Cover Page
Cover Page | 9 Months Ended |
Sep. 30, 2021shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2021 |
Document Transition Report | false |
Entity File Number | 000-49728 |
Entity Registrant Name | JETBLUE AIRWAYS CORP |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 87-0617894 |
Entity Address, Address Line One | 27-01 Queens Plaza North |
Entity Address, City or Town | Long Island City |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 11101 |
City Area Code | 718 |
Local Phone Number | 286-7900 |
Title of 12(b) Security | Common Stock, $0.01 par value |
Trading Symbol | JBLU |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 318,030,520 |
Entity Central Index Key | 0001158463 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
CURRENT ASSETS | |||
Cash and cash equivalents | $ 2,193 | [1] | $ 1,918 |
Investment securities | 1,100 | 1,135 | |
Receivables, net of allowance of $3 and $2, at September 30, 2021 and December 31, 2020, respectively. | 210 | 98 | |
Inventories, net of allowance of $23 and $27, at September 30, 2021 and December 31, 2020, respectively. | 64 | 71 | |
Prepaid expenses and other | 123 | 123 | |
Total current assets | 3,690 | 3,345 | |
PROPERTY AND EQUIPMENT | |||
Flight equipment | 11,031 | 10,256 | |
Predelivery deposits for flight equipment | 339 | 420 | |
Total flight equipment and predelivery deposits, gross | 11,370 | 10,676 | |
Less accumulated depreciation | 3,131 | 2,888 | |
Total flight equipment and predelivery deposits, net | 8,239 | 7,788 | |
Other property and equipment | 1,199 | 1,202 | |
Less accumulated depreciation | 644 | 591 | |
Total other property and equipment, net | 555 | 611 | |
Total property and equipment, net | 8,794 | 8,399 | |
OPERATING LEASE ASSETS | 750 | 804 | |
OTHER ASSETS | |||
Investment securities | 1 | 2 | |
Restricted cash | 59 | 51 | |
Intangible assets, net of accumulated amortization of $392 and $360, at September 30, 2021 and December 31, 2020, respectively. | 283 | 261 | |
Other | 492 | 544 | |
Total other assets | 835 | 858 | |
TOTAL ASSETS | 14,069 | 13,406 | |
CURRENT LIABILITIES | |||
Accounts payable | 575 | 365 | |
Air traffic liability | 1,679 | 1,122 | |
Accrued salaries, wages and benefits | 465 | 409 | |
Other accrued liabilities | 348 | 215 | |
Current operating lease liabilities | 108 | 113 | |
Current maturities of long-term debt and finance lease obligations | 391 | 450 | |
Total current liabilities | 3,566 | 2,674 | |
LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS | 3,760 | 4,413 | |
LONG-TERM OPERATING LEASE LIABILITIES | 712 | 752 | |
DEFERRED TAXES AND OTHER LIABILITIES | |||
Deferred income taxes | 882 | 922 | |
Air traffic liability - non-current | 618 | 616 | |
Other | 582 | 78 | |
Total deferred taxes and other liabilities | 2,082 | 1,616 | |
COMMITMENTS AND CONTINGENCIES (Note 6) | |||
STOCKHOLDERS’ EQUITY | |||
Preferred stock, $0.01 par value; 25 shares authorized, none issued | 0 | 0 | |
Common stock, $0.01 par value; 900 shares authorized, 476 and 474 shares issued and 318 and 316 shares outstanding at September 30, 2021 and December 31, 2020, respectively | 5 | 5 | |
Treasury stock, at cost; 158 and 158 shares at September 30, 2021 and December 31, 2020, respectively | (1,989) | (1,981) | |
Additional paid-in capital | 3,018 | 2,959 | |
Retained earnings | 2,915 | 2,968 | |
Accumulated other comprehensive income | 0 | 0 | |
Total stockholders’ equity | 3,949 | 3,951 | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 14,069 | $ 13,406 | |
[1] | (1) Reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets: September 30, 2021 September 30, 2020 Cash and cash equivalents $ 2,193 $ 2,453 Short-term restricted cash recorded within prepaid expenses and other — 74 Restricted cash 59 52 Total cash, cash equivalents and restricted cash $ 2,252 $ 2,579 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 3 | $ 2 |
Inventory valuation reserves | 23 | 27 |
Accumulated amortization | $ 392 | $ 360 |
Preferred stock, par value (In dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 25 | 25 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (In dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 900 | 900 |
Common stock, shares issued (in shares) | 476 | 474 |
Common stock, shares, outstanding (in shares) | 318 | 316 |
Treasury stock, shares (in shares) | 158 | 158 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues [Abstract] | ||||
Total operating revenues | $ 1,972 | $ 492 | $ 4,203 | $ 2,295 |
OPERATING EXPENSES | ||||
Aircraft fuel and related taxes | 443 | 102 | 973 | 496 |
Salaries, wages and benefits | 620 | 482 | 1,718 | 1,560 |
Landing fees and other rents | 182 | 84 | 470 | 258 |
Depreciation and amortization | 140 | 127 | 398 | 407 |
Aircraft rent | 25 | 23 | 76 | 60 |
Sales and marketing | 60 | 24 | 130 | 84 |
Maintenance, materials and repairs | 205 | 111 | 472 | 344 |
Other operating expenses | 297 | 167 | 768 | 560 |
Special items | (186) | (112) | (841) | (214) |
Total operating expenses | 1,786 | 1,008 | 4,164 | 3,555 |
OPERATING INCOME (LOSS) | 186 | (516) | 39 | (1,260) |
OTHER INCOME (EXPENSE) | ||||
Interest expense | (42) | (56) | (153) | (121) |
Capitalized interest | 3 | 3 | 9 | 10 |
Gain on equity investments | 54 | 0 | 54 | 0 |
Interest income and other expenses | (11) | (9) | (49) | (10) |
Total other income (expense) | 4 | (62) | (139) | (121) |
INCOME (LOSS) BEFORE INCOME TAXES | 190 | (578) | (100) | (1,381) |
Income tax expense (benefit) | 60 | (185) | (47) | (400) |
NET INCOME (LOSS) | $ 130 | $ (393) | $ (53) | $ (981) |
EARNINGS (LOSS) PER COMMON SHARE: | ||||
Basic (in dollars per share) | $ 0.41 | $ (1.44) | $ (0.17) | $ (3.58) |
Diluted (in dollars per share) | $ 0.40 | $ (1.44) | $ (0.17) | $ (3.58) |
Passenger | ||||
Revenues [Abstract] | ||||
Total operating revenues | $ 1,856 | $ 445 | $ 3,913 | $ 2,126 |
Other | ||||
Revenues [Abstract] | ||||
Total operating revenues | $ 116 | $ 47 | $ 290 | $ 169 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME (LOSS) | $ 130 | $ (393) | $ (53) | $ (981) |
Changes in fair value of derivative instruments, net of reclassifications into earnings, net of deferred taxes | 0 | 1 | 0 | (4) |
Total other comprehensive income (loss) | 0 | 1 | 0 | (4) |
COMPREHENSIVE INCOME (LOSS) | $ 130 | $ (392) | $ (53) | $ (985) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Deferred taxes | $ 0 | $ (1) | $ 0 | $ 1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||
Net loss | $ 130 | $ (393) | $ (53) | $ (981) | ||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||
Deferred income taxes | (40) | (351) | ||||||||
Impairment of long-lived assets | 0 | 258 | ||||||||
Depreciation | 365 | 374 | ||||||||
Amortization | 33 | 33 | ||||||||
Stock-based compensation | 23 | 20 | ||||||||
Changes in certain operating assets and liabilities | 1,438 | 242 | ||||||||
Deferred federal payroll support program grants | 0 | 49 | ||||||||
Losses on sale-leaseback transactions | 0 | 106 | 0 | 106 | $ (106) | |||||
Other, net | (11) | 27 | ||||||||
Net cash provided by (used in) operating activities | 1,755 | (223) | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||
Capital expenditures | (770) | (529) | ||||||||
Predelivery deposits for flight equipment | (33) | (67) | ||||||||
Proceeds from the maturities of held-to-maturity investments | 0 | 21 | ||||||||
Purchase of available-for-sale securities | (520) | (1,162) | ||||||||
Proceeds from the sale of available-for-sale securities | 590 | 944 | ||||||||
Proceeds from sale-leaseback transactions | 209 | 0 | 209 | 209 | ||||||
Other, net | (2) | (1) | ||||||||
Net cash used in investing activities | (735) | (585) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||
Proceeds from issuance of long-term debt | 1,010 | 2,541 | ||||||||
Proceeds from short-term borrowings | 0 | 981 | ||||||||
Proceeds from sale-leaseback transactions | 118 | 0 | 236 | 354 | ||||||
Proceeds from issuance of common stock | 22 | 22 | ||||||||
Proceeds from issuance of stock warrants | 14 | 28 | ||||||||
Repayment of long-term debt and finance lease obligations | (1,775) | (272) | ||||||||
Repayment of short-term borrowings | 0 | (1,000) | ||||||||
Acquisition of treasury stock | (7) | (167) | ||||||||
Other, net | (1) | 0 | ||||||||
Net cash (used in) provided by financing activities | (737) | 2,369 | ||||||||
INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 283 | 1,561 | ||||||||
