JetBlue Airways (JBLU) 10-Q 28 Apr 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Mar. 31, 2017shares
Document And Entity Information [Abstract]
Entity Registrant Name	JETBLUE AIRWAYS CORP
Entity Central Index Key	1,158,463
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding	333,673,598
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
CURRENT ASSETS
Cash and cash equivalents	$ 438	$ 433
Investment securities	608	538
Receivables, less allowance (2017-$3; 2016-$5)	169	172
Prepaid expenses and other	254	260
Total current assets	1,469	1,403
PROPERTY AND EQUIPMENT
Flight equipment	8,115	7,868
Predelivery deposits for flight equipment	236	223
Flight Equipment, gross plus deposits	8,351	8,091
Less accumulated depreciation	1,896	1,823
Flight Equipment, Net	6,455	6,268
Other property and equipment	992	972
Less accumulated depreciation	360	345
Property plant and equipment other net	632	627
Assets constructed for others	561	561
Less accumulated depreciation	190	185
Asset constructed for others net	371	376
Total property and equipment	7,458	7,271
OTHER ASSETS
Investment securities	0	90
Restricted cash	61	62
Other	485	497
Total other assets	546	649
TOTAL ASSETS	9,473	9,323
CURRENT LIABILITIES
Accounts payable	270	242
Air traffic liability	1,335	1,120
Accrued salaries, wages and benefits	256	342
Other accrued liabilities	364	321
Current maturities of long-term debt and capital leases	197	189
Total current liabilities	2,422	2,214
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS	1,140	1,195
CONSTRUCTION OBLIGATION	453	457
DEFERRED TAXES AND OTHER LIABILITIES
Deferred income taxes	1,379	1,354
Other	87	90
Total deferred taxes and other liabilities	1,466	1,444
STOCKHOLDERS’ EQUITY
Preferred stock, $0.01 par value; 25 shares authorized, none issued	0	0
Common stock, $0.01 par value; 900 shares authorized, 416 and 414 shares issued and 334 and 337 shares outstanding at March 31, 2017 and December 31, 2016, respectively	4	4
Treasury stock, at cost; 82 and 77 shares at March 31, 2017 and December 31, 2016, respectively	(590)	(500)
Additional paid-in capital	2,041	2,050
Retained earnings	2,532	2,446
Accumulated other comprehensive income	5	13
Total stockholders’ equity	3,992	4,013
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 9,473	$ 9,323

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 3	$ 5
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	416,000,000	414,000,000
Common stock, shares, outstanding	334,000,000	337,000,000
Treasury stock, shares	82,000,000	77,000,000

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
OPERATING REVENUES
Passenger	$ 1,451	$ 1,478
Other	153	138
Total operating revenues	1,604	1,616
OPERATING EXPENSES
Aircraft fuel and related taxes	323	215
Salaries, wages and benefits	466	435
Landing fees and other rents	95	85
Depreciation and amortization	105	91
Aircraft rent	26	28
Sales and marketing	60	64
Maintenance materials and repairs	152	135
Other operating expenses	230	214
Total operating expenses	1,457	1,267
OPERATING INCOME	147	349
OTHER INCOME (EXPENSE)
Interest expense	(25)	(29)
Capitalized interest	2	2
Interest income and other	2	1
Total other income (expense)	(21)	(26)
INCOME BEFORE TAXES	126	323
Income tax expense	41	116
NET INCOME	$ 85	$ 207
EARNINGS PER COMMON SHARE:
Earnings Per Share, Basic	$ 0.25	$ 0.64
Earnings Per Share, Diluted	$ 0.25	$ 0.61

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
NET INCOME	$ 85	$ 207
Changes in fair value of derivative instruments, net of reclassifications into earnings (net of $(5) and $0 of taxes in 2017 and 2016, respectively)	(8)	0
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent	(5)	0
Total other comprehensive loss	(8)	0
COMPREHENSIVE INCOME	$ 77	$ 207

Condensed Consolidated Statemen

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Cash Flows [Abstract]
Net Income	$ 85	$ 207
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income taxes	30	57
Depreciation	90	79
Amortization	15	12
Stock-based compensation	9	7
Changes in certain operating assets and liabilities	202	222
Other, net	1	1
Net cash provided by operating activities	432	585
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(245)	(143)
Predelivery deposits for flight equipment	(40)	(23)
Purchase of held-to-maturity investments	(63)	0
Proceeds from the maturities of held-to-maturity investments	43	144
Purchase of available-for-sale securities	(105)	(118)
Proceeds from the sale of available-for-sale securities	145	50
Other, net	(2)	0
Net cash used in investing activities	(267)	(90)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock	2	2
Repayment of long-term debt and capital lease obligations	(49)	(51)
Payments for Repurchase of Common Stock	(109)	(13)
Other, net	(4)	6
Net cash used in financing activities	(160)	(56)
INCREASE IN CASH AND CASH EQUIVALENTS	5	439
Cash and cash equivalents at beginning of period	433	$ 318
Cash and cash equivalents at end of period	$ 438

