Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 31, 2015 | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | JETBLUE AIRWAYS CORP |
Entity Central Index Key | 1158463 |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | 31-Mar-15 |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | FALSE |
Entity Common Stock, Shares Outstanding | 313,263,657 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
CURRENT ASSETS | ||
Cash and cash equivalents | $599 | $341 |
Investment securities | 399 | 367 |
Receivables, less allowance (2015-$6; 2014-$6) | 155 | 136 |
Prepaid expenses and other | 358 | 356 |
Total current assets | 1,511 | 1,200 |
PROPERTY AND EQUIPMENT | ||
Flight equipment | 6,360 | 6,233 |
Predelivery deposits for flight equipment | 205 | 207 |
Flight Equipment, gross plus deposits | 6,565 | 6,440 |
Less accumulated depreciation | 1,406 | 1,354 |
Flight Equipment, Net | 5,159 | 5,086 |
Other property and equipment | 848 | 816 |
Less accumulated depreciation | 263 | 252 |
Property plant and equipment other net | 585 | 564 |
Assets constructed for others | 561 | 561 |
Less accumulated depreciation | 144 | 139 |
Asset constructed for others net | 417 | 422 |
Total property and equipment | 6,161 | 6,072 |
OTHER ASSETS | ||
Investment securities | 98 | 60 |
Restricted cash | 62 | 61 |
Other | 472 | 446 |
Total other assets | 632 | 567 |
TOTAL ASSETS | 8,304 | 7,839 |
CURRENT LIABILITIES | ||
Accounts payable | 248 | 208 |
Air traffic liability | 1,139 | 973 |
Accrued salaries, wages and benefits | 210 | 203 |
Other accrued liabilities | 342 | 287 |
Current maturities of long-term debt and capital leases | 264 | 265 |
Total current liabilities | 2,203 | 1,936 |
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS | 1,917 | 1,968 |
CONSTRUCTION OBLIGATION | 484 | 487 |
DEFERRED TAXES AND OTHER LIABILITIES | ||
Deferred income taxes | 897 | 832 |
Other | 94 | 87 |
Total deferred taxes and other liabilities | 991 | 919 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, $0.01 par value; 25,000,000 shares authorized, none issued | 0 | 0 |
Common stock, $0.01 par value; 900,000,000 shares authorized, 373,031,324 and 368,883,960 shares issued and 313,263,657 and 309,871,309 shares outstanding at March 31, 2015 and December 31, 2014, respectively | 4 | 4 |
Treasury stock, at cost; 59,767,667 and 59,012,651 shares at March 31, 2015 and December 31, 2014, respectively | -138 | -125 |
Additional paid-in capital | 1,754 | 1,711 |
Retained earnings | 1,139 | 1,002 |
Accumulated other comprehensive loss | -50 | -63 |
Total stockholders’ equity | 2,709 | 2,529 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $8,304 | $7,839 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $6 | $6 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 900,000,000 | 900,000,000 |
Common stock, shares issued | 373,031,324 | 368,883,960 |
Common stock, shares, outstanding | 313,263,657 | 309,871,309 |
Treasury stock, shares | 59,767,667 | 59,012,651 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
OPERATING REVENUES | ||
Passenger | $1,408 | $1,230 |
Other | 115 | 119 |
Total operating revenues | 1,523 | 1,349 |
OPERATING EXPENSES | ||
Aircraft fuel and related taxes | 335 | 464 |
Salaries, wages and benefits | 375 | 329 |
Landing fees and other rents | 83 | 77 |
Depreciation and amortization | 87 | 78 |
Aircraft rent | 31 | 31 |
Sales and marketing | 60 | 54 |
Maintenance materials and repairs | 113 | 94 |
Other operating expenses | 186 | 181 |
Total operating expenses | 1,270 | 1,308 |
OPERATING INCOME | 253 | 41 |
OTHER INCOME (EXPENSE) | ||
Interest expense | -34 | -37 |
Capitalized interest | 2 | 3 |
Interest income (expense) and other | 1 | -1 |
Total other income (expense) | -31 | -35 |
INCOME BEFORE INCOME TAXES | 222 | 6 |
Income tax expense | 85 | 2 |
NET INCOME | $137 | $4 |
EARNINGS PER COMMON SHARE: | ||
Earnings Per Share, Basic | $0.44 | $0.01 |
Earnings Per Share, Diluted | $0.40 | $0.01 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME | $137 | $4 |
Changes in fair value of derivative instruments, net of reclassifications into earnings (net of $8 and $(1) of taxes in 2015 and 2014, respectively) | 13 | -2 |
Total other comprehensive income (loss) | 13 | -2 |
COMPREHENSIVE INCOME | $150 | $2 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
QTD net of $(x) and $x of taxes in 2015 and 2014 | $8 | ($1) |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $137 | $4 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Deferred income taxes | 62 | 2 |
Depreciation | 67 | 68 |
Amortization | 20 | 14 |
Stock-based compensation | 5 | 7 |
Gain on sale of assets | -9 | 0 |
Collateral returned for derivative instruments | 20 | 0 |
Changes in certain operating assets and liabilities | 224 | 213 |
Other, net | 2 | 14 |
Net cash provided by operating activities | 528 | 322 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | -148 | -158 |
Predelivery deposits for flight equipment | -20 | -32 |
Purchase of held-to-maturity investments | -129 | -66 |
Proceeds from the maturities of held-to-maturity investments | 94 | 104 |
Purchase of available-for-sale securities | -55 | -200 |
Proceeds from the sale of available-for-sale securities | 20 | 308 |
Other, net | 1 | -2 |
Net cash used in investing activities | -237 | -46 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Issuance of common stock | 30 | 0 |
Issuance of long-term debt | 0 | 248 |
Repayment of long-term debt and capital lease obligations | -55 | -237 |
Other, net | -8 | -11 |
Net cash used in financing activities | -33 | 0 |
INCREASE IN CASH AND CASH EQUIVALENTS | 258 | 276 |
Cash and cash equivalents at beginning of period | 341 | 225 |
Cash and cash equivalents at end of period | $599 | $501 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accounting Policies [Abstract] | |||||||||
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||
Basis of Presentation | |||||||||
JetBlue predominately provides air transportation services across the United States, the Caribbean and Latin America. Our condensed consolidated financial statements include the accounts of JetBlue Airways Corporation, or JetBlue, and our subsidiaries which are collectively referred to as “we” or the “Company”. All majority-owned subsidiaries are consolidated on a line by line basis, with all intercompany transactions and balances having been 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 condensed consolidated financial statements. These condensed consolidated financial statements and related notes should be read in conjunction with our 2014 audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014, or our 2014 Form 10-K. | |||||||||
These condensed consolidated financial statements are unaudited and have been prepared by us following the rules and regulations of the Securities and Exchange Commission, or the SEC. In our opinion they reflect all adjustments, including normal recurring items, that are necessary to present fairly the results for interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, have been condensed or omitted as permitted by such rules and regulations; however, we believe that the disclosures are adequate to make the information presented not misleading. Operating results for the periods presented herein are not necessarily indicative of the results that may be expected for the entire fiscal year. | |||||||||
Investment securities | |||||||||
Investment securities consist of available-for-sale investment securities and held-to-maturity investment securities. We use a specific identification method to determine the cost of the securities when they are sold. | |||||||||