Cash, cash equivalents and restricted cash at beginning of period | 1,969 | 1,018 | 1,018 | |||||||
Cash, cash equivalents and restricted cash at end of period | 2,252 | [1] | 2,579 | [1] | 2,252 | [1] | 2,579 | [1] | 1,969 | |
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||||
Cash payments for interest (net of amount capitalized) | 121 | 37 | ||||||||
Cash payments for income taxes (net of refunds) | 0 | 0 | ||||||||
NON-CASH TRANSACTIONS | ||||||||||
Operating lease assets obtained in exchange for operating lease liabilities | 0 | 144 | ||||||||
Lease modifications and lease conversions | 40 | 0 | ||||||||
Cash and cash equivalents | 2,193 | [1] | 2,453 | [1] | 2,193 | [1] | 2,453 | [1] | 1,918 | |
Short-term restricted cash recorded within prepaid expenses and other | [1] | 0 | 74 | 0 | 74 | |||||
Restricted cash | [1] | 59 | 52 | 59 | 52 | |||||
Total cash, cash equivalents and restricted cash | $ 2,252 | [1] | $ 2,579 | [1] | $ 2,252 | [1] | $ 2,579 | [1] | $ 1,969 | |
[1] | (1) Reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets: September 30, 2021 September 30, 2020 Cash and cash equivalents $ 2,193 $ 2,453 Short-term restricted cash recorded within prepaid expenses and other — 74 Restricted cash 59 52 Total cash, cash equivalents and restricted cash $ 2,252 $ 2,579 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2019 | 427 | (145) | ||||
Beginning balance at Dec. 31, 2019 | $ 4,799 | $ 4 | $ (1,782) | $ 2,253 | $ 4,322 | $ 2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
NET INCOME (LOSS) | (981) | (981) | ||||
Other comprehensive income (loss) | (4) | (4) | ||||
Vesting of restricted stock units (in shares) | 2 | |||||
Vesting of restricted stock units | (7) | $ (7) | ||||
Stock compensation expense | 20 | 20 | ||||
Stock issued under Crewmember stock purchase plan (in shares) | 2 | |||||
Stock issued under Crewmember stock purchase plan | 22 | 22 | ||||
Shares repurchased (in shares) | 13 | |||||
Shares repurchased | (160) | $ (192) | 32 | |||
Warrants issued under federal payroll support programs | 28 | 28 | ||||
Ending balance (in shares) at Sep. 30, 2020 | 431 | (158) | ||||
Ending balance at Sep. 30, 2020 | 3,717 | $ 4 | $ (1,981) | 2,355 | 3,341 | (2) |
Beginning balance (in shares) at Jun. 30, 2020 | 430 | (158) | ||||
Beginning balance at Jun. 30, 2020 | 4,094 | $ 4 | $ (1,981) | 2,340 | 3,734 | (3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
NET INCOME (LOSS) | (393) | (393) | ||||
Other comprehensive income (loss) | 1 | 1 | ||||
Vesting of restricted stock units (in shares) | 1 | |||||
Vesting of restricted stock units | 0 | |||||
Stock compensation expense | 5 | 5 | ||||
Warrants issued under federal payroll support programs | 10 | 10 | ||||
Ending balance (in shares) at Sep. 30, 2020 | 431 | (158) | ||||
Ending balance at Sep. 30, 2020 | 3,717 | $ 4 | $ (1,981) | 2,355 | 3,341 | (2) |
Beginning balance (in shares) at Dec. 31, 2020 | 474 | (158) | ||||
Beginning balance at Dec. 31, 2020 | 3,951 | $ 5 | $ (1,981) | 2,959 | 2,968 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
NET INCOME (LOSS) | (53) | (53) | ||||
Vesting of restricted stock units (in shares) | 1 | |||||
Vesting of restricted stock units | (8) | $ (8) | ||||
Stock compensation expense | 23 | 23 | ||||
Stock issued under Crewmember stock purchase plan (in shares) | 1 | |||||
Stock issued under Crewmember stock purchase plan | 22 | 22 | ||||
Warrants issued under federal payroll support programs | 14 | 14 | ||||
Ending balance (in shares) at Sep. 30, 2021 | 476 | (158) | ||||
Ending balance at Sep. 30, 2021 | 3,949 | $ 5 | $ (1,989) | 3,018 | 2,915 | 0 |
Beginning balance (in shares) at Jun. 30, 2021 | 476 | (158) | ||||
Beginning balance at Jun. 30, 2021 | 3,813 | $ 5 | $ (1,989) | 3,012 | 2,785 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
NET INCOME (LOSS) | 130 | 130 | ||||
Stock compensation expense | 6 | 6 | ||||
Ending balance (in shares) at Sep. 30, 2021 | 476 | (158) | ||||
Ending balance at Sep. 30, 2021 | $ 3,949 | $ 5 | $ (1,989) | $ 3,018 | $ 2,915 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
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, and between New York and London. 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 2020 audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020, or our 2020 Form 10-K. These condensed consolidated financial statements are unaudited and have been prepared by us following the rules and regulations of the U.S. 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 United States, 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. Due to the impacts from the coronavirus ("COVID-19") pandemic, seasonal variations in the demand for air travel, the volatility of aircraft fuel prices, and other factors, our 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. When sold, we use a specific identification method to determine the cost of the securities. Available-for-sale investment securities. Our available-for-sale investment securities include investments such as time deposits, equity securities of publicly traded companies, and convertible debt securities. Our investments in equity securities of publicly traded companies are classified as Level 1 in the fair value hierarchy as their fair values are based on unadjusted quoted prices in active markets for identical assets. The fair values of our time deposits and convertible debt securities are based on observable inputs in non-active markets, which are therefore classified as Level 2 in the fair value hierarchy. We did not record any material gains or losses on these securities during the three and nine months ended September 30, 2021 or 2020. Refer to Note 8 to our condensed consolidated financial statements for an explanation of the fair value hierarchy structure. Held-to-maturity investment securities. We did not have any held-to-maturity investments as of September 30, 2021 and December 31, 2020. We did not record any gains or losses on these securities during the three and nine months ended September 30, 2021 or 2020. The aggregate carrying values of our short-term and long-term investment securities consisted of the following at September 30, 2021 and December 31, 2020 (in millions): September 30, 2021 December 31, 2020 Available-for-sale securities Time deposits $ 1,060 $ 1,130 Equity securities 36 — Debt securities 5 7 Total available-for-sale securities 1,101 1,137 Total investment securities $ 1,101 $ 1,137 Other Investments Our wholly-owned subsidiary, JetBlue Technology Ventures, LLC, or JTV, has equity investments in emerging companies which do not have readily determinable fair values. In accordance with Accounting Standards Update ("ASU") 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , we account for these investments using a measurement alternative which allows entities to measure these investments at cost, less any impairment, adjusted for changes from observable price changes in orderly transactions for identifiable or similar investments of the same issuer. The carrying amount of these investments, which is included within other assets on our consolidated balance sheet, was $67 million and $40 million as of September 30, 2021 and December 31, 2020, respectively. We recognized a gain of $37 million on these investments during the three and nine months ended September 30, 2021. The gain was triggered by an observable transaction for a similar security issued by a company within the JTV investment portfolio which indicated a change in overall valuation. We estimated the fair value of our investment in the company using third party valuations and considered specific circumstances such as our expectation of a potential exit from the company, prices from previous issuances of equity securities, the rights and obligations of holders of similar securities within the company, and estimates of volatility. Due to the use of significant unobservable inputs, our investment is classified as Level 3 in the fair value hierarchy. In August 2021, we recognized a one-time gain of $17 million in connection with the initial public offering of a company within the JTV investment portfolio. The carrying value of this investment, which is included within short-term investment securities on our consolidated balance sheet, was $36 million as of September 30, 2021. We have an approximate 10% ownership interest in the TWA Flight Center Hotel at John F. Kennedy International Airport and