Summary of Significant Accounti

Summary of Significant Accounting Policies (Notes)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation JetBlue Airways Corporation, or JetBlue, provides air transportation services across the United States, the Caribbean and Latin America. Our condensed consolidated financial statements include the accounts of 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 being eliminated. These condensed consolidated financial statements and related notes should be read in conjunction with our 2016 audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 . 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 generally accepted accounting principles in the U.S., or 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 other interim periods or 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, 2017 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, 2017 or 2016 . The estimated fair value of these investments approximated their carrying value as of March 31, 2017 and December 31, 2016 , respectively. The carrying values of investment securities consisted of the following at March 31, 2017 and December 31, 2016 (in millions): March 31, 2017 December 31, 2016 Available-for-sale securities Time deposits $ 160 $ 160 Commercial paper 95 60 Treasury bills 40 115 Total available-for-sale securities 295 335 Held-to-maturity securities Treasury notes $ 241 $ 283 Corporate bonds 72 10 Total held-to-maturity securities 313 293 Total investment securities $ 608 $ 628 Recent Accounting Pronouncements During the first quarter of 2017, we adopted Accounting Standards Update, or ASU, 2015-17, Income Taxes, Balance Sheet Classification of Deferred Taxes topic of the FASB Codification, or Codification. This standard requires all deferred tax assets and liabilities to be classified as non-current on the balance sheet instead of separating deferred taxes into current and non-current amounts. In addition, valuation allowance allocations between current and non-current deferred tax assets are no longer required because those allowances also will be classified as non-current. Our condensed consolidated balance sheet as of December 31, 2016 reflects retrospective application. As a result of the adoption, $9 million of deferred tax liabilities previously included within other accrued liabilities and $164 million of deferred tax assets previously included within current assets have been moved to long-term liabilities on our December 31, 2016 balance sheet. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . Under ASU 2016-02, a lessee will recognize liabilities for lease payments and right-of-use assets representing its right to use the underlying asset for the lease term. While we are still evaluating the full impact of adopting the amendments on our consolidated financial statements and disclosures, we have determined that it will impact our accounting for aircraft and other leases. The amendments are effective for fiscal years beginning after December 15, 2018 and includes interim periods within those fiscal years. Early adoption is permitted, and companies are required to use a modified retrospective approach at the earliest period presented. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash . The amendments clarified how entities should present restricted cash and restricted cash equivalents in the statement of cash flows. ASU 2016-18 requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The amendments are effective for fiscal years beginning after December 15, 2017 and includes interim periods within those years. Early adoption is permitted. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting . The amendments apply to several aspects of accounting for stock-based compensation including the recognition of excess tax benefits and deficiencies and their related presentation in the statement of cash flows as well as accounting for forfeitures. We early adopted, as permitted, this standard during the fourth quarter of 2016. The adoption of this standard resulted in the recognition of $8 million of previously unrecognized excess tax benefits in deferred tax assets and an increase to retained earnings on our consolidated balance sheet as of the beginning of 2016, and the recognition of $8 million of excess tax benefits to the income tax provision for the year ended December 31, 2016. Excess tax benefits for share-based payments are now included in net operating cash flows rather than net financing cash flows. 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 allows for either full retrospective or modified retrospective adoption. In July 2015, the FASB voted to defer the effective date of ASU 2014-09 by one year to interim and annual reporting periods beginning after December 15, 2017 and permitted early adoption of the standard, but not prior to December 15, 2016. While we are evaluating the full impact of the new standard on our consolidated financial statements, we have determined that it will impact our loyalty program accounting. JetBlue will no longer be allowed to use the incremental cost method when recording the financial impact of TrueBlue® points earned on qualifying JetBlue purchases. We will be required to re-value our liability with a relative fair value approach, which is anticipated to significantly increase the related liability. In addition the standard will likely result in a change in the timing and classification of our revenue recognition for certain ancillary fees directly related to passenger revenue tickets, as these services are no longer likely to be considered distinct performance obligations. Fees associated with these services are likely to be recognized as of the date of travel, not when assessed to the customer, and classified as passenger revenue. JetBlue currently anticipates adopting the new standard effective January 1, 2018 using the full retrospective method, however, this decision is not final and is subject to the completion of our analysis of the standard. We will continue our evaluation of ASU 2014-09 through the date of adoption.

Long-term Debt and Short-term B

Long-term Debt and Short-term Borrowings (Notes)	3 Months Ended
	Mar. 31, 2017
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, 2017 , we made scheduled principal payments of $49 million on our outstanding long-term debt and capital lease obligations. We have pledged aircraft, engines, other equipment and facilities with a net book value of $3.6 billion at March 31, 2017 as security under various loan agreements. As of March 31, 2017 , we owned, free of encumbrance, 73 Airbus A320 aircraft, 30 Airbus A321 aircraft and 32 spare engines. At March 31, 2017 , scheduled maturities of all of our long-term debt and capital lease obligations were $138 million for the remainder of 2017, $193 million in 2018 , $215 million in 2019 , $179 million in 2020 , $164 million in 2021 and $448 million thereafter. The carrying amounts and estimated fair values of our long-term debt (excluding capital lease obligation) at March 31, 2017 and December 31, 2016 were as follows (in millions): March 31, 2017 December 31, 2016 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Public Debt Fixed rate special facility bonds, due through 2036 43 45 43 45 Non-Public Debt Fixed rate enhanced equipment notes, due through 2023 $ 182 $ 188 $ 189 $ 197 Floating rate equipment notes, due through 2025 168 172 173 179 Fixed rate equipment notes, due through 2026 820 877 850 915 Total (1) $ 1,213 $ 1,282 $ 1,255 $ 1,336 (1) Total excludes capital lease obligations of $134 million for March 31, 2017 and $140 million for December 31, 2016, and deferred financing costs of $10 million for March 31, 2017 and $11 million for December 31, 2016. 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 special facility bonds were based on quoted market prices in markets with low trading volumes. 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 7 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 of this structure is being able to finance several aircraft at one time, rather than individually. The structure of EETC financing is that we create pass-through trusts in order to issue pass-through certificates. The proceeds from the issuance of these certificates are then used to purchase equipment notes which are issued by us and are secured by our aircraft. These trusts meet the definition of a variable interest entity, or VIE, as defined in the Consolidations topic of the 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. Short-term Borrowings Citibank Line of Credit As of March 31, 2017 we had a revolving Credit and Guaranty Agreement with Citibank, N.A. as the administrative agent for up to approximately $400 million . The term of the facility ran through April 2018. Borrowings under the Credit and Guaranty Agreement bear interest at a variable rate equal to LIBOR, plus a margin . The Credit and Guaranty Agreement is secured by Slots at JFK, LaGuardia and Reagan National Airport as well as certain other assets. The Credit and Guaranty Agreement 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 and for the periods ended March 31, 2017 and December 31, 2016 , we did not have a balance outstanding or borrowings under this line of credit. During April 2017, we amended our Credit and Guaranty Agreement with Citibank, N.A. and among other things we increased our borrowing capacity by $25 million to $425 million , and extended the maturity date to April 2021.

