cost risks, to the third-party service providers. They generally 
fix the amount we pay per flight hour or number of cycles in exchange for 
maintenance and repairs under a predefined maintenance program, which 
are representative of the time and materials that would be consumed. 
These costs are expensed as the related flight hours or cycles are incurred. 
One of our maintenance providers is a subsidiary of a large shareholder 
of ours and is a related party. We recorded approximately $20 million in 
2014, $19 million in 2013 and $7 million in 2012 in maintenance expense 
provided by this related party.

Advertising Costs

Advertising costs, which are included in sales and marketing, are expensed 
as incurred. Advertising expense was $64 million in 2014, $61 million in 
2013 and $57 million in 2012.

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 and is recognized over the 
requisite service periods of the awards on a straight-line basis.

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 
realizability 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.

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportITEM 8 Financial Statements and Supplementary Data

PART II   

New Accounting Standards

New accounting rules and disclosure requirements can impact our financial 
results and the comparability of our financial statements. The authoritative 
literature which has recently been issued and that we believe will impact 
our consolidated financial statements is described below. There are also 
several new proposals under development, including proposals related to 
leases and financial instruments. If and when enacted, these proposals 
may have a significant impact on our financial statements.

In August 2014, the FASB issued ASU 2014-15, Presentation of 
Financial Statements - Going Concern, Disclosure of Uncertainties 
about an Entity’s Ability to Continue as a Going Concern topic of the 
Codification. This standard provides specific guidance that requires 
management to evaluate whether there are conditions or events, 
considered in the aggregate, that raise substantial doubt about the 
entity’s ability to continue as a going concern within one year after the 
date that the financial statements are issued. This amendment is effective 
for the annual period ending after December 15, 2016 and for annual 
periods and interim periods thereafter, early adoption is also permitted. 
We are still evaluating the new guidance and its impact, if any, on our 
consolidated financial statements disclosures.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts 
with Customers topic of the Codification, which supersedes existing 
revenue recognition guidance. Under the new standard, a company will 
recognize revenue when it transfers goods or services to customers in an 
amount that reflects the consideration to which the company expects to 
be entitled to in exchange for those goods or services. The standard is 
effective for public companies for annual periods beginning after December 
15, 2016, and allows for either full retrospective or modified retrospective 
adoption. Early adoption is not permitted. While we are still evaluating 
the full impact of adopting this standard on our consolidated financial 
statements and disclosures, we have determined that it will impact our 
loyalty program accounting. The new standard will no longer allow us to 
use the incremental cost method when recording the financial impact of 
points earned on JetBlue purchases and will require us to re-value our 
liability with a relative fair value approach.

 In July 2013, the FASB issued ASU 2013-10, amending the Derivatives 
and Hedging topic of the Codification. This update permits the Federal 
Funds Effective Swap rate (Overnight Index Swap rate, or OIS) to be 
designated as a benchmark interest rate for hedging accounting purposes 
for all new or redesigned hedging relationships as of the issue date of the 
final guidance. Adoption of this standard did not have a material impact 
on our consolidated financial statements or notes thereto.

NOTE 2 

Long-term Debt, Short-term Borrowings and Capital Lease Obligations

Long-term debt and capital lease obligations and the related weighted average interest rate at December 31, 2014 and 2013 consisted of the following (in millions):

Secured Debt
Floating rate equipment notes, due through 2025(1)
Floating rate enhanced equipment notes(2) (3)

Class G-1, due 2016
Class G-2, due 2016

Fixed rate enhanced equipment notes, due through 2023(4)
Fixed rate equipment notes, due through 2026
Fixed rate special facility bonds, due through 2036(5)
Unsecured Debt
6.75% convertible debentures due in 2039(6)
5.5% convertible debentures due in 2038(7)
Capital Leases(8)
Total debt and capital lease obligations
Less: Current maturities
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS
(1) 

2014

2013

$

276 

35
185
217
1,119
77

86
68
170
2,233
(265)
$ 1,968 

3.2%

4.4%
1.0%
4.5%
5.6%
5.0%

4.1%

$

634 

55 
373 
— 
1,110 
78 

162 
68 
105 
2,585 
(469)
$ 2,116 

2.8%

4.5%
1.0%
—%
5.8%
5.0%

3.9%

(2) 

(3) 

(4) 

Interest rates adjust quarterly or semi-annually based on LIBOR, plus a margin. In June 2014, we used some of the proceeds from the sale of LiveTV and prepaid $299 million of floating 
rate outstanding principal secured by 14 Airbus A320 aircraft which are now unencumbered.
In November 2006, we completed a public offering of $124 million of pass-through certificates to finance a certain number of our owned aircraft spare parts. Separate trusts were 
established for each class of these certificates. On December 16, 2013, the remaining $119 million principal amount of the Class G-1 and Class B-1 certificates due in January 2014 were 
prepaid, ahead of the scheduled maturities. In April 2009, we entered into interest rate swap agreements for half of the Class G-1 certificates and all of the Class B-1 certificates in the 
November 2006 offering which expired in 2013.
In March and November 2004, we completed public offerings for $431 million and $498 million respectively, of pass-through certificates. These offerings were set up in order to finance 
the purchase of 28 new Airbus A320 aircraft delivered through 2005. Separate trusts were established for each class of these certificates. Quarterly principal payments are required on the 
Class G-1 certificates. In February 2008, we entered into interest rate swap agreements for the Class G-1 certificates in the November 2004 offering. These swap agreements effectively 
fixed the interest rate for the remaining term of these certificates. As of December 31, 2014, these certificates had a balance of $35 million and an effective interest rate of 4.4%. The entire 
principal amount of the Class G-2 certificates is scheduled to be paid in a lump sum on the applicable maturity dates. In February 2009, we entered into interest rate swap agreements for 
the Class G-2 certificates in the November 2004 offering which expired in 2013. In March 2014, we paid the final scheduled principal payment of $188 million associated with our March 
2004 EETC Class G-2 certificates. The interest rate for all other certificates is based on three month LIBOR, plus a margin. Interest is payable quarterly.
In March 2014, we completed a private placement of $226 million in pass-through certificates, Series 2013-1. The certificates were issued by a pass-through trust and are not obligations 
of JetBlue. The proceeds from the issuance of the pass-through certificates were used to purchase equipment notes issued by JetBlue and secured by 14 of our previously unencumbered 
aircraft. Principal and interest are payable semi-annually, starting in September 2014.

49

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report 
 
   
 
   
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PART II   
ITEM 8 Financial Statements and Supplementary Data

(5) 

(6) 

(7) 

In  November  2005,  the  Greater  Orlando Aviation Authority,  or  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. In December 2006, the New York 
City Industrial Development Agency issued special facility revenue bonds for JFK to us as reimbursement to us for certain airport facility construction and other costs. We recorded the 
principal amount of the bond, net of discounts, as long-term debt on our consolidated balance sheets because we have issued a guarantee of the debt payments on the bond. This fixed 
rate debt is secured by leasehold mortgages of our airport facilities.
In June 2009, we completed a public offering for an aggregate principal amount of $115 million of 6.75% Series A convertible debentures due 2039, or the Series A 6.75% Debentures. 
We simultaneously completed a public offering for an aggregate principal amount of $86 million of 6.75% Series B convertible debentures due 2039, or the Series B 6.75% Debentures. 
These are collectively known as the 6.75% Debentures. The 6.75% Debentures are general obligations and rank equal in right of payment with all of our existing and future senior unsecured 
debt. They are effectively junior in right of payment to our existing and future secured debt, including our secured equipment debentures, to the extent of the value of the assets securing 
such debt, and senior in right of payment to any subordinated debt. In addition, the 6.75% Debentures are structurally subordinated to all existing and future liabilities of our subsidiaries. 
The net proceeds were approximately $197 million after deducting underwriting fees and other transaction related expenses. Interest on the 6.75% Debentures is payable semi-annually 
on April 15 and October 15. The first interest payment on the 6.75% Debentures was paid October 15, 2009.
Holders of either the Series A or Series B 6.75% Debentures may convert them into shares of our common stock at any time at a conversion rate of 204.6036 shares per $1,000 principal 
amount of the 6.75% Debentures. The conversion rates are subject to adjustment should we declare common stock dividends or effect any common stock splits or similar transactions. If 
the holders convert the Series A 6.75% Debentures in connection with a fundamental change that occured prior to October 15, 2014, the applicable conversion rate would of been increased 
depending on our then current common stock price. The same applies to the Series B 6.75% Debentures prior to October 15, 2016. The maximum number of shares into which all of 
the 6.75% Debentures are convertible, including pursuant to this make-whole fundamental change provision, is 235.2941 shares per $1,000 principal amount of the 6.75% Debentures 
outstanding, as adjusted, or 20.3 million shares as of December 31, 2014.
We may redeem any of the 6.75% Debentures for cash at a redemption price of 100% of their principal amount, plus accrued and unpaid interest at any time on or after October 15, 2014 
for the Series A 6.75% Debentures and October 15, 2016 for the Series B 6.75% Debentures. Holders may require us to repurchase the 6.75% Debentures for cash at a repurchase price 
equal to 100% of their principal amount plus accrued and unpaid interest, if any, on October 15, 2014, 2019, 2024, 2029 and 2034 for the Series A 6.75% Debentures and October 15, 
2016, 2021, 2026, 2031 and 2036 for the Series B 6.75% Debentures; or at any time prior to their maturity upon the occurrence of a certain designated event.
During the fourth quarter of 2014, the remaining principal amount of approximately $76 million of the Series A 6.75% Debentures were converted by holders and as a result, we issued 
15.5 million shares of our common stock. As of December 31, 2014, the remaining principal balance of Series B 6.75% Debentures was $86 million, which is currently convertible into 
20.3 million shares of our common stock.
We evaluated the various embedded derivatives within the supplemental indenture for bifurcation from the 6.75% Debentures under the applicable provisions, including the basic conversion 
feature, the fundamental change make-whole provision and the put and call options. Based upon our detailed assessment, we concluded these embedded derivatives were either (i) excluded 
from bifurcation as a result of being clearly and closely related to the 6.75% Debentures or are indexed to our common stock and would be classified in stockholders’ equity if freestanding 
or (ii) are immaterial embedded derivatives.
In June 2008, we completed a public offering for an aggregate principal amount of $100.6 million of 5.5% Series A convertible debentures due 2038, or the Series A 5.5% Debentures. 
We simultaneously completed a public offering for an aggregate principal amount of $100.6 million for 5.5% Series B convertible debentures due 2038, or the Series B 5.5% Debentures. 
These are collectively known as the 5.5% Debentures. The 5.5% Debentures are general senior obligations and were originally secured in part by an escrow account for each series. We 
deposited approximately $32 million of the net proceeds from the offering, representing the first six scheduled semi-annual interest payments on the 5.5% Debentures, into escrow accounts 
for the exclusive benefit of the holders of each series of the 5.5% Debentures. As of December 31, 2011, all funds originally deposited in the escrow account had been used. Interest on 
the 5.5% Debentures is payable on a semi-annual basis on April 15 and October 15.
Holders of the Series A 5.5% Debentures may convert them into shares of our common stock at any time at a conversion rate of 220.6288 shares per $1,000 principal amount of Series A 
5.5% Debenture. Holders of the Series B 5.5% Debentures may convert them into shares of our common stock at any time at a conversion rate of 225.2252 shares per $1,000 principal 
amount of Series B 5.5% Debenture. The conversion rates are subject to adjustment should we declare common stock dividends or effect any common stock splits or similar transactions. 
If the holders convert the Series B 5.5% Debentures in connection with any fundamental corporate change that occurs prior to October 15, 2015 the applicable conversion rate may be 
increased depending upon our then current common stock price. The maximum number of shares of common stock into which all of the remaining 5.5% Debentures are convertible, 
including pursuant to this make-whole fundamental change provision, is 18.2 million shares.
We may redeem any of the 5.5% Debentures for cash at a redemption price of 100% of their principal amount, plus accrued and unpaid interest at any time on or after October 15, 2015 
for the Series B 5.5% Debentures. Holders may require us to repurchase the 5.5% Debentures for cash at a repurchase price equal to 100% of their principal amount plus accrued and 
unpaid interest, if any, on October 15, 2013, 2018, 2023, 2028, and 2033 for the Series A 5.5% Debentures and October 15, 2015, 2020, 2025, 2030, and 2035 for the Series B 5.5% 
Debentures; or at any time prior to their maturity upon the occurrence of a specified designated event.
In June 2008, in conjunction with the public offering of the 5.5% Debentures described above, we also entered into a share lending agreement with Morgan Stanley & Co. Incorporated, an 
affiliate of the underwriter of the offering, or the share borrower, pursuant to which we loaned the share borrower approximately 44.9 million shares of our common stock. Under the share 
lending agreement, the share borrower is required to return the borrowed shares when the debentures are no longer outstanding. We did not receive any proceeds from the sale of the 
borrowed shares by the share borrower, but we did receive a nominal lending fee of $0.01 per share from the share borrower for the use of borrowed shares.
Our share lending agreement requires the shares borrowed be returned upon the maturity of the related debt, October 2038, or earlier, if the debentures are no longer outstanding. We 
determined the fair value of the share lending arrangement was approximately $5 million at the date of the issuance based on the value of the estimated fees the shares loaned would have 
generated over the term of the share lending arrangement. The $5 million value was recognized as a debt issuance cost and is being amortized to interest expense through the earliest put 
date of the related debt, October 2013 and October 2015 for Series A and Series B, respectively. As of December 31, 2014, approximately $0.4 million of net debt issuance costs remain 
outstanding related to the share lending arrangement and will continue to be amortized through the earliest put date of the related debt.
During 2008 and 2009 approximately $79 million principal amount of the 5.5% Debentures was voluntarily converted by holders. As a result, we issued 17.5 million shares of our common 
stock. Cash payments from the escrow accounts related to the 2008 conversions were $11 million and borrowed shares equivalent to the number of shares of our common stock issued 
upon these conversions were returned to us pursuant to the share lending agreement described above. The borrower returned 10.0 million shares to us in September 2009, almost all of 
which were voluntarily returned shares in excess of converted shares, pursuant to the share lending agreement. In October 2011, approximately 16.6 million shares were voluntarily returned 
to us by the borrower, leaving 1.4 million shares outstanding under the share lending arrangement. At December 31, 2014, the fair value of similar common shares not subject to our share 
lending arrangement, based upon our closing stock price, was approximately $22 million. During the fourth quarter of 2013, the remaining principal amount of approximately $55 million of 
the Series A 5.5% Debentures was converted by holders and as a result, we issued 12.2 million shares of our common stock. As of December 31, 2014, the remaining principal balance 
of Series B 5.5% Debentures was $68 million, which is currently convertible into 15.2 million shares of our common stock.

(8)  As of December 31, 2014, four capital leased Airbus A320 aircraft and two capital leased Airbus A321 aircraft were included in property and equipment at a cost of $253 million with 
accumulated amortization of $40 million. As of December 31, 2013, four capital leased Airbus A320 aircraft were included in property and equipment at a cost of $152 million with 
accumulated amortization of $33 million. The future minimum lease payments under these non-cancelable leases are $23 million in 2015, $23 million in 2016, $23 million in 2017, 
$23 million in 2018, $23 million in 2019 and $98 million in the years thereafter. Included in the future minimum lease payments is $43 million representing interest, resulting in a present 
value of capital leases of $170 million with a current portion of $15 million and a long-term portion of $155 million.

During 2012, we modified the debt secured by three of our Airbus A320 aircraft, effectively lowering the borrowing rates over the remaining term of the loans. 
In exchange for lower borrowing rates associated with two of these aircraft loans, we deposited funds equivalent to the outstanding principal balance, a total 
of approximately $57 million. The deposit is included in the long-term investment securities on our consolidated balance sheets. If we withdraw the funds 
deposited, the interest rate on the debt would revert back to the original borrowing rate. As of December 31, 2014, the remaining balance on these funds was 
approximately $48 million. These deposits are discussed further in Note 1.

50

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report 
 
 
 
 
 
 
 
 
As of December 31, 2014, we believe we were in compliance with all of our covenants in relation to our debt and lease agreements. Maturities of long-term 
debt and capital leases, including the assumption our convertible debt will be redeemed upon the first put date, for the next five years are as follows (in millions):

ITEM 8 Financial Statements and Supplementary Data

PART II   

Year
2015
2016
2017
2018
2019
Thereafter

$

Maturities
265
464
216
227
227
834

Aircraft, engines, and other equipment and facilities having a net book value of $3.25 billion at December 31, 2014 were pledged as security under various 
loan agreements. Cash payments for interest related to debt and capital lease obligations, net of capitalized interest, aggregated $102 million, $117 million and 
$136 million in 2014, 2013 and 2012, respectively.

The carrying amounts and estimated fair values of our long-term debt at December 31, 2014 and 2013 were as follows (in millions):

Public Debt
Floating rate enhanced equipment notes

Class G-1, due 2016
Class G-2, due 2016

Fixed rate special facility bonds, due through 2036
6.75% convertible debentures due in 2039
5.5% convertible debentures due in 2038
Non-Public Debt
Fixed rate enhanced equipment notes, due through 2023
Floating rate equipment notes, due through 2025
Fixed rate equipment notes, due through 2026
TOTAL

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 EETC transactions 
and our special facility bonds were based on quoted market prices 
in markets with low trading volumes. The fair value of our convertible 
debentures was based upon other observable market inputs since they 
are not actively traded. The fair value of our non-public debt was 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 14 for additional information on fair value.

We have financed certain aircraft with EETCs as one of the benefits 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 

Short-term Borrowings

December 31, 2014

December 31, 2013

Carrying  
Value

Estimated  
Fair Value

Carrying  
Value

Estimated  
Fair Value

$

$

35
185
77
86
68

217
276
1,119
2,063

$

$

35
180
78
283
241

224
277
1,211
2,529

$

55
373
78
162
68

—
634
1,110
$ 2,480

$

54
365
68
297
134

—
645
1,161
$ 2,724

are issued by us and are secured by our aircraft. These trusts meet the 
definition of a variable interest entity, or VIE, as defined in the Consolidations 
topic of the Codification, and must be considered for consolidation in our 
consolidated financial statements. Our assessment of the 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 structure is to enhance the credit worthiness of our 
debt obligation through certain bankruptcy protection provisions, liquidity 
facilities and lower our total borrowing cost. We concluded that we are 
not the primary beneficiary in these trusts due to our involvement in them 
being 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 consolidated financial statements.

We have several lines of credit which bear interest at a floating rate based upon LIBOR plus a margin range of between 1.0% and 2.75%. 

Morgan Stanley Line of Credit

Citibank Line of Credit

In July 2012, we entered into a revolving line of credit with Morgan Stanley 
for up to approximately $100 million. This was subsequently increased to 
$200 million in December 2012. This line of credit is secured by a portion 
of our investment securities held by them 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, plus a margin. As of 
December 31, 2014 and 2013, we did not have a balance outstanding 
under this line of credit.

In April 2013, we entered into a Credit and Guaranty Agreement consisting 
of a $350 million revolving credit and letter of Credit Facility with Citibank, 
N.A. as the administrative agent which was scheduled to terminate in 2016. 
In November 2014, the available line was increased to allow for borrowings 
up to $400 million. Concurrent with the increase in borrowing capacity, we 
also extended the term of the facility by an additional two years through to 
April 2018. Borrowings under the Credit Facility bear interest at a variable 
rate equal to LIBOR, plus a margin. The Credit Facility is secured by Slots 

51

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PART II   
ITEM 8 Financial Statements and Supplementary Data

at JFK, Newark, LaGuardia and Reagan National airports as well as certain 
other assets. The Credit Facility includes covenants that require us to 
maintain certain minimum balances in unrestricted cash, cash equivalents, 
and unused commitments available under all revolving credit facilities.  

In addition, the covenants restrict our ability to incur additional indebtedness, 
issue preferred stock or pay dividends. As of December 31, 2014 and 
2013, we did not have an outstanding balance under this line of credit.

NOTE 3 

Operating Leases

We lease aircraft, all of our facilities at the airports we serve, office space 
and other equipment. These leases have varying terms and conditions, 
with some having early termination clauses which we determine to be 
the lease expiration date. The length of the lease depends upon the type 
of asset being leased, with the latest lease expiring in 2035. Total rental 
expense for all operating leases was $298 million in 2014, $295 million 
in 2013 and $284 million in 2012. As of December 31, 2014, we have 
approximately $33 million in assets that serve as collateral for letters of 
credit. These letters of credit relate to a certain number of our leases and 
are included in restricted cash.