Held-to-maturity investment securities. The contractual maturities of the corporate bonds we held as of March 31, 2015 were not greater than 24 months. We did not record any significant gains or losses on these securities during the three months ended March 31, 2015 or 2014. The estimated fair value of these investments approximated their carrying value as of March 31, 2015 and December 31, 2014, respectively. | |||||||||
The carrying values of investment securities consisted of the following at March 31, 2015 and December 31, 2014 (in millions): | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(unaudited) | |||||||||
Available-for-sale securities | |||||||||
Time deposits | $ | 125 | $ | 125 | |||||
Commercial paper | 35 | — | |||||||
160 | 125 | ||||||||
Held-to-maturity securities | |||||||||
Time deposits | $ | 48 | $ | 48 | |||||
Corporate bonds | 289 | 254 | |||||||
337 | 302 | ||||||||
Total | $ | 497 | $ | 427 | |||||
New Accounting Pronouncements | |||||||||
In August 2014, the Financial Accounting Standards Board (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 FASB Accounting Standards 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 permitted. The impact of this standard on our disclosures will be dependent on our financial condition at the time of adoption. | |||||||||
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, as originally written, 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 condensed 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 TrueBlue points earned on JetBlue purchases and will require us to re-value our liability with a relative fair value approach. During April 2015, the FASB proposed certain modifications to the originally written guidance including a deferral of the effective date for one year and allowing early adoption for annual periods beginning after December 15, 2016. These proposed changes are still subject to final FASB approval. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | SHARE-BASED COMPENSATION |
During the three months ended March 31, 2015, 1.8 million restricted stock units vested and 0.9 million restricted stock units were granted under our 2011 Incentive Compensation Plan. In addition, 2.4 million stock options were exercised under our 2002 Stock Incentive Plan during the three months ended March 31, 2015. We have not granted any stock options since 2008 and all previously granted stock options were fully expensed in 2012. |
Longterm_Debt_and_Shortterm_Bo
Long-term Debt and Short-term Borrowings | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||
Long-term Debt, Short-term Borrowings, and Capital Lease Obligations | LONG TERM DEBT, SHORT TERM BORROWINGS, AND CAPITAL LEASE OBLIGATIONS | ||||||||||||||||
During the three months ended March 31, 2015, we made scheduled principal payments of $55 million on our outstanding long-term debt and capital lease obligations. | |||||||||||||||||
Aircraft, engines, other equipment and facilities with a net book value of $3.20 billion at March 31, 2015 have been pledged as security under various loan agreements. As of March 31, 2015, we owned, free of encumbrance, 34 Airbus A320 aircraft, seven Airbus A321 aircraft and 33 spare engines. At March 31, 2015, the weighted average interest rate of all of our long-term debt and capital lease obligations was 4.7% and scheduled maturities were $213 million for the remainder of 2015, $464 million in 2016, $216 million in 2017, $227 million in 2018, $227 million in 2019 and $834 million thereafter. | |||||||||||||||||
The carrying amounts and estimated fair values of our long-term debt at March 31, 2015 and December 31, 2014 were as follows (in millions): | |||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||
Public Debt | |||||||||||||||||
Floating rate enhanced equipment notes: | |||||||||||||||||
Class G-1, due 2016 | $ | 34 | $ | 33 | $ | 35 | $ | 35 | |||||||||
Class G-2, due 2016 | 185 | 182 | 185 | 180 | |||||||||||||
Fixed rate special facility bonds, due through 2036 | 77 | 78 | 77 | 78 | |||||||||||||
6.75% convertible debentures due in 2039 | 86 | 340 | 86 | 283 | |||||||||||||
5.5% convertible debentures due in 2038 | 68 | 292 | 68 | 241 | |||||||||||||
Non-Public Debt | |||||||||||||||||
Fixed rate enhanced equipment notes, due through 2023 | $ | 207 | $ | 219 | $ | 217 | $ | 224 | |||||||||
Floating rate equipment notes, due through 2025 | 269 | 273 | 276 | 277 | |||||||||||||
Fixed rate equipment notes, due through 2026 | 1,090 | 1,203 | 1,119 | 1,211 | |||||||||||||
Total* | $ | 2,016 | $ | 2,620 | $ | 2,063 | $ | 2,529 | |||||||||
*Total excludes capital lease obligations of $165 million for March 31, 2015 and $170 million for December 31, 2014. | |||||||||||||||||
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 enhanced equipment notes and our special facility bonds were based on quoted market prices in markets with low trading volumes. The fair value of our convertible debentures were based on 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 9 for an explanation of the fair value hierarchy structure. | |||||||||||||||||
We have financed certain aircraft with Enhanced Equipment Trust Certificates (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 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 FASB Codification, and must be considered for consolidation in our condensed consolidated financial statements. Our assessment of our EETCs considers both quantitative and qualitative factors including the purpose for which these trusts were established and the nature of the risks in each. The main purpose of the trust 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 because our involvement in them is limited to principal and interest payments on the related notes, the trusts were not set up to pass along variability created by credit risk to us and the likelihood of our defaulting on the notes. Therefore, we have not consolidated these trusts in our condensed consolidated financial statements. |
Comprehensive_Income
Comprehensive Income | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||
Accumulated Other Comprehensive Income | 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 the accumulated other comprehensive income (loss), net of taxes for the three months ended March 31, 2015 and March 31, 2014 are as follows (in millions, unaudited): | |||||||||||||
Aircraft Fuel | Interest Rate | Total | |||||||||||
Derivatives (1) | Swaps (2) | ||||||||||||
Beginning accumulated losses at December 31, 2014 | $ | (63 | ) | $ | — | $ | (63 | ) | |||||
Reclassifications into earnings (net of $13 of taxes) | 22 | — | 22 | ||||||||||
Change in fair value (net of $(5) of taxes) | (9 | ) | — | (9 | ) | ||||||||
Ending accumulated losses at March 31, 2015 | $ | (50 | ) | $ | — | $ | (50 | ) | |||||
Aircraft Fuel | Interest Rate | Total | |||||||||||
Derivatives (1) | Swaps (2) | ||||||||||||
Beginning accumulated income (losses) at December 31, 2013 | $ | 1 | $ | (1 | ) | $ | — | ||||||
Reclassifications into earnings (net of $0 of taxes) | 1 | — | 1 | ||||||||||
Change in fair value (net of $(1) of taxes) | (3 | ) | — | (3 | ) | ||||||||
Ending accumulated losses at March 31, 2014 | $ | (1 | ) | $ | (1 | ) | $ | (2 | ) | ||||
__________________________ | |||||||||||||
(1) Reclassified to aircraft fuel expense | |||||||||||||
(2) Reclassified to interest expense |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share | EARNINGS PER SHARE | ||||||||