Comprehensive Income (Notes)

Comprehensive Income (Notes)	3 Months Ended
	Mar. 31, 2017
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, 2017 and March 31, 2016 are as follows (in millions): Aircraft Fuel Derivatives (1) Interest Rate Swaps (2) Total Balance of accumulated income at December 31, 2016 $ 13 $ — $ 13 Reclassifications into earnings (net of $(1) of taxes) (2 ) — (2 ) Change in fair value (net of $(4) of taxes) (6 ) — (6 ) Balance of accumulated income at March 31, 2017 $ 5 $ — $ 5 Balance of accumulated (losses) income at December 31, 2015 $ (4 ) $ 1 $ (3 ) Reclassifications into earnings (net of $0 of taxes) — — — Change in fair value (net of $0 of taxes) — — — Balance of accumulated (losses) income at March 31, 2016 $ (4 ) $ 1 $ (3 ) (1) Reclassified to aircraft fuel expense (2) Reclassified to interest expense

Earnings Per Share (Notes)

Earnings Per Share (Notes)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	Earnings Per Share The following table shows how we computed basic and diluted earnings per common share (in millions): Three Months Ended March 31, 2017 2016 Numerator: Net Income (1) $ 85 $ 207 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 $ 85 $ 208 Denominator: Weighted average shares outstanding 336.3 321.6 Effect of dilutive securities: Employee stock options, restricted stock units and stock purchase plan (1) 1.9 2.5 Convertible debt — 17.6 Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share 338.2 341.7 (1) As discussed in Note 1, we early adopted ASU 2016-09, Improvements to Employee Share-Based Payment Accounting during the fourth quarter of 2016. The adoption of this standard resulted in the recognition of $8 million of excess tax benefits to the income tax provision for the year ended December 31, 2016 . Net income and shares outstanding data for the three months ended March 31, 2016 are presented as if the ASU was adopted at the beginning of 2016. We have no convertible debt outstanding as of March 31, 2017 . During the three months ended March 31, 2016 there were no shares excluded from earnings per share upon assumed conversion of our convertible debt. On March 6, 2017, JetBlue entered into an accelerated share repurchase, or ASR, agreement with Barclays Bank PLC, paying $100 million for an initial delivery of approximately 4.1 million shares. The term of the ASR concluded on April 24, 2017 with Barclays Bank PLC delivering approximately 0.8 million million additional shares to JetBlue on April 27, 2017. A total of 4.9 million million shares, at an average price of $20.23 per share, were repurchased under the agreement. The total number of shares repurchased by JetBlue was based on the volume weighted average price of JetBlue's common stock during the term of the ASR agreement. On April 27, 2017, JetBlue entered into an ASR agreement with Goldman, Sachs & Co. ("GS&Co."), paying $150 million for an initial delivery of approximately 5.4 million shares. The term of the ASR is expected to be completed by the end of third quarter 2017. The total number of shares to ultimately be repurchased by JetBlue will be based on the volume weighted average price of JetBlue's common stock during the term of the ASR agreement, less a discount.

Employee Retirement Plan (Notes

Employee Retirement Plan (Notes)	3 Months Ended
	Mar. 31, 2017
Compensation and Retirement Disclosure [Abstract]
Compensation and Employee Benefit Plans [Text Block]	Crewmember Retirement Plan and Profit Sharing We sponsor a retirement savings 401(k) defined contribution plan, or the Plan, covering all of our employees, who we refer to as Crewmembers, where we match 100% of our Crewmembers' contributions up to 5% of their eligible wages. The contributions vest over five years and are measured from a Crewmember's hire date. Crewmembers 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. For years of service prior to 2017 , our non-management Crewmembers were also eligible to receive profit sharing, calculated as 15% of adjusted pre-tax income before profit sharing and special items with the result reduced by Retirement Plus contributions. Eligible non-management Crewmembers may elect to have their profit sharing contributed directly to the Plan. Beginning with 2017 , non-management Crewmembers are eligible to receive profit sharing, calculated as 10% of adjusted pre-tax income before profit sharing and special items up to a pre-tax margin of 18% with the result reduced by Retirement Plus contributions. If JetBlue's resulting pre-tax margin exceeds 18% , non-management Crewmembers will receive 20% profit sharing above an 18% pre-tax margin. Certain Federal Aviation Administration, or 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 for the three months ended March 31, 2017 and 2016 was $42 million and $81 million , respectively.

Commitments and Contingencies (

Commitments and Contingencies (Notes)	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	Commitments and Contingencies Flight Equipment Commitments As of March 31, 2017 , our firm aircraft orders consisted of 23 Airbus A321 aircraft, 25 Airbus A320 new engine option (A320neo) aircraft, 60 Airbus A321neo aircraft, 24 Embraer E190 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 $894 million for the remainder of 2017 , $839 million in 2018 , $1.2 billion in 2019 , $1.6 billion in 2020 , $1.4 billion in 2121 and $2.0 billion thereafter. We amended our purchase agreement with Airbus during April 2017 which changed the timing of our Airbus A321 and Airbus A321neo deliveries. These committed expenditures are as of March 31, 2017 and do not reflect aircraft deferrals executed after quarter end. We are scheduled to receive 12 new Airbus A321 aircraft during the remainder of 2017. Other Commitments As part of the 2014 sale of LiveTV, LLC, or LiveTV, formerly a wholly owned subsidiary of JetBlue, a $3 million liability relating to Airfone, a former subsidiary of LiveTV, 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, 2017 , we had approximately $29 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 $27 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. 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 GAAP, where appropriate. In making a determination regarding accruals, using available information, we evaluate the likelihood of an unfavorable outcome in legal or 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. 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.