it is also accounted for under the measurement alternative. The carrying amount of this investment was $14 million as of September 30, 2021 and December 31, 2020. Equity Method Investments Investments in which we can exercise significant influence are accounted for using the equity method in accordance with Topic 323, Investments - Equity Method and Joint Ventures of the Financial Accounting Standards Board (the "FASB") Accounting Standards Codification (the "Codification"). The carrying amount of our equity method investments was $33 million an d $34 million as of September 30, 2021 and December 31, 2020, respectively, and is included within other assets on our consolidated balance sheets. Recently Adopted Accounting Standards New accounting rules and disclosure requirements can impact our financial results and the comparability of our financial statements. The authoritative literature which has recently been issued and that we believe will impact our consolidated financial statements is described below. There are also several new proposals under development. If and when enacted, these proposals may have a significant impact on our financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The update eliminates, clarifies, and modifies certain guidance related to the accounting for income taxes. We adopted the requirements of ASU 2019-12 as of January 1, 2021. The adoption of ASU 2019-12 did not have a material impact on our condensed consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, Debt —Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity ("ASU 2020-06") . This update simplifies the accounting for certain convertible instruments by removing the separation models for convertible debt with a cash conversion feature and for convertible instruments with a beneficial conversion feature. As a result, more convertible debt instruments will be reported as a single liability instrument with no separate accounting for embedded conversion features. Additionally, this update amends the diluted earnings per share calculation for convertible instruments by requiring the use of the if-converted method. The treasury stock method is no longer available. Entities may adopt the requirements of ASU 2020-06 using either a full or modified retrospective approach, and it is effective for interim and annual reporting periods beginning after December 15, 2021. Early adoption is permitted for interim and annual reporting periods beginning after December 15, 2020. We adopted the requirements of ASU 2020-06 as of January 1, 2021. The adoption did not have an impact on our condensed consolidated financial statements as we did not have any convertible instruments outstanding as of December 31, 2020. As discussed in Note 3 to our condensed consolidated financial statements, in March 2021, we completed a private offering for $750 million of 0.50% convertible notes due 2026. We evaluated the conversion feature of this note offering for embedded derivatives in accordance with ASC 815, Derivatives and Hedging , and the substantial premium model in accordance with ASC 470, Debt . Based on our assessment, we concluded that separate accounting for the conversion feature of this note offering is not required. The carrying value of this convertible note was included within long-term debt and finance lease obligations on our consolidated balance sheet as of September 30, 2021. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company categorizes the revenues received from contracts with its customers by revenue source as we believe it best depicts the nature, amount, timing, and uncertainty of our revenue and cash flow. The following table provides the revenues recognized by revenue source for the three and nine months ended September 30, 2021 and 2020 (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Passenger revenue Passenger travel $ 1,773 $ 420 $ 3,717 $ 1,973 Loyalty revenue - air transportation 83 25 196 153 Other revenue Loyalty revenue 80 38 206 127 Other revenue 36 9 84 42 Total revenue $ 1,972 $ 492 $ 4,203 $ 2,295 TrueBlue ® is our customer loyalty program designed to reward and recognize our customers. TrueBlue ® points earned from ticket purchases are presented as a reduction to Passenger travel within passenger revenue. Amounts presented in Loyalty revenue - air transportation represent the revenue recognized when TrueBlue ® points have been redeemed and the travel has occurred. In June 2021, the Company entered into an Amended and Restated Co-Branded Card Agreement with Barclaycard ® (the "Co-Brand Agreement"). The Co-Brand Agreement, which amends and restates the existing Barclaycard ® Co-Brand Agreement, extends the term to 2031 and modifies certain other terms. The terms of the Co-Brand Agreement are effective as of January 1, 2021. The performance obligations such as air transportation; use of the JetBlue brand name, and access to our frequent flyer customer lists; advertising; and other airline benefits are consistent with the previous agreement. We continue to use the accounting method that allocates the consideration received based on the relative selling prices of those performance obligations. The increase in loyalty program revenues are primarily related to brand and non-air transportation elements. In addition, in July 2021, the Company entered into an Amended and Restated Co-Branded Card Agreement with MasterCard ® to continue our partnership as network provider under the Co-Brand Agreement. Contract Liabilities Our contract liabilities primarily consist of ticket sales for which transportation has not yet been provided, unused credits available to customers, and outstanding loyalty points available for redemption (in millions): September 30, 2021 December 31, 2020 Air traffic liability - passenger travel $ 1,416 $ 964 Air traffic liability - loyalty program and deferred revenue 1,473 825 Total $ 2,889 $ 1,789 During the nine months ended September 30, 2021 and 2020, we recognized passenger rev enue of $468 million and $697 million respectively, that was included in passenger travel liability at the beginning of the respective periods. The Company elected the practical expedient that allows entities to not disclose the amount of the remaining transaction price and its expected timing of recognition for passenger tickets if the contract has an original expected duration of one year or less or if certain other conditions are met. We elected to apply this practical expedient to our contract liabilities relating to passenger travel and ancillary services as our tickets or any related passenger credits generally expire one year from the date of issuance. TrueBlue ® points are combined in one homogeneous pool and are not separately identifiable. As such, the revenue is comprised of the points that were part of the air traffic liability balance at the beginning of the period as well as points that were issued during the period. The table below presents the activity of the current and non-current air traffic liability for our loyalty program, and includes points earned and sold to participating companies for the nine months ended September 30, 2021 and 2020 (in millions): Balance at December 31, 2020 $ 733 TrueBlue ® points redeemed (196) TrueBlue ® points earned and sold 308 Balance at September 30, 2021 $ 845 Balance at December 31, 2019 $ 661 TrueBlue ® points redeemed (153) TrueBlue ® points earned and sold 195 Balance at September 30, 2020 $ 703 The timing of our TrueBlue ® point redemptions can vary; however, the majority of our points are redeemed within approximately three years of the date of issuance. |
Long-term Debt, Short-term Borr