As of December 31, 2014, 60 of the 203 aircraft in our fleet were leased 
under operating leases, with lease expiration dates ranging from 2016 
to 2026. Five of the 60 aircraft operating leases have variable rate rent 
payments based on LIBOR. Leases for 46 of our aircraft can generally be 
renewed at rates based on fair market value at the end of the lease term for 
one or two years. We have purchase options for 45 of our aircraft leases 

at the end of their lease term. 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 extend any leases on our fleet during 2014. During 2013, we 
extended the leases on eight Airbus A320 aircraft that were previously set 
to expire in 2014. These extensions resulted in an additional $42 million 
of lease commitments through 2022. During 2012, we extended the 
leases on three Airbus A320 aircraft that were previously set to expire 
in 2013. These extensions resulted in an additional $24 million of lease 
commitments through 2018. During 2010, we leased six used Airbus 
A320 aircraft from a third party, each with a separate six year operating 
lease term. 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.

Future minimum lease payments under noncancelable operating leases, including those described above, with initial or remaining terms in excess of one year 
at December 31, 2014, are as follows (in millions):

2015
2016
2017
2018
2019
Thereafter
TOTAL MINIMUM OPERATING LEASE PAYMENTS

Aircraft
150
$
90
75
75
58
213
661

$

Other
85
80
65
60
57
487
834

$

$

$

Total
235
170
140
135
115
700
$ 1,495

In the past we have entered into sale-leaseback arrangements with a third 
party lender for 45 of our operating aircraft. The sale-leasebacks occurred 
simultaneously with the delivery of the related aircraft to us from their 
manufacturers. Each sale-leaseback transaction was structured with a 
separate trust set up by the third party lender, the assets of which consist 
of the one aircraft initially transferred to it following the sale by us and the 
subsequent lease arrangement with us. Because of their limited capitalization 
and the potential need for additional financial support, these trusts are 
VIEs as defined in the Consolidations topic of the Codification and must be 
considered for consolidation in our financial statements. Our assessment 
of each trust considers both quantitative and qualitative factors, including 
whether we have the power to direct the activities and to what extent we 

participate in the sharing of benefits and losses of the trusts. JetBlue does 
not retain any equity interests in any of these trusts and our obligations to 
them are limited to the fixed rental payments we are required to make to 
them. These were approximately $585 million as of December 31, 2014 
and are reflected in the future minimum lease payments in the table above. 
Our only interest in these entities is the purchase options to acquire the 
aircraft as specified above. Since there are no other arrangements, either 
implicit or explicit, between us and the individual trusts that would result in 
our absorbing additional variability from the trusts, we concluded we are 
not the primary beneficiary of these trusts. We account for these leases 
as operating leases, following the appropriate lease guidance as required 
by the Leases topic in the Codification.

NOTE 4 

JFK Terminal 5

We operate out of T5 at JFK and our occupancy is governed by various 
lease agreements with the PANYNJ. Under the terms of the facility lease 
agreement we were responsible for the construction of the 635,000 square 
foot 26-gate terminal, a parking garage, roadways and an AirTrain Connector, 
all of which are owned by the PANYNJ and collectively referred to as the 
T5 Project. In 2012, we commenced construction on an expansion to T5, 
referred to as T5i, for an international arrivals facility and additional gates. 
The construction of T5i was completed in November 2014, with the first 
international flight using the facilities on November 12, 2014. T5i includes six 
international arrival gates comprised of three new gates and three converted 
gates from T5, as well as an international arrivals hall with full U.S. Customs 
and Border Protection services. 

We executed an extension to the original T5 lease in 2013. The lease, as 
amended, now incorporates a total of approximately 19 acres of space for 
our T5 facilities and ends on the 28th anniversary of the date of beneficial 
occupancy of T5i. We have the option to terminate the agreement in 2033, 
five years prior to the end of the original scheduled lease term of October 
2038. We are responsible for various payments under the leases, including 
ground rents which are reflected in the future minimum lease payments 
table in Note 3, and facility rents which are included below. The facility rents 
are based upon the number of passengers enplaned out of the terminal, 
subject to annual minimums. 

52

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report 
 
 
 
 
 
 
 
 
 
ITEM 8 Financial Statements and Supplementary Data

PART II   

We were considered the owner of the T5 Project for financial reporting 
purposes only and have been required to reflect an asset and liability for 
the T5 Project on our consolidated balance sheets since construction 
commenced in 2005. The cost of the T5 Project and the related liability are 
being accounted for as a financing obligation. Our construction of T5i is 
accounted for at cost with no financing obligation.

Total costs incurred for the elements of the T5 Project were $637 million, 
of which $561 million is classified as Assets Constructed for Others and 
the remaining $76 million is classified as leasehold improvements in our 
consolidated balance sheets. Assets Constructed for Others are being 
amortized over the shorter of the 25 years non-cancelable lease term or their 
economic life. We recorded amortization expense of $23 million in 2014, 
2013 and 2012 respectively. Our expenditure relating to T5i is approximately 
$190 million, of which approximately $102 million was incurred in 2014 and 
is classified as leasehold improvements in our consolidated balance sheets.

The PANYNJ has reimbursed us for the amounts currently included in Assets 
Constructed for Others. These reimbursements and related interest are 
reflected as Construction Obligation in our consolidated balance sheets. 

When the facility rents are paid they are treated as a debt service on the 
Construction Obligation, with the portion not relating to interest reducing 
the principal balance. Minimum estimated facility payments including 
escalations associated with the facility lease are estimated to be $40 million 
per year in 2015 through 2019 and $576 million thereafter. The portion of 
these scheduled payments serving to reduce the principal balance of the 
Construction Obligation is $15 million in 2015, $15 million in 2016, $16 million 
in 2017, $17 million in 2018 and $18 million in 2019. Payments could exceed 
these amounts depending on future enplanement levels at JFK. Scheduled 
facility payments representative of interest totaled $26 million in 2014, and 
$27 million in 2013 and 2012 respectively.

We sublease portions of T5 including space for concessionaires, the airspace 
lounge and the TSA facilities. Two of our airline commercial partners, 
Hawaiian Airlines and Aer Lingus, operate from this terminal and sublease 
facilities from us. Minimum lease payments due to us are subject to various 
escalation amounts through 2024. Future minimum lease payments due 
to us during each of the next five years are estimated to be $13 million per 
year in each of 2015 through 2018 and $6 million in 2019.

NOTE 5 

Stockholders’ Equity

In September 2012, our Board of Directors authorized a share repurchase 
program for up to 25 million shares of common stock over a five year period. 
The repurchases may be commenced or suspended from time to time 
without prior notice. During the fourth quarter of 2012, we repurchased 
approximately 4.1 million shares of our common stock for approximately 
$23 million. During 2013, we repurchased approximately 0.5 million shares 
of our common stock for approximately $3 million. During April and May 
2014, we repurchased approximately 1.6 million shares of our common 
stock for approximately $13 million. On May 29, 2014, we announced that 
we had entered into an accelerated share repurchase agreement, or ASR, 
with JP Morgan, paying $60 million for approximately 5.1 million shares. 
On September 9, 2014, the term of the ASR concluded with JP Morgan 
delivering approximately 0.4 million more shares to JetBlue. This resulted 
in a total of approximately 5.5 million shares being repurchased under 

the ASR, based upon the volume weighted average prices of JetBlue’s 
common stock during the term of the ASR. As of December 31, 2014, 
13.3 million shares remain available for repurchase under the share 
repurchase program. 

As of December 31, 2014, we had a total of 60.8 million shares of our 
common stock reserved for issuance related to our equity incentive plans, 
our convertible debt, and our share lending facility. Refer to Note 7 for 
further details on our share-based compensation. 

As of December 31, 2014, we had a total of 59.0 million shares of treasury 
stock, the majority of which relate to the return of borrowed shares under 
our share lending agreement. Refer to Note 2 for further details on the 
share lending agreement. The treasury stock also include shares that 
were repurchased under our share repurchase program described above.

NOTE 6 

Earnings Per Share

The following table shows how we computed basic and diluted earnings per common share for the years ended December 31 (dollars and share 
data in millions):

Numerator:
Net income
Effect of dilutive securities:

Interest on convertible debt, net of income taxes and profit sharing

Net income applicable to common stockholders after assumed conversions for diluted 
earnings per share
Denominator:
Weighted average shares outstanding for basic earnings per share
Effect of dilutive securities:

Employee stock options and restricted stock units
Convertible debt

Adjusted weighted average shares outstanding and assumed conversions for diluted 
earnings per share
Shares excluded from EPS calculation:
Shares issuable upon conversion of our convertible debt as assumed conversion would be 
antidilutive
Shares issuable upon exercise of outstanding stock options or vesting of restricted stock 
units as assumed exercise would be antidilutive

2014

2013

$

$

401

7

408

294.7

2.4
46.2

343.3

—

6.9

$

$

168

9

177

282.8

2.1
58.6

343.5

—

13.8

$

$

2012

128

9

137

282.3

1.2
60.6

344.1

—

19.5

53

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PART II   
ITEM 8 Financial Statements and Supplementary Data

As of December 31, 2014, a total of approximately 1.4 million shares of our 
common stock, which were lent to our share borrower pursuant to the terms 
of our share lending agreement as described in Note 2, were issued and 
outstanding for corporate law purposes. Holders of the borrowed shares 
have all the rights of a holder of our common stock. However, because 
the share borrower must return all borrowed shares to us, or identical 

shares or, in certain circumstances of default by the counterparty, the 
cash value thereof, the borrowed shares are not considered outstanding 
for the purpose of computing and reporting basic or diluted earnings per 
share. The fair value of similar common shares not subject to our share 
lending arrangement based upon our closing stock price at December 31, 
2014, was approximately $22 million.

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. These include the JetBlue Airways Corporation 2002 Stock 
Incentive Plan, and the Restated and Amended 2002 Stock Incentive Plan 
which were replaced by the JetBlue Airways Corporation 2011 Incentive 
Compensation Plan. We additionally have an employee stock purchase 
plan which we refer to as the Crewmember Stock Purchase Plan, or CSPP, 
that is available to all eligible Crewmembers.

Unrecognized stock-based compensation expense was approximately 
$13 million as of December 31, 2014, and related to a total of 3.8 million 
unvested restricted stock units, or RSUs, under our 2011 Plan. We expect 
to recognize this stock-based compensation expense over a weighted 
average period of approximately two years.

2011 Incentive Compensation Plan

At our Annual Shareholders Meeting held on May 26, 2011, our shareholders 
approved the JetBlue Airways Corporation 2011 Incentive Compensation 
Plan, or 2011 Plan. This replaced the Restated and Amended 2002 Stock 

Incentive Plan, or 2002 Plan, which was set to expire at the end of 2011. 
Upon inception, the 2011 Plan had 15.0 million shares of our common 
stock reserved for issuance. The 2011 Plan, by its terms, will terminate 
no later than May 2021. The RSUs vest in annual installments over three 
years which can be accelerated upon the occurrence of a change in 
control. Under this plan, we grant RSUs to certain Crewmembers and 
members of our Board of Directors. Our policy is to grant RSUs based 
on the market price of the underlying common stock on the date of grant. 
Under this plan we grant deferred stock units, or DSUs, to members of 
our Board of Directors and performance stock units, or PSUs, to certain 
members of our executive leadership team.

The 2011 Plan was amended and restated effective January 1, 2014, 
to include the definition of retirement eligibility. Once a Crewmember 
meets the definition they will continue to vest their shares as if they 
remained employed by JetBlue, regardless of their actual employment 
status with the Company. In accordance with the Compensation-Stock 
Compensation topic of the Codification, the grant’s explicit service 
condition is non-substantive and the grant has effectively vested at the 
time retirement eligibility is met.

The following is a summary of RSU activity under the 2011 Plan for the year ended December 31:

2014

2013

2012

Nonvested at beginning of year
Granted
Vested
Forfeited
NONVESTED AT END OF YEAR

Shares
4,118,849
1,930,851
(1,903,229)
(361,385)
3,785,086

$

Weighted 
Average  
Grant Date 
Fair Value
5.94
8.62
5.97
7.02
7.18

$

Weighted 
Average  
Grant Date 
Fair Value
$ 5.77
6.08
5.77
5.82
$ 5.94

Shares
2,483,664
2,653,842
(828,291)
(190,366)
4,118,849

Shares

65,914
2,570,891
(20,249)
(132,892)
2,483,664

$

Weighted 
Average  
Grant Date 
Fair Value
5.08
5.79
5.09
5.83
5.77

$

The total intrinsic value, determined as of the date of vesting, for all RSUs 
under both Plans that vested and converted to shares of common stock 
during the year ended December 31, 2014, 2013 and 2012 was $23 million, 
$13 million and $11 million respectively.

The vesting period for DSUs under the 2011 Plan is either one or 
three years of service. Once vested, shares are issued six months 
and one day following the Director’s departure from the Board. During 
the years ended December 31, 2014, 2013 and 2012, we granted an 
immaterial amount of DSUs, almost all of which remain outstanding at 
December 31, 2014. In 2014 and 2013, we granted immaterial PSUs 
to members of our executive leadership team which are based upon 
certain performance criteria. 

Amended and Restated 2002 Stock  
Incentive Plan

The 2002 Plan included stock options issued during 1999 through 2001 
under a previous plan as well as all options issued from 2002 through 
adoption of the 2011 Plan. It provided for incentive and non-qualified 
stock options and RSUs to be granted to certain Crewmembers and 
members of our Board of Directors. Additionally, it provided for DSUs to 
be granted to members of our Board of Directors. The 2002 Plan became 
effective following our initial public offering in April 2002. We began issuing 
RSUs from 2007 and DSUs from 2008. Prior to 2011, the DSUs vested 
immediately upon being granted. The RSUs vested in annual installments 
over three years which could be accelerated upon the occurrence of a 
change in control as defined in the 2002 Plan. Our policy to grant RSUs 
was based on the market price of the underlying common stock on the 
date of grant. No additional grants were made from this plan after the 
adoption of the 2011 Plan.

54

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report 
 
 
 
 
 
 
 
 
The following is a summary of RSU activity under the 2002 Plan for the year ended December 31:

2014

2013

2012

ITEM 8 Financial Statements and Supplementary Data

PART II   

Nonvested at beginning of year
Granted
Vested
Forfeited
NONVESTED AT END OF YEAR

Stock Options

Shares
711,494
—
(708,728)
(2,766)
—

$

Weighted 
Average  
Grant Date 
Fair Value
6.00
—
6.00
6.03
—

$

Weighted 
Average  
Grant Date 
Fair Value
$ 5.85
—
5.76
5.99
$ 6.00

Shares
2,029,081
—
(1,257,045)
(60,542)
711,494

Shares
4,093,484
—
(1,921,940)
(142,463)
2,029,081

$

Weighted 
Average  
Grant Date 
Fair Value
5.64
—
5.41
5.76
5.85

$

All options issued under the 2002 Plan expire ten years from the date of grant, with the last options vesting in 2012. Our policy is to grant options with 
an exercise price equal to the market price of the underlying common stock on the date of grant. 

The following is a summary of stock option activity for the years ended December 31:

Outstanding at beginning of year
Granted
Exercised
Forfeited
Expired
OUTSTANDING AT END OF YEAR
Vested at end of year

2014

2013

2012

Weighted 
Average 
Exercise Price
$ 13.45
—
11.58
—
16.38
$ 12.38
 $ 12.38

Shares
11,384,688
—
(1,950,482)
—
(3,456,986)
5,977,220
5,977,220

Weighted 
Average 
Exercise Price
$ 14.87
—
7.79
—
18.50
$ 13.45
 $ 13.45

Shares
15,845,124
—
(10,800)
—
(4,449,636)
11,384,688
11,384,688

Weighted 
Average 
Exercise Price
$ 13.91
—
4.00
—
12.03
$ 14.87
$  14.87

Shares
21,807,170 
— 
(493,731)
—
(5,468,315)
15,845,124 
15,845,124 

The following is a summary of outstanding stock options at December 31, 2014:

Range of exercise prices
$7.79 to $15.27

Options Outstanding, Vested & Exercisable

Weighted 
Average 
Remaining 
Contractual 
Life (years)
1.3

Shares
5,977,220
5,977,220

Weighted 
Average 
Exercise Price
$ 12.38

Aggregate 
Intrinsic Value 
(millions)
$    22
$    22

The total intrinsic value, determined as of the date of exercise, of options 
exercised was $5 million during the year ended December 31, 2014, less 
than $1 million during the year ended December 31, 2013, and $1 million 
during the year ended December 31, 2012. Amounts received in cash 
for options exercised were $22 million for the year ended December 31, 
2014, less than $1 million during the year ended December 31, 2013, 

and $2 million during the year ended December 31, 2012. We have not 
granted any stock options since 2008 and those previously granted became 
fully expensed in 2012. The total fair value of stock options vested was 
approximately $2 million during 2012. Following shareholder approval of 
the 2011 Plan, we stopped using equity under the 2002 Plan.

Crewmember Stock Purchase Plan

In May 2011, our shareholders also approved the 2011 Crewmember Stock Purchase Plan, or the 2011 CSPP, to replace the original CSPP which 
was set to expire in April 2012. At inception, the 2011 CSPP had 8.0 million shares of our common stock reserved for issuance. The 2011 CSPP, by 
its terms, will terminate no later than the last business day of April 2021.

The following is a summary of share activity under the 2011 CSPP for the year ended December 31:

Available for future purchases, 
beginning of year
Common stock purchased
AVAILABLE FOR FUTURE 
PURCHASES, END OF YEAR

2014

2013

2012

Weighted 
Average

$

8.04

Shares

4,855,144
(2,332,823)

2,552,321

Weighted 
Average

$ 

6.20

Shares

6,436,224
(1,581,080)

4,855,144

Weighted 
Average

$

4.75

Shares

8,000,000 
(1,563,776)

6,436,224 

55

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PART II   
ITEM 8 Financial Statements and Supplementary Data

The 2011 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 only join an offering period on the start 
date. 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.

Until April 2013, our 2011 CSPP was considered non-compensatory as the 
purchase price discount was 5% based upon the stock price on the date 
of purchase. The plan was amended and restated in May 2013 with the 
CSPP purchase price discount increasing to 15% based upon the stock 
price on the date of purchase. In accordance with the Compensation-
Stock Compensation topic of the Codification, the 2011 CSPP no longer 
meets the non-compensatory definition as the terms of the plan are more 
favorable than those to all holders of the common stock. For all offering 
periods starting after May 1, 2013, the compensation cost relating to 
the discount is recognized over the offering period. The total expense 
recognized relating to the 2011 CSPP was approximately $3 million and 
$2 million for the years ended December 31, 2014 and 2013 respectively.

Should we be acquired by merger or sale of substantially all of our assets or 
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.

NOTE 8 

LiveTV

LiveTV, LLC, formerly a wholly owned subsidiary of JetBlue, provides in-flight 
entertainment and connectivity solutions for various commercial airlines 
including JetBlue. On June 10, 2014, JetBlue entered into an amended 
and restated purchase agreement with Thales Holding Corporation, or 
Thales, replacing the original purchase agreement between the parties 
dated as of March 13, 2014. Under the terms of the amended and restated 
purchase agreement, JetBlue sold LiveTV to Thales for $399 million, subject 
to purchase adjustments based upon the amount of cash, indebtedness, 
and working capital of LiveTV at the closing date of the transaction 
relative to a target amount. Excluded from this sale was LiveTV Satellite 
Communications, LLC, which was retained by JetBlue pending receipt of 
the necessary regulatory approvals for the sale. On September 25, 2014, 
JetBlue received all necessary regulatory approvals and sold LiveTV Satellite 
Communications, LLC, to Thales for approximately $1 million in cash. 

The total cash proceeds of $393 million reflect the agreed upon purchase 
price, net of purchase agreement adjustments including post-closing 
purchase price adjustments, which were finalized during the third quarter 
of 2014. The sale resulted in a pre-tax gain of approximately $241 million 
and is net of approximately $19 million in transactions costs. The gain 
on the sale has been reported as a separate line item in the consolidated 
statement of operations for the year ended December 31, 2014.

The tax expense recorded in connection with this transaction totaled 
$72 million, net of a $19 million tax benefit related to the utilization of 
a capital loss carryforward. The capital gain generated from the sale of 
LiveTV resulted in the release of a valuation allowance related to the capital 
loss deferred tax asset. This resulted in an after tax gain on the sale of 
approximately $169 million. 

Taxation

The Compensation-Stock Compensation topic of the 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 ISO, or 
CSPP shares until there is a disqualifying disposition, if any, for income 
tax purposes. A portion of our stock-based compensation is attributable 
to ISO and CSPP shares; therefore, our effective tax rate is subject to 
fluctuation.