Financial Derivative Instrument

Financial Derivative Instruments and Risk Management (Notes)	3 Months Ended
	Mar. 31, 2017
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. In the past, we have periodically entered into interest rate swaps to manage the variability of the cash flows associated with our variable rate debt. 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, 2017 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 Second Quarter 2017 10 % — % — % 10 % Third Quarter 2017 10 % — % — % 10 % Fourth Quarter 2017 10 % — % — % 10 % 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): March 31, December 31, Fuel derivatives Asset fair value recorded in prepaid expense and other (1) $ 9 $ 22 Longest remaining term (months) 9 12 Hedged volume (barrels, in thousands) 1,440 1,920 Estimated amount of existing (gains) expected to be reclassified into earnings in the next 12 months (8 ) (22 ) Three Months Ended March 31, 2017 2016 Fuel derivatives Hedge effectiveness (gains) recognized in aircraft fuel expense $ (3 ) $ — (Gains) losses on derivatives not qualifying for hedge accounting recognized in other expense — — Hedge losses on derivatives recognized in comprehensive income 10 — Percentage of actual consumption economically hedged 11 % — % (1) Gross asset of each contract prior to consideration of offsetting positions with each counterparty and prior to the impact of collateral paid. 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 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 on Balance Sheet Assets Liabilities Offset Assets Liabilities Fuel derivatives As of March 31, 2017 $ 9 $ — $ — $ 9 $ — As of December 31, 2016 $ 22 $ — $ — $ 22 $ —

Fair Value of Financial Instrum

Fair Value of Financial Instruments (Notes)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	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 of March 31, 2017 and December 31, 2016 (in millions): March 31, 2017 Level 1 Level 2 Level 3 Total Cash equivalents $ 292 $ — $ — $ 292 Available-for-sale investment securities 40 255 — 295 Aircraft fuel derivatives — 9 — 9 December 31, 2016 Level 1 Level 2 Level 3 Total Cash equivalents $ 313 $ — $ — $ 313 Available-for-sale investment securities 115 220 — 335 Aircraft fuel derivatives — 22 — 22 Refer to Note 2 for fair value information related to our outstanding debt obligations as of March 31, 2017 and December 31, 2016 . 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 U.S. treasury bills, time deposits and commercial paper with maturities greater than 90 days but less than one year. The U.S. treasury bills are valued using inputs observable in active markets for identical securities and are therefore classified as Level 1 within our fair value hierarchy. The fair values of our time deposits and commercial paper 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, 2017 and 2016 . 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 in the hierarchy. 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.

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Derivatives, Policy [Policy Text Block]	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 in the hierarchy. 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.
Cash and Cash Equivalents, Policy [Policy Text Block]	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.
Basis of presentation	Basis of Presentation JetBlue Airways Corporation, or JetBlue, provides air transportation services across the United States, the Caribbean and Latin America. Our condensed consolidated financial statements include the accounts of 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 being eliminated. These condensed consolidated financial statements and related notes should be read in conjunction with our 2016 audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 . 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 generally accepted accounting principles in the U.S., or 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 other interim periods or 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. The contractual maturities of the corporate bonds we held as of March 31, 2017 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, 2017 or 2016 . The estimated fair value of these investments approximated their carrying value as of March 31, 2017 and December 31, 2016 , respectively. The carrying values of investment securities consisted of the following at March 31, 2017 and December 31, 2016 (in millions): March 31, 2017 December 31, 2016 Available-for-sale securities Time deposits $ 160 $ 160 Commercial paper 95 60 Treasury bills 40 115 Total available-for-sale securities 295 335 Held-to-maturity securities Treasury notes $ 241 $ 283 Corporate bonds 72 10 Total held-to-maturity securities 313 293 Total investment securities $ 608 $ 628
New Accounting Pronouncements [Policy Text Block]	Recent Accounting Pronouncements During the first quarter of 2017, we adopted Accounting Standards Update, or ASU, 2015-17, Income Taxes, Balance Sheet Classification of Deferred Taxes topic of the FASB Codification, or Codification. This standard requires all deferred tax assets and liabilities to be classified as non-current on the balance sheet instead of separating deferred taxes into current and non-current amounts. In addition, valuation allowance allocations between current and non-current deferred tax assets are no longer required because those allowances also will be classified as non-current. Our condensed consolidated balance sheet as of December 31, 2016 reflects retrospective application. As a result of the adoption, $9 million of deferred tax liabilities previously included within other accrued liabilities and $164 million of deferred tax assets previously included within current assets have been moved to long-term liabilities on our December 31, 2016 balance sheet. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . Under ASU 2016-02, a lessee will recognize liabilities for lease payments and right-of-use assets representing its right to use the underlying asset for the lease term. While we are still evaluating the full impact of adopting the amendments on our consolidated financial statements and disclosures, we have determined that it will impact our accounting for aircraft and other leases. The amendments are effective for fiscal years beginning after December 15, 2018 and includes interim periods within those fiscal years. Early adoption is permitted, and companies are required to use a modified retrospective approach at the earliest period presented. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash . The amendments clarified how entities should present restricted cash and restricted cash equivalents in the statement of cash flows. ASU 2016-18 requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The amendments are effective for fiscal years beginning after December 15, 2017 and includes interim periods within those years. Early adoption is permitted. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting . The amendments apply to several aspects of accounting for stock-based compensation including the recognition of excess tax benefits and deficiencies and their related presentation in the statement of cash flows as well as accounting for forfeitures. We early adopted, as permitted, this standard during the fourth quarter of 2016. The adoption of this standard resulted in the recognition of $8 million of previously unrecognized excess tax benefits in deferred tax assets and an increase to retained earnings on our consolidated balance sheet as of the beginning of 2016, and the recognition of $8 million of excess tax benefits to the income tax provision for the year ended December 31, 2016. Excess tax benefits for share-based payments are now included in net operating cash flows rather than net financing cash flows. 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 allows for either full retrospective or modified retrospective adoption. In July 2015, the FASB voted to defer the effective date of ASU 2014-09 by one year to interim and annual reporting periods beginning after December 15, 2017 and permitted early adoption of the standard, but not prior to December 15, 2016. While we are evaluating the full impact of the new standard on our consolidated financial statements, we have determined that it will impact our loyalty program accounting. JetBlue will no longer be allowed to use the incremental cost method when recording the financial impact of TrueBlue® points earned on qualifying JetBlue purchases. We will be required to re-value our liability with a relative fair value approach, which is anticipated to significantly increase the related liability. In addition the standard will likely result in a change in the timing and classification of our revenue recognition for certain ancillary fees directly related to passenger revenue tickets, as these services are no longer likely to be considered distinct performance obligations. Fees associated with these services are likely to be recognized as of the date of travel, not when assessed to the customer, and classified as passenger revenue. JetBlue currently anticipates adopting the new standard effective January 1, 2018 using the full retrospective method, however, this decision is not final and is subject to the completion of our analysis of the standard. We will continue our evaluation of ASU 2014-09 through the date of adoption.
Marketable Securities, Available-for-sale Securities, Policy [Policy Text Block]	Available-for-sale investment securities Included in our available-for-sale investment securities are U.S. treasury bills, time deposits and commercial paper with maturities greater than 90 days but less than one year. The U.S. treasury bills are valued using inputs observable in active markets for identical securities and are therefore classified as Level 1 within our fair value hierarchy. The fair values of our time deposits and commercial paper 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, 2017 and 2016 .