Long-term Debt, Short-term Borrowings and Finance Lease Obligations | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt, Short-term Borrowings and Finance Lease Obligations | Long-term Debt, Short-term Borrowings and Finance Lease Obligations During the nine months ended September 30, 2021, we made payments of $1.8 billion on our outstanding debt and finance lease obligations and issu ed $1.0 billion of additional debt. We had pledged aircraft, engines, other equipment, and facilities with a net book value of $5.9 billion at September 30, 2021 as security under various financing arrangements. At September 30, 2021, scheduled maturities of our long-term debt and finance lease obligations were $130 million for the remainder of 2021, $355 million in 2022, $564 million in 2023, $332 million in 2024, $192 million in 2025, and $2.6 billion thereafter. The carrying amounts and estimated fair values of our long-term debt, net of debt acquisition costs, at September 30, 2021 and December 31, 2020 were as follows (in millions): September 30, 2021 December 31, 2020 Carrying Value Estimated Fair Value (2) Carrying Value Estimated Fair Value (2) Public Debt Fixed rate special facility bonds, due through 2036 $ 42 $ 46 $ 42 $ 45 Fixed rate enhanced equipment notes: 2019-1 Series AA, due through 2032 547 464 560 440 2019-1 Series A, due through 2028 170 157 174 152 2019-1 Series B, due through 2027 101 132 107 139 2020-1 Series A, due through 2032 607 675 627 658 2020-1 Series B, due through 2028 161 215 170 223 Non-Public Debt Fixed rate enhanced equipment notes, due through 2023 88 89 114 116 Fixed rate equipment notes, due through 2028 675 680 891 1,017 Floating rate equipment notes, due through 2028 115 111 152 144 Floating rate term loan credit facility, due through 2024 — — 702 759 Unsecured CARES Act Payroll Support Program loan, due through 2030 259 224 259 207 Secured CARES Act Loan, due through 2025 — — 104 104 Citibank line of credit, due through 2023 — — 546 533 2020 sale-leaseback transactions, due through 2024 348 382 352 393 Unsecured Consolidated Appropriations Act Payroll Support Program Extension loan, due through 2031 144 124 — — 0.50% convertible senior notes due 2026 735 680 — — Unsecured American Rescue Plan Act of 2021 Payroll Support loan, due through 2031 132 114 — — Total (1) $ 4,124 $ 4,093 $ 4,800 $ 4,930 (1) Total excludes finance lease obligations of $27 million and $63 million at September 30, 2021 and December 31, 2020, respectively. (2) The estimated fair va lues 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 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 8 to our condensed consolidated financial statements for an explanation of the fair value hierarchy structure. We have financed certain aircraft with Enhanced Equipment Trust Certificates, or EETCs. One of the benefits of this structure is being able to finance several aircraft at one time, rather than individually. The structure of EETC financing is that we create pass-through trusts in order to issue pass-through certificates. The proceeds from the issuance of these certificates are then used to purchase equipment notes, which are issued by us and are secured by our aircraft. These trusts meet the definition of a variable interest entity, or VIE, as defined in the Consolidations topic of the Codification, and must be considered for consolidation in our financial statements. Our assessment of our EETCs considers both quantitative and qualitative factors including the purpose for which these trusts were established and the nature of the risks in each. The main purpose of the trust structure is to enhance the credit worthiness of our debt obligation through certain bankruptcy protection provisions and liquidity facilities, and also to lower our total borrowing cost. We concluded that we are not the primary beneficiary in these trusts because our involvement in them is limited to principal and interest payments on the related notes, the trusts were not set up to pass along variability created by credit risk to us, and the likelihood of our defaulting on the notes. Therefore, we have not consolidated these trusts in our financial statements. 0.50% Convertible Senior Notes due 2026 In March 2021, we completed a private offering for $750 million of 0.50% convertible notes due 2026. The notes are general senior unsecured obligations and will rank equal in right of payment with all of our existing and future senior unsecured indebtedness and senior in right of payment to our existing and future subordinated debt. The notes will effectively rank junior in right of payment to any of our existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness and are structurally subordinated to all of our indebtedness and other liabilities. The net proceeds from this offering were approximately $734 million. Holders of the notes may convert them into shares of our common stock prior to January 1, 2026 only under certain circumstances (such as upon the satisfaction of the sale price condition, the satisfaction of the trading price condition, notice of redemption, or specified corporate events) and thereafter at any time at a rate of 38.5802 shares of common stock per $1,000 principal amount of notes, which corresponds to an initial conversion price of approximately $25.92 per share. The conversion rate is subject to adjustment upon the occurrence of certain specified events, including, but not limited to, the issuance of certain stock dividends on common stock, the issuance of certain rights or warrants, subdivisions, combinations, distributions of capital stock, indebtedness or assets, cash dividends and certain issuer tender or exchange offers. Upon conversion, the notes will be settled in cash up to the aggregate principal amount of the notes to be converted and, at our election, in shares of our common stock, cash or a combination of cash and shares of our common stock in respect of the remainder, if any, of our conversion obligation. We are not required to redeem or retire the notes periodically. We may, at our option, redeem any of the notes for cash at a redemption price of 100% of their principal amount, plus accrued and unpaid interest at any time on or after April 1, 2024 if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which we provide notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which we provide a notice of redemption to the holders. As discussed in Note 1 to our condensed consolidated financial statements, we early adopted the provisions of ASU 2020-06. Accordingly, we evaluated the conversion feature of this note offering for embedded derivatives in accordance with ASC 815, Derivatives and Hedging, and the substantial premium model in accordance with ASC 470, Debt . Based on our assessment, separate accounting for the conversion feature of this note offering is not required. Interest expense of $2 million and $4 million were recognized for the three and nine months ended September 30, 2021, respectively. Included within interest expense were $1 million and $2 million of debt issuance costs amortization for the three and nine months ended September 30, 2021, respectively. Floating Rate Term Loan Credit Facility On June 17, 2020, we entered into a $750 million term loan credit facility with Barclays Bank PLC, as administrative agent (the "Term Loan"). The loans thereunder bore interest at a variable rate equal to LIBOR (subject to a 1.00% floor), or at our election, another rate, in each case, plus a specified margin. Our obligations were secured on a senior basis by airport takeoff and landing slots at LaGuardia Airport, John F. Kennedy International Airport, and Reagan National Airport and the right to use certain intellectual property assets comprising the JetBlue brand. On June 17, 2021, the Company voluntarily repaid a portion of its outstanding borrowings under the Term Loan. On June 30, 2021, the Company repaid the full remaining amount of outstanding borrowings under the Term Loan, which, together with its repayment of June 17, 2021, totaled approximately $722 million, plus accrued interest and associated fees. As of June 30, 2021, all obligations under the Term Loan, including all pledges of collateral were terminated in full. As of September 30, 2021, we did not have a balance outstanding under the Term Loan. Federal Payroll Support Programs As a result of the adverse economic impact of COVID-19, we have received assistance under various payroll support programs provided by the federal government. CARES Act – Payroll Support Program On March 27, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"). Under the CARES Act, assistance was made available to the aviation industry in the form of direct payroll support (the "Payroll Support Program") and secured loans (the "Loan Program"). On April 23, 2020, we entered into a Payroll Support Program Agreement (the "PSP Agreement") under the CARES Act with the United States Department of the Treasury ("Treasury") governing our participation in the Payroll Support Program. Under the Payroll Support Program, Treasury provided us with a total of approximately $963 million (the "Payroll Support Payments") consisting of $704 million in grants and $259 