The following table shows how we computed basic and diluted earnings per common share (in millions, unaudited): | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Numerator: | |||||||||
Net income | $ | 137 | $ | 4 | |||||
Effect of dilutive securities: | |||||||||
Interest on convertible debt, net of income taxes and profit sharing | 1 | — | |||||||
Net income applicable to common stockholders after assumed conversions for diluted earnings per share | $ | 138 | $ | 4 | |||||
Denominator: | |||||||||
Weighted average shares outstanding for basic earnings per share | 310.2 | 294.8 | |||||||
Effect of dilutive securities: | |||||||||
Employee stock options and restricted stock units | 3.2 | 2.4 | |||||||
Convertible debt | 32.8 | — | |||||||
Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share | 346.2 | 297.2 | |||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Shares excluded from EPS calculation (in millions): | |||||||||
Shares issuable upon conversion of our convertible debt as assumed conversion would be antidilutive | — | 48.4 | |||||||
Shares issuable upon exercise of outstanding stock options or vesting of restricted stock units as assumed exercise would be antidilutive | — | 11.9 | |||||||
As of March 31, 2015, 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 more fully in Note 2 to our 2014 Form 10-K, 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 March 31, 2015, was approximately $27 million. |
Employee_Retirement_Plan
Employee Retirement Plan | 3 Months Ended |
Mar. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Retirement Plan | EMPLOYEE RETIREMENT PLAN |
We sponsor a retirement savings 401(k) defined contribution plan, or the Plan, covering all of our employees where we match employee contributions of up to 5% of eligible wages. Our non-management employees receive a discretionary contribution of 5% of eligible wages, which we refer to as Retirement Plus. They are also eligible to receive profit sharing, calculated as 15% of adjusted pre-tax income, reduced by the Retirement Plus contributions and special items. Certain Federal Aviation Administration, or FAA-licensed employees, 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 for the three months ended March 31, 2015 and 2014 was $53 million and $24 million, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES |
As of March 31, 2015, our firm aircraft orders consisted of 31 Airbus A321 aircraft, 25 Airbus A320 new engine option (A320neo) aircraft, 45 Airbus A321neo aircraft, 24 EMBRAER 190 aircraft and 10 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 $500 million for the remainder of 2015, $540 million in 2016, $585 million in 2017, $510 million in 2018, $935 million in 2019 and $3.5 billion thereafter. We are scheduled to receive ten new Airbus A321 aircraft during the remainder of 2015. | |
As part of the sale of LiveTV, refer to Note 10, a $3 million liability relating to Airfone was assigned to JetBlue under 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. | |
As of March 31, 2015, we have approximately $33 million in assets serving as collateral for letters of credit relating to a certain number of our leases. These are included in restricted cash and expire at the end of the related lease terms. Additionally, we had approximately $26 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. | |
Environmental Liability | |
In 2012, during performance of required environmental testing, the presence of light non-aqueous phase petroleum liquid was discovered in certain subsurface monitoring wells on the property at John F. Kennedy International Airport (JFK). Our lease with the Port Authority of New York and New Jersey, or 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 to assist us in determining steps to remediate it. A preliminary estimate indicated costs of remediation could range from approximately $1 million up to $3 million. As of March 31, 2015, we have accrued $2 million for current estimates of remediation costs, which is included in current liabilities on our condensed 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 some of our exposure in this matter. | |
Based upon information currently known to us, we do not expect this environmental proceeding to have a material adverse effect on our condensed consolidated balance sheets, results of operations, or cash flows. However, it is not possible to predict with certainty the impact of future environmental compliance requirements or the costs of resolving this 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 and regulatory matters is always uncertain. The Company believes it has valid defenses to the legal or regulatory 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 accruals, using available information, we evaluate the likelihood of an unfavorable outcome in legal and regulatory proceedings to which we are a party 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. While it is possible that resolution of one or more of the 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 confirmed the arbitrator's Final Award and denied the Claimants' motion to vacate the award. The Claimants have appealed. | |
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. As part of JetBlue's sale of LiveTV to Thales, JetBlue agreed to indemnify Thales for certain losses and retained certain rights to potential recovery received as a result of the counter claims asserted against WestJet. In March 2015, all claims and counterclaims between the parties involved were dismissed with prejudice, each party bearing its own fees. The resolution of their claim did not have a financial impact on JetBlue. | |
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 expect the result of the election to have a material impact on our financial condition. |
Financial_Derivative_Instrumen
Financial Derivative Instruments and Risk Management | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||
Financial Derivative Instruments and Risk Management | 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 sharp increases 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 which 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 during which the underlying fuel is consumed. | ||||||||||||||||||||
Ineffectiveness occurs, 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. Ineffectiveness is recognized immediately in interest income and other. If a hedge does not qualify for hedge accounting, the periodic changes in its fair value are also recognized 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 March 31, 2015 related to our outstanding fuel hedging contracts that were designated as cash flow hedges for accounting purposes. | ||||||||||||||||||||
Jet fuel swap | Jet fuel collar agreements | Heating oil collar agreements | Total | |||||||||||||||||
agreements | ||||||||||||||||||||
Second Quarter 2015 | 10 | % | 10 | % | — | % | 20 | % | ||||||||||||
Third Quarter 2015 | 5 | % | — | % | 9 | % | 14 | % | ||||||||||||
Fourth Quarter 2015 | 5 | % | — | % | 10 | % | 15 | % | ||||||||||||
Interest rate swaps | ||||||||||||||||||||
The interest rate hedges we had outstanding as of March 31, 2015 effectively swap floating rate debt for fixed rate debt. They take 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 March 31, 2015, we had $34 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. | ||||||||||||||||||||
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 2015 or 2014. All related unrealized losses were deferred in accumulated other comprehensive loss. We did not recognize any material additional interest expense in the three months ended March 31, 2015 and 2014. | ||||||||||||||||||||