LiveTV sale

In June 2014, we sold our subsidiary LiveTV and accelerated the vesting for 
all RSUs outstanding for LiveTV employees. The total expense recognized 
relating to this acceleration was less than $1 million.

Following the close of the sales on June 10, 2014, and on September 25, 
2014, the applicable LiveTV operations are no longer being consolidated 
as a subsidiary in JetBlue’s consolidated financial statements. The effect of 
this reporting structure change is not material to the consolidated financial 
statements presented. LiveTV third party revenues in 2014 up to the date 
of sale were $30 million, compared to $72 million in 2013 and $81 million 
in 2012. In December 2011, LiveTV terminated its contract with one of its 
airline customers and upon fulfilling its obligation to deactivate service on 
the customer’s aircraft, recorded a gain of $8 million in other operating 
expenses in 2012. 

Deferred profit on hardware sales and advance deposits for future hardware 
sales were included in other accrued liabilities and other long term liabilities 
on our consolidated balance sheets depending on whether we expected 
to recognize it in the next 12 months or beyond. No deferred profit is 
recognized in our consolidated balance sheets as of December 31, 
2014, compared to $42 million as of December 31, 2013. There is no net 
book value of equipment installed for other airlines in our consolidated 
balance sheets as of December 31, 2014, compared to $102 million as 
of December 31, 2013.

JetBlue expects to continue to be a significant customer of LiveTV. 
Concurrent with the LiveTV sale, the parties have entered into two 
agreements, each with seven year terms pursuant to which LiveTV 
continues to provide JetBlue with in-flight entertainment and onboard 
connectivity products and services.

56

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportITEM 8 Financial Statements and Supplementary Data

PART II   

NOTE 9 

Income Taxes

The provision for income taxes consisted of the following for the years ended December 31 (in millions):

Deferred:
Federal
State

Deferred income tax expense

Current income tax expense
TOTAL INCOME TAX EXPENSE

2014

$ 192
20
212

10
$ 222

2013

2012

$

95
12
107

4
$ 111

$ 68
8
76

5
$ 81

The effective tax rate on income before income taxes differed from the federal income tax statutory rate for the years ended December 31 for the 
following reasons (in millions):

Income tax expense at statutory rate
Increase resulting from:

State income tax, net of federal benefit
Valuation Allowance, federal and state
Other, net

TOTAL INCOME TAX EXPENSE

2014
$ 218

18
(19)
5
$ 222

2013
98

$

9
  —
4
$ 111

2012
$ 73  

6  
  —  

2

$ 81  

Cash payments for income taxes were $8 million in 2014, $4 million in 2013 and $4 million in 2012. The net deferred taxes below include a current net 
deferred tax asset of $174 million and a long-term net deferred tax liability of $832 million at December 31, 2014, and a current net deferred tax asset 
of $120 million and a long-term net deferred tax liability of $605 million at December 31, 2013.

The components of our deferred tax assets and liabilities as of December 31 are as follows (in millions):

Deferred tax assets:

Net operating loss carryforwards
Employee benefits
Deferred revenue/gains
Rent expense
Terminal 5 lease
Capital loss carryforwards
Other
Valuation allowance
Financial derivative instruments

Deferred tax assets, net
Deferred tax liabilities:

Accelerated depreciation
Deferred tax liabilities, net
NET DEFERRED TAX LIABILITY

2014

2013

$

152 
41
102
30
32
—
27
—
40
424

$

157  
40
95
24
29
20
31
(20)
1
377

(1,082)
(1,082)
$ (658)

(862)
(862)
$ (485)

As of December 31, 2014, we had U.S. Federal regular and alternative 
minimum tax net operating loss, or NOL, carryforwards of $446 million and 
$410 million, respectively, which begin to expire in 2025. In addition, as 
of December 31, 2014, we had deferred tax assets associated with state 
NOLs of $7 million, which begin to expire in 2020. Our NOL carryforwards 
as of December 31, 2014 include an unrecorded benefit of approximately 
$9 million related to stock-based compensation that will be recorded 
in equity when, and to the extent, realized. Section 382 of the Internal 
Revenue Code imposes limitations on a corporation’s ability to use its NOL 
carryforwards if it experiences an “ownership change.” As of December 31, 
2014, our valuation allowance did not include any amounts attributable 
to this limitation; however, if an “ownership change” were to occur in the 
future, the ability to use our NOLs could be limited.

In evaluating the realizability of the deferred tax assets, we assess whether 
it is more likely than not that some portion, or all, of the deferred tax assets, 
will be realized. We consider, among other things, the generation of future 
taxable income, including reversals of deferred tax liabilities, during the 
periods in which the related temporary differences will become deductible. 
The capital gain generated from the sale of our subsidiary, LiveTV, in June 
2014 resulted in the release of a $19 million valuation allowance related to 
the capital loss deferred tax asset. We have concluded that no valuation 
allowance is required as of December 31, 2014.

57

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PART II   
ITEM 8 Financial Statements and Supplementary Data

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follow (in millions):

Unrecognized tax benefits December 31, 2011
Increases for tax positions taken during the period
Unrecognized tax benefits December 31, 2012
Increases for tax positions taken during the period
Decreases for settlement with tax authorities during the period
Unrecognized tax benefits December 31, 2013
Increases for tax positions taken during a prior period
Increases for tax positions taken during the period
Decreases for tax positions taken during a prior period
Unrecognized tax benefits December 31, 2014

$

$

12
1
13
2
(4)
11
2
4
(1)
16

Interest and penalties accrued on unrecognized tax benefits were not significant. If recognized, $12 million of the unrecognized tax benefits as of 
December 31, 2014 would impact our effective tax rate. We do not expect any significant change in the amount of the unrecognized tax benefits 
within the next twelve months. As a result of NOLs and statute of limitations in our major tax jurisdictions, years 2002 through 2013 remain subject to 
examination by the relevant tax authorities.

NOTE 10  Employee Retirement Plan

We sponsor a retirement savings 401(k) defined contribution plan, or the 
Plan, covering all of our Crewmembers. In 2014, we matched 100% of 
our Crewmember contributions up to 5% of their compensation. The 
contributions vest over five years and are measured from an Crewmember’s 
hire date. Participants are immediately vested in their voluntary contributions.

Another component of the Plan is a Company discretionary contribution of 
5% of eligible non-management Crewmember compensation, which we refer 
to as Retirement Plus. Retirement Plus contributions vest over three years 

and are measured from a Crewmember’s hire date. Our non-management 
Crewmembers are also eligible to receive profit sharing, calculated as 
15% of adjusted pre-tax income and reduced by the Retirement Plus 
contributions and special items. Certain FAA-licensed Crewmembers receive 
an additional contribution of 3% of eligible compensation, which we refer 
to as Retirement Advantage. Total 401(k) company match, Retirement 
Plus, profit sharing and Retirement Advantage expensed in 2014, 2013 
and 2012 were $119 million, $94 million and $73 million, respectively.

NOTE 11  Commitments

Flight Equipment Commitments

Other Commitments

As of December 31, 2014, our firm aircraft orders consisted of 33 Airbus 
A321 aircraft, 25 Airbus A320 new engine option (A320neo) aircraft,  
45 Airbus A321neo aircraft, 24 EMBRAER 190 aircraft and ten spare 
engines scheduled for delivery through 2023. Committed expenditures for 
these aircraft and related flight equipment, including estimated amounts for 
contractual price escalations and predelivery deposits, will be approximately 
$610 million in 2015, $545 million in 2016, $595 million in 2017, $520 
million in 2018, $935 million in 2019 and $3.5 billion thereafter. We are 
scheduled to receive 12 new Airbus A321 aircraft in 2015. Dependent 
on market conditions, we anticipate paying cash for the 12 Airbus A321 
aircraft scheduled for delivery in 2015. 

In November 2014, we amended our purchase agreement with Airbus 
by deferring 13 Airbus A321 aircraft orders and eight Airbus A320 aircraft 
orders from 2016-2020 to 2020-2023. Of these deferrals, ten A321 aircraft 
orders were converted to Airbus A321 new engine option (A321neo) orders 
and five A320neo aircraft orders were converted to Airbus A321neo aircraft 
orders. We additionally converted three Airbus A320 aircraft orders in 2016 
to Airbus A321 aircraft orders. In October 2013, we amended our purchase 
agreements with both Embraer and Airbus. We deferred 24 EMBRAER 
190 aircraft from 2014-2018 to 2020-2022. We converted eight existing 
A320 orders to A321 orders and ten A320neo orders to A321neo orders. 
We incrementally ordered 15 A321 aircraft for delivery between 2015 
and 2017 and 20 A321neo aircraft for delivery between 2018 and 2020.

We utilize several credit card processors to process our ticket sales. Our 
agreements with these processors do not contain covenants, but do 
generally allow the processor to withhold cash reserves to protect the 
processor for potential liability for tickets purchased, but not yet used for 
travel. While we currently do not have any collateral requirements related 
to our credit card processors, we may be required to issue collateral to 
our credit card processors, or other key vendors, in the future.

As of December 31, 2014, we had approximately $24 million pledged 
related to our workers compensation insurance policies and other business 
partner agreements, which will expire according to the terms of the related 
policies or agreements. 

As part of the sale of LiveTV, refer to Note 8, a $3 million liability relating 
to Airfone was assigned to JetBlue as part of the purchase agreement. 
Separately, prior to the sale of LiveTV, JetBlue had an agreement with ViaSat 
Inc. through 2020 relating to in-flight broadband connectivity technology on 
our aircraft. That agreement stipulated a $20 million minimum commitment 
for the connectivity service and a $25 million minimum commitment for the 
related hardware and software purchases. As part of the sale of LiveTV, 
these commitments to ViaSat Inc. were assigned to LiveTV and JetBlue 
entered into two new service agreements with LiveTV pursuant to which 
LiveTV will provide in-flight entertainment and connectivity services to 
JetBlue for a minimum of seven years.

58

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report 
 
 
 
 
ITEM 8 Financial Statements and Supplementary Data

PART II   

Except for our pilots, our Crewmembers do not have third-party 
representation. In April 2014, JetBlue pilots elected to be solely represented 
by ALPA. The NMB certified ALPA as the representative body for JetBlue 
pilots and we plan to work with ALPA to reach our first collective bargaining 
agreement. We enter into individual employment agreements with each of 
our non-unionized FAA-licensed Crewmembers which include dispatchers, 
technicians and inspectors as well as air traffic controllers. Each employment 
agreement is for a term of 5 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 that would require 
a reduction in work hours, we are obligated to pay these Crewmembers 
a guaranteed level of income and to continue their benefits if they do not 
obtain other aviation employment.

NOTE 12  Contingencies

We self-insure a portion of our losses from claims related to workers’ 
compensation, environmental issues, property damage, medical insurance 
for employees and general liability. Losses are accrued based on an 
estimate of the ultimate aggregate liability for claims incurred, using 
standard industry practices and our actual experience.

We are a party to many routine contracts under which we indemnify third 
parties for various risks. These indemnities consist of the following:

All of our bank loans, including our aircraft and engine mortgages, contain 
standard provisions present in loans of this type. These provisions obligate 
us to reimburse the bank for any increased costs associated with continuing 
to hold the loan on our books which arise as a result of broadly defined 
regulatory changes, including changes in reserve requirements and bank 
capital requirements. These indemnities would have the practical effect 
of increasing the interest rate on our debt if they were to be triggered. 
In all cases, we have the right to repay the loan and avoid the increased 
costs. The term of these indemnities matches the length of the related 
loan up to 15 years.

Under both aircraft leases with foreign lessors and aircraft and engine 
mortgages with foreign lenders, we have agreed to customary indemnities 
concerning withholding tax law changes. Under these contracts we 
are responsible, should withholding taxes be imposed, for paying such 
amount of additional rent or interest as is necessary to ensure that the 
lessor or lender still receives, after taxes, the rent stipulated in the lease 
or the interest stipulated under the loan. The term of these indemnities 
matches the length of the related lease up to 20 years.

We have various leases with respect to real property as well as various 
agreements among airlines relating to fuel consortia or fuel farms at airports. 
Under these contracts we have agreed to standard language indemnifying 
the lessor against environmental liabilities associated with the real property 
or operations described under the agreement, even if we are not the party 
responsible for the initial event that caused the environmental damage. 
In the case of fuel consortia at airports, these indemnities are generally 
joint and several among the participating airlines. We have purchased a 
standalone environmental liability insurance policy to help mitigate this 
exposure. Our existing aviation hull and liability policy includes some 
limited environmental coverage when a cleanup is part of an associated 
single identifiable covered loss.

Under certain contracts, we indemnify specified parties against legal liability 
arising out of actions by other parties. The terms of these contracts range 
up to 25 years. Generally, we have liability insurance protecting ourselves 
for the obligations we have undertaken relative to these indemnities.

Upon the sale of LiveTV to Thales in June 2014, refer to Note 8 for more 
information, we transferred certain contingencies to Thales. These included 
product warranties and LiveTV indemnities against any claims which 
may of been brought against its customers. These indemnities related to 
allegations of patent, trademark, copyright or license infringement as a 
result of the use of the LiveTV system.

Under a certain number of our operating lease agreements we are required 
to restore certain property or equipment to its original form upon expiration 
of the related agreement. We have recorded the estimated fair value of 
these retirement obligations of approximately $6 million as of December 31, 
2014. This liability may increase over time.

We are unable to estimate the potential amount of future payments under 
the foregoing indemnities and agreements.

Environmental Liability

Many aspects of airlines’ operations are subject to increasingly stringent 
federal, state, local, and foreign laws protecting the environment. 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 passengers which could 
adversely affect our business. Although it is not expected that 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. The impact to us 
and our industry from such actions is likely to be adverse and could be 
significant, particularly if regulators were to conclude that emissions from 
commercial aircraft cause significant harm to the upper atmosphere or 
have a greater impact on climate change than other industries.

In 2012, during performance of environmental testing, the presence of light 
non-aqueous phase petroleum liquid was discovered in certain subsurface 
monitoring wells on the property at JFK. Our lease with the PANYNJ 
provides that under certain circumstances we may be responsible for 
investigating, delineating, and remediating such subsurface contamination, 
even if we are not necessarily the party that caused its release. We engaged 
environmental consultants to assess the extent of the contamination 
and assist us in determining steps to remediate it. An estimate indicated 
costs of remediation could range from approximately $1 million up to  
$3 million. As of December 31, 2014, we had accrued $2 million for current 
estimates of remediation costs, which is included in current liabilities on 
our consolidated balance sheets. However, as with any environmental 
contamination, there is the possibility this contamination could be more 
extensive than estimated at this stage. We have a pollution insurance policy 
that protects us against these types of environmental liabilities, which we 
expect will mitigate most of our exposure in this matter.

Based upon information currently known to us we do not expect these 
environmental proceedings to have a material adverse effect on our 
consolidated financial position, results of operations, or cash flows. 
However, it is not possible to predict with certainty the impact on us of 
future environmental compliance requirements or the costs of resolving 
the matter, in part because the scope of the remediation that may be 
required is not certain and environmental laws and regulations are subject 
to modification and changes in interpretation.

Legal Matters

Occasionally we are involved in various claims, lawsuits, regulatory 
examinations, investigations and other legal matters arising, for the most 
part, in the ordinary course of business. The outcome of litigation and 
other legal matters is always uncertain. The Company believes it has valid 
defenses to the legal matters currently pending against it, is defending 
itself vigorously and has recorded accruals determined in accordance 
with U.S. GAAP, where appropriate. In making a determination regarding 

59

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART II   
ITEM 8 Financial Statements and Supplementary Data

accruals, using available information, we evaluate the likelihood of an 
unfavorable outcome in legal or regulatory proceedings to which we are 
a party to and record a loss contingency when it is probable a liability has 
been incurred and the amount of the loss can be reasonably estimated. 
These subjective determinations are based on the status of such legal or 
regulatory proceedings, the merits of our defenses and consultation with 
legal counsel. Actual outcomes of these legal and regulatory proceedings 
may materially differ from our current estimates. It is possible that resolution 
of one or more of the legal matters currently pending or threatened could 
result in losses material to our consolidated results of operations, liquidity 
or financial condition.

To date, none of these types of litigation matters, most of which are typically 
covered by insurance, has had a material impact on our operations or 
financial condition. We have insured and continue to insure against most of 
these types of claims. A judgment on any claim not covered by, or in excess 
of, our insurance coverage could materially adversely affect our financial 
condition or results of operations.

Employment Agreement Dispute. In or around March 2010, attorneys 
representing a group of current and former pilots (the “Claimants”) filed a 
Request for Mediation with the American Arbitration Association (the “AAA”) 
concerning a dispute over the interpretation of a provision of their individual 
JetBlue Airways Corporation Employment Agreement for Pilots (“Employment 
Agreement”). In their Fourth Amended Arbitration Demand, dated June 8, 
2012, the Claimants (972 pilots) alleged that JetBlue breached the base 
salary provision of the Employment Agreement and sought back pay and 
related damages for pay adjustments that occurred in each of 2002, 2007 
and 2009. The Claimants also asserted that JetBlue had violated numerous 
New York state labor laws. In July 2012, in response to JetBlue’s partial 
motion to dismiss, the Claimants withdrew the 2002 claims. Following an 
arbitration hearing on the remaining claims, in May 2013, the arbitrator 
issued an interim decision on the contractual provisions of the Employment 
Agreement. The arbitrator determined that a 26.7% base pay rate increase 
provided to certain pilots during 2007 triggered the base salary provision of 
the Employment Agreement. The 2009 claims and all New York state labor 
law claims were dismissed. In early July 2014, the AAA issued the arbitrator’s 

Final Award, awarding 318 of the 972 Claimants a total of approximately 
$4.4 million, including interest, from which applicable tax withholdings must 
be further deducted. In January 2015, the New York State Supreme Court 
justice confirmed the arbitrator’s Final Award and denied Claimants’ motion 
to vacate the award. 

As the amount of damages awarded to the Claimants in the Final Award 
has been confirmed by the Court, we have accrued an amount that we 
believe is probable. Our estimate of reasonably possible losses in excess 
of the probable loss is not material. However, the outcome of any litigation 
is inherently uncertain and any final judgment may differ materially.

WestJet Complaint. In December 2013, WestJet, a customer of LiveTV, 
filed a complaint against LiveTV alleging breach of contract. WestJet has 
alleged $15 million in damages plus unspecified damages for removing the 
inflight entertainment systems from its aircraft. In January 2014, LiveTV filed 
a response to this Complaint and a series of Counterclaims. In its pleadings, 
LiveTV disputes the accuracy and validity of the WestJet claims and to the 
extent WestJet is able to establish any liability on the part of LiveTV, LiveTV 
contends that the as-yet unliquidated damages sought by LiveTV in its 
Counterclaims are likely to exceed any actual damages awarded to WestJet 
on its Complaint. We believe the Complaint to be without merit. At the present 
time it is not possible to assess the likelihood of loss. As part of the sale of 
LiveTV, JetBlue agreed to indemnify Thales for certain losses and retained 
certain rights to potential recovery received as a result of the Counterclaims 
asserted against WestJet, refer to Note 8 for additional information.

ALPA. In April 2014, JetBlue pilots elected to be solely represented by 
the Air Line Pilots Association, or ALPA. The National Mediation Board, or 
NMB, certified ALPA as the representative body for JetBlue pilots and we 
plan to work with ALPA to reach our first collective bargaining agreement. 
We do not believe that the result of the election will have a material impact 
on our financial statements.

Litigation Recovery. During December 2014, JetBlue reached an agreement 
with respect to the settlement of a commercial dispute. JetBlue recorded 
a benefit of $7.5 million related to this matter.

NOTE 13  Financial Derivative Instruments and Risk Management

As part of our risk management techniques, we periodically purchase over 
the counter energy derivative instruments and enter into fixed forward price 
agreements, or FFPs, to manage our exposure to the effect of changes 
in the price of aircraft fuel. Prices for the underlying commodities have 
historically been highly correlated to aircraft fuel, making derivatives of them 
effective at providing short-term protection against volatility in average 
fuel prices. We also periodically enter into jet fuel basis swaps for the 
differential between heating oil and jet fuel to further limit the variability in 
fuel prices at various locations.

To manage the variability of the cash flows associated with our variable 
rate debt, we have also entered into interest rate swaps. We do not hold 
or issue any derivative financial instruments for trading purposes.

Aircraft fuel derivatives

We attempt to obtain cash flow hedge accounting treatment for each 
aircraft fuel derivative that we enter into. This treatment is provided for 
under the Derivatives and Hedging topic of the Codification. It allows 
for gains and losses on the effective portion of qualifying hedges to be 
deferred until the underlying planned jet fuel consumption occurs, rather 
than recognizing the gains and losses on these instruments into earnings 
during each period they are outstanding. The effective portion of realized 
aircraft fuel hedging derivative gains and losses is recognized in aircraft 
fuel expense in the period the underlying fuel is consumed.