Long-term Debt and Short-term16

Long-term Debt and Short-term Borrowings Short-Term Borrowings (Policies)	3 Months Ended
	Mar. 31, 2017
Short -Term Borrowing Disclosure [Abstract]
Short-term Debt [Text Block]	Short-term Borrowings Citibank Line of Credit As of March 31, 2017 we had a revolving Credit and Guaranty Agreement with Citibank, N.A. as the administrative agent for up to approximately $400 million . The term of the facility ran through April 2018. Borrowings under the Credit and Guaranty Agreement bear interest at a variable rate equal to LIBOR, plus a margin . The Credit and Guaranty Agreement is secured by Slots at JFK, LaGuardia and Reagan National Airport as well as certain other assets. The Credit and Guaranty Agreement 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 and for the periods ended March 31, 2017 and December 31, 2016 , we did not have a balance outstanding or borrowings under this line of credit. During April 2017, we amended our Credit and Guaranty Agreement with Citibank, N.A. and among other things we increased our borrowing capacity by $25 million to $425 million , and extended the maturity date to April 2021.

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Schedule of marketable securities	The carrying values of investment securities consisted of the following at March 31, 2017 and December 31, 2016 (in millions): March 31, 2017 December 31, 2016 Available-for-sale securities Time deposits $ 160 $ 160 Commercial paper 95 60 Treasury bills 40 115 Total available-for-sale securities 295 335 Held-to-maturity securities Treasury notes $ 241 $ 283 Corporate bonds 72 10 Total held-to-maturity securities 313 293 Total investment securities $ 608 $ 628

Long-term Debt and Short-term18

Long-term Debt and Short-term Borrowings (Tables)	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Schedule of Long Term Debt	The carrying amounts and estimated fair values of our long-term debt (excluding capital lease obligation) at March 31, 2017 and December 31, 2016 were as follows (in millions): March 31, 2017 December 31, 2016 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Public Debt Fixed rate special facility bonds, due through 2036 43 45 43 45 Non-Public Debt Fixed rate enhanced equipment notes, due through 2023 $ 182 $ 188 $ 189 $ 197 Floating rate equipment notes, due through 2025 168 172 173 179 Fixed rate equipment notes, due through 2026 820 877 850 915 Total (1) $ 1,213 $ 1,282 $ 1,255 $ 1,336

Comprehensive Income (Tables)

Comprehensive Income (Tables)	3 Months Ended
	Mar. 31, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Income (Loss), Net of Tax	A rollforward of the amounts included in the accumulated other comprehensive income (loss), net of taxes for the three months ended March 31, 2017 and March 31, 2016 are as follows (in millions): Aircraft Fuel Derivatives (1) Interest Rate Swaps (2) Total Balance of accumulated income at December 31, 2016 $ 13 $ — $ 13 Reclassifications into earnings (net of $(1) of taxes) (2 ) — (2 ) Change in fair value (net of $(4) of taxes) (6 ) — (6 ) Balance of accumulated income at March 31, 2017 $ 5 $ — $ 5 Balance of accumulated (losses) income at December 31, 2015 $ (4 ) $ 1 $ (3 ) Reclassifications into earnings (net of $0 of taxes) — — — Change in fair value (net of $0 of taxes) — — — Balance of accumulated (losses) income at March 31, 2016 $ (4 ) $ 1 $ (3 )