million in unsecured term loans. The loans have a 10-year term and bear interest on the principal amount outstanding at an annual rate of 1.00% until April 23, 2025, and the applicable Secured Overnight Financing Rate ("SOFR") plus 2.00% thereafter until April 23, 2030. The principal amount may be repaid at any time prior to maturity at par. As part of the agreement, JetBlue issued to Treasury warrants to acquire more than 2.7 million shares of our common stock under the program at an exercise price of $9.50 per share. Consolidated Appropriations Act – Payroll Support Program 2 On January 15, 2021, we entered into a Payroll Support Program Extension Agreement (the "PSP Extension Agreement") with Treasury governing our participation in the federal Payroll Support Program for passenger air carriers under the United States Consolidated Appropriations Act, 2021 (the “Payroll Support Program 2"). Treasury provided us with a total of approximately $580 million (the "Payroll Support 2 Payments") under the program, consisting of $436 million in grants and $144 million in unsecured term loans, with funding received on January 15, 2021, March 5, 2021 and April 29, 2021. The loans have a 10-year term and bear interest on the principal amount outstanding at an annual rate of 1.00% until January 15, 2026, and the applicable SOFR plus 2.00% thereafter until January 15, 2031. In consideration for the Payroll Support 2 Payments, we issued warrants to purchase approximately 1.0 million shares of our common stock to Treasury at an exercise price of $14.43 per share. American Rescue Plan Act – Payroll Support Program 3 On May 6, 2021, we entered into a Payroll Support 3 Agreement (the "PSP3 Agreement") with Treasury governing our participation in the federal payroll support program for passenger air carriers under Section 7301 of the American Rescue Plan Act of 2021 (the "Payroll Support Program 3"). Treasury provided us with a total of approximately $541 million (the "Payroll Support 3 Payments") under the program, consisting of $409 million in grants and $132 million in unsecured term loans. The loans have a 10-year term and bear interest on the principal amount outstanding at an annual rate of 1.00% until May 6, 2026, and the applicable SOFR plus 2.00% thereafter until May 6, 2031. In consideration for the Payroll Support 3 Payments, we issued warrants to purchase approximately 0.7 million shares of our common stock to Treasury at an exercise price of $19.90 per share. The warrants associated with each of the payroll support programs described above will expire five years after issuance and will be exercisable either through net cash settlement or net share settlement, at our option, in whole or in part at any time. The carrying values relating to the payroll support grants were recorded within other accrued liabilities and were recognized as a contra-expense within special items on our consolidated statements of operations as the funds were utilized. The relative fair value of the warrants were recorded within additional paid-in capital and reduced the total carrying value of the grants. Proceeds from the payroll support grants and from the issuance of payroll support warrants were classified within operating activities and financing activities, respectively, on our condensed consolidated statements of cash flows. Our funding from all payroll support grants were fully utilized as of September 30, 2021. The carrying values relating to the unsecured payroll support loans were recorded within long-term debt and finance lease obligations on our consolidated balance sheets. The proceeds from the loans were classified as financing activities on our condensed consolidated statement of cash flows. CARES Act – Secured Loan Program Under the CARES Act Loan Program, JetBlue had the ability to borrow up to a total of approximately $1.9 billion from Treasury. We entered into a loan and guarantee agreement (the "Loan Agreement") with Treasury and made an initial drawing of $115 million under the CARES Act Loan Program on September 29, 2020. In connection with this initial drawing, we entered into a warrant agreement with Treasury, pursuant to which we issued to Treasury warrants to purchase approximately 1.2 million shares of our common stock at an exercise price of $9.50 per share. The warrants will expire five years after issuance and will be exercisable either through net cash settlement or net share settlement, at our option, in whole or in part at any time. On September 15, 2021, the Company repaid the full amount of outstanding borrowings under the Loan Agreement, which, together with accrued interest and fees, totaled approximately $118 million. As of September 30, 2021, we did not have a balance outstanding and all obligations under the Loan Agreement, including all pledges of collateral, were terminated in full. Fixed Rate Enhanced Equipment Notes 2020-1A and B Equipment Notes In August 2020, we completed a public placement of equipment notes in an aggregate principal amount of $808 million secured by 24 Airbus A321 aircraft. The equipment notes were issued in two series: (i) Series A, bearing interest at the rate of 4.00% per annum in the aggregate principal amount equal to $636 million, and (ii) Series B, bearing interest at the rate of 7.75% per annum in the aggregate principal amount equal to $172 million. Principal and interest are payable semi-annually in arrears. 2019-1B Equipment Notes In August 2020, we completed a public placement of equipment notes in an aggregate principal amount of $115 million bearing interest at a rate of 8.00% per annum. These equipment notes are secured by 25 Airbus A321 aircraft, which were included in the collateral pool of our 2019-1 Series AA and Series A offerings completed in November 2019. Principal and interest are payable semi-annually in arrears. 2020 Sale-Leaseback Transactions In 2020, we executed $563 million of aircraft sale-leaseback transactions. Of these transactions, $354 million did not qualify as sales for accounting purposes. The assets associated with these transactions remain on our consolidated balance sheets within property and equipment and the related liabilities under the lease are classified within debt and finance leases obligations. These transactions are treated as cash from financing activities on our consolidated statements of cash flows. The remaining $209 million of sale-leaseback transactions qualified as sales and generated a loss of $106 million. The assets associated with these transactions which qualified as sales are recorded within operating lease assets. The liabilities are recorded within current operating lease liabilities and long-term operating lease liabilities on our consolidated balance sheets. These transactions are treated as cash from investing activities on our consolidated statements of cash flows. We did not execute any sale-leaseback transactions during the nine months ended September 30, 2021. Citibank Revolving Credit Agreement We have a revolving Credit and Guaranty Agreement with Citibank N.A. as the administrative agent, for up to $550 million (the "Revolving Facility"). The term of the Revolving Facility runs through August 2023. Borrowings under the Revolving Facility bear interest at a variable rate equal to LIBOR, plus a margin. The Revolving Facility is secured by aircraft, simulators, and certain other assets as permitted thereunder. The Revolving Facility includes covenants that require us to maintain certain minimum balances in unrestricted cash, cash equivalents, and unused commitments available under revolving credit facilities. In addition, the covenants restrict our ability to, among other things, dispose of certain collateral, or merge, consolidate, or sell assets. We borrowed the full amount of $550 million under this revolving credit facility on April 22, 2020. We repaid the full balance of this facility in the first quarter of 2021. As of and for the quarter ended September 30, 2021, we did not have a balance outstanding or any borrowings under the Revolving Facility. Short-term Borrowings Morgan Stanley Line of Credit We have a revolving line of credit with Morgan Stanley for up to approximately $200 million. This line of credit is secured by a portion of our investment securities held by Morgan Stanley and the amount available to us under this line of credit may vary accordingly. This line of credit bears interest at a floating rate based upon LIBOR, plus a margin. As of and for the periods ended September 30, 2021 and December 31, 2020, we did not have a balance outstanding or any borrowings under this line of credit. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings per share is calculated by dividing net income (loss) by the weighted average number of shares outstanding during the period. Diluted earnings per share is calculated similarly but includes potential dilution from restricted stock units, the Company's Crewmember Stock Purchase Plan, convertible notes, warrants issued under various federal payroll support programs, and any other potentially dilutive instruments using the treasury stock and if-converted methods. Anti-dilutive common stock equivalents excluded from the computation of diluted earnings per share amounts w ere 1.9 million for the three months ended September 30, 2020 . Anti-dilutive common stock equivalents excluded from the computation of diluted earnings per share amounts w ere 3.5 million and 1.7 million for the nine months ended September 30, 2021 and September 30, 2020, respectively . The following table shows how we computed basic and diluted earnings per common share for the three and nine months ended September 30, 2021 and 2020 (dollars and share data in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net income (loss) $ 130 $ (393) $ (53) $ (981) Weighted average basic shares 318.0 272.4 317.3 274.3 Effect of dilutive securities 3.3 — — — Weighted average diluted shares 321.3 272.4 317.3 274.3 Earnings (loss) per common share: Basic $ 0.41 $ (1.44) $ (0.17) $ (3.58) Diluted $ 0.40 $ (1.44) $ (0.17) $ (3.58) On February 24, 2020, JetBlue entered into an accelerated share repurchase agreement, or ASR, paying $160 million for an initial delivery of 6.6 million shares. The term of the ASR concluded on March 16, 2020 with a delivery of 4.9 million additional shares to JetBlue on March 18, 2020. A total of 11.5 million shares, at an average price of $13.91 per share, were repurchased under the agreement. Our share repurchase program has been suspended since March 31, 2020. |
Crewmember Retirement Plan
Crewmember Retirement Plan | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Crewmember Retirement Plan | Crewmember Retirement Plan We sponsor a retirement savings 401(k) defined contribution plan, or the Plan, covering all of our crewmembers where we match 100% of our crewmember contributions up to 5% of their eligible wages. The contributions vest over three 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. Certain Federal Aviation Administration, or FAA, licensed crewmembers receive an additional contribution of 3% of eligible compensation, which we refer to as Retirement Advantage. Effective August 1, 2018 and through December 31, 2020, our pilots received a non-elective Company contribution of 15% of eligible pilot compensation per the terms of the collective bargaining agreement between JetBlue and the Air Line Pilots Association, or ALPA, in lieu of the above 401(k) Company matching contribution, Retirement Plus , and Retirement Advantage contributions . This non-elective Company contribution was increased to 16% beginning on January 1, 2021. Refer to Note 6 to our condensed consolidated financial statements for additional information. The Company's non-elective contribution of eligible pilot compensation vests after three years of service. Our 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 and the equivalent of Retirement Plus contributions for pilots. If JetBlue's resulting pre-tax margin exceeds 18%, non-management crewmembers will receive 20% profit sharing on amounts above an 18% pre-tax margin. Total 401(k) company match, Retirement Plus , Retirement Advantage , pilot retirement contribution, and profit sharing expensed for the three months ended September 30, 2021 and 2020 were $57 million and $42 million, respectively, while the total expensed for the nine months ended September 30, 2021 and 2020 were $157 million and $135 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Flight Equipment Commitments As of September 30, 2021, our firm aircraft orders consisted of 64 Airbus A321neo aircraft and 64 Airbus A220 aircraft, scheduled for delivery through 2027. Committed expenditures for these aircraft and related flight equipment, including estimated amounts for contractual price escalations and predelivery deposits as of September 30, 2021 is approximately $0.2 billion for the remainder of 2021, $0.9 billion in 2022, $1.6 billion in 2023, $1.8 billion in 2024, $1.3 billion in 2025, and $1.9 billion thereafter. In October 2019, the Office of the U.S. Trade Representative announced a 10% tariff on new commercial aircraft and related parts imported from certain European Union member states, which include aircraft and other parts we are already contractually obligated to purchase, including those noted above. The U.S. Trade Representative increased the tariff to 15% effective March 2020. In March 2021, the U.S. Trade Representative announced a four-month suspension of the tariff that was followed by an announcement in June 2021 that the suspension will be extended for five years. We continue to work with our business partners, including Airbus, to evaluate the potential financial and operational impact on our future aircraft deliveries, including after the suspension is lifted. The continued imposition of the tariff could substantially increase the cost of new Airbus aircraft and parts. Other Commitments We utilize several credit card processors to process our ticket sales. Our agreements with these processors do not contain covenants, but do generally allow the processor to withhold cash reserves to protect the processor from potential liability for tickets purchased, but not yet used for travel. While we currently do not have any collateral requirements related to our credit card processors, we may be required to issue collateral to our credit card processors, or other key business partners, in the future. As of September 30, 2021, we had approximately $28 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. Amid the COVID-19 pandemic, we reached an Agreement in Principle with ALPA to avoid involuntary furloughs of our pilots through at least October 1, 2021 in exchange for short-term changes to the collective bargaining agreement. In April 2018, JetBlue inflight crewmembers elected to be solely represented by the Transport Workers Union of America, or TWU. The National Mediation Board, or NMB, certified the TWU as the representative body for JetBlue inflight crewmembers. In November 2020, our inflight crewmembers voted to reject the tentative collective bargaining agreement between JetBlue and the TWU. The parties have re-engaged in negotiations for a collective bargaining agreement. Except as noted above, our crewmembers do not have third party representation. Legal Matters Occasionally, we are involved in various claims, lawsuits, regulatory examinations, investigations and other legal matters involving suppliers (business partners), crewmembers, customers, and governmental agencies, 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 consolidated results of operations, liquidity, or financial condition. On September 21, 2021, the United States Department of Justice (the “DOJ”), along with the Attorneys General of each of the States of Arizona, California, and Florida, the Commonwealths of Massachusetts, Pennsylvania, and Virginia, and the District of Columbia, filed a lawsuit in the United States District Court for the District of Massachusetts against JetBlue Airways Corporation (“JetBlue”) and American Airlines, Inc. (“American” and, together with JetBlue, the “Carriers”) concerning the Carriers’ previously implemented Northeast Alliance (the “NEA”). The lawsuit asserts and seeks an adjudication that the NEA violates Section 1 of the Sherman Act, and that the Carriers be permanently enjoined from continuing and restrained from further implementing the NEA. JetBlue believes the lawsuit is without merit and, along with American, intends to defend itself vigorously. Given the nature of this case, we are unable to estimate the reasonably possible loss or range of loss, if any, arising from this matter. |
Financial Derivative Instrument
Financial Derivative Instruments and Risk Management | 9 Months Ended |
Sep. 30, 2021 | |