Ineffectiveness can occur in certain circumstances, when the change in the 
total fair value of the derivative instrument differs from the change in the 

value of our expected future cash outlays for the purchase of aircraft fuel 
and is recognized immediately in interest income and other. Likewise, if a 
hedge does not qualify for hedge accounting, the periodic changes in its 
fair value are recognized in the period of the change in interest income and 
other. When aircraft fuel is consumed and the related derivative contract 
settles, any gain or loss previously recorded in other comprehensive income 
is recognized in aircraft fuel expense. All cash flows related to our fuel 
hedging derivatives are classified as operating cash flows.

Our current approach to fuel hedging is to enter into hedges on a 
discretionary basis without a specific target of hedge percentage needs. 
We view our hedge portfolio as a form of insurance to help mitigate the 
impact of price volatility and protect us against severe spikes in oil prices, 
when possible.

The following table illustrates the approximate hedged percentages of our 
projected fuel usage by quarter as of December 31, 2014, related to our 
outstanding fuel hedging contracts that were designated as cash flow 
hedges for accounting purposes.

Jet fuel 
swap 
agreements
10%
10%
5%
5%

Jet fuel  
collar 
agreements
10%
10%
—%
—%

Heating 
oil collar 
agreements Total
—% 20%
—% 20%
9% 14%
10% 15%

First Quarter 2015
Second Quarter 2015
Third Quarter 2015
Fourth Quarter 2015

60

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportITEM 8 Financial Statements and Supplementary Data

PART II   

Starting in the second quarter of 2014, we entered into basis swap transactions 
that will settle in early 2015. These basis swaps have not been designated 
as cash flow hedges for accounting purposes and as a result are marked 
to market in earnings each period. As of December 31, 2014, the fair value 
recorded for these contracts was not material.

Interest rate swaps

The interest rate swap agreements we had outstanding as of December 31, 
2014 effectively swap floating rate debt for fixed rate debt, taking advantage 
of lower borrowing rates in existence at the time of the hedge transaction 
as compared to the date our original debt instruments were executed. As 
of December 31, 2014, we had $35 million in notional debt outstanding 

related to these swaps, which cover certain interest payments through 
August 2016. The notional amount decreases over time to match scheduled 
repayments of the related debt. Refer to Note 2 for information on the debt 
outstanding related to these swap agreements.

All of our outstanding interest rate swap contracts qualify as cash flow hedges 
in accordance with the Derivatives and Hedging topic of the Codification. 
Since all of the critical terms of our swap agreements match the debt to 
which they pertain, there was no ineffectiveness relating to these interest 
rate swaps in 2014, 2013 or 2012, and all related unrealized losses were 
deferred in accumulated other comprehensive income. We recognized 
approximately $1 million, $8 million and $11 million in additional interest 
expense as the related interest payments were made during 2014, 2013 
and 2012, respectively.

The table below reflects quantitative information related to our derivative instruments and where these amounts are recorded in our financial statements 
(dollar amounts in millions).

Fuel derivatives
Asset fair value recorded in prepaid expenses and other(1)
Liability fair value recorded in other accrued liabilities(1)
Longest remaining term (months)
Hedged volume (barrels, in thousands)
Estimated amount of existing gains (losses) expected to be reclassified into earnings in the next 12 months
Interest rate derivatives
Liability fair value recorded in other long term liabilities(2)
Estimated amount of existing losses expected to be reclassified into earnings in the next 12 months

As of December 31,

2014

$ —
102
12 
  2,808
(102)

1
(1)

$

2013

6
—  
12  
1,320  

3

3  
(2)

2014

2013

2012

Fuel derivatives
Hedge effectiveness gains (losses) recognized in aircraft fuel expense
Gains (losses) on derivatives not qualifying for hedge accounting recognized in other expense
Hedge gains (losses) on derivatives recognized in comprehensive income
Percentage of actual consumption economically hedged
Interest rate derivatives
Hedge losses on derivatives recognized in interest expense
Hedge gains (losses) on derivatives recognized in comprehensive income
(1)  Gross asset or liability of each contract prior to consideration of offsetting positions with each counterparty and prior to impact of collateral paid.
(2)  Gross liability prior to impact of collateral posted.

$

(30)

2  

(134)

20%

(1)
—

$

(10)
—
(6)
21%

(8)
1

$

10
(3)
14
30%

(11)
(3)

Any outstanding derivative instrument exposes us to credit loss in connection 
with our fuel contracts in the event of nonperformance by the counterparties 
to the agreements, but we do not expect any of our seven counterparties 
will fail to meet their obligations. The amount of such credit exposure is 
generally the fair value of our outstanding contracts for which we are in a 
liability position. To manage credit risks we select counterparties based on 
credit assessments, limit our overall exposure to any single counterparty 
and monitor the market position with each counterparty. Some of our 
agreements require cash deposits from either counterparty if market risk 
exposure exceeds a specified threshold amount.

We have master netting arrangements with our counterparties allowing 
us the right of offset to mitigate credit risk in derivative transactions. The 

financial derivative instrument agreements we have with our counterparties 
may require us to fund all, or a portion of, outstanding loss positions 
related to these contracts prior to their scheduled maturities. The amount 
of collateral posted, if any, is periodically adjusted based on the fair value 
of the hedge contracts. Our policy is to offset the liabilities represented 
by these contracts with any cash collateral paid to the counterparties. We 
had $51 million of collateral posted related to our outstanding fuel hedge 
contracts at December 31, 2014 which offset the hedge liability in other 
current liabilities, compared to no collateral as of December 31, 2013. We 
had $1 million and $3 million posted in collateral related to our interest 
rate derivatives which offset the hedge liability in other current liabilities 
at December 31, 2014 and 2013, respectively.

The impact of offsetting derivative instruments is depicted below (dollar amounts in millions):

As of December 31, 2014
Fuel derivatives
Interest rate derivatives
As of December 31, 2013
Fuel derivatives
Interest rate derivatives

Gross Amount of 
Recognized

Assets

Liabilities

Gross Amount of 
Cash Collateral
Offset

Net Amount Presented 
in Balance Sheet

Assets

Liabilities

$

$ 

—
—

6
—

$

$

102
1

—
3

$

$

51
1

—
3

$

$

—
—

6
—

$

$

51
—

—
—

61

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PART II   
ITEM 8 Financial Statements and Supplementary Data

NOTE 14  Fair Value

Under the Fair Value Measurements and Disclosures topic of the Codification, 
disclosures are required about how fair value is determined for assets and 
liabilities and a hierarchy for which these assets and liabilities must be grouped 
is established, based on significant levels of inputs as follows:

 • Level 1 quoted prices in active markets for identical assets or liabilities;

 • Level 2 quoted prices in active markets for similar assets and liabilities 

and inputs that are observable for the asset or liability; or

 • Level 3 unobservable inputs for the asset or liability, such as discounted 

cash flow models or valuations.

The determination of where assets and liabilities fall within this hierarchy 
is based upon the lowest level of input that is significant to the fair value 
measurement.

The following is a listing of our assets and liabilities required to be measured at fair value on a recurring basis and where they are classified within the 
fair value hierarchy, as described in Note 1 (in millions):

As of December 31, 2014

Level 1

Level 2

Level 3

Total

$ 153
—
—
$ 153

—
—
$ —

$ —
125
—
125

$

102
1
103

$

$ —
—
  —
$ —

  —
—
$ —

As of December 31, 2013

Level 1

Level 2

Level 3

$

51
—
  —
51
$

$ —
—
$ —

$ —
188
6
194

$

$ —
3
3

$

$ —
  —
—
$ —

$ —
  —
$ —

$

$

$

$

$

153
125
—
278

102
1
103

Total

51
188
6
245

$ —
3
3

$

Aircraft fuel derivatives

Our aircraft fuel derivatives include swaps, caps, collars, and basis 
swaps which are not traded on public exchanges. Their fair values 
are determined using a market approach based on inputs that are 
readily available from public markets for commodities and energy 
trading activities; therefore, they are classified as Level 2 inputs. The 
data inputs are combined into quantitative models and processes to 
generate forward curves and volatilities related to the specific terms of 
the underlying hedge contracts.

Interest rate swaps

The fair values of our interest rate swaps are based on inputs received 
from the related counterparty, which are based on observable inputs for 
active swap indications in quoted markets for similar terms. Their fair 
values are determined using a market approach based on inputs that 
are readily available from public markets; therefore, they are classified 
as Level 2 inputs.

Assets
Cash equivalents
Available-for-sale investment securities
Aircraft fuel derivatives

Liabilities
Aircraft fuel derivatives
Interest rate swap

Assets
Cash equivalents
Available-for-sale investment securities
Aircraft fuel derivatives

Liabilities
Aircraft fuel derivatives
Interest rate swap

The carrying values of all other financial instruments approximated their 
fair values at December 31, 2014 and 2013. Refer to Note 2 for fair value 
information related to our outstanding debt obligations as of December 31, 
2014 and 2013.

Cash equivalents

Our cash equivalents include money market securities and commercial 
papers which are readily convertible into cash with maturities of three 
months or less when purchased. All of these instruments are considered 
to be highly liquid and easily tradable. These securities are valued using 
inputs observable in active markets for identical securities and are therefore 
classified as Level 1 within our fair value hierarchy.

Available-for-sale investment securities

Included in our available-for-sale investment securities are time deposits 
with original maturities greater than three months but less than one year. 
The fair values of these instruments are based on observable inputs in 
non-active markets, which are therefore classified as Level 2 in the hierarchy. 
We did not record any material gains or losses on these securities during 
the year ended December 31, 2014 or 2013. 

62

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ITEM 8 Financial Statements and Supplementary Data

PART II   

NOTE 15  Accumulated Other Comprehensive Income (Loss)

Comprehensive income (loss) includes changes in fair value of our aircraft fuel derivatives and interest rate swap agreements, which qualify for hedge 
accounting. A rollforward of the amounts included in accumulated other comprehensive income (loss), net of taxes for the years ended December 31, 
2014, 2013 and 2012 is as follows (in millions):

Beginning accumulated losses at December 31, 2011
Reclassifications into earnings (net of $0 of taxes)
Change in fair value (net of $5 of taxes)
Balance of accumulated losses at December 31, 2012
Reclassifications into earnings (net of $7 of taxes)
Change in fair value (net of $(2) of taxes)
Balance of accumulated income (losses), at December 31, 2013
Reclassifications into earnings (net of $12 of taxes)
Change in fair value (net of $(52) of taxes)
Balance of accumulated losses, at December 31, 2014
(1)  Reclassified to aircraft fuel expense
(2)  Reclassified to interest expense

NOTE 16  Geographic Information

Aircraft Fuel 
Derivatives(1)

Interest  
Rate Swaps(2)

$ (3)
(6)
8
(1)
6
(4)
1
  18
(82)
$ (63)

$ (12)
7  
(2)
(7)
5  
1
(1)
1  

  —
$ —

Total
$ (15)
1  
6
(8)
11  
(3)
  —

19  
(82)
$ (63)

Under the Segment Reporting topic of the Codification, disclosures are required for operating segments that are regularly reviewed by chief operating decision 
makers. Air transportation services accounted for substantially all the Company’s operations in 2014, 2013 and 2012.

Operating revenues are allocated to geographic regions, as defined by the DOT, based upon the origination and destination of each flight segment. We currently 
serve 26 locations in the Caribbean and Latin American region, or Latin America as defined by the DOT. However, our management includes our three destinations 
in Puerto Rico and two destinations in the U.S. Virgin Islands in our Caribbean and Latin America allocation of revenues. Therefore, we have reflected these 
locations within the Caribbean and Latin America region in the table below. Operating revenues by geographic regions for the years ended December 31 are 
summarized below (in millions):

Domestic
Caribbean & Latin America
TOTAL

2014
4,093  
1,724  
5,817

$

$

2013

$ 3,886  
1,555  

$ 5,441

2012

$ 3,666  
1,316  

$ 4,982

Our tangible assets primarily consist of our fleet of aircraft, which is deployed system wide, with no individual aircraft dedicated to any specific route or 
region; therefore our assets do not require any allocation to a geographic area.

NOTE 17  Quarterly Financial Data (Unaudited)

Quarterly results of operations for the years ended December 31 are summarized below (in millions, except per share amounts):

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

2014(1)
Operating revenues
Operating income
Net income
Basic earnings per share
Diluted earnings per share
2013(2)
Operating revenues
$ 1,365
Operating income
115
Net income
47
Basic earnings per share
0.16
0.14
Diluted earnings per share
(1)  During the first quarter of 2014, severe winter weather led to the cancellation of approximately 4,100 flights which resulted in reduced revenue by an estimated $50 million and reduced 

$ 1,299
59
14
0.05
0.05

$ 1,349
41
4
0.01
0.01

$ 1,446
169
88
0.29
0.26

$ 1,335
102
36
0.13
0.11

$ 1,493
141
230
0.79
0.68

$ 1,442
152
71
0.25
0.21

$ 1,529
164
79
0.27
0.24

$
$

$
$

$
$

$
$

$
$

$
$

$
$

$
$

operating income by approximately $35 million. During the second quarter of 2014, we had a gain of $242 million on the sale of LiveTV business.

(2)  During the first quarter of 2013, we had a gain of $7 million on the sale of the Airfone business by LiveTV. During the fourth quarter of 2013, we recorded gains of approximately $2 million 
on the sale of three spare aircraft engines in other operating expenses, as well as losses of approximately $3 million in interest income and other on the early extinguishment of debt.

The sum of the quarterly earnings per share amounts does not equal the annual amount reported since per share amounts are computed independently 
for each quarter and for the full year based on respective weighted-average common shares outstanding and other dilutive potential common shares.

63

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PART II   
ITEM 8 Financial Statements and Supplementary Data

Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders of  
JetBlue Airways Corporation

We have audited the accompanying consolidated balance sheets of JetBlue 
Airways Corporation as of December 31, 2014 and 2013, and the related 
consolidated statements of operations, comprehensive income, cash flows 
and stockholders’ equity for each of the three years in the period ended 
December 31, 2014. These financial statements are the responsibility of the 
Company’s management. Our responsibility is to express an opinion on these 
financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public 
Company Accounting Oversight Board (United States). Those standards require 
that we plan and perform the audit to obtain reasonable assurance about 
whether the financial statements are free of material misstatement. An audit 
includes examining, on a test basis, evidence supporting the amounts and 
disclosures in the financial statements. An audit also includes assessing the 
accounting principles used and significant estimates made by management, 
as well as evaluating the overall financial statement presentation. We believe 
that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in 
all material respects, the consolidated financial position of JetBlue Airways 
Corporation at December 31, 2014 and 2013, and the consolidated results 
of its operations and its cash flows for each of the three years in the period 
ended December 31, 2014, 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), JetBlue Airways Corporation’s 
internal control over financial reporting as of December 31, 2014, 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 12, 2015 expressed an unqualified 
opinion thereon.

/s/ Ernst & Young LLP

New York, New York

February 12, 2015

64

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportITEM 8 Financial Statements and Supplementary Data

PART II   

Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders of 
JetBlue Airways Corporation

We have audited JetBlue Airways Corporation’s internal control over financial 
reporting as of December 31, 2014, 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). JetBlue Airways Corporation’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 conducted our audit in accordance with the standards of the Public 
Company Accounting Oversight Board (United States). 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.

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.

In our opinion, JetBlue Airways Corporation maintained, in all material 
respects, effective internal control over financial reporting as of December 31, 
2014, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public 
Company Accounting Oversight Board (United States), the consolidated 
balance sheets of JetBlue Airways Corporation as of December 31, 
2014 and 2013, and the related consolidated statements of operations, 
comprehensive income, cash flows and stockholders’ equity for each 
of the three years in the period ended December 31, 2014 of JetBlue 
Airways Corporation and our report dated February 12, 2015 expressed 
an unqualified opinion thereon.

/s/ Ernst & Young LLP

New York, New York

February 12, 2015

65

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART II   
ITEM 9 Changes and Disagreements with Accountants on Accounting and Financial Disclosure

ITEM 9.  Changes and Disagreements with 

Accountants on Accounting and Financial 
Disclosure

None.

ITEM 9A. Controls and Procedures

Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) under the Exchange Act) that are designed to ensure 
that information required to be disclosed by us in reports that we file under the Exchange Act is recorded, processed, summarized and reported 
within the time periods specified in the SEC’s rules and forms and that such information required to be disclosed by us in reports that we file under the 
Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer, or CEO, and our Chief Financial Officer, 
or CFO, to allow timely decisions regarding required disclosure. Management, with the participation of our CEO and CFO, performed an evaluation of 
the effectiveness of our disclosure controls and procedures as of December 31, 2014. Based on that evaluation, our CEO and CFO concluded that our 
disclosure controls and procedures were effective as of December 31, 2014.

Management’s Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) or Rule 
15d-15(f) under the Exchange Act). Under the supervision and with the participation of our management, including our CEO and CFO, we conducted 
an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control—Integrated Framework 
issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework). Based on that evaluation, our management 
concluded that our internal control over financial reporting was effective as of December 31, 2014 to provide reasonable assurance regarding the 
reliability of financial reporting and the preparation of consolidated financial statements for external reporting purposes in accordance with U.S. GAAP.

Ernst & Young LLP, the independent registered public accounting firm that audited our Consolidated Financial Statements included in this Annual Report 
on Form 10-K, audited the effectiveness of our internal control over financial reporting as of December 31, 2014. Ernst & Young LLP has issued their 
report which is included elsewhere herein.

Changes in Internal Control Over Financial Reporting

During the quarter ended December 31, 2014, there were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) or 
Rule 15d-15(f) under the Exchange Act) identified in connection with the evaluation of our controls performed during that have materially affected, or 
are reasonably likely to materially affect, our internal control over financial reporting.

ITEM 9B. Other Information

On February 12, 2015, the Company and Mr. Hayes executed an employment 
agreement for Mr. Hayes as Chief Executive Officer and President of the 
Company. The agreement commences on February 16, 2015, when  
Mr. Hayes becomes the Company’s CEO and President. The term is a 
three year term, with a renewal option for a second three year term, at the 
discretion of the Board. Mr. Hayes will be paid an annual salary at the rate 
of $550,000, subject to adjustment periodically thereafter at the discretion 
of the Board. He will be paid an annual incentive bonus as provided by 
the Company to its senior executives, currently at a target of 100% of the 
base salary, subject to the review and approval of the Board of Directors 

66

in its discretion. Mr. Hayes will also be eligible to receive an annual award 
of restricted stock units and an annual award of performance stock units, 
both pursuant to the Company’s 2011 Incentive Compensation Plan and 
related award agreement. The agreement provides for health, welfare and 
flight benefits as provided to other senior executive officers of the Company. 
The agreement provides for termination for cause, and for severance should 
Mr. Hayes be terminated during the term without cause. The agreement 
provides for customary confidentiality, non-competition, non-solicitation 
and non-disparagement provisions.

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART III   

PART III

ITEM 10.  Directors, Executive Officers and Corporate 

Governance

Code of Ethics

We adopted a Code of Ethics within the meaning of Item 406(b) of SEC 
Regulation S-K.  This Code of Ethics applies to our principal executive 
officer, principal financial officer and principal accounting officer.  This Code 
of Ethics is publicly available on our website at http://investor.jetblue.com.  
If we make substantive amendments to this Code of Ethics or grant any 
waiver, including any implicit waiver, we will disclose the nature of such 
amendment or waiver on our website or in a report on Form 8-K within 
four days of such amendment or waiver.

Information relating to executive officers is set forth in Part I of this report 
following Item 4 under “Executive Officers of the Registrant”.  The other 
information required by this Item will be included in and is incorporated 
herein by reference from our definitive proxy statement for our 2015 
Annual Meeting of Stockholders to be held on May 21, 2015 to be filed 
with the SEC pursuant to Regulation 14A within 120 days after the end 
of our 2014 fiscal year, or our Proxy Statement.

ITEM 11.  Executive Compensation

The information required by this Item will be included in and is incorporated herein by reference from our Proxy Statement.

67

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART III   
ITEM 12  Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

ITEM 12.  Security Ownership of Certain Beneficial 

Owners and Management and Related 
Stockholder Matters

Equity Compensation Plan Information

The table below provides information relating to our equity compensation plans, including individual compensation arrangements, under which our common 
stock is authorized for issuance as of December 31, 2014, as adjusted for stock splits:

Plan Category
Equity compensation plans approved by security holders
Equity compensation plans not approved by security holders
TOTAL

Number of securities to
be issued upon exercise
of outstanding options,
warrants and rights
10,510,327
—
10,510,327

Weighted-average
exercise price of
outstanding
options, warrants
and rights
$

10.12
—
10.12

$

Number of securities
remaining available
for future issuance
under equity
compensation plans
(excluding securities
reflected in first column)
10,372,427
—
10,372,427

Refer to Note 7 to our consolidated financial statements for further information regarding the material features of the above plans.