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): | ||||||||||||||||||||
As of | ||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Fuel derivatives | ||||||||||||||||||||
Longest remaining term (months) | 9 | 12 | ||||||||||||||||||
Hedged volume (barrels, in thousands) | 2,007 | 2,808 | ||||||||||||||||||
Liability fair value recorded in other accrued liabilities (1) | $ | 81 | $ | 102 | ||||||||||||||||
Estimated amount of existing losses expected to be reclassified into earnings in the next 12 months | (81 | ) | (102 | ) | ||||||||||||||||
Interest rate derivatives | ||||||||||||||||||||
Liability fair value recorded in other long term liabilities (2) | $ | 1 | $ | 1 | ||||||||||||||||
Estimated amount of existing losses expected to be reclassified into earnings in the next 12 months | (1 | ) | (1 | ) | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||
Fuel derivatives | ||||||||||||||||||||
Hedge effectiveness losses recognized in aircraft fuel expense | $ | (35 | ) | $ | (1 | ) | ||||||||||||||
Gains on derivatives not qualifying for hedge accounting recognized in other expense | 1 | — | ||||||||||||||||||
Hedge ineffectiveness losses recognized in other expense | — | — | ||||||||||||||||||
Hedge losses on derivatives recognized in comprehensive income | (14 | ) | (4 | ) | ||||||||||||||||
Percentage of actual consumption economically hedged | 21 | % | 16 | % | ||||||||||||||||
Interest rate derivatives | ||||||||||||||||||||
Hedge losses on derivatives recognized in interest expense | $ | — | $ | — | ||||||||||||||||
Hedge gains on derivatives recognized in comprehensive income | — | — | ||||||||||||||||||
____________________________ | ||||||||||||||||||||
-1 | Gross asset or liability of each contract prior to consideration of offsetting positions with each counterparty | |||||||||||||||||||
-2 | Gross liability, prior to impact of collateral posted | |||||||||||||||||||
Any outstanding derivative instrument exposes us to credit loss in connection with our fuel contracts in the event of nonperformance by the counterparties to our agreements, but we do not expect that 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 receivable 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 JetBlue or our 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. | ||||||||||||||||||||
The impact of offsetting derivative instruments is depicted below (in millions): | ||||||||||||||||||||
Gross Amount of Recognized | Gross Amount of Cash Collateral | Net Amount Presented | ||||||||||||||||||
in Balance Sheet | ||||||||||||||||||||
Assets | Liabilities | Offset | Assets | Liabilities | ||||||||||||||||
As of March 31, 2015 (unaudited) | ||||||||||||||||||||
Fuel derivatives | $ | — | $ | 81 | $ | 31 | $ | — | $ | 50 | ||||||||||
Interest rate derivatives | — | 1 | 1 | — | — | |||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||
Fuel derivatives | $ | — | $ | 102 | $ | 51 | $ | — | $ | 51 | ||||||||||
Interest rate derivatives | — | 1 | 1 | — | — | |||||||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||
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 of March 31, 2015 and December 31, 2014 (in millions): | ||||||||||||||||
As of March 31, 2015 | ||||||||||||||||
(unaudited) | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Cash equivalents | $ | 411 | $ | — | $ | — | $ | 411 | ||||||||
Available-for-sale investment securities | — | 160 | — | 160 | ||||||||||||
$ | 411 | $ | 160 | $ | — | $ | 571 | |||||||||
Liabilities | ||||||||||||||||
Aircraft fuel derivatives | $ | — | $ | 81 | $ | — | $ | 81 | ||||||||
Interest rate swaps | — | 1 | — | 1 | ||||||||||||
$ | — | $ | 82 | $ | — | $ | 82 | |||||||||
As of December 31, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Cash equivalents | $ | 153 | $ | — | $ | — | $ | 153 | ||||||||
Available-for-sale investment securities | — | 125 | — | 125 | ||||||||||||
$ | 153 | $ | 125 | $ | — | $ | 278 | |||||||||
Liabilities | ||||||||||||||||
Aircraft fuel derivatives | $ | — | $ | 102 | $ | — | $ | 102 | ||||||||
Interest rate swaps | — | 1 | — | 1 | ||||||||||||
$ | — | $ | 103 | $ | — | $ | 103 | |||||||||
Refer to Note 3 for fair value information related to our outstanding debt obligations as of March 31, 2015 and December 31, 2014. | ||||||||||||||||
Cash equivalents | ||||||||||||||||
Our cash equivalents include money market securities and commercial paper which are readily convertible into cash, have maturities of 90 days or less when purchased and 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 and commercial paper with original maturities greater than 90 days but less than one year. The fair values of these instruments are based on observable inputs in non-active markets and are therefore classified as Level 2 in the hierarchy. We did not record any significant gains or losses on these securities during the three months ended March 31, 2015 and 2014. | ||||||||||||||||
Aircraft fuel derivatives | ||||||||||||||||
Our aircraft fuel derivatives include swaps, collars, and basis swaps which are not traded on public exchanges. Heating oil and jet fuel are the products underlying these hedge contracts as they are highly correlated with the price of jet fuel. 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. The fair values of these instruments are based on observable inputs in non-active markets and are therefore classified as Level 2 in the hierarchy. |
LiveTV
LiveTV | 3 Months Ended |
Mar. 31, 2015 | |
Live TV Disclosures [Abstract] | |
LiveTV | LIVETV |
LiveTV, LLC, formerly a wholly owned subsidiary of JetBlue, provides inflight entertainment and connectivity solutions for various commercial airlines including JetBlue. On June 10, 2014, JetBlue sold LiveTV to Thales Holding Corporation for $393 million, 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 for the year ended December 31, 2014. | |
LiveTV operations are no longer being consolidated as a subsidiary in JetBlue's condensed consolidated financial statements. The effect of this change in reporting structure is not material to the financial statements presented. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of Presentation |
JetBlue predominately provides air transportation services across the United States, the Caribbean and Latin America. Our condensed consolidated financial statements include the accounts of JetBlue Airways Corporation, or JetBlue, and our subsidiaries which are collectively referred to as “we” or the “Company”. All majority-owned subsidiaries are consolidated on a line by line basis, with all intercompany transactions and balances having been 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 condensed consolidated financial statements. These condensed consolidated financial statements and related notes should be read in conjunction with our 2014 audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014, or our 2014 Form 10-K. | |
These condensed consolidated financial statements are unaudited and have been prepared by us following the rules and regulations of the Securities and Exchange Commission, or the SEC. In our opinion they reflect all adjustments, including normal recurring items, that are necessary to present fairly the results for interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, have been condensed or omitted as permitted by such rules and regulations; however, we believe that the disclosures are adequate to make the information presented not misleading. Operating results for the periods presented herein are not necessarily indicative of the results that may be expected for the entire fiscal year. | |