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	Earnings Per Share The following table shows how we computed basic and diluted earnings per common share (in millions): Three Months Ended March 31, 2017 2016 Numerator: Net Income (1) $ 85 $ 207 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 $ 85 $ 208 Denominator: Weighted average shares outstanding 336.3 321.6 Effect of dilutive securities: Employee stock options, restricted stock units and stock purchase plan (1) 1.9 2.5 Convertible debt — 17.6 Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share 338.2 341.7 (1) As discussed in Note 1, we early adopted ASU 2016-09, Improvements to Employee Share-Based Payment Accounting during the fourth quarter of 2016. The adoption of this standard resulted in the recognition of $8 million of excess tax benefits to the income tax provision for the year ended December 31, 2016 . Net income and shares outstanding data for the three months ended March 31, 2016 are presented as if the ASU was adopted at the beginning of 2016. We have no convertible debt outstanding as of March 31, 2017 . During the three months ended March 31, 2016 there were no shares excluded from earnings per share upon assumed conversion of our convertible debt. On March 6, 2017, JetBlue entered into an accelerated share repurchase, or ASR, agreement with Barclays Bank PLC, paying $100 million for an initial delivery of approximately 4.1 million shares. The term of the ASR concluded on April 24, 2017 with Barclays Bank PLC delivering approximately 0.8 million million additional shares to JetBlue on April 27, 2017. A total of 4.9 million million shares, at an average price of $20.23 per share, were repurchased under the agreement. The total number of shares repurchased by JetBlue was based on the volume weighted average price of JetBlue's common stock during the term of the ASR agreement. On April 27, 2017, JetBlue entered into an ASR agreement with Goldman, Sachs & Co. ("GS&Co."), paying $150 million for an initial delivery of approximately 5.4 million shares. The term of the ASR is expected to be completed by the end of third quarter 2017. The total number of shares to ultimately be repurchased by JetBlue will be based on the volume weighted average price of JetBlue's common stock during the term of the ASR agreement, less a discount.
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	The following table shows how we computed basic and diluted earnings per common share (in millions): Three Months Ended March 31, 2017 2016 Numerator: Net Income (1) $ 85 $ 207 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 $ 85 $ 208 Denominator: Weighted average shares outstanding 336.3 321.6 Effect of dilutive securities: Employee stock options, restricted stock units and stock purchase plan (1) 1.9 2.5 Convertible debt — 17.6 Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share 338.2 341.7

Financial Derivative Instrume21

Financial Derivative Instruments and Risk Management (Tables)	3 Months Ended
	Mar. 31, 2017
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, 2017 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 Second Quarter 2017 10 % — % — % 10 % Third Quarter 2017 10 % — % — % 10 % Fourth Quarter 2017 10 % — % — % 10 %
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): March 31, December 31, Fuel derivatives Asset fair value recorded in prepaid expense and other (1) $ 9 $ 22 Longest remaining term (months) 9 12 Hedged volume (barrels, in thousands) 1,440 1,920 Estimated amount of existing (gains) expected to be reclassified into earnings in the next 12 months (8 ) (22 ) Three Months Ended March 31, 2017 2016 Fuel derivatives Hedge effectiveness (gains) recognized in aircraft fuel expense $ (3 ) $ — (Gains) losses on derivatives not qualifying for hedge accounting recognized in other expense — — Hedge losses on derivatives recognized in comprehensive income 10 — Percentage of actual consumption economically hedged 11 % — % (1) Gross asset of each contract prior to consideration of offsetting positions with each counterparty and prior to the impact of collateral paid.
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 on Balance Sheet Assets Liabilities Offset Assets Liabilities Fuel derivatives As of March 31, 2017 $ 9 $ — $ — $ 9 $ — As of December 31, 2016 $ 22 $ — $ — $ 22 $ —

Fair Value of Financial Instr22

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2017
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, 2017 and December 31, 2016 (in millions): March 31, 2017 Level 1 Level 2 Level 3 Total Cash equivalents $ 292 $ — $ — $ 292 Available-for-sale investment securities 40 255 — 295 Aircraft fuel derivatives — 9 — 9 December 31, 2016 Level 1 Level 2 Level 3 Total Cash equivalents $ 313 $ — $ — $ 313 Available-for-sale investment securities 115 220 — 335 Aircraft fuel derivatives — 22 — 22 Refer to Note 2 for fair value information related to our outstanding debt obligations as of March 31, 2017 and December 31, 2016 .

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Mar. 31, 2017	Jan. 01, 2016
Schedule of Available-for-sale Securities [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption			$ 8
Available-for-sale securities
Available-for-sale investment securities	$ 335	$ 295
Held-to-maturity securities
Held-to-maturity securities	293	313
Marketable securities	628	608
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification	8
Bank Time Deposits [Member]
Available-for-sale securities
Available-for-sale investment securities	160	160
Commercial paper [Member]
Available-for-sale securities
Available-for-sale investment securities	60	95
US Treasury Bill Securities [Member]
Available-for-sale securities
Available-for-sale investment securities	115	40
US Treasury Securities [Member]
Held-to-maturity securities
Held-to-maturity securities	283	241
Corporate Bond Securities [Member]
Held-to-maturity securities
Held-to-maturity securities	10	$ 72
Other Liabilities [Member]
Schedule of Available-for-sale Securities [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption	9
Deferred Tax Asset [Domain]
Schedule of Available-for-sale Securities [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption	$ 164

Summary of Significant Accoun24

Summary of Significant Accounting Policies Held-to-Maturity Gains (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Held-to-maturity Securities, Gross Gains (Losses), Derivatives	$ 0	$ 0