Other information required by this Item will be included in and is incorporated herein by reference from our Proxy Statement.

ITEM 13.  Certain Relationships and Related 

Transactions, and Director Independence

The information required by this Item will be included in and is incorporated herein by reference from our Proxy Statement.

ITEM 14.  Principal Accounting Fees and Services

The information required by this Item will be included in and is incorporated herein by reference from our Proxy statement.

68

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART IV   

PART IV

ITEM 15.  Exhibits and Financial Statement Schedules

1.

2.

3.

Financial statements:
Consolidated Balance Sheets — December 31, 2014 and December 31, 2013
Consolidated Statements of Operations — For the years ended December 31, 2014, 2013 and 2012
Consolidated Statements of Comprehensive Income — For the years ended December 31, 2014, 2013 and 2012
Consolidated Statements of Cash Flows — For the years ended December 31, 2014, 2013 and 2012
Consolidated Statements of Stockholders’ Equity — For the years ended December 31, 2014, 2013 and 2012
Notes to Consolidated Financial Statements
Reports of Independent Registered Public Accounting Firm
Financial Statement Schedule:
Report of Independent Registered Public Accounting Firm on Financial Statement Schedule
Schedule II — Valuation of Qualifying Accounts and Reserves
All other schedules have been omitted because they are inapplicable, not required, or the information is included elsewhere in the 
consolidated financial statements or notes thereto.
Exhibits: See accompanying Exhibit Index included after the signature page of this report for a list of the exhibits filed or furnished 
with or incorporated by reference in this report.

S-1
S-2

69

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART IV   
ITEM 15 Exhibits and Financial Statement Schedules

Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on 
its behalf by the undersigned, thereunto duly authorized.

Date: 
February 12, 2015

By:

JETBLUE AIRWAYS CORPORATION
(Registrant)
/s/ ALEXANDER CHATKEWITZ
Vice President, Controller, and Chief Accounting Officer 
(Principal Accounting Officer)

KNOW ALL PERSONS BY THESE PRESENTS, that each person 
whose signature appears below constitutes and appoints James G. 
Hnat his or her attorney-in-fact with power of substitution for him or 
her in any and all capacities, to sign any amendments, supplements or 
other documents relating to this Annual Report on Form 10-K which 
he or she deems necessary or appropriate, and to file the same, with 
exhibits thereto, and other documents in connection therewith, with the 
Securities and Exchange Commission, hereby ratifying and confirming 

all that such attorney-in-fact or their substitute may do or cause to be 
done by virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, 
this report has been signed below by the following persons on behalf of 
the registrant and in the capacities and on the dates indicated (and, as 
indicated with an asterisk, representing at least a majority of the members 
of the Board of Directors).

Capacity
Chief Executive Officer and Director
(Principal Executive Officer)

Date
February 12, 2015

Chief Financial Officer (Principal Financial Officer)

February 12, 2015

Vice President, Controller, and Chief Accounting Officer  
(Principal Accounting Officer)

Director

Director

Director

Director

Director

Director

Director

Director

Director

Director

Director

February 12, 2015

February 12, 2015

February 12, 2015

February 12, 2015

February 12, 2015

February 12, 2015

February 12, 2015

February 12, 2015

February 12, 2015

February 12, 2015

February 12, 2015

February 12, 2015

Signature
/S/ DAVID BARGER 
David Barger
/S/ MARK D. POWERS
Mark D. Powers
/S/ ALEXANDER CHATKEWITZ
Alexander Chatkewitz
/S/ JENS BISCHOF
Jens Bischof *
/S/ PETER BONEPARTH 
Peter Boneparth *
/S/ DAVID CHECKETTS
David Checketts *
/S/ VIRGINIA GAMBALE 
Virginia Gambale *
/S/ STEPHAN GEMKOW  
Stephan Gemkow *
/S/ ELLEN JEWETT
Ellen Jewett *
/S/ STANLEY MCCHRYSTAL
Stanley McChrystal *
/S/ JOEL PETERSON  
Joel Peterson *
/S/ ANN RHOADES 
Ann Rhoades *
/S/ FRANK SICA   
Frank Sica *
/S/ THOMAS WINKELMANN  
Thomas Winkelmann *

70

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportITEM 15 Exhibits and Financial Statement Schedules

PART IV   

EXHIBIT INDEX

2.1

2.1(a)

2.1(b)

3.2(a)

3.2(b)

3.3(e)

3.3(f)

3.3(g)

3.3(h)

3.4

4.1

4.2

4.2(a)

4.2(b)

4.2(c)

4.2(d)

4.4

4.5

4.5(a)

4.7

4.7(a)

4.7(b)

4.7(c)

4.7(d)

Membership Interest Purchase Agreement among Harris Corporation and Thales Avionics In-Flight Systems, LLC and In-Flight 
Liquidating, LLC and Glenn S. Latta and Jeffrey A. Frisco and Andreas de Greef and JetBlue Airways Corporation, dated as of 
September 9, 2002 relating to the interests in LiveTV, LLC—incorporated by reference to Exhibit 2.1 to our Current Report on 
Form 8-K dated September 27, 2002.
Purchase agreement between JetBlue Airways Corporation and Thales Avionics, Inc., dated as of March 13, 2014—incorporated 
by reference to Exhibit 2.1 to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2014.
Amended and Restated Purchase Agreement between JetBlue Airways Corporation and Thales Holding Corporation, dated 
June 10, 2014.—incorporated by reference to Exhibit 10.2 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2014.
Amended and Restated Certificate of Incorporation of JetBlue Airways Corporation—incorporated by reference to Exhibit 3.5 to our 
Quarterly Report on Form 10-Q for the quarter ended June 30, 2008.
Certificate of Amendment of Certificate of Incorporation, dated May 20, 2010—incorporated by reference to Exhibit 3.2(b) to our 
Quarterly Report on Form 10-Q for the quarter ended June 30, 2010.
Fifth Amended and Restated Bylaws of JetBlue Airways Corporation—incorporated by reference to Exhibit 3.6 of our Quarterly 
Report on Form 10-Q for the quarter ended June 30, 2008.
Fifth Amended and Restated Bylaws of JetBlue Airways Corporation (consolidated amendments as of November 12, 2009)—
incorporated by reference to Exhibit 3.3(f) to our Annual Report on Form 10-K for the year ended December 31, 2009.
Amended Consolidated Fifth Amended and Restated Bylaws of JetBlue Airways Corporation—incorporated by reference to 
Exhibit 3.1 to our Current Report on Form 8-K dated April 11, 2011.
Amended Consolidated Fifth Amended and Restated Bylaws of JetBlue Airways Corporation—incorporated by reference to 
Exhibit 3.1 to our Current Report on Form 8-K dated September 18, 2012.
Certificate of Designation of Series A Participating Preferred Stock dated April 1, 2002—incorporated by reference to Exhibit 3.2 to 
our Current Report on Form 8-K dated July 10, 2003.
Specimen Stock Certificate—incorporated by reference to Exhibit 4.1 to the Registration Statement on Form S-1, as amended 
(File No. 333-82576).
Amended and Restated Registration Rights Agreement, dated as of August 10, 2000, by and among JetBlue Airways Corporation 
and the Stockholders named therein—incorporated by reference to Exhibit 4.2 to the Registration Statement on Form S-1, as 
amended (File No. 333-82576).
Amendment No. 1, dated as of June 30, 2003, to Amended and Restated Registration Rights Agreement, dated as of August 10, 
2000, by and among JetBlue Airways Corporation and the Stockholders named therein—incorporated by reference to Exhibit 4.2 
to the Registration Statement on Form S-3, filed on July 3, 2003, as amended on July 10, 2003 (File No. 333-106781).
Amendment No. 2, dated as of October 6, 2003, to Amended and Restated Registration Rights Agreement, dated as of 
August 10, 2000, by and among JetBlue Airways Corporation and the Stockholders named therein—incorporated by reference to 
Exhibit 4.9 to the Registration Statement on Form S-3, filed on October 7, 2003 (File No. 333-109546).
Amendment No. 3, dated as of October 4, 2004, to Amended and Restated Registration Rights Agreement, dated as of 
August 10, 2000, by and among JetBlue Airways Corporation and the Stockholders named therein—incorporated by reference to 
Exhibit 4.1 to our Current Report on Form 8-K/A dated October 4, 2004.
Amendment No. 4, dated as of June 22, 2006, to Amended and Restated Registration Rights Agreement, dated as of 
August 10, 2000, by and among JetBlue Airways Corporation and the Stockholders named therein—incorporated by reference to 
Exhibit 4.19 to our Registration Statement on Form S-3 ARS, filed on June 30, 2006 (File No. 333-135545).
Summary of Rights to Purchase Series A Participating Preferred Stock—incorporated by reference to Exhibit 4.4 to the Registration 
Statement on Form S-1, as amended (File No. 333-82576).
Stockholder Rights Agreement—incorporated by reference to Exhibit 4.3 to our Annual Report on Form 10-K for the year ended 
December 31, 2002.
Amendment to the Stockholder Rights Agreement, dated as of January 17, 2008, by and between JetBlue Airways Corporation 
and Computershare Trust Company, N.A.—incorporated by reference to Exhibit 4.5(a) to our Current Report on Form 8-K dated 
January 23, 2008.
Form of Three-Month LIBOR plus 0.375% JetBlue Airways Pass Through Certificate Series 2004-1G-1-O—incorporated by 
reference to Exhibit 4.1 to our Current Report on Form 8-K dated March 24, 2004.
Form of Three-Month LIBOR plus 0.420% JetBlue Airways Pass Through Certificate Series 2004-1G-2-O—incorporated by 
reference to Exhibit 4.2 to our Current Report on Form 8-K dated March 24, 2004.
Form of Three-Month LIBOR plus 4.250% JetBlue Airways Pass Through Certificate Series 2004-1C-O—incorporated by reference 
to Exhibit 4.3 to our Current Report on Form 8-K dated March 24, 2004.
Pass Through Trust Agreement, dated as of March 24, 2004, between JetBlue Airways Corporation and Wilmington Trust 
Company, as Pass Through Trustee, made with respect to the formation of JetBlue Airways Pass Through Trust, Series 
2004-1G-1-O and the issuance of Three-Month LIBOR plus 0.375% JetBlue Airways Pass Through Trust, Series 2004-1G-1-O, 
Pass Through Certificates—incorporated by reference to Exhibit 4.4 to our Current Report on Form 8-K dated March 24, 2004 (1).
Revolving Credit Agreement (2004-1G-1), dated as of March 24, 2004, between Wilmington Trust Company, as Subordination 
Agent, as agent and trustee for the JetBlue Airways 2004-1G-1 Pass Through Trust, as Borrower, and Landesbank 
Hessen-Thüringen Girozentrale, as Primary Liquidity Provider—incorporated by reference to Exhibit 4.5 to our Current Report on 
Form 8-K dated March 24, 2004.

71

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART IV   
ITEM 15 Exhibits and Financial Statement Schedules

Revolving Credit Agreement (2004-1G-2), dated as of March 24, 2004, between Wilmington Trust Company, as Subordination 
Agent, as agent and trustee for the JetBlue Airways 2004-1G-2 Pass Through Trust, as Borrower, and Landesbank 
Hessen-Thüringen Girozentrale, as Primary Liquidity Provider—incorporated by reference to Exhibit 4.6 to our Current Report on 
Form 8-K dated March 24, 2004.
Revolving Credit Agreement (2004-1C), dated as of March 24, 2004, between Wilmington Trust Company, as Subordination Agent, 
as agent and trustee for the JetBlue Airways 2004-1C Pass Through Trust, as Borrower, and Landesbank Hessen-Thüringen 
Girozentrale, as Primary Liquidity Provider—incorporated by reference to Exhibit 4.7 to our Current Report on Form 8-K dated 
March 24, 2004.
Deposit Agreement (Class G-1), dated as of March 24, 2004, between Wilmington Trust Company, as Escrow Agent, and HSH 
Nordbank AG, New York Branch, as Depositary—incorporated by reference to Exhibit 4.8 to our Current Report on Form 8-K 
dated March 24, 2004.
Deposit Agreement (Class G-2), dated as of March 24, 2004, between Wilmington Trust Company, as Escrow Agent, and HSH 
Nordbank AG, New York Branch, as Depositary—incorporated by reference to Exhibit 4.9 to our Current Report on Form 8-K 
dated March 24, 2004.
Deposit Agreement (Class C), dated as of March 24, 2004, between Wilmington Trust Company, as Escrow Agent, and HSH 
Nordbank AG, New York Branch, as Depositary—incorporated by reference to Exhibit 4.10 to our Current Report on Form 8-K 
dated March 24, 2004.
Escrow and Paying Agent Agreement (Class G-1), dated as of March 24, 2004, among Wilmington Trust Company, as Escrow 
Agent, Morgan Stanley & Co. Incorporated, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc. and 
Credit Lyonnais Securities (USA) Inc., as Underwriters, Wilmington Trust Company, as Pass Through Trustee for and on behalf of 
JetBlue Airways Corporation Pass Through Trust 2004-1G-1-O, as Pass Through Trustee, and Wilmington Trust Company, as 
Paying Agent—incorporated by reference to Exhibit 4.11 to our Current Report on Form 8-K dated March 24, 2004.
Escrow and Paying Agent Agreement (Class G-2), dated as of March 24, 2004, among Wilmington Trust Company, as Escrow 
Agent, Morgan Stanley & Co. Incorporated, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc. and 
Credit Lyonnais Securities (USA) Inc., as Underwriters, Wilmington Trust Company, as Pass Through Trustee for and on behalf of 
JetBlue Airways Corporation Pass Through Trust 2004-1G-2-O, as Pass Through Trustee, and Wilmington Trust Company, as 
Paying Agent—incorporated by reference to Exhibit 4.12 to our Current Report on Form 8-K dated March 24, 2004.
Escrow and Paying Agent Agreement (Class C), dated as of March 24, 2004, among Wilmington Trust Company, as Escrow 
Agent, Morgan Stanley & Co. Incorporated, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc. and 
Credit Lyonnais Securities (USA) Inc., as Underwriters, Wilmington Trust Company, as Pass Through Trustee for and on behalf of 
JetBlue Airways Corporation Pass Through Trust 2004-1C-O, as Pass Through Trustee, and Wilmington Trust Company, as Paying 
Agent—incorporated by reference to Exhibit 4.13 to our Current Report on Form 8-K dated March 24, 2004.
ISDA Master Agreement, dated as of March 24, 2004, between Morgan Stanley Capital Services Inc., as Above Cap Liquidity 
Facility Provider, and Wilmington Trust Company, as Subordination Agent for the JetBlue Airways Corporation Pass Through Trust 
2004-1G-1-O—incorporated by reference to Exhibit 4.14 to our Current Report on Form 8-K dated March 24, 2004 (2).
Schedule to the ISDA Master Agreement, dated as of March 24, 2004, between Morgan Stanley Capital Services Inc., as Above 
Cap Liquidity Facility Provider, and Wilmington Trust Company, as Subordination Agent for the JetBlue Airways Corporation Pass 
Through Trust 2004-1G-1-O—incorporated by reference to Exhibit 4.15 to our Current Report on Form 8-K dated March 24, 2004.
Schedule to the ISDA Master Agreement, dated as of March 24, 2004, between Morgan Stanley Capital Services, Inc., as Above 
Cap Liquidity Facility Provider, and Wilmington Trust Company, as Subordination Agent for the JetBlue Airways Corporation Pass 
Through Trust 2004-1G-2-O—incorporated by reference to Exhibit 4.16 to our Current Report on Form 8-K dated March 24, 2004.
Schedule to the ISDA Master Agreement, dated as of March 24, 2004, between Morgan Stanley Capital Services, Inc., as Above 
Cap Liquidity Facility Provider, and Wilmington Trust Company, as Subordination Agent for the JetBlue Airways Corporation Pass 
Through Trust 2004-1C-O—incorporated by reference to Exhibit 4.17 to our Current Report on Form 8-K dated March 24, 2004.
Class G-1 Above Cap Liquidity Facility Confirmation, dated March 24, 2004, between Morgan Stanley Capital Services Inc., as 
Above Cap Liquidity Facility Provider, and Wilmington Trust Company, as Subordination Agent—incorporated by reference to 
Exhibit 4.18 to our Current Report on Form 8-K dated March 24, 2004.
Class G-2 Above Cap Liquidity Facility Confirmation, dated March 24, 2004, between Morgan Stanley Capital Services Inc., as 
Above Cap Liquidity Facility Provider, and Wilmington Trust Company, as Subordination Agent—incorporated by reference to 
Exhibit 4.19 to our Current Report on Form 8-K dated March 24, 2004.
Class C Above Cap Liquidity Facility Confirmation, dated March 24, 2004, between Morgan Stanley Capital Services Inc., as Above 
Cap Liquidity Facility Provider, and Wilmington Trust Company, as Subordination Agent—incorporated by reference to Exhibit 4.20 
to our Current Report on Form 8-K dated March 24, 2004.
Guarantee, dated March 24, 2004, of Morgan Stanley Capital Services Inc. with respect to the Class G-1 Above Cap Liquidity 
Facility—incorporated by reference to Exhibit 4.21 to our Current Report on Form 8-K dated March 24, 2004.
Guarantee, dated March 24, 2004, of Morgan Stanley Capital Services Inc. with respect to the Class G-2 Above Cap Liquidity 
Facility—incorporated by reference to Exhibit 4.22 to our Current Report on Form 8-K dated March 24, 2004.
Guarantee, dated March 24, 2004, of Morgan Stanley Capital Services Inc. with respect to the Class C Above Cap Liquidity 
Facility—incorporated by reference to Exhibit 4.23 to our Current Report on Form 8-K dated March 24, 2004.
Insurance and Indemnity Agreement, dated as of March 24, 2004, among MBIA Insurance Corporation, as Policy Provider, JetBlue 
Airways Corporation and Wilmington Trust Company, as Subordination Agent—incorporated by reference to Exhibit 4.24 to our 
Current Report on Form 8-K dated March 24, 2004.
MBIA Insurance Corporation Financial Guaranty Insurance Policy, dated March 24, 2004, bearing Policy Number 43567(1) issued 
to Wilmington Trust Company, as Subordination Agent for the Class G-1 Certificates—incorporated by reference to Exhibit 4.25 to 
our Current Report on Form 8-K dated March 24, 2004.