Investment securities | Investment securities |
Investment securities consist of available-for-sale investment securities and held-to-maturity investment securities. We use a specific identification method to determine the cost of the securities when they are sold. | |
Held-to-maturity investment securities | Held-to-maturity investment securities. The contractual maturities of the corporate bonds we held as of March 31, 2015 were not greater than 24 months. We did not record any significant gains or losses on these securities during the three months ended March 31, 2015 or 2014. The estimated fair value of these investments approximated their carrying value as of March 31, 2015 and December 31, 2014, respectively. |
Cash equivalents | Cash equivalents |
Our cash equivalents include money market securities and commercial paper which are readily convertible into cash, have maturities of 90 days or less when purchased and 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 | Available-for-sale investment securities |
Included in our available-for-sale investment securities are time deposits and commercial paper with original maturities greater than 90 days but less than one year. The fair values of these instruments are based on observable inputs in non-active markets and are therefore classified as Level 2 in the hierarchy. We did not record any significant gains or losses on these securities during the three months ended March 31, 2015 and 2014. | |
Interest rate swaps and Aircraft fuel derivative | Aircraft fuel derivatives |
Our aircraft fuel derivatives include swaps, collars, and basis swaps which are not traded on public exchanges. Heating oil and jet fuel are the products underlying these hedge contracts as they are highly correlated with the price of jet fuel. 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. The fair values of these instruments are based on observable inputs in non-active markets and are therefore classified as Level 2 in the hierarchy. | |
New Accounting Pronouncements [Policy Text Block] | New Accounting Pronouncements |
In August 2014, the Financial Accounting Standards Board (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 FASB Accounting Standards 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 permitted. The impact of this standard on our disclosures will be dependent on our financial condition at the time of adoption. | |
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, as originally written, 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 condensed 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 TrueBlue points earned on JetBlue purchases and will require us to re-value our liability with a relative fair value approach. During April 2015, the FASB proposed certain modifications to the originally written guidance including a deferral of the effective date for one year and allowing early adoption for annual periods beginning after December 15, 2016. These proposed changes are still subject to final FASB approval. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accounting Policies [Abstract] | |||||||||
Schedule of marketable securities | The carrying values of investment securities consisted of the following at March 31, 2015 and December 31, 2014 (in millions): | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(unaudited) | |||||||||
Available-for-sale securities | |||||||||
Time deposits | $ | 125 | $ | 125 | |||||
Commercial paper | 35 | — | |||||||
160 | 125 | ||||||||
Held-to-maturity securities | |||||||||
Time deposits | $ | 48 | $ | 48 | |||||
Corporate bonds | 289 | 254 | |||||||
337 | 302 | ||||||||
Total | $ | 497 | $ | 427 | |||||
Longterm_Debt_and_Shortterm_Bo1
Long-term Debt and Short-term Borrowings (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||
Carrying amounts and estimated fair values of long-term debt | The carrying amounts and estimated fair values of our long-term debt at March 31, 2015 and December 31, 2014 were as follows (in millions): | ||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||
Public Debt | |||||||||||||||||
Floating rate enhanced equipment notes: | |||||||||||||||||
Class G-1, due 2016 | $ | 34 | $ | 33 | $ | 35 | $ | 35 | |||||||||
Class G-2, due 2016 | 185 | 182 | 185 | 180 | |||||||||||||
Fixed rate special facility bonds, due through 2036 | 77 | 78 | 77 | 78 | |||||||||||||
6.75% convertible debentures due in 2039 | 86 | 340 | 86 | 283 | |||||||||||||
5.5% convertible debentures due in 2038 | 68 | 292 | 68 | 241 | |||||||||||||
Non-Public Debt | |||||||||||||||||
Fixed rate enhanced equipment notes, due through 2023 | $ | 207 | $ | 219 | $ | 217 | $ | 224 | |||||||||
Floating rate equipment notes, due through 2025 | 269 | 273 | 276 | 277 | |||||||||||||
Fixed rate equipment notes, due through 2026 | 1,090 | 1,203 | 1,119 | 1,211 | |||||||||||||
Total* | $ | 2,016 | $ | 2,620 | $ | 2,063 | $ | 2,529 | |||||||||
*Total excludes capital lease obligations of $165 million for March 31, 2015 and $170 million for December 31, 2014. |
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||
Accumulated other comprehensive income (loss), net of taxes | A rollforward of the amounts included in the accumulated other comprehensive income (loss), net of taxes for the three months ended March 31, 2015 and March 31, 2014 are as follows (in millions, unaudited): | ||||||||||||
Aircraft Fuel | Interest Rate | Total | |||||||||||
Derivatives (1) | Swaps (2) | ||||||||||||
Beginning accumulated losses at December 31, 2014 | $ | (63 | ) | $ | — | $ | (63 | ) | |||||
Reclassifications into earnings (net of $13 of taxes) | 22 | — | 22 | ||||||||||
Change in fair value (net of $(5) of taxes) | (9 | ) | — | (9 | ) | ||||||||
Ending accumulated losses at March 31, 2015 | $ | (50 | ) | $ | — | $ | (50 | ) | |||||
Aircraft Fuel | Interest Rate | Total | |||||||||||
Derivatives (1) | Swaps (2) | ||||||||||||
Beginning accumulated income (losses) at December 31, 2013 | $ | 1 | $ | (1 | ) | $ | — | ||||||
Reclassifications into earnings (net of $0 of taxes) | 1 | — | 1 | ||||||||||
Change in fair value (net of $(1) of taxes) | (3 | ) | — | (3 | ) | ||||||||
Ending accumulated losses at March 31, 2014 | $ | (1 | ) | $ | (1 | ) | $ | (2 | ) | ||||
__________________________ | |||||||||||||
(1) Reclassified to aircraft fuel expense | |||||||||||||
(2) Reclassified to interest expense |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table shows how we computed basic and diluted earnings per common share (in millions, unaudited): | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Numerator: | |||||||||
Net income | $ | 137 | $ | 4 | |||||
Effect of dilutive securities: | |||||||||
Interest on convertible debt, net of income taxes and profit sharing | 1 | — | |||||||
Net income applicable to common stockholders after assumed conversions for diluted earnings per share | $ | 138 | $ | 4 | |||||
Denominator: | |||||||||
Weighted average shares outstanding for basic earnings per share | 310.2 | 294.8 | |||||||
Effect of dilutive securities: | |||||||||
Employee stock options and restricted stock units | 3.2 | 2.4 | |||||||
Convertible debt | 32.8 | — | |||||||
Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share | 346.2 | 297.2 | |||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Shares excluded from EPS calculation (in millions): | |||||||||