Long-term Debt and Short-term25

Long-term Debt and Short-term Borrowings (Details) $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)aircraft	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
Reduction in outstanding debt and capital lease obligations	$ 49
Value of aircraft, engines and other equipment and facilities which were pledged as security under various loan agreements	$ 3,600
Unencumbered spare engine | aircraft	32
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year	$ 138
Long-term debt, maturities, repayments of principal in Year Two	193
Long-term debt, maturities, repayments of principal in Year Three	215
Long-term debt, maturities, repayments of principal in Year Four	179
Long-term debt, maturities, repayments of principal in Year Five	164
Long-term debt, maturities, repayments of principal after Year Five	448
Capital Lease Obligations	134	$ 140
Carrying amounts and estimated fair values of long-term debt
Carrying Value, Total	1,213	1,255
Estimated Fair Value, Total	1,282	1,336
Line of Credit, Current	0	0
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	43	43
Estimated Fair Value, Total	45	45
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	182	189
Estimated Fair Value, Total	188	197
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	168	173
Estimated Fair Value, Total	172	179
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	820	850
Estimated Fair Value, Total	$ 877	$ 915
A-320-200 [Member]
Debt Instrument [Line Items]
unencumbered aircraft | aircraft	73
A-321 [Member]
Debt Instrument [Line Items]
unencumbered aircraft | aircraft	30

Long-term Debt and Short-term26

Long-term Debt and Short-term Borrowings Short-term Borrowings (Details) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2017	Mar. 31, 2017	Apr. 06, 2017	Dec. 31, 2016
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 400
Debt Instrument, Description of Variable Rate Basis		LIBOR, plus a margin
Line of Credit, Current		$ 0		$ 0
Scenario, Forecast [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Increase (Decrease), Net	$ 25
Line of Credit Facility, Maximum Borrowing Capacity			$ 425

Comprehensive Income (Details)

Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning accumulated gains (losses)	$ 13	$ (3)
Reclassifications into earnings	(2)	0
Change in fair value	(6)	0
Ending accumulated losses	5
Fuel Derivatives [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning accumulated gains (losses)	13	(4)
Reclassifications into earnings	(2)	0
Change in fair value	(6)	$ 0
Ending accumulated losses	$ 5

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Derivative [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax	$ (2)	$ 0
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax	(6)	0
Accumulated Other Comprehensive Income (Loss), Net of Tax	5		$ 13	$ (3)	$ (3)
Reclassifications into earnings, tax	(1)	13
Change in fair value, tax	(4)	(5)
Fuel Derivatives [Member]
Derivative [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax	(2)	0
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax	(6)	0
Accumulated Other Comprehensive Income (Loss), Net of Tax	5		13	(4)	(4)
Interest Rate Swap [Member]
Derivative [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax	0	0
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax	0	$ 0
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ 0		$ 0	$ 1	$ 1

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	Apr. 28, 2017	Mar. 07, 2017	Apr. 24, 2017	Apr. 24, 2017	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Apr. 27, 2017
Numerator:
Net Income					$ 85	$ 207
Effect of dilutive securities:
Interest on convertible debt, net of income taxes and profit sharing					0	1
Net income applicable to common stockholders after assumed conversions for diluted earnings per share					$ 85	$ 208
Denominator:
Weighted average shares outstanding					336,300,000	321,600,000
Effect of dilutive securities:
Employee stock options, restricted stock units and stock purchase plan(1)					1,900,000	2,500,000
Convertible debt					0	17,600,000
Adjusted weighted average shares outstanding and assumed conversions for diluted earnings per share					338,200,000	341,700,000
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification							$ 8
Convertible Debt					$ 0
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	0
Accelerated Share Repurchases, Settlement (Payment) or Receipt		$ 100
Treasury Stock, Shares, Acquired		4,100,000
Scenario, Forecast [Member]
Shares excluded from EPS calculation (in millions):
Accelerated Share Repurchases, Settlement (Payment) or Receipt								$ 150
Treasury Stock, Shares, Acquired	5,400,000		4,900,000	800,000
Accelerated Share Repurchases, Final Price Paid Per Share			$ 20.23

Employee Retirement Plan (Detai

Employee Retirement Plan (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]
Defined Contribution Plan, Employer Matching Contribution, Percent of Match	100.00%
Employee Retirement Plan (Textuals) [Abstract]
Percentage of employees' gross pay for which the employer contributes a matching contribution to the Plan.	5.00%
Defined Contribution Plan Requisite Service Period For Vesting	5 years
Percentage of employees' gross pay for which the employer can contribute a discretionary profit sharing contribution to the Plan.	5.00%
Retirement Plus Contribution Plan Requisite Service Period For Vesting	3 years
Percentage of Its Eligible Pre Tax Profits for which the employer contributes to the Plan.			15.00%
Percentage of Eligible Pre-tax Profits the Company Contributes to Profit Sharing until the Pre-tax Margin is 18%	10.00%
Profit Sharing Calculation Trigger, Pretax Margin	18.00%
Percentage of Eligible Pre-tax Profits the Company Contributes to Profit Sharing when Pre-tax Margin is above 18%	20.00%
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	$ 42	$ 81