4.7(e)

4.7(f)

4.7(g)

4.7(h)

4.7(i)

4.7(j)

4.7(k)

4.7(l)

4.7(m)

4.7(n)

4.7(o)

4.7(p)

4.7(q)

4.7(r)

4.7(s)

4.7(t)

4.7(u)

4.7(v)

4.7(w)

4.7(x)

72

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportITEM 15 Exhibits and Financial Statement Schedules

PART IV   

4.7(y)

4.7(z)

4.7(aa)

4.7(ab)

4.7(ac)

4.8

4.8(a)

4.8(b)

4.8(c)

4.8(d)

4.8(e)

4.8(f)

4.8(g)

4.8(h)

4.8(i)

4.8(j)

4.8(k)

4.8(l)

4.8(m)

MBIA Insurance Corporation Financial Guaranty Insurance Policy, dated March 24, 2004, bearing Policy Number 43567(2) issued 
to Wilmington Trust Company, as Subordination Agent for the Class G-2 Certificates—incorporated by reference to Exhibit 4.26 to 
our Current Report on Form 8-K dated March 24, 2004.
Intercreditor Agreement, dated as of March 24, 2004, among Wilmington Trust Company, as Pass Through Trustee, Landesbank 
Hessen- Thüringen Girozentrale, as Primary Liquidity Provider, Morgan Stanley Capital Services, Inc., as Above-Cap Liquidity 
Provider, MBIA Insurance Corporation, as Policy Provider, and Wilmington Trust Company, as Subordination Agent—incorporated 
by reference to Exhibit 4.27 to our Current Report on Form 8-K dated March 24, 2004.
Note Purchase Agreement, dated as of March 24, 2004, among JetBlue Airways Corporation, Wilmington Trust Company, in its 
separate capacities as Pass Through Trustee, as Subordination Agent, as Escrow Agent and as Paying Agent—incorporated by 
reference to Exhibit 4.28 to our Current Report on Form 8-K dated March 24, 2004.
Form of Trust Indenture and Mortgage between JetBlue Airways Corporation, as Owner, and Wilmington Trust Company, as 
Mortgagee—incorporated by reference to Exhibit 4.29 to our Current Report on Form 8-K dated March 24, 2004.
Form of Participation Agreement among JetBlue Airways Corporation, as Owner, and Wilmington Trust Company, in its separate 
capacities as Mortgagee, as Pass Through Trustee and as Subordination Agent—incorporated by reference to Exhibit 4.30 to our 
Current Report on Form 8-K dated March 24, 2004.
Form of Three-Month LIBOR plus 0.375% JetBlue Airways Pass Through Certificate Series 2004-2G-1-O, with attached form of 
Escrow Receipt—incorporated by reference to Exhibit 4.1 to our Current Report on Form 8-K dated November 9, 2004.
Form of Three-Month LIBOR plus 0.450% JetBlue Airways Pass Through Certificate Series 2004-2G-2-O, with attached form of 
Escrow Receipt—incorporated by reference to Exhibit 4.2 to our Current Report on Form 8-K dated November 9, 2004.
Form of Three-Month LIBOR plus 3.100% JetBlue Airways Pass Through Certificate Series 2004-2C-O, with attached form of 
Escrow Receipt—incorporated by reference to Exhibit 4.3 to our Current Report on Form 8-K dated November 9, 2004.
Pass Through Trust Agreement, dated as of November 15, 2004, between JetBlue Airways Corporation and Wilmington 
Trust Company, as Pass Through Trustee, made with respect to the formation of JetBlue Airways Pass Through Trust, Series 
2004-2G-1-O and the issuance of Three-Month LIBOR plus 0.375% JetBlue Airways Pass Through Trust, Series 2004-2G-1-O, 
Pass Through Certificates—incorporated by reference to Exhibit 4.4 to our Current Report on Form 8-K dated November 9, 2004 (3).
Revolving Credit Agreement (2004-2G-1), dated as of November 15, 2004, between Wilmington Trust Company, as Subordination 
Agent, as agent and trustee for the JetBlue Airways 2004-2G-1 Pass Through Trust, as Borrower, and Landesbank Baden-
Württemberg, as Primary Liquidity Provider—incorporated by reference to Exhibit 4.5 to our Current Report on Form 8-K dated 
November 9, 2004.
Revolving Credit Agreement (2004-2G-2), dated as of November 15, 2004, between Wilmington Trust Company, as Subordination 
Agent, as agent and trustee for the JetBlue Airways 2004-2G-2 Pass Through Trust, as Borrower, and Landesbank Baden-
Württemberg, as Primary Liquidity Provider—incorporated by reference to Exhibit 4.6 to our Current Report on Form 8-K dated 
November 9, 2004.
Revolving Credit Agreement (2004-2C), dated as of November 15, 2004, between Wilmington Trust Company, as Subordination 
Agent, as agent and trustee for the JetBlue Airways 2004-2C Pass Through Trust, as Borrower, and Landesbank Baden-
Württemberg, as Primary Liquidity Provider—incorporated by reference to Exhibit 4.7 to our Current Report on Form 8-K dated 
November 9, 2004.
Deposit Agreement (Class G-1), dated as of November 15, 2004, between Wilmington Trust Company, as Escrow Agent, 
and HSH Nordbank AG, New York Branch, as Depositary—incorporated by reference to Exhibit 4.8 to our Current Report on 
Form 8-K dated November 9, 2004.
Deposit Agreement (Class G-2), dated as of November 15, 2004, between Wilmington Trust Company, as Escrow Agent, 
and HSH Nordbank AG, New York Branch, as Depositary—incorporated by reference to Exhibit 4.9 to our Current Report on 
Form 8-K dated November 9, 2004.
Deposit Agreement (Class C), dated as of November 15, 2004, between Wilmington Trust Company, as Escrow Agent, and HSH 
Nordbank AG, New York Branch, as Depositary—incorporated by reference to Exhibit 4.10 to our Current Report on Form 8-K 
dated November 9, 2004.
Escrow and Paying Agent Agreement (Class G-1), dated as of November 15, 2004, among Wilmington Trust Company, as Escrow 
Agent, Morgan Stanley & Co. Incorporated, Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities, 
Inc., as Underwriters, Wilmington Trust Company, as Pass Through Trustee for and on behalf of JetBlue Airways Corporation 
Pass Through Trust 2004-2G-2-O, as Pass Through Trustee, and Wilmington Trust Company, as Paying Agent—incorporated by 
reference to Exhibit 4.11 to our Current Report on Form 8-K dated November 9, 2004.
Escrow and Paying Agent Agreement (Class G-2), dated as of November 15, 2004, among Wilmington Trust Company, as Escrow 
Agent, Morgan Stanley & Co. Incorporated, Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities, 
Inc., as Underwriters, Wilmington Trust Company, as Pass Through Trustee for and on behalf of JetBlue Airways Corporation 
Pass Through Trust 2004-2G-2-O, as Pass Through Trustee, and Wilmington Trust Company, as Paying Agent—incorporated by 
reference to Exhibit 4.12 to our Current Report on Form 8-K dated November 9, 2004.
Escrow and Paying Agent Agreement (Class C), dated as of November 15, 2004, among Wilmington Trust Company, as Escrow 
Agent, Morgan Stanley & Co. Incorporated, Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities, 
Inc., as Underwriters, Wilmington Trust Company, as Pass Through Trustee for and on behalf of JetBlue Airways Corporation Pass 
Through Trust 2004-2C-O, as Pass Through Trustee, and Wilmington Trust Company, as Paying Agent—incorporated by reference 
to Exhibit 4.13 to our Current Report on Form 8-K dated November 9, 2004.
ISDA Master Agreement, dated as of November 15, 2004, between Citibank, N.A., as Above Cap Liquidity Facility Provider, and 
Wilmington Trust Company, as Subordination Agent for the JetBlue Airways Corporation Pass Through Trust 2004-2G-1-O—
incorporated by reference to Exhibit 4.14 to our Current Report on Form 8-K dated November 9, 2004 (4).

73

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART IV   
ITEM 15 Exhibits and Financial Statement Schedules

Schedule to the ISDA Master Agreement, dated as of November 15, 2004, between Citibank, N.A., as Above Cap Liquidity 
Facility Provider, and Wilmington Trust Company, as Subordination Agent for the JetBlue Airways Corporation Pass Through Trust 
2004-2G-1-O—incorporated by reference to Exhibit 4.15 to our Current Report on Form 8-K dated November 9, 2004.
Schedule to the ISDA Master Agreement, dated as of November 15, 2004, between Citibank, N.A., as Above Cap Liquidity 
Facility Provider, and Wilmington Trust Company, as Subordination Agent for the JetBlue Airways Corporation Pass Through Trust 
2004-2G-2-O—incorporated by reference to Exhibit 4.16 to our Current Report on Form 8-K dated November 9, 2004.
Schedule to the ISDA Master Agreement, dated as of November 15, 2004, between Citibank, N.A., as Above Cap Liquidity 
Facility Provider, and Wilmington Trust Company, as Subordination Agent for the JetBlue Airways Corporation Pass Through Trust 
2004-2C-O—incorporated by reference to Exhibit 4.17 to our Current Report on Form 8-K dated November 9, 2004.
Class G-1 Above Cap Liquidity Facility Confirmation, dated November 15, 2004, between Citibank, N.A., as Above Cap Liquidity 
Facility Provider, and Wilmington Trust Company, as Subordination Agent—incorporated by reference to Exhibit 4.18 to our Current 
Report on Form 8-K dated November 9, 2004.
Class G-2 Above Cap Liquidity Facility Confirmation, dated November 15, 2004, between Citibank, N.A., as Above Cap Liquidity 
Facility Provider, and Wilmington Trust Company, as Subordination Agent—incorporated by reference to Exhibit 4.19 to our Current 
Report on Form 8-K dated November 9, 2004.
Class C Above Cap Liquidity Facility Confirmation, dated November 15, 2004, between Citibank, N.A., as Above Cap Liquidity 
Facility Provider, and Wilmington Trust Company, as Subordination Agent—incorporated by reference to Exhibit 4.20 to our Current 
Report on Form 8-K dated November 9, 2004.
Insurance and Indemnity Agreement, dated as of November 15, 2004, among MBIA Insurance Corporation, as Policy Provider, 
JetBlue Airways Corporation and Wilmington Trust Company, as Subordination Agent and Trustee—incorporated by reference to 
Exhibit 4.21 to our Current Report on Form 8-K dated November 9, 2004.
MBIA Insurance Corporation Financial Guaranty Insurance Policy, dated November 15, 2004, bearing Policy Number 45243 issued 
to Wilmington Trust Company, as Subordination Agent for the Class G-1 Certificates—incorporated by reference to Exhibit 4.22 to 
our Current Report on Form 8-K dated November 9, 2004.
MBIA Insurance Corporation Financial Guaranty Insurance Policy, dated November 15, 2004, bearing Policy Number 45256 issued 
to Wilmington Trust Company, as Subordination Agent for the Class G-2 Certificates—incorporated by reference to Exhibit 4.23 to 
our Current Report on Form 8-K dated November 9, 2004.
Intercreditor Agreement, dated as of November 15, 2004, among Wilmington Trust Company, as Pass Through Trustee, Landesbank 
Baden-Württemberg, as Primary Liquidity Provider, Citibank, N.A., as Above-Cap Liquidity Provider, MBIA Insurance Corporation, as 
Policy Provider, and Wilmington Trust Company, as Subordination Agent—incorporated by reference to Exhibit 4.24 to our Current 
Report on Form 8-K dated November 9, 2004.
Note Purchase Agreement, dated as of November 15, 2004, among JetBlue Airways Corporation, Wilmington Trust Company, in 
its separate capacities as Pass Through Trustee, as Subordination Agent, as Escrow Agent and as Paying Agent—incorporated by 
reference to Exhibit 4.25 to our Current Report on Form 8-K dated November 9, 2004.
Form of Trust Indenture and Mortgage between JetBlue Airways Corporation, as Owner, and Wilmington Trust Company, as 
Mortgagee—incorporated by reference to Exhibit 4.26 to our Current Report on Form 8-K dated November 9, 2004.
Form of Participation Agreement among JetBlue Airways Corporation, as Owner, and Wilmington Trust Company, in its separate 
capacities as Mortgagee, as Pass Through Trustee and as Subordination Agent—incorporated by reference to Exhibit 4.27 to our 
Current Report on Form 8-K dated November 9, 2004.
Indenture, dated as of March 16, 2005, between JetBlue Airways Corporation and Wilmington Trust Company, as Trustee, relating to 
the Company’s debt securities—incorporated by reference to Exhibit 4.1 to our Current Report on Form 8-K dated March 10, 2005.
Second Supplemental Indenture to the Indenture filed as Exhibit 4.9 to this report, dated as of June 4, 2008, between JetBlue 
Airways Corporation and Wilmington Trust Company, as Trustee, relating to the Company’s 5.5% Convertible Debentures due 
2038—incorporated by reference to Exhibit 4.1 to our Current Report on Form 8-K dated June 5, 2008.
Third Supplemental Indenture to the Indenture filed as Exhibit 4.9 to this report, dated as of June 4, 2008, between JetBlue Airways 
Corporation and Wilmington Trust Company, as Trustee, relating to the Company’s 5.5% Convertible Debentures due 2038—
incorporated by reference to Exhibit 4.2 to our Current Report on Form 8-K dated June 5, 2008.
Pass Through Trust Agreement, dated as of November 14, 2006, between JetBlue Airways Corporation and Wilmington Trust 
Company, as Pass Through Trustee, made with respect to the formation of JetBlue Airways (Spare Parts) G-1 Pass Through Trust, 
and the issuance of Three-Month LIBOR plus 0.230% JetBlue Airways (Spare Parts) G-1 Pass Through Certificate—incorporated 
by reference to Exhibit 4.1 to our Current Report on Form 8-K dated November 14, 2006.
Pass Through Trust Agreement, dated as of November 14, 2006, between JetBlue Airways Corporation and Wilmington Trust 
Company, as Pass Through Trustee, made with respect to the formation of JetBlue Airways (Spare Parts) B-1 Pass Through Trust, 
and the issuance of Three-Month LIBOR plus 2.875% JetBlue Airways (Spare Parts) B-1 Pass Through Certificate—incorporated 
by reference to Exhibit 4.2 to our Current Report on Form 8-K dated November 14, 2006.
Revolving Credit Agreement, dated as of November 14, 2006, between Wilmington Trust Company, as Subordination Agent, as 
agent and trustee for the JetBlue Airways (Spare Parts) G-1 Pass Through Trust, as Borrower, and Landesbank Hessen-Thüringen 
Girozentrale, as Primary Liquidity Provider—incorporated by reference to Exhibit 4.3 to our Current Report on Form 8-K dated 
November 14, 2006.
ISDA Master Agreement, dated as of November 14, 2006, between Morgan Stanley Capital Services Inc., as Above Cap 
Liquidity Provider, and Wilmington Trust Company, as Subordination Agent for the JetBlue Airways (Spare Parts) G-1 Pass 
Through Trust—incorporated by reference to Exhibit 4.4 to our Current Report on Form 8-K dated November 14, 2006.
Schedule to the ISDA Master Agreement, dated as of November 14, 2006, between Morgan Stanley Capital Services Inc., as 
Above Cap Liquidity Provider, and Wilmington Trust Company, as Subordination Agent for the JetBlue Airways (Spare parts) G-1 
Pass Through Trust—incorporated by reference to Exhibit 4.5 to our Current Report on Form 8-K dated November 14, 2006.

4.8(n)

4.8(o)

4.8(p)

4.8(q)

4.8(r)

4.8(s)

4.8(t)

4.8(u)

4.8(v)

4.8(w)

4.8(x)

4.8(y)

4.8(z)

4.9

4.9(b)

4.9(c)

4.10

4.10(a)

4.10(b)

4.10(c)

4.10(d)

74

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportITEM 15 Exhibits and Financial Statement Schedules

PART IV   

4.10(e)

4.10(f)

4.10(g)

4.10(h)

4.10(i)

4.10(j)

4.10(k)

4.10(l)

4.10(m)

4.10(n)

4.10(o)

4.10(p)

4.10(q)

4.11

4.11(a)

4.12

4.13

4.14

4.15

4.16

4.17

4.18

4.19

4.20

4.21

4.22

Class G-1 Above Cap Liquidity Facility Confirmation, dated November 14, 2006, between Morgan Stanley Capital Services Inc., as 
Above Cap Liquidity Provider, and Wilmington Trust Company, as Subordination Agent—incorporated by reference to Exhibit 4.6 to 
our Current Report on Form 8-K dated November 14, 2006.
Insurance and Indemnity Agreement, dated as of November 14, 2006, among MBIA Insurance Corporation, as Policy Provider, 
JetBlue Airways Corporation and Wilmington Trust Company, as Subordination Agent and Trustee—incorporated by reference to 
Exhibit 4.7 to our Current Report on Form 8-K dated November 14, 2006.
Guarantee, dated as of November 14, 2006, by Morgan Stanley, relating to the Above-Cap Liquidity Facility—incorporated by 
reference to Exhibit 4.8 to our Current Report on Form 8-K dated November 14, 2006.
MBIA Insurance Corporation Financial Guaranty Insurance Policy, dated November 14, 2006, bearing Policy Number 487110 
issued to Wilmington Trust Company, as Subordination Agent for the Class G-1 Certificates—incorporated by reference to 
Exhibit 4.9 to our Current Report on Form 8-K dated November 14, 2006.
Intercreditor Agreement, dated as of November 14, 2006, among Wilmington Trust Company, as Pass Through Trustee, 
Landesbank Hessen-Thüringen Girozentrale, as Primary Liquidity Provider, Morgan Stanley Capital Services, Inc., as Above-Cap 
Liquidity Provider, MBIA Insurance Corporation, as Policy Provider, and Wilmington Trust Company, as Subordination Agent—
incorporated by reference to Exhibit 4.10 to our Current Report on Form 8-K dated November 14, 2006.
Note Purchase Agreement, dated as of November 14, 2006, among JetBlue Airways Corporation, Wilmington Trust Company, 
in its separate capacities as Pass Through Trustee, as Subordination Agent and as Mortgagee—incorporated by reference to 
Exhibit 4.11 to our Current Report on Form 8-K dated November 14, 2006.
Trust Indenture and Mortgage, dated November 14, 2006, between JetBlue Airways Corporation, as Owner, and Wilmington Trust 
Company, as Mortgagee—incorporated by reference to Exhibit 4.12 to our Current Report on Form 8-K dated November 14, 2006.
Collateral Maintenance Agreement, dated as of November 14, 2006, among, JetBlue Airways Corporation, MBIA Insurance 
Corporation, as Initial Policy Provider, Wilmington Trust Company, as Mortgagee, and Additional Policy Provider(s), if any, which 
may from time to time hereafter become parties—incorporated by reference to Exhibit 4.13 to our Current Report on Form 8-K 
dated November 14, 2006.
Reference Agency Agreement, dated November 14, 2006, among JetBlue Airways Corporation, Wilmington Trust Company as 
Subordination Agent and Mortgagee and Reference Agent—incorporated by reference to Exhibit 4.14 to our Current Report on 
Form 8-K dated November 14, 2006.
Form of JetBlue Airways (Spare Parts) G-1 Pass Through Certificate (included in Exhibit 4.10)—incorporated by reference to 
Exhibit 4.15 to our Current Report on Form 8-K dated November 14, 2006.
Form of JetBlue Airways (Spare Parts) B-1 Pass Through Certificate (included in Exhibit 4.10(a))—incorporated by reference to 
Exhibit 4.16 to our Current Report on Form 8-K dated November 14, 2006.
Form of JetBlue Airways (Spare Parts) G-1 Equipment Note—incorporated by reference to Exhibit 4.17 to our Current Report on 
Form 8-K dated November 14, 2006.
Form of JetBlue Airways (Spare Parts) B-1 Equipment Note—incorporated by reference to Exhibit 4.18 to our Current Report on 
Form 8-K dated November 14, 2006.
Stock Purchase Agreement, dated as of December 13, 2007, between JetBlue Airways Corporation and Deutsche Lufthansa 
AG—incorporated by reference to Exhibit 4.11 to our Current Report on Form 8-K dated December 13, 2007.
Amendment No. 1, dated as of January 22, 2008, to the Stock Purchase Agreement, dated as of December 13, 2007, between 
JetBlue Airways Corporation and Deutsche Lufthansa AG—incorporated by reference to Exhibit 4.11(a) to our Current Report on 
Form 8-K dated January 23, 2008.
Registration Rights Agreement, dated as of January 22, 2008, by and between JetBlue Airways Corporation and Deutsche 
Lufthansa AG—incorporated by reference to Exhibit 4.12 to our Current Report on Form 8-K dated January 23, 2008.
Supplement Agreement, dated as of May 27, 2008, between JetBlue Airways Corporation and Deutsche Lufthansa AG –
incorporated by reference to Exhibit 4.12 to our Current Report on Form 8-K dated May 28, 2008.
Second Supplemental Indenture dated as of June 4, 2008 between JetBlue Airways Corporation and Wilmington Trust Company, 
as Trustee—incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed on June 5, 2008.
Third Supplemental Indenture dated as of June 4, 2008 between JetBlue Airways Corporation and Wilmington Trust Company, as 
Trustee—incorporated by reference to Exhibit 4.2 to Current Report on Form 8-K filed on June 5, 2008.
Form of Global Debenture—5.50% Convertible Debenture due 2038 (Series A) (included as part of Exhibit 4.1)—incorporated by 
reference to Exhibit 4.3 to Current Report on Form 8-K filed on June 5, 2008.
Form of Global Debenture—5.50% Convertible Debenture due 2038 (Series B) (included as part of Exhibit 4.2)—incorporated by 
reference to Exhibit 4.4 to Current Report on Form 8-K filed on June 5, 2008.
Fourth Supplemental Indenture dated as of June 9, 2009 between JetBlue Airways Corporation and Wilmington Trust Company, as 
Trustee—incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed on June 9, 2009.
Fifth Supplemental Indenture dated as of June 9, 2009 between JetBlue Airways Corporation and Wilmington Trust Company, as 
Trustee—incorporated by reference to Exhibit 4.2 to Current Report on Form 8-K filed on June 9, 2009.
Form of Global Debenture—6.75% Convertible Debenture due 2039 (Series A)—incorporated by reference to Exhibit 4.3 to Current 
Report on Form 8-K filed on June 9, 2009.
Form of Global Debenture—6.75% Convertible Debenture due 2039 (Series B)—incorporated by reference to Exhibit 4.3 to Current 
Report on Form 8-K filed on June 9, 2009.
Registration Rights Agreement, dated as of April 5, 2012, among JetBlue Airways Corporation, Deutsche Lufthansa AG and 
Lufthansa Malta Blues LP - incorporated by reference to Exhibit 4.22 to our Current Report on Form 8-K filed on April 5, 2012.