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 strategy, 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 jet fuel. Prices for the underlying commodities have historically been highly correlated to jet fuel, making derivatives of them effective at providing short-term protection against volatility in average fuel prices. We also periodically enter into jet fuel basis swaps for the differential between heating oil and jet fuel, to further limit the variability in fuel prices at various locations. 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 fuel derivative that we enter into. This treatment is provided for under ASC 815, Derivatives and Hedging which allows for gains and losses on 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. When the underlying jet 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. If a hedge does not qualify for hedge accounting, the periodic changes in its fair value are recognized in interest income and other. 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. We did not have any fuel hedging contracts outstanding as of September 30, 2021 or December 31, 2020. 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): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Fuel derivatives Hedge effectiveness losses recognized in aircraft fuel expense $ — $ 2 $ — $ 5 Losses on derivatives resulting from the discontinuance of hedge accounting recognized in interest income and other — 1 — 6 Hedge losses on derivatives recognized in comprehensive income — — — 11 Percentage of actual consumption economically hedged — % 27 % — % 25 % Any outstanding derivative instrument exposes us to credit loss in connection with our fuel contracts in the event of nonperformance by the counterparties to the agreements, but we do not expect 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. There were no offsetting derivative instruments as of September 30, 2021 or December 31, 2020. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 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 - observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 - quoted prices in active markets for similar assets and liabilities, and other inputs that are observable directly or indirectly 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 September 30, 2021 and December 31, 2020 (in millions): September 30, 2021 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 1,616 $ 50 $ — $ 1,666 Available-for-sale investment securities 36 1,065 — 1,101 December 31, 2020 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 1,330 $ 130 $ — $ 1,460 Available-for-sale investment securities — 1,137 — 1,137 Refe r to Note 3 to ou r condensed consolidated financial statements for fair value information related to our outstanding debt obligations as of September 30, 2021 and December 31, 2020. Cash equivalents Our cash equivalents include money market securities and time deposits which are readily convertible into cash, have maturities of three months or less when purchased, and are considered to be highly liquid and easily tradable. The money market securities 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 remaining instruments are based on observable inputs in non-active markets, which are therefore classified as Level 2 in the hierarchy. Available-for-sale investment securities Our available-for-sale investment securities include investments such as time deposits, equity securities of publicly traded companies, and convertible debt securities. Our investments in equity securities of publicly traded companies are classified as Level 1 in the fair value hierarchy as their fair values are based on unadjusted quoted prices in active markets for identical assets. The fair values of our time deposits and convertible debt securities are based on observable inputs in non-active markets, which are therefore classified as Level 2 in the fair value hierarchy. We did not record any material gains or losses on these securities during the three and nine months ended September 30, 2021 and 2020. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Comprehensive income (loss) includes changes in fair value of our aircraft fuel derivatives which qualify for hedge accounting. A rollforward of the amounts included in accumulated other comprehensive income (loss), net of taxes for the three months ended September 30, 2021 and 2020 is as follows (in millions): Aircraft Fuel Derivatives (1)(2) Balance of accumulated income, at June 30, 2021 $ — Reclassifications into earnings, net of deferred taxes of $0 — Change in fair value, net of deferred taxes of $0 — Balance of accumulated income, at September 30, 2021 $ — Balance of accumulated (loss), at June 30, 2020 $ (3) Reclassifications into earnings, net of deferred taxes $(1) 1 Change in fair value, net of deferred taxes of $0 — Balance of accumulated (loss), at September 30, 2020 $ (2) A rollforward of the amounts included in accumulated other comprehensive income (loss), net of taxes for the nine months ended September 30, 2021 and 2020 is as follows (in millions): Aircraft Fuel Derivatives (1)(2) Balance of accumulated income, at December 31, 2020 $ — Reclassifications into earnings, net of deferred taxes of $0 — Change in fair value, net of deferred taxes of $0 — Balance of accumulated income, at September 30, 2021 $ — Balance of accumulated income, at December 31, 2019 $ 2 Reclassifications into earnings, net of deferred taxes $(4) 7 Change in fair value, net of deferred taxes of $5 (11) Balance of accumulated (loss), at September30, 2020 $ (2) (1) Reclassified to aircraft fuel expense. |
Special Items
Special Items | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Special Items | Special Items The following is a listing of special items presented on our consolidated statements of operations for the three and nine months ended September 30, 2021 and 2020 (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Special Items Federal payroll support grant recognition (1) $ (186) $ (332) $ (830) $ (636) CARES Act employee retention credit (2) — — (11) — Fleet impairment (3) — 56 — 258 Severance and benefit costs (4) — 58 — 58 Losses on sale-leaseback transactions (5) — 106 — 106 Total $ (186) $ (112) $ (841) $ (214) (1) As discussed in Note 3 to our condensed consolidated financial statements, we received assistance in the form of grants and unsecured loans under various federal payroll support programs. Funds under these federal payroll support programs were to be used exclusively for the continuation of payment of crewmember wages, salaries and benefits. The carrying values of the payroll support grants were recorded within other liabilities and were recognized as contra-expenses within special items on our consolidated statements of operations as the funds are utilized. We utilized $186 million and $830 million of the payroll support grants for the three and nine months ended September 30, 2021, respectively. Our payroll support grants were fully utilized as of September 30, 2021. (2) The Employee Retention Credit ("ERC") under the CARES Act is a refundable tax credit which encourages businesses to keep employees on the payroll during the COVID-19 pandemic. Eligible employers can qualify for up to $5,000 of credit for each employee based on qualified wages paid after March 12, 2020 and before January 1, 2021. The Internal Revenue Service ("IRS") subsequently issued Notice 2021-23 and Notice 2021-49 which collectively extended the ERC eligibility to cover qualified wages paid after December 31, 2020 and before January 1, 2022. Qualified wages are the wages paid to an employee for the time that the employee is not providing services due to an economic hardship, specifically, either (1) a full or partial suspension of operations by order of a governmental authority due to COVID-19, or (2) a significant decline in gross receipts. Our policy is to recognize the ERC when it is filed with the IRS. We recognized $11 million of ERC as a contra-expense within special items on our consolidated statements of operations for the nine months ended September 30, 2021. No ERC was recognized during the three months ended September 30, 2021. (3) Under the Property, Plant, and Equipment topic of the Codification, we are required to assess long-lived assets for impairment when events and circumstances indicate that the assets may be impaired. An impairment of long-lived assets exists when the sum of the estimated undiscounted future cash flows