Commitments and Contingencies31

Commitments and Contingencies (Details) $ in Millions	12 Months Ended	84 Months Ended
	Dec. 31, 2014	Dec. 31, 2020USD ($)	Mar. 31, 2017USD ($)aircraft	Jun. 10, 2014USD ($)
Unrecorded Unconditional Purchase Obligation [Line Items]
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year			$ 894
Unrecorded Unconditional Purchase Obligation, Due within Two Years			839
Unrecorded Unconditional Purchase Obligation, Due within Three Years			1,200
Unrecorded Unconditional Purchase Obligation, Due within Four Years			1,600
Unrecorded Unconditional Purchase Obligation, Due within Five Years			1,400
Unrecorded Unconditional Purchase Obligation, Due after Five Years			2,000
Loss Contingency Accrual				$ 3
Restricted assets pledged under letter of credit			29
Restricted Assets Pledged Related To Workers Compensation Insurance Policies And Other Business Partner Agreements			$ 27
A-321 [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Unrecorded Unconditional Purchase Obligations Disclosure | aircraft			23
Number Of Aircraft Scheduled To Receive | aircraft			12
A-320-Neo [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Unrecorded Unconditional Purchase Obligations Disclosure | aircraft			25
A-321 Neo [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Unrecorded Unconditional Purchase Obligations Disclosure | aircraft			60
E-190 [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Unrecorded Unconditional Purchase Obligations Disclosure | aircraft			24
Spare Engines [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Unrecorded Unconditional Purchase Obligations Disclosure | aircraft			10
In Flight Entertainment Systems Member
Unrecorded Unconditional Purchase Obligation [Line Items]
Unrecorded Unconditional Purchase Obligations, Term	7 years
Scenario, Forecast [Member]
Unrecorded Unconditional Purchase Obligation [Line Items]
Additional Long Term Purchase Commitment Amount Minimum		$ 25
Long Term Purchase Commitment Amount Minimum		$ 20

Commitments and Contingencies

Commitments and Contingencies - Loss Contingencies (Details) - USD ($) $ in Millions	84 Months Ended
	Dec. 31, 2020	Jun. 10, 2014
Loss Contingencies [Line Items]
Loss Contingency Accrual		$ 3
Scenario, Forecast [Member]
Loss Contingencies [Line Items]
Long Term Purchase Commitment Amount Minimum	$ 20
Additional Long Term Purchase Commitment Amount Minimum	$ 25

Financial Derivative Instrume33

Financial Derivative Instruments and Risk Management (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Derivative [Line Items]
Percentage Fuel Hedged - Second Quarter Current Year	10.00%
Percentage Fuel Hedged - Third Quarter Current Year	10.00%
Percentage Fuel Hedged - Fourth Quarter Current Year	10.00%
Interest expense	$ (25)	$ (29)
Fuel [Member] | Jet Fuel Swap Agreements [Member]
Derivative [Line Items]
Percentage Fuel Hedged - Second Quarter Current Year	10.00%
Percentage Fuel Hedged - Third Quarter Current Year	10.00%
Percentage Fuel Hedged - Fourth Quarter Current Year	10.00%
Fuel [Member] | Jet Fuel Collar Agreement [Member]
Derivative [Line Items]
Percentage Fuel Hedged - Second Quarter Current Year	0.00%
Percentage Fuel Hedged - Third Quarter Current Year	0.00%
Percentage Fuel Hedged - Fourth Quarter Current Year	0.00%
Heating Oil [Member] | Heating Oil Collar Agreement [Member]
Derivative [Line Items]
Percentage Fuel Hedged - Second Quarter Current Year	0.00%
Percentage Fuel Hedged - Third Quarter Current Year	0.00%
Percentage Fuel Hedged - Fourth Quarter Current Year	0.00%
Prepaid Expenses and Other [Member] | Fuel Derivatives [Member]
Derivative [Line Items]
Derivative Asset, Current	$ 9		$ 22

Financial Derivative Instrume34

Financial Derivative Instruments and Risk Management (Details 2) bbl in Thousands, $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2017USD ($)bbl	Mar. 31, 2016USD ($)	Dec. 31, 2015	Dec. 31, 2016USD ($)bbl
Derivatives, Fair Value [Line Items]
Hedged volume (barrels, in thousands)	$ (8)			$ (22)
Interest Expense	$ 25	$ 29
Fuel derivatives [Member]
Derivatives, Fair Value [Line Items]
Maximum Length of Time Hedged in Price Risk Cash Flow Hedge	9 months		12 months
Liability fair value recorded in other accrued liabilities(1) | bbl	1,440			1,920
Prepaid Expenses and Other [Member] | Fuel derivatives [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Current	$ 9			$ 22

Financial Derivative Instrume35

Financial Derivative Instruments and Risk Management - Hedging Effectiveness (Details 3) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Other income (expense) [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	$ 0	$ 0
Fuel derivatives [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Percentage of actual consumption hedged	11.00%	0.00%
Fuel derivatives [Member] | Aircraft Fuel Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Hedge losses recognized	$ (3)	$ 0
Fuel derivatives [Member] | Comprehensive Income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Percentage of actual consumption economically hedged	$ 10	$ 0

Financial Derivative Instrume36

Financial Derivative Instruments and Risk Management (Details 4) - Fuel Derivatives [Member] - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Derivative Asset	$ 9	$ 22
Derivative Liability, Fair Value, Gross Liability	0	0
Derivative, Collateral, Right to Reclaim Cash	0	0
Assets, net amount presented in balance sheet	9	22
Liabilities, net amount presented in balance sheet	$ 0	$ 0

Fair Value of Financial Instr37

Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
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	295		$ 335
Fair Value, Measurements, Recurring [Member]
Assets
Cash equivalents	292		313
Available-for-sale investment securities	295		335
Fair Value, Measurements, Recurring [Member] | Aircraft Fuel Derivatives [Member]
Assets
Derivative Asset	9		22
Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
Assets
Cash equivalents	292		313
Available-for-sale investment securities	40		115
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Aircraft Fuel Derivatives [Member]
Assets
Derivative Asset	0		0
Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
Assets
Cash equivalents	0		0
Available-for-sale investment securities	255		220
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Aircraft Fuel Derivatives [Member]
Assets
Derivative Asset	9		22
Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
Assets
Cash equivalents	0		0
Available-for-sale investment securities	0		0
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Aircraft Fuel Derivatives [Member]
Assets
Derivative Asset	$ 0		$ 0