75

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART IV   
ITEM 15 Exhibits and Financial Statement Schedules

V2500 General Terms of Sale between IAE International Aero Engines AG and NewAir Corporation, including Side Letters No. 1 
through No. 3 and No. 5 through No. 9—incorporated by reference to Exhibit 10.2 to the Registration Statement on Form S-1,  
as amended (File No. 333-82576).
Side Letter No. 10 to V2500 General Terms of Sale between IAE International Aero Engines AG and NewAir Corporation, dated  
April 25, 2002—incorporated by reference to Exhibit 10.2 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2002.
Side Letter No. 11 to V2500 General Terms of Sale between IAE International Aero Engines AG and NewAir Corporation, 
dated February 10, 2003—incorporated by reference to Exhibit 10.8 to our Annual Report on Form 10-K for the year ended 
December 31, 2002.
Side Letter No. 12 to V2500 General Terms of Sale between IAE International Aero Engines AG and NewAir Corporation, 
dated March 24, 2003—incorporated by reference to Exhibit 10.1 to our Quarterly Report on Form 10-Q for the quarter ended 
March 31, 2003.
Side Letter No. 13 to V2500 General Terms of Sale between IAE International Aero Engines AG and NewAir Corporation, dated 
April 23, 2003—incorporated by reference to Exhibit 10.3 to our Current Report on Form 8-K dated June 30, 2003.
Side Letter No. 14 to V2500 General Terms of Sale between IAE International Aero Engines AG and NewAir Corporation, dated October 
3, 2003—incorporated by reference to Exhibit 10.15 to our Annual Report on Form 10-K for the year ended December 31, 2003.
Side Letter No. 15 to V2500 General Terms of Sale between IAE International Aero Engines AG and NewAir Corporation, 
dated November 10, 2003—incorporated by reference to Exhibit 10.16 to our Annual Report on Form 10-K for the year ended 
December 31, 2003.
Side Letter No. 16 to V2500 General Terms of Sale between IAE International Aero Engines AG and NewAir Corporation, dated 
February 20, 2004—incorporated by reference to Exhibit 10.1 to our Quarterly Report on Form 10-Q for the quarter ended 
March 31, 2004.
Side Letter No. 17 to V2500 General Terms of Sale between IAE International Aero Engines AG and NewAir Corporation, 
dated June 11, 2004—incorporated by reference to Exhibit 10.3 to our Quarterly Report on Form 10-Q for the quarter ended 
June 30, 2004.
Side Letter No. 18 to V2500 General Terms of Sale between IAE International Aero Engines AG and NewAir Corporation, dated 
November 19, 2004—incorporated by reference to Exhibit 10.2 to our Current Report on Form 8-K dated November 19, 2004.
Side Letter No. 19 to V2500 General Terms of Sale between IAE International Aero Engines AG and New Air Corporation, 
dated July 21, 2005—incorporated by reference to Exhibit 10.2 to our Quarterly Report on Form 10-Q for the quarter ended 
September 30, 2005.
Side Letter No. 20 to V2500 General Terms of Sale between IAE International Aero Engines AG and New Air Corporation, 
dated July 6, 2006—incorporated by reference to Exhibit 10.3 to our Quarterly Report on Form 10-Q for the quarter ended 
June 30, 2006.
Side Letter No. 21 to V2500 General Terms of Sale between IAE International Aero Engines AG and New Air Corporation, 
dated January 30, 2007—incorporated by reference to Exhibit 10.2 to our Quarterly Report on Form 10-Q for the quarter ended 
March 31, 2007.
Side Letter No. 22 to V2500 General Terms of Sale between IAE International Aero Engines AG and New Air Corporation, 
dated March 27, 2007—incorporated by reference to Exhibit 10.3 to our Quarterly Report on Form 10-Q for the quarter ended 
March 31, 2007.
Side Letter No. 23 to V2500 General Terms of Sale between IAE International Aero Engines AG and New Air Corporation, dated 
December 18, 2007—incorporated by reference to Exhibit 10.3(n) to our Annual Report on Form 10-K, as amended, for the year 
ended December 31, 2007.
Side Letter No. 24 to V2500 General Terms of Sale between IAE International Aero Engines and New Air Corporation, 
dated April 2, 2008—incorporated by reference to Exhibit 10.2 to our Quarterly Report on Form 10-Q for the quarter ended 
June 30, 2008.
Side Letter No. 25 to V2500 General Terms of Sale between IAE International Aero Engines and New Air Corporation, dated  
May 27, 2008—incorporated by reference to Exhibit 10.3 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2008.
Side Letter No. 26 to V2500 General Terms of Sale between IAE International Aero Engines and New Air Corporation, dated 
January 27, 2009—incorporated by reference to Exhibit 10.3(q) to our Quarterly Report on Form 10-Q for the quarter ended 
March 31, 2009.
Side Letter No. 27 to V2500 General Terms of Sale between IAE International Aero Engines and New Air Corporation, dated 
June 5, 2009–incorporated by reference to Exhibit 10.3(r) to our Quarterly Report on Form 10-Q for the quarter ended 
June 30, 2009.
Side letter No. 28 to V2500 General Terms of Sale between IAE International Aero Engines and New Air Corporation, dated 
August 31, 2010—incorporated by reference to Exhibit 10.3(s) to our Quarterly Report on Form 10-Q for the quarter ended 
September 30, 2010.
Side letter No. 29 to V2500 General Terms of Sale between IAE International Aero Engines and New Air Corporation, dated 
March 14, 2011—incorporated by reference to Exhibit 10.3(t) to our Quarterly Report on Form 10-Q for the quarter ended 
March 31, 2011.
Side letter No. 30 to V2500 General Terms of Sale between IAE International Aero Engines and New Air Corporation, dated 
August 17, 2011—incorporated by reference to Exhibit 10.3(u) to our Quarterly Report on Form 10-Q for the quarter ended 
September 30, 2011.
Side letter No. 31 to V2500 General Terms of Sale between IAE International Aero Engines and New Air Corporation, dated 
September 27, 2011—incorporated by reference to Exhibit 10.3(v) to our Quarterly Report on Form 10-Q for the quarter ended 
September 30, 2011.

10.3**

10.3(a)**

10.3(b)**

10.3(c)**

10.3(d)**

10.3(e)**

10.3(f)**

10.3(g)**

10.3(h)**

10.3(i)**

10.3(j)**

10.3(k)**

10.3(l)**

10.3(m)**

10.3(n)**

10.3(o)**

10.3(p)**

10.3(q)**

10.3(r)**

10.3(s)**

10.3(t)**

10.3(u)**

10.3(v)**

76

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportITEM 15 Exhibits and Financial Statement Schedules

PART IV   

10.3(w)**

10.3(x)**

10.3(y)**

10.3(z)**

10.3(aa)**

10.3(ab)**

10.3(ac)***

10.3(ad)***

10.4**

10.5**

10.15

10.17**

10.17(a)**

10.17(b)**

10.17(c)**

10.17(d)**

10.17(e)**

10.17(f)**

10.17(g)**

10.17(h)**

10.17(i)**

10.17(j)**

Side letter No. 32 to V2500 General Terms of Sale between IAE International Aero Engines and New Air Corporation, dated 
November 8, 2011 - incorporated by reference to Exhibit 10.3(w) to our Annual Report on Form 10-K for the year ended 
December 31, 2011.
Side letter No. 33 to V2500 General Terms of Sale between IAE International Aero Engines and New Air Corporation, dated 
December 1, 2011 - incorporated by reference to Exhibit 10.3(x) to our Annual Report on Form 10-K for the year ended 
December 31, 2011.
Side letter No. 34 to V2500 General Terms of Sale between IAE International Aero Engines and New Air Corporation, dated 
February 21, 2012 - incorporated by reference to Exhibit 10.3(y) to our Quarterly Report on Form 10-Q for the quarter ended 
March 31, 2012.
Side letter No. 35 to V2500 General Terms of Sale between IAE International Aero Engines and New Air Corporation, dated 
March 15, 2012 - incorporated by reference to Exhibit 10.3(z) to our Quarterly Report on Form 10-Q for the quarter ended  
March 31, 2012.
Side letter No. 36 to V2500 General Terms of Sale between IAE International Aero Engines and New Air Corporation, dated 
May 1, 2012 - incorporated by reference to Exhibit 10.3(aa) to our Quarterly Report on Form 10-Q for the quarter ended 
June 30, 2012.
Side letter No. 37 to V2500 General Terms of Sale between IAE International Aero Engines and New Air Corporation, dated 
November 9, 2012 - incorporated by reference to Exhibit 10.3(ab) to our Annual Report on Form 10-K for the year ended 
December 31, 2012.
Side letter No. 38 to V2500 General Terms of Sale between IAE International Aero Engines and New Air Corporation, dated 
October 2, 2013.
Amendment No.1 to the V2500 General Terms of Sale between IAE International Aero Engines and New Air Corporation, dated 
December 15, 2014.
Amendment and Restated Agreement between JetBlue Airways Corporation and LiveTV, LLC, dated as of December 17, 2001, 
including Amendments No. 1, No. 2 and 3—incorporated by reference to Exhibit 10.4 to the Registration Statement on Form S-1, 
as amended (File No. 333-82576).
GDL Patent License Agreement between Harris Corporation and LiveTV, LLC, dated as of September 2, 2002—incorporated by 
reference to Exhibit 10.1 to our Quarterly Report on Form 10-Q for quarter ended September 30, 2002.
Form of Director/Officer Indemnification Agreement—incorporated by reference to Exhibit 10.20 to the Registration Statement on 
Form S-1, as amended (File No. 333-82576) and referenced as Exhibit 10.19 in our Current Report on Form 8-K dated February 
12, 2008.
EMBRAER-190 Purchase Agreement DCT-025/2003, dated June 9, 2003, between Embraer-Empresa Brasileira de Aeronautica 
S.A. and JetBlue Airways Corporation— incorporated by reference to Exhibit 10.4 to our Current Report on Form 8-K dated 
June 30, 2003.
Amendment No. 1 to Purchase Agreement DCT-025/2003, dated as of July 8, 2005, between Embraer-Empresa Brasileria de 
Aeronautica S.A. and JetBlue Airways Corporation—incorporated by reference to Exhibit 10.3 to our Quarterly Report on  
Form 10-Q for the quarter ended September 30, 2005.
Amendment No. 2 to Purchase Agreement DCT-025/2003, dated as of January 5, 2006, between Embraer-Empresa Brasileria de 
Aeronautica S.A. and JetBlue Airways Corporation—incorporated by reference to Exhibit 10.22(b) to our Annual Report on  
Form 10-K for the year ended December 31, 2005.
Amendment No. 3 to Purchase Agreement DCT-025/2003, dated as of December 4, 2006, between Embraer-Empresa Brasileria 
de Aeronautica S.A. and JetBlue Airways Corporation—incorporated by reference to Exhibit 10.21( c) to our Annual Report on 
Form 10-K for the year ended December 31, 2006.
Amendment No. 4 to Purchase Agreement DCT-025/2003, dated as of October 17, 2007, between Embraer-Empresa Brasileria  
de Aeronautica S.A. and JetBlue Airways Corporation—incorporated by reference to Exhibit 10.17(d) to our Annual Report on  
Form 10-K for the year ended December 31, 2007.
Amendment No. 5 to Purchase Agreement DCT-025/2003, dated as of July 18, 2008, between Embraer-Empresa Brasileira de 
Aeronautica S.A. and JetBlue Airways Corporation—incorporated by reference to Exhibit 10.1 to our Quarterly Report on Form 
10-Q for the quarter ended September 30, 2008.
Amendment No. 6 to Purchase Agreement DCT-025/2003, dated as of February 17, 2009, between Embraer-Empresa Brasileira 
de Aeronautica S.A. and JetBlue Airways Corporation—incorporated by reference to Exhibit 10.17(f) to our Quarterly Report on 
Form 10-Q for the quarter ended March 31, 2009.
Amendment No. 7 to Purchase Agreement DCT-025/2003, dated as of December 14, 2009, between Embraer-Empresa Brasileira 
de Aeronautica S.A. and JetBlue Airways Corporation—incorporated by reference to Exhibit 10.17(g) to our Annual Report on  
Form 10-K for the year ended December 31, 2009.
Amendment No. 8 to Purchase Agreement DCT-025/2003, dated as of March 11, 2010, between Embraer-Empresa Brasileira de 
Aeronautica S.A. and JetBlue Airways Corporation—incorporated by reference to Exhibit 10.17(h) to our Quarterly Report on  
Form 10-Q for the quarter ended March 31, 2010.
Amendment No. 9 to Purchase Agreement DCT-025/2003, dated as of May 24, 2010, between Embraer-Empresa Brasileira de 
Aeronautica S.A. and JetBlue Airways Corporation—incorporated by reference to Exhibit 10.17(i) to our Quarterly Report on  
Form 10-Q for the quarter ended June 30, 2010.
Amendment No. 10 to Purchase Agreement DCT-025/2003, dated as of September 10, 2010, between Embraer-Empresa 
Brasileira de Aeronautica S.A. and JetBlue Airways Corporation—incorporated by reference to Exhibit 10.17(j) to our Quarterly 
Report on Form 10-Q for the quarter ended September 30, 2010.

77

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART IV   
ITEM 15 Exhibits and Financial Statement Schedules

10.17(k)**

10.17(l)**

10.17(m)**

10.17(n)**

10.17(o)**

10.17(p)**

10.17(q)**

10.17(r)**

10.17(s)**

10.17(t)**

10.18**

10.18(a)**

10.18(b)**

10.18(c)**

10.18(d)**

10.18(e)**

10.18(f)**

10.18(g)**

10.18(h)**

10.18(i)**

10.18(j)**

10.18(k)**

Amendment No. 11 to Purchase Agreement DCT-025/2003, dated as of October 20, 2011, between Embraer-Empresa Brasileira 
de Aeronautica S.A. and JetBlue Airways Corporation  - incorporated by reference to Exhibit 10.17(k) to our Annual Report on 
Form 10-K for the year ended December 31, 2011.
Amendment No. 12 to Purchase Agreement DCT-025/2003, dated as of October 25, 2011, between Embraer-Empresa Brasileira 
de Aeronautica S.A. and JetBlue Airways Corporation  - incorporated by reference to Exhibit 10.17(l) to our Annual Report on  
Form 10-K for the year ended December 31, 2011.
Amendment No. 13 to Purchase Agreement DCT-025/2003, dated as of July 20, 2012, between Embraer-Empresa Brasileira de 
Aeronautica S.A. and JetBlue Airways Corporation - incorporated by reference to Exhibit 10.17(m) to our Quarterly Report on  
Form 10-Q for the quarter ended September 30, 2012.
Amendment No. 14 to Purchase Agreement DCT-025/2003, dated as of December 3, 2012, between Embraer-Empresa Brasileira 
de Aeronautica S.A. and JetBlue Airways Corporation - incorporated by reference to Exhibit 10.17(n) to our Annual Report on  
Form 10-K for the year ended December 31, 2012.
Amendment No. 15 to Purchase Agreement DCT-025/2003, dated as of December 19, 2012, between Embraer-Empresa 
Brasileira de Aeronautica S.A. and JetBlue Airways Corporation  - incorporated by reference to Exhibit 10.17(m) to our Annual 
Report on Form 10-K for the year ended December 31, 2012.
Amendment No. 16 to Purchase Agreement DCT-025/2003, dated as of January 31, 2013 between Embraer S.A. (formerly known 
as Embraer - Empresa Brasileira de Aeronáutica S.A.) and JetBlue Airways Corporation  - incorporated by reference to Exhibit 
10.17(p) to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2013.
Amendment 17 to Purchase Agreement DCT-025/2003, dated as of May 14, 2013 between Embraer S.A. (formerly known as 
Embraer - Empresa Brasileira de Aeronáutica S.A.) and JetBlue Airways Corporation -incorporated by reference to Exhibit 10.17(q) 
to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2013.
Amendment 18 to Purchase Agreement DCT-025/2003, dated as of June 25, 2013 between Embraer S.A. (formerly known as 
Embraer - Empresa Brasileira de Aeronáutica S.A.) and JetBlue Airways Corporation - incorporated by reference to Exhibit 10.17(r) 
to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2013.
Amendment No. 19 to Purchase Agreement DCT-025/2003, dated as of October 1, 2013 between Embraer S.A. (formerly 
known as Embraer - Empresa Brasileira de Aeronautica S.A.) and JetBlue Airways Corporation—incorporated by reference to 
Exhibit 10.17(s) to our Annual Report on Form 10-K for the year ended December 31, 2013.
Amendment No. 20 to Purchase Agreement DCT-025/2003, dated as of October 24, 2013 between Embraer S.A. (formerly 
known as Embraer - Empresa Brasileira de Aeronáutica S.A.) and JetBlue Airways Corporation—incorporated by reference to 
Exhibit 10.17(t) to our Annual Report on Form 10-K for the year ended December 31, 2013.
Letter Agreement DCT-026/2003, dated June 9, 2003, between Embraer-Empresa Brasileira de Aeronautica S.A. and JetBlue 
Airways Corporation—incorporated by reference to Exhibit 10.5 to our Current Report on Form 8-K dated June 30, 2003.
Amendment No. 1, dated as of July 8, 2005, to Letter Agreement DCT-026/2003, between Embraer-Empresa Brasileira de 
Aeronautica S.A. and JetBlue Airways Corporation—incorporated by reference to Exhibit 10.4 to our Quarterly Report on  
Form 10-Q for the quarter ended September 30, 2005.
Amendment No. 2, dated as of January 5, 2006, to Letter Agreement DCT-026/2003, between Embraer-Empresa Brasileira de 
Aeronautica S.A. and JetBlue Airways Corporation—incorporated by reference to Exhibit 10.22(b) to our Annual Report on  
Form 10-K for the year ended December 31, 2006.
Amendment No. 3, dated as of December 4, 2006, to Letter Agreement DCT-026/2003, between Embraer-Empresa Brasileira de 
Aeronautica S.A. and JetBlue Airways Corporation—incorporated by reference to Exhibit 10.22( c) to our Annual Report on  
Form 10-K for the year ended December 31, 2006.
Amendment No. 4, dated as of October 17, 2007, to Letter Agreement DCT-026/2003, between Embraer-Empresa Brasileria de 
Aeronautica S.A. and JetBlue Airways Corporation—incorporated by reference to Exhibit 10.18(d) to our Annual Report on  
Form 10-K for the year ended December 31, 2007.
Amendment No. 5 to Letter Agreement DCT-026/2003, dated as of March 6, 2008, between Embraer-Empresa Brasileira de 
Aeronautica S.A. and JetBlue Airways Corporation—incorporated by reference to Exhibit 10.2 to our Quarterly Report on  
Form 10-Q for the quarter ended September 30, 2008.
Amendment No. 6 to Letter Agreement DCT-026/2003, dated as of July 18, 2008, between Embraer-Empresa Brasileira de 
Aeronautica S.A. and JetBlue Airways Corporation—incorporated by reference to Exhibit 10.3 to our Quarterly Report on  
Form 10-Q for the quarter ended September 30, 2008.
Amendment No. 7 to Letter Agreement DCT-026/2003, dated as of February 17, 2009, between Embraer-Empresa Brasileira de 
Aeronautica S.A. and JetBlue Airways Corporation—incorporated by reference to Exhibit 10.18(g) to the Quarterly Report on  
Form 10-Q for the quarter ended March 31, 2009.
Amendment No. 8 to Letter Agreement DCT-026/2003, dated as of December 14, 2009, between Embraer-Empresa Brasileira de 
Aeronautica S.A. and JetBlue Airways Corporation—incorporated by reference to Exhibit 10.18(h) to the Annual Report on  
Form 10-K for the year ended December 31, 2009.
Amendment No. 9 to Letter Agreement DCT-026/2003, dated as of March 11, 2010, between Embraer-Empresa Brasileira de 
Aeronautica S.A. and JetBlue Airways Corporation—incorporated by reference to Exhibit 10.18(i) to the Quarterly Report on  
Form 10-Q for the quarter ended March 31, 2010.
Amendment No. 10 to Letter Agreement DCT - 026/2003, dated as of November 18, 2010, between  Embraer-Empresa Brasileira 
de Aeronautica S.A. and JetBlue Airways Corporation—incorporated by reference to Exhibit 10.18(j) to our Annual Report on  
Form 10-K for the year ended December 31, 2013.
Amendment No. 11 to Letter Agreement DCT-026/2003, dated as of October 24, 2013 between Embraer - Empresa Brasileira de 
Aeronáutica S.A. and JetBlue Airways Corporation—incorporated by reference to Exhibit 10.18(k) to our Annual Report on  
Form 10-K for the year ended December 31, 2013.