Shares issuable upon conversion of our convertible debt as assumed conversion would be antidilutive | — | 48.4 | |||||||
Shares issuable upon exercise of outstanding stock options or vesting of restricted stock units as assumed exercise would be antidilutive | — | 11.9 | |||||||
Financial_Derivative_Instrumen1
Financial Derivative Instruments and Risk Management (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||
Percentage fuel covered under derivative contracts | The following table illustrates the approximate hedged percentages of our projected fuel usage by quarter as of March 31, 2015 related to our outstanding fuel hedging contracts that were designated as cash flow hedges for accounting purposes. | |||||||||||||||||||
Jet fuel swap | Jet fuel collar agreements | Heating oil collar agreements | Total | |||||||||||||||||
agreements | ||||||||||||||||||||
Second Quarter 2015 | 10 | % | 10 | % | — | % | 20 | % | ||||||||||||
Third Quarter 2015 | 5 | % | — | % | 9 | % | 14 | % | ||||||||||||
Fourth Quarter 2015 | 5 | % | — | % | 10 | % | 15 | % | ||||||||||||
Derivative instrument in statement of financial position and financial performance | 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): | |||||||||||||||||||
As of | ||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Fuel derivatives | ||||||||||||||||||||
Longest remaining term (months) | 9 | 12 | ||||||||||||||||||
Hedged volume (barrels, in thousands) | 2,007 | 2,808 | ||||||||||||||||||
Liability fair value recorded in other accrued liabilities (1) | $ | 81 | $ | 102 | ||||||||||||||||
Estimated amount of existing losses expected to be reclassified into earnings in the next 12 months | (81 | ) | (102 | ) | ||||||||||||||||
Interest rate derivatives | ||||||||||||||||||||
Liability fair value recorded in other long term liabilities (2) | $ | 1 | $ | 1 | ||||||||||||||||
Estimated amount of existing losses expected to be reclassified into earnings in the next 12 months | (1 | ) | (1 | ) | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||
Fuel derivatives | ||||||||||||||||||||
Hedge effectiveness losses recognized in aircraft fuel expense | $ | (35 | ) | $ | (1 | ) | ||||||||||||||
Gains on derivatives not qualifying for hedge accounting recognized in other expense | 1 | — | ||||||||||||||||||
Hedge ineffectiveness losses recognized in other expense | — | — | ||||||||||||||||||
Hedge losses on derivatives recognized in comprehensive income | (14 | ) | (4 | ) | ||||||||||||||||
Percentage of actual consumption economically hedged | 21 | % | 16 | % | ||||||||||||||||
Interest rate derivatives | ||||||||||||||||||||
Hedge losses on derivatives recognized in interest expense | $ | — | $ | — | ||||||||||||||||
Hedge gains on derivatives recognized in comprehensive income | — | — | ||||||||||||||||||
____________________________ | ||||||||||||||||||||
-1 | Gross asset or liability of each contract prior to consideration of offsetting positions with each counterparty | |||||||||||||||||||
-2 | Gross liability, prior to impact of collateral posted | |||||||||||||||||||
Offsetting assets and liabilities | The impact of offsetting derivative instruments is depicted below (in millions): | |||||||||||||||||||
Gross Amount of Recognized | Gross Amount of Cash Collateral | Net Amount Presented | ||||||||||||||||||
in Balance Sheet | ||||||||||||||||||||
Assets | Liabilities | Offset | Assets | Liabilities | ||||||||||||||||
As of March 31, 2015 (unaudited) | ||||||||||||||||||||
Fuel derivatives | $ | — | $ | 81 | $ | 31 | $ | — | $ | 50 | ||||||||||
Interest rate derivatives | — | 1 | 1 | — | — | |||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||
Fuel derivatives | $ | — | $ | 102 | $ | 51 | $ | — | $ | 51 | ||||||||||
Interest rate derivatives | — | 1 | 1 | — | — | |||||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair value, by balance sheet grouping | 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 of March 31, 2015 and December 31, 2014 (in millions): | |||||||||||||||
As of March 31, 2015 | ||||||||||||||||
(unaudited) | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Cash equivalents | $ | 411 | $ | — | $ | — | $ | 411 | ||||||||
Available-for-sale investment securities | — | 160 | — | 160 | ||||||||||||
$ | 411 | $ | 160 | $ | — | $ | 571 | |||||||||
Liabilities | ||||||||||||||||
Aircraft fuel derivatives | $ | — | $ | 81 | $ | — | $ | 81 | ||||||||
Interest rate swaps | — | 1 | — | 1 | ||||||||||||
$ | — | $ | 82 | $ | — | $ | 82 | |||||||||
As of December 31, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Cash equivalents | $ | 153 | $ | — | $ | — | $ | 153 | ||||||||
Available-for-sale investment securities | — | 125 | — | 125 | ||||||||||||
$ | 153 | $ | 125 | $ | — | $ | 278 | |||||||||
Liabilities | ||||||||||||||||
Aircraft fuel derivatives | $ | — | $ | 102 | $ | — | $ | 102 | ||||||||
Interest rate swaps | — | 1 | — | 1 | ||||||||||||
$ | — | $ | 103 | $ | — | $ | 103 | |||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Available-for-sale securities | ||
Available-for-sale investment securities | $160 | $125 |
Held-to-maturity securities | ||
Held-to-maturity securities | 337 | 302 |
Marketable securities | 497 | 427 |
Bank Time Deposits [Member] | ||
Available-for-sale securities | ||
Available-for-sale investment securities | 125 | 125 |
Held-to-maturity securities | ||
Held-to-maturity securities | 48 | 48 |
Commercial paper [Member] | ||
Available-for-sale securities | ||
Available-for-sale investment securities | 35 | 0 |
Corporate bonds [Member] | ||
Held-to-maturity securities | ||
Held-to-maturity securities | $289 | $254 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies Held-to-Maturity Gains (Loss) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ||
Held-to-maturity Securities, Gross Gains (Losses), Derivatives | $0 | $0 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based compensation arrangement by share-based payment award, equity instruments other than options, vested in period | 1.8 |
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 0.9 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 2.4 |
Longterm_Debt_and_Shortterm_Bo2
Long-term Debt and Short-term Borrowings (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Capital Lease Obligations | $165,000,000 | $170,000,000 |
Reduction in outstanding debt and capital lease obligations | 55,000,000 | |
Value of aircraft, engines and other equipment and facilities which were pledged as security under various loan agreements | 3,200,000,000 | |
Weighted average interest rate of long-term debt | 4.70% | |
Long-term debt, maturities, repayments of principal in next twelve months | 213,000,000 | |
Long-term debt, maturities, repayments of principal in Year Two | 464,000,000 | |
Long-term debt, maturities, repayments of principal in Year Three | 216,000,000 | |
Long-term debt, maturities, repayments of principal in Year Four | 227,000,000 | |
Long-term debt, maturities, repayments of principal in Year Five | 227,000,000 | |
Long-term debt, maturities, repayments, thereafter | 834,000,000 | |
Carrying amounts and estimated fair values of long-term debt | ||
Carrying Value, Total | 2,016,000,000 | 2,063,000,000 |
Estimated Fair Value, Total | 2,620,000,000 | 2,529,000,000 |
Public Debt Floating Rate Class G One Due Two Thousand Sixteen [Member] | ||
Carrying amounts and estimated fair values of long-term debt | ||
Carrying Value, Total | 34,000,000 | 35,000,000 |
Estimated Fair Value, Total | 33,000,000 | 35,000,000 |
Public Debt Floating Rate Class G Two Due Two Thousand Sixteen Member | ||
Carrying amounts and estimated fair values of long-term debt | ||
Carrying Value, Total | 185,000,000 | 185,000,000 |
Estimated Fair Value, Total | 182,000,000 | 180,000,000 |
Public Debt Fixed Rate Special Facility Bonds Due Through Two Thousand Thirty Six [Member] | ||
Carrying amounts and estimated fair values of long-term debt | ||
Carrying Value, Total | 77,000,000 | 77,000,000 |
Estimated Fair Value, Total | 78,000,000 | 78,000,000 |
Public Debt Six Point Seven Five Percentage Convertible Debentures Due In Two Thousand Thirty Nine [Member] | ||
Carrying amounts and estimated fair values of long-term debt | ||
Carrying Value, Total | 86,000,000 | 86,000,000 |
Estimated Fair Value, Total | 340,000,000 | 283,000,000 |
Public Debt Five Point Five Percentage Convertible Debentures Due In Two Thousand Thirty Eight [Member] | ||
Carrying amounts and estimated fair values of long-term debt | ||
Carrying Value, Total | 68,000,000 | 68,000,000 |
Estimated Fair Value, Total | 292,000,000 | 241,000,000 |
Non Public Debt Fixed Rate Enhanced Equipment Notes Due Through Two Thousand And Twenty Three [Member] | ||
Carrying amounts and estimated fair values of long-term debt | ||
Carrying Value, Total | 207,000,000 | 217,000,000 |
Estimated Fair Value, Total | 219,000,000 | 224,000,000 |
Non Public Debt Floating Rate Equipment Notes Due Through Two Thousand And Twenty Five [Member] | ||
Carrying amounts and estimated fair values of long-term debt | ||
Carrying Value, Total | 269,000,000 | 276,000,000 |
Estimated Fair Value, Total | 273,000,000 | 277,000,000 |
Non Public Debt Fixed Rate Equipment Notes Due Through Two Thousand Twenty Six [Member] | ||
Carrying amounts and estimated fair values of long-term debt | ||
Carrying Value, Total | 1,090,000,000 | 1,119,000,000 |
Estimated Fair Value, Total | $1,203,000,000 | $1,211,000,000 |
A-320-200 [Member] | ||
Debt Instrument [Line Items] | ||
unencumbered aircraft | 34 | |
A-321 [Member] | ||
Debt Instrument [Line Items] | ||
unencumbered aircraft | 7 | |
EMBRAER 190 Aircraft [Member] | ||
Debt Instrument [Line Items] | ||
Unencumbered spare engine | 33 |
Comprehensive_Income_Details
Comprehensive Income (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning accumulated gains (losses) | ($63) | $0 |
Reclassifications into earnings | 22 | 1 |
Change in fair value | -9 | -3 |
Ending accumulated losses | -50 | -2 |
Fuel Derivatives [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning accumulated gains (losses) | -63 | 1 |
Reclassifications into earnings | 22 | 1 |
Change in fair value | -9 | -3 |
Ending accumulated losses | -50 | -1 |
Interest Rate Contract [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning accumulated gains (losses) | 0 | -1 |
Reclassifications into earnings | 0 | 0 |
Change in fair value | 0 | 0 |
Ending accumulated losses | $0 | ($1) |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Reclassifications into earnings, tax | $13 | $0 |
Change in fair value, tax | ($5) | ($1) |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Numerator: | ||
Net income | $137 | $4 |
Effect of dilutive securities: | ||
Interest on convertible debt, net of income taxes and profit sharing | 1 | 0 |
Net income applicable to common stockholders after assumed conversions for diluted earnings per share | 138 | 4 |
Denominator: | ||
Weighted average shares outstanding for basic earnings per share | 310.2 | 294.8 |
Effect of dilutive securities: | ||
Employee stock options and restricted stock units | 3.2 | 2.4 |
Convertible debt | 32.8 | 0 |
Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share | 346.2 | 297.2 |
Earnings Per Share (Textuals) [Abstract] | ||
Common stock lent to share borrower | 1.4 | |
Share lending arrangement, shares, outstanding, value | $27 | |
Convertible Debt Securities [Member] | ||
Shares excluded from EPS calculation (in millions): | ||
Shares issuable upon exercise of outstanding stock options or vesting of restricted stock units as assumed exercise would be antidilutive | 0 | 48.4 |
Stock Compensation Plan [Member] | ||
Shares excluded from EPS calculation (in millions): | ||
Shares issuable upon exercise of outstanding stock options or vesting of restricted stock units as assumed exercise would be antidilutive | 0 | 11.9 |
Employee_Retirement_Plan_Detai
Employee Retirement Plan (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Employee Retirement Plan (Textuals) [Abstract] | ||
Percentage of employees' gross pay for which the employer contributes a matching contribution to the Plan. | 5.00% | |
Percentage of employees' gross pay for which the employer can contribute a discretionary profit sharing contribution to the Plan. | 5.00% | |
Percentage of Its Eligible Pre Tax Profits for which the employer contributes to the Plan. | 15.00% | |
Percentage of FAA licensed employees gross pay for which ER can contribute discretionary profit sharing contribution to plan | 3.00% | |
Contribution to employee retirement plan | $53 | $24 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Jun. 10, 2014 | |
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Committed expenditure due within current year | 500,000,000 | |
Committed expenditure due within second year | 540,000,000 | |
Committed expenditure due within third year | 585,000,000 | |
Committed expenditure due within four years | 510,000,000 | |
Committed expenditure due within five years | 935,000,000 | |
Committed expenditure due after five years | 3,500,000,000 | |
Loss Contingency Accrual | 3,000,000 | |
Restricted assets pledged under letter of credit | 33,000,000 | |
Restricted assets pledged related to workers compensation insurance policies and other business partner agreements | 26,000,000 | |
Airbus A321 [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Unrecorded unconditional purchase obligations disclosure | 31 | |
Number of aircraft scheduled to receive | 10 | |
Airbus A320 Neo [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Unrecorded unconditional purchase obligations disclosure | 25 | |
Airbus A321 Neo [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Unrecorded unconditional purchase obligations disclosure | 45 | |
EMBRAER 190 Aircraft [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Unrecorded unconditional purchase obligations disclosure | 24 | |
Spare Engines [Member] | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Unrecorded unconditional purchase obligations disclosure | 10 | |
In Flight Entertainment Systems Member | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Unrecorded Unconditional Purchase Obligations, Term | 7 years |
Commitments_and_Contingencies_1
Commitments and Contingencies - Loss Contingencies (Details) (USD $) | 3 Months Ended | 6 Months Ended | 1 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Jun. 10, 2014 | Jul. 31, 2014 | Dec. 31, 2013 |
pilot | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency Accrual | $3 | |||
Environmental exit costs, costs accrued to date | 2 | |||
Number of claimants in employment agreement dispute | 972 | |||
Base pay rate trigger in employment agreement dispute | 26.70% | |||
Long-term Purchase Commitment, Amount | 20 | |||
Additional Long Term Purchase Commitment Amount Minimum | 25 | |||
Environmental Issue [Member] | ||||
Loss Contingencies [Line Items] | ||||
Cost of remediation estimate (less than $1 million, minimum) | 1 | |||
Cost of remediation estimate ($3 million, maximum) | 3 | |||
Pilot Employment Dispout [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, damages sought, value | 4.4 | |||