78

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportITEM 15 Exhibits and Financial Statement Schedules

PART IV   

10.20

10.20(a)

10.21*

10.22*

10.22(a)*

10.23*

10.23(a)*

10.23(b)*

10.23(c)*

10.25

10.26

10.27

10.29

10.30**

10.31(a)*

10.31(b)*

10.31(c)*

10.31(d)*

10.31(e)*

10.33**

10.33(a)**

10.33(b)**

10.33(c)

10.35*

10.35(a)*
10.36

10.36(a)

Agreement of Lease (Port Authority Lease No. AYD-350), dated November 22, 2005, between The Port Authority of New York and 
New Jersey and JetBlue Airways Corporation—incorporated by reference to Exhibit 10.30 to our Annual Report on Form 10-K for 
the year ended December 31, 2005.
Supplement No. 3 to Agreement of Lease, dated July 1, 2012 between The Port Authority of New York and New Jersey and 
JetBlue Airways Corporation-incorporated by reference to Exhibit 10.20(a) to our Quarterly Report on Form 10-Q for the quarter 
ended March 31, 2013.
Amended and Restated 2002 Stock Incentive Plan, dated November 7, 2007, and form of award agreement—incorporated by 
reference to Exhibit 10.21 to the Annual Report for Form 10-K for the year ended December 31, 2008.
JetBlue Airways Corporation Executive Change in Control Severance Plan, dated as of June 28, 2007—incorporated by reference 
to Exhibit 10.1 to our Current Report on Form 8-K, dated June 28, 2007.
JetBlue Airways Corporation Severance Plan, dated May 22, 2014 - incorporated by reference to Exhibit 10.3 to our Current 
Report on Form 10-Q for the quarter ended June 30, 2014.
Employment Agreement, dated February 11, 2008, between JetBlue Airways Corporation and David Barger—incorporated by 
reference to Exhibit 10.1 to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2008.
Amendment to Employment Agreement, dated July 8, 2009, between JetBlue Airways Corporation and David Barger—
incorporated by reference to Exhibit 10.23(a) to our Annual Report on Form 10-K for the year ended December 31, 2009.
Amendment no. 2 to Employment Agreement, dated December 21, 2010, between JetBlue Airways Corporation and David 
Barger—incorporated by reference to Exhibit 10.23(b) to our Current Report on Form 8-K filed on December 22, 2010.
Amendment no. 3 to Employment Agreement, dated December [13], 2013, between JetBlue Airways Corporation and David 
Barger—incorporated by reference to Exhibit 10.23(c) to our Annual Report on Form 10-K for the year ended December 31, 2013.
Share Lending Agreement, dated as of May 29, 2008 between JetBlue Airways Corporation and Morgan Stanley Capital Services, 
Inc.—incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on May 30, 2008.
Pledge and Escrow Agreement (Series A Debentures) dated as of June 4, 2008 among JetBlue Airways Corporation, Wilmington 
Trust Company, as Trustee, and Wilmington Trust Company, as Escrow Agent—incorporated by reference to Exhibit 10.1 to our 
Current Report on Form 8-K filed on June 5, 2008.
Pledge and Escrow Agreement (Series B Debentures) dated as of June 4, 2008 among JetBlue Airways Corporation, Wilmington 
Trust Company, as Trustee, and Wilmington Trust Company, as Escrow Agent—incorporated by reference to Exhibit 10.2 to our 
Current Report on Form 8-K filed on June 5, 2008.
Option Letter Agreement, dated as of June 3, 2009, between JetBlue Airways Corporation and Deutsche Lufthansa AG—
incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on June 4, 2009.
Sublease by and between JetBlue Airways Corporation and Metropolitan Life Insurance Company—incorporated by reference to 
Exhibit 10.30 to our Quarterly Report on Form 10-Q for the quarter ended September 30, 2010.
JetBlue Airways Corporation 2011 Incentive Compensation Plan—incorporated by reference to Exhibit 10.31(a) to our Quarterly 
Report on Form 10-Q for the quarter ended June 30, 2011.
JetBlue Airways Corporation 2011 Incentive Compensation Plan forms of award agreement—incorporated by reference to Exhibit 
10.31(b) to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2011.
JetBlue Airways Corporation 2011 Incentive Compensation Plan form of Performance Share Unit Award Agreement-incorporated 
by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on April 12, 2013.
JetBlue Airways Corporation 2011 Incentive Compensation Plan forms of amended award agreement—incorporated by reference 
to Exhibit 10.31(d) to our Annual Report on Form 10-K for the year ended December 31, 2013.
Form of Performance Share Unit Award Agreement as amended - incorporated by reference to Exhibit 10.1 to our Quarterly Report 
on Form 10-Q for the quarter ended September 30, 2014.
Airbus A320 Family Purchase Agreement, dated October 19, 2011, between Airbus S.A.S. and JetBlue Airways Corporation, 
including Letter Agreements 1-8, each dated as of same date - incorporated by reference to Exhibit 10.33 to our Annual Report on 
Form 10-K for the year ended December 31, 2011.
Letter Agreement 9 to Airbus A320 Family Purchase Agreement, dated December 19, 2012, between Airbus S.A.S. and JetBlue 
Airways Corporation - incorporated by reference to Exhibit 10.33(a) to our Annual Report on Form 10-K for the year ended 
December 31, 2012.
Amendment No. 1 to Airbus A320 Family Purchase Agreement, dated as of October 25, 2013, between Airbus S.A.S. and JetBlue 
Airways Corporation, including Amended and Restated Letter Agreements 1, 2, 3 and 6, each dated as of the same date—
incorporated by reference to Exhibit 10.33(b) to our Annual Report on Form 10-K for the year ended December 31, 2013.
Amendment No. 2 to Airbus A320 Family Purchase Agreement, dated as of November 19, 2014, between Airbus S.A.S. and 
JetBlue Airways Corporation, including Amended and Restated Letter Agreements 1 and 3, each dated as of the same date.
JetBlue Airways Corporation 2011 Crewmember Stock Purchase Plan - incorporated by reference to Exhibit 10.35 to our Annual 
Report on Form 10-K for the year ended December 31, 2011.
Amended and Restated JetBlue Airways Corporation 2011 Crewmember Stock Purchase Plan.
Credit and Guarantee Agreement dated as of April 23, 2013 among JetBlue Airways Corporation, as Borrower, The Subsidiaries of 
the Borrower Party Hereto, as Guarantors, The Lenders Party Hereto, and Citibank, N.A., as Administrative Agent-incorporated by 
reference to Exhibit 10.1 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2013.
First Amendment to the Credit and Guaranty Agreement, dated as of November 3, 2014, among JetBlue Airways Corporation, as 
Borrower, the subsidiaries of JetBlue party thereto from time to time, as guarantors, the lenders party thereto from time to time and 
Citibank, N.A., as administrative agent.

79

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART IV   
ITEM 15 Exhibits and Financial Statement Schedules

10.37

10.38**

10.38(a)***

10.39*

10.40

Slot and Gate Security Agreement dated as of April 23, 2013 between JetBlue Airways Corporation, as Grantor, and Citibank, N.A., 
as Administrative Agent -- incorporated by reference to Exhibit 10.2 to our Quarterly Report on Form 10-Q for the quarter ended 
June 30, 2013.
Engine Services Agreement between JetBlue Airways Corporation and GE Engine Services, LLC, dated as of May 1, 2013 - 
incorporated by reference to Exhibit 10.3 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2013.
Amendment No. 1 to Engine Services Agreement between JetBlue Airways Corporation and GE Engine Services, LLC, dated as  
of December 23, 2014.
JetBlue Airways Corporation Retirement Plan, amended and restated effective as of January 1, 2014.

JetBlue Airways Corporation Separation and General Release Agreement between JetBlue Airways Corporation and Robert 
Maruster, dated June 3, 2014, incorporated by reference to Exhibit 10.1 to our Quarterly Report on Form 10-Q for the quarter 
ended June 30, 2014.

10.41*

Employment Agreement, dated February 12, 2015, between JetBlue Airways Corporation and Robin Hayes.

12.1

21.1

23

31.1

31.2

32

99.2

101.INS

101.SCH

101.DEF

101.CAL

101.LAB

Computation of Ratio of Earnings to Fixed Charges.

List of Subsidiaries.

Consent of Ernst & Young LLP.

Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer.

Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer.

Section 1350 Certifications, furnished herewith.

Letter of Approval from the City of Long Beach Department of Public Works, dated May 22, 2001, approving City Council 
Resolution C-27843 regarding Flight Slot Allocation at Long Beach Municipal Airport—incorporated by reference to Exhibit 99.2 to 
the Registration Statement on Form S-1, as amended (File No. 333-82576).

XBRL Instance Document

XBRL Taxonomy Extension Schema Document

XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT

XBRL Taxonomy Extension Calculation Linkbase Document

XBRL Taxonomy Extension Labels Linkbase Document

XBRL Taxonomy Extension Presentation Linkbase Document

Compensatory plans in which the directors and executive officers of JetBlue participate.

101.PRE
* 
**  Pursuant to a Confidential Treatment Request under Rule 24b-2 filed with and approved by the SEC, portions of this exhibit have been omitted.
***  Pursuant to 17 CFR 240.24b-2, confidential information has been omitted and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment 

Request filed with the Commission.

(1)  Documents substantially identical in all material respects to the document filed as Exhibit 4.4 to our Current Report on Form 8-K dated March 24, 2004 (which exhibit relates to formation 
of JetBlue Airways Pass Through Trust, Series 2004-1G-1-O and the issuance of Three-Month LIBOR plus 0.375% JetBlue Airways Pass Through Trust, Series 2004-1G-1-O, Pass Through 
Certificates) have been entered into with respect to formation of each of JetBlue Airways Pass Through Trusts, Series 2004-1G-2-O and Series 2004-1C-O and the issuance of each of 
Three-Month LIBOR plus 0.420% JetBlue Airways Pass Through Trust, Series 2004-1G-2-O and Three-Month LIBOR plus 4.250% JetBlue Airways Pass Through Trust, Series 2004-1C-O. 
Pursuant to Instruction 2 of Item 601 of Regulation S-K, Exhibit 99.1, incorporated by reference to our Current Report on Form 8-K dated March 24, 2004, sets forth the terms by which 
such substantially identical documents differ from Exhibit 4.7(c).

(2)  Documents substantially identical in all material respects to the document filed as Exhibit 4.14 our Current Report on Form 8-K dated March 24, 2004 (which exhibit relates to an above-cap 
liquidity facility provided on behalf of the JetBlue Airways Corporation Pass Through Trust 2004-1G-1-O) have been entered into with respect to the above-cap liquidity facilities provided 
on behalf of the JetBlue Airways Corporation Pass Through Trust 2004-1G-2-O and the JetBlue Airways Corporation Pass Through Trust 2004-1C-O. Pursuant to Instruction 2 of Item 601 
of Regulation S-K, Exhibit 99.2, incorporated by reference to our Current Report on Form 8-K dated March 24, 2004, sets forth the terms by which such substantially identical documents 
differ from Exhibit 4.7(m).

(3)  Documents substantially identical in all material respects to the document filed as Exhibit 4.4 to our Current Report on Form 8-K dated November 9, 2004 (which exhibit relates to formation 
of JetBlue Airways Pass Through Trust, Series 2004-2G-1-O and the issuance of Three-Month LIBOR plus 0.375% JetBlue Airways Pass Through Trust, Series 2004-2G-1-O, Pass Through 
Certificates) have been entered into with respect to formation of each of the JetBlue Airways Pass Through Trusts, Series 2004-2G-2-O and Series 2004-2C-O and the issuance of each of 
Three-Month LIBOR plus 0.450% JetBlue Airways Pass Through Trust, Series 2004-2G-2-O and Three-Month LIBOR plus 3.100% JetBlue Airways Pass Through Trust, Series 2004-2C-O. 
Pursuant to Instruction 2 of Item 601 of Regulation S-K, Exhibit 99.1, incorporated by reference to our Current Report on Form 8-K dated November 9, 2004, sets forth the terms by which 
such substantially identical documents differ from Exhibit 4.8(c).

(4)  Documents substantially identical in all material respects to the document filed as Exhibit 4.14 to our Current Report on Form 8-K dated November 9, 2004 (which exhibit relates to an 
above-cap liquidity facility provided on behalf of the JetBlue Airways Corporation Pass Through Trust 2004-2G-1-O) have been entered into with respect to the above-cap liquidity facilities 
provided on behalf of the JetBlue Airways Corporation Pass Through Trust 2004-2G-2-O and the JetBlue Airways Corporation Pass Through Trust 2004-2C-O. Pursuant to Instruction 2 of 
Item 601 of Regulation S-K, Exhibit 99.2, incorporated by reference to our Current Report on Form 8-K dated November 9, 2004, sets forth the terms by which such substantially identical 
documents differ from Exhibit 4.8(m).

80

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportITEM 15 Exhibits and Financial Statement Schedules

PART IV   

Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders of 
JetBlue Airways Corporation

We have audited the consolidated financial statements of JetBlue Airways Corporation as of December 31, 2014 and 2013, and for each of the three 
years in the period ended December 31, 2014, and have issued our report thereon dated February 12, 2015 (included elsewhere in this Annual Report 
on Form 10-K). Our audits also included the financial statement schedule listed in Item 15(2) of this Annual Report on Form 10-K. This schedule is the 
responsibility of the Company’s management. Our responsibility is to express an opinion on this schedule based on our audits.

In our opinion, the financial statement schedule referred to above, when considered in relation to the basic financial statements taken as a whole, 
presents fairly in all material respects the information set forth therein.

/s/ Ernst & Young LLP

New York, New York

February 12, 2015

81

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART IV   
ITEM 15 Exhibits and Financial Statement Schedules

JetBlue Airways Corporation

Schedule II—Valuation and Qualifying Accounts

(in thousands)

Additions

Balance at
beginning of
period

Charged to
Costs and
Expenses

Charged to
Other
Accounts

Deductions

Balance at 
end of period

$

$

$

$

$

$

5,795
6,355
20,149

6,593
5,046
20,268

7,586
3,886
20,872

2,949
1,719

$ — $
—
—

—  

3,618
1,309

$ — $
—
—

—  

5,472
1,250

$ — $
—
—

—  

3,014(1) $
—(3)
19,752(2)

5,730
8,074
397

4,416(1) $
—(3)
119(2)

5,795
6,355
20,149

6,465(1) $
90(3)
604(2)

6,593
5,046
20,268

Description
Year Ended December 31, 2014
Allowances deducted from asset accounts:

Allowance for doubtful accounts
Allowance for obsolete inventory parts
Valuation allowance for deferred tax assets

Year Ended December 31, 2013
Allowances deducted from asset accounts:

Allowance for doubtful accounts
Allowance for obsolete inventory parts
Valuation allowance for deferred tax assets

Year Ended December 31, 2012
Allowances deducted from asset accounts:

Allowance for doubtful accounts
Allowance for obsolete inventory parts
Valuation allowance for deferred tax assets
(1)  Uncollectible accounts written off, net of recoveries.
(2)  Attributable to recognition and write-off of deferred tax assets.
(3) 

Inventory scrapped.

82

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EXHIBIT 12.1  Computation of Ratio of Earnings to Fixed Charges

ITEM 15 Exhibits and Financial Statement Schedules

PART IV   

(in millions, except ratios)
Earnings:

Income before income taxes(a)
Less: Capitalized interest
Add:
Fixed charges
Amortization of capitalized interest

Adjusted earnings
Fixed charges:

Interest expense
Amortization of debt costs
Rent expense representative of interest

$

$

$

2014

2013

2012

2011

2010

Year Ended December 31,

623
(14)

237
4

850

142
6
89
237
3.59

$

$

$

279
(13)

255
3

524

154
8
93
255
2.05

$

$

$

209
(8)

270
2

473

167
9
94
270
1.75

$

$

$

$

145
(5)

273
2

415

171
8
94
273
1.52

$

$

$

$

161
(4)

272
2

431

172
8
92
272
1.59

TOTAL FIXED CHARGES
RATIO OF EARNINGS TO FIXED CHARGES(a)
(a)  Excluding the $241 million gain on the sale of LiveTV in 2014 would result in a ratio of earnings to fixed charges of 2.57.

$

$

$

EXHIBIT 21.1  List of Subsidiaries as of December 31, 2014 

BlueBermuda Insurance, LTD (Bermuda corporation)

EXHIBIT 23 

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the following Registration Statements:

(1)  Registration Statement (Form S-8 No. 333-86444) pertaining to the JetBlue Airways Corporation 2002 Stock Incentive Plan,

(2)  Registration Statement (Form S-8 No. 333-129238) pertaining to the JetBlue Airways Corporation Crewmember Stock Purchase Plan,

(3)  Registration Statement (Form S-8 No. 333-161565) pertaining to the JetBlue Airways Corporation 2002 Stock Incentive Plan and the JetBlue 

Airways Corporation Crewmember Stock Purchase Plan,

(4)  Registration Statement (Form S-8 No. 333-174947) pertaining to the JetBlue Airways Corporation 2011 Incentive Compensation Plan and the 

JetBlue Airways Corporation 2011 Crewmember Stock Purchase Plan,

(5)  Registration Statement (Form S-3 No. 333-181058) of JetBlue Airways Corporation, and

(6)  Registration Statement (Form S-3 No. 333-184730) of JetBlue Airways Corporation;

of our reports dated February 12, 2015, with respect to the consolidated financial statements of JetBlue Airways Corporation, the effectiveness of internal 
control over financial reporting of JetBlue Airways Corporation and the financial statement schedule of JetBlue Airways Corporation listed in Item 15(2) 
included in this Annual Report (Form 10-K) of JetBlue Airways Corporation for the year ended December 31, 2014.

/s/ Ernst & Young LLP

New York, New York

February 12, 2015

83

JETBLUE AIRWAYS CORPORATION - 2014 Annual Report 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PART IV   
ITEM 15 Exhibits and Financial Statement Schedules

EXHIBIT 31.1 

 Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer

I, David Barger, certify that:

1. 

2. 

3. 

4. 

I have reviewed this Annual Report on Form 10-K of JetBlue Airways Corporation; 

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make 
the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered 
by this report; 

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the 
financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in 
Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) 
for the registrant and have: 

a) 

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 
to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within 
those entities, particularly during the period in which this report is being prepared;

b)  designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our 
supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for 
external purposes in accordance with generally accepted accounting principles;

c) 

evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the 
effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)  disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent 
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially 
affect, the registrant’s internal control over financial reporting; and

5. 

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the 
registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): 

a) 

b) 

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably 
likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control 
over financial reporting.

Date: February 12, 2015

By:

/s/ DAVID BARGER
Chief Executive Officer

84

JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportITEM 15 Exhibits and Financial Statement Schedules

PART IV   

EXHIBIT 31.2  Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer

I, Mark D. Powers, certify that:

1. 

2. 

3. 

4. 

I have reviewed this Annual Report on Form 10-K of JetBlue Airways Corporation; 

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make 
the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered 
by this report; 

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the 
financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in 
Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) 
for the registrant and have: 

a) 

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 
to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within 
those entities, particularly during the period in which this report is being prepared;

b)  designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our 
supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for 
external purposes in accordance with generally accepted accounting principles;

c) 

evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the 
effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)  disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent 
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially 
affect, the registrant’s internal control over financial reporting; and

5. 

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the 
registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):  

a) 

b) 

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably 
likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control 
over financial reporting.

Date: February 12, 2015

By:

/s/ MARK D. POWERS
Chief Financial Officer

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JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportPART IV   
ITEM 15 Exhibits and Financial Statement Schedules

EXHIBIT 32 

Section 1350 Certifications

In connection with the Annual Report of JetBlue Airways Corporation on Form 10-K for the year ended December 31, 2014, as filed with the Securities 
and Exchange Commission on February 12, 2015 (the “Report”), the undersigned, in the capacities and on the dates indicated below, each hereby 
certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Report fully complies 
with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)) and the information contained in the 
Report fairly presents, in all material respects, the financial condition and results of operations of JetBlue Airways Corporation. 

Date: February 12, 2015

Date: February 12, 2015

By:

By:

/s/ DAVID BARGER
Chief Executive Officer

/s/ MARK D. POWERS
Chief Financial Officer

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JETBLUE AIRWAYS CORPORATION - 2014 Annual ReportSAFETY • CARING • INTEGRITY • PASSION • FUN