Live T.V. Breach of Contract [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, damages sought, value | $15 |
Financial_Derivative_Instrumen2
Financial Derivative Instruments and Risk Management (Details) (USD $) | 3 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 |
Derivative [Line Items] | |||||
Interest expense | ($34) | ($37) | |||
Other income (expense) [Member] | |||||
Derivative [Line Items] | |||||
Hedge losses recognized | 0 | 0 | |||
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Notional amount of interest rate cash flow hedge derivatives | $34 | ||||
Scenario, Forecast [Member] | |||||
Derivative [Line Items] | |||||
Percentage fuel hedged | 15.00% | 14.00% | 20.00% | ||
Fuel [Member] | Scenario, Forecast [Member] | Jet Fuel Swap Agreements [Member] | |||||
Derivative [Line Items] | |||||
Percentage fuel hedged | 5.00% | 5.00% | 10.00% | ||
Fuel [Member] | Scenario, Forecast [Member] | Jet Fuel Collar Agreement [Member] | |||||
Derivative [Line Items] | |||||
Percentage fuel hedged | 0.00% | 0.00% | 10.00% | ||
Heating Oil [Member] | Scenario, Forecast [Member] | Heating Oil Collar Agreement [Member] | |||||
Derivative [Line Items] | |||||
Percentage fuel hedged | 10.00% | 9.00% | 0.00% |
Financial_Derivative_Instrumen3
Financial Derivative Instruments and Risk Management (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | ||
bbl | |||||
Derivatives, Fair Value [Line Items] | |||||
Interest Expense | $34 | $37 | |||
Fuel derivatives [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Longest remaining term (months) | 9 months | 12 months | |||
Hedged volume (barrels, in thousands) | 2,007,000 | 2,808,000 | |||
Liability fair value recorded in other accriued liabilities | 81 | 102 | |||
Estimated amount of existing losses expected to be reclassified into earnings in the next 12 months | -81 | -102 | |||
Interest rate derivatives [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Liability fair value recorded in other long term liabilities | 1 | [1] | 1 | [1] | |
Estimated amount of existing losses expected to be reclassified into earnings in the next 12 months | -1 | -1 | |||
Other accrued liabilities [Member] | Fuel derivatives [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Liability fair value recorded in other accriued liabilities | $81 | [2] | $102 | [2] | |
[1] | Gross liability, prior to impact of collateral posted | ||||
[2] | Gross asset or liability of each contract prior to consideration of offsetting positions with each counterparty |
Financial_Derivative_Instrumen4
Financial Derivative Instruments and Risk Management - Hedging Effectiveness (Details 3) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Other income (expense) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Hedge losses recognized | $0 | $0 |
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 1,000,000 | 0 |
Other income (expense) [Member] | Interest Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Price Risk Derivatives, Net | 0 | |
Fuel derivatives [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Percentage of actual consumption economically hedged | 21.00% | 16.00% |
Fuel derivatives [Member] | Aircraft Fuel Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Hedge losses recognized | -35,000,000 | -1,000,000 |
Fuel derivatives [Member] | Comprehensive Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Hedge losses on derivatives recognized in comprehensive income | -14,000,000 | -4,000,000 |
Interest Rate Contract [Member] | Comprehensive Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Hedge losses on derivatives recognized in comprehensive income | 0 | 0 |
Interest Rate Contract [Member] | Interest Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Price Risk Derivatives, Net | $0 | $0 |
Financial_Derivative_Instrumen5
Financial Derivative Instruments and Risk Management (Details 4) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Derivatives, Fair Value [Line Items] | ||||
Number of counterparties to derivative agreements | 7 | |||
Fuel Derivatives [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Assets, gross amount of recognized, fuel derivatives | $0 | $0 | ||
Liabilities, gross amount of recognized, fuel derivatives | 81 | 102 | ||
Offset, Gross Amount of Cash Collateral | 31 | 51 | ||
Assets, net amount presented in balance sheet | 0 | 0 | ||
Liabilities, net amount presented in balance sheet | 50 | 51 | ||
Interest Rate Contract [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Assets, gross amount of recognized, interest rate derivatives | 0 | 0 | ||
Liabilities, gross amount of recognized, interest rate derivatives | 1 | [1] | 1 | [1] |
Offset, Gross Amount of Cash Collateral | 1 | 1 | ||
Assets, net amount presented in balance sheet | 0 | 0 | ||
Liabilities, net amount presented in balance sheet | $0 | $0 | ||
[1] | Gross liability, prior to impact of collateral posted |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Gross Unrealized Gain (Loss) | $0 | $0 | |
Assets | |||
Available-for-sale investment securities | 160,000,000 | 125,000,000 | |
Fair Value, Measurements, Recurring [Member] | |||
Assets | |||
Cash equivalents | 411,000,000 | 153,000,000 | |
Available-for-sale investment securities | 160,000,000 | 125,000,000 | |
Assets, Total | 571,000,000 | 278,000,000 | |
Liabilities | |||
Liabilities, Total | 82,000,000 | 103,000,000 | |
Fair Value, Measurements, Recurring [Member] | Aircraft Fuel Derivatives [Member] | |||
Liabilities | |||
Derivative Liabilities | 81,000,000 | 102,000,000 | |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap [Member] | |||
Liabilities | |||
Derivative Liabilities | 1,000,000 | 1,000,000 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Assets | |||
Cash equivalents | 411,000,000 | 153,000,000 | |
Available-for-sale investment securities | 0 | 0 | |
Assets, Total | 411,000,000 | 153,000,000 | |
Liabilities | |||
Liabilities, Total | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Aircraft Fuel Derivatives [Member] | |||
Liabilities | |||
Derivative Liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Interest Rate Swap [Member] | |||
Liabilities | |||
Derivative Liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Assets | |||
Cash equivalents | 0 | 0 | |
Available-for-sale investment securities | 160,000,000 | 125,000,000 | |
Assets, Total | 160,000,000 | 125,000,000 | |
Liabilities | |||
Liabilities, Total | 82,000,000 | 103,000,000 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Aircraft Fuel Derivatives [Member] | |||
Liabilities | |||
Derivative Liabilities | 81,000,000 | 102,000,000 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Interest Rate Swap [Member] | |||
Liabilities | |||
Derivative Liabilities | 1,000,000 | 1,000,000 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Assets | |||
Cash equivalents | 0 | 0 | |
Available-for-sale investment securities | 0 | 0 | |
Assets, Total | 0 | 0 | |
Liabilities | |||
Liabilities, Total | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Aircraft Fuel Derivatives [Member] | |||
Liabilities | |||
Derivative Liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Interest Rate Swap [Member] | |||
Liabilities | |||
Derivative Liabilities | $0 | $0 |
LiveTV_Details
LiveTV (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Jun. 10, 2014 |
Proceeds from sale of subsidiary | $393 | |||
Business Acquisition, Transaction Costs | 19 | |||
Gain on sale of assets | $9 | $0 | $241 | |
In Flight Entertainment Systems Member | ||||
Unrecorded Unconditional Purchase Obligations, Term | 7 years |