expected to be generated directly by the assets are less than the book value of the assets. Our long-lived assets include both owned and leased properties which are classified as property and equipment, and operating lease assets on our consolidated balance sheets, respectively. Our operations were adversely impacted by the unprecedented decline in demand for travel caused by the COVID-19 pandemic. To determine if impairment exists in our fleet, we grouped our aircraft by fleet-type and estimated their future cash flows based on projections of capacity, aircraft age, maintenance requirements, and other relevant conditions. Based on the assessment, we determined the future cash flows from the operation of our Embraer E190 fleet were lower than the carrying value. For those aircraft, including the ones that are under operating lease, and related spare parts in our Embraer E190 fleet, we recorded an impairment loss of $56 million and $258 million for the three and nine months ended September 30, 2020, respectively. These losses represent the difference between the book value of these assets and their fair value. We estimated the fair value of our Embraer E190 fleet using third party valuations and considered specific circumstances such as aircraft age, maintenance requirements and condition, and therefore classified as Level 3 in the fair value hierarchy. We evaluated the remaining fleet and determined the future cash flows of our Airbus A320 and Airbus A321 fleet exceeded their carrying value as of September 30, 2021. No impairment loss was recorded for the three and nine months ended September 30, 2021. As the extent of the ongoing impact from the COVID-19 pandemic remains uncertain, we will update our assessment as new information becomes available. (4) The unprecedented declines in demand and in our capacity caused by COVID-19 has led to a significant reduction to our staffing needs. In June 2020, we announced voluntary separation programs which allowed eligible crewmembers the opportunity to voluntarily separate from the Company in exchange for severance, health coverage for a specified period of time, and travel privileges based on years of service. Virtually all of our crewmembers were eligible to participate in the voluntary separation program with the exception of our union-represented crewmembers and crewmembers of our wholly-owned subsidiaries (JetBlue Technology Ventures and JetBlue Travel Products). Separation agreements for the majority of the crewmembers who elected to participate in the voluntary programs were executed in the third quarter of 2020. One-time costs of $58 million, consisting of severance and health benefits, were recorded for the three months ended September 30, 2020 in connection with the programs. Approximately $39 million of this charge was disbursed during the third quarter of 2020. Substantially all of the remaining balance has been disbursed as of September 30, 2021 with the residual amount expected to be disbursed by mid-2022. Accruals related to the voluntary separation programs are primarily recorded in accrued salaries, wages and benefits, and accounts payable on our consolidated balance sheets. (5) In the third quarter of 2020, we executed $327 million of aircraft sale-leaseback transactions. Of these transactions, $118 million did not qualify as sales for accounting purposes. The remaining $209 million qualified as sales and generated a loss of $106 million. These losses represent the difference between the book value of these assets and their fair value. We estimated the fair value of the related aircraft considering third party valuations and considered specific circumstances such as aircraft age, maintenance requirements and condition, and therefore classified as Level 3 in the fair value hierarchy. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation JetBlue Airways Corporation, or JetBlue, provides air transportation services across the United States, the Caribbean and Latin America, and between New York and London. 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 2020 audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020, or our 2020 Form 10-K. These condensed consolidated financial statements are unaudited and have been prepared by us following the rules and regulations of the U.S. 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 United States, 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. |
Investment Securities/Available-for-sale investment securities | Investment Securities Investment securities consist of available-for-sale investment securities and held-to-maturity investment securities. When sold, we use a specific identification method to determine the cost of the securities. Available-for-sale investment securities Our available-for-sale investment securities include investments such as time deposits, equity securities of publicly traded companies, and convertible debt securities. Our investments in equity securities of publicly traded companies are classified as Level 1 in the fair value hierarchy as their fair values are based on unadjusted quoted prices in active markets for identical assets. The fair values of our time deposits and convertible debt securities are based on observable inputs in non-active markets, which are therefore classified as Level 2 in the fair value hierarchy. We did not record any material gains or losses on these securities during the three and nine months ended September 30, 2021 and 2020. |
Other Investments | Other Investments Our wholly-owned subsidiary, JetBlue Technology Ventures, LLC, or JTV, has equity investments in emerging companies which do not have readily determinable fair values. In accordance with Accounting Standards Update ("ASU") 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , we account for these investments using a measurement alternative which allows entities to measure these investments at cost, less any impairment, adjusted for changes from observable price changes in orderly transactions for |
Equity Method Investments | Equity Method Investments Investments in which we can exercise significant influence are accounted for using the equity method in accordance with Topic 323, Investments - Equity Method and Joint Ventures of the Financial Accounting Standards Board (the "FASB") Accounting Standards Codification (the "Codification"). The carrying amount of our equity method investments was $33 million an d $34 million as of September 30, 2021 and December 31, 2020, respectively, and is included within other assets on our consolidated balance sheets. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards New accounting rules and disclosure requirements can impact our financial results and the comparability of our financial statements. The authoritative literature which has recently been issued and that we believe will impact our consolidated financial statements is described below. There are also several new proposals under development. If and when enacted, these proposals may have a significant impact on our financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . The update eliminates, clarifies, and modifies certain guidance related to the accounting for income taxes. We adopted the requirements of ASU 2019-12 as of January 1, 2021. The adoption of ASU 2019-12 did not have a material impact on our condensed consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, Debt —Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity ("ASU 2020-06") . |
Cash equivalents | Cash equivalents |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of marketable securities | The aggregate carrying values of our short-term and long-term investment securities consisted of the following at September 30, 2021 and December 31, 2020 (in millions): September 30, 2021 December 31, 2020 Available-for-sale securities Time deposits $ 1,060 $ 1,130 Equity securities 36 — Debt securities 5 7 Total available-for-sale securities 1,101 1,137 Total investment securities $ 1,101 $ 1,137 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table provides the revenues recognized by revenue source for the three and nine months ended September 30, 2021 and 2020 (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Passenger revenue Passenger travel $ 1,773 $ 420 $ 3,717 $ 1,973 Loyalty revenue - air transportation 83 25 196 153 Other revenue Loyalty revenue 80 38 206 127 Other revenue 36 9 84 42 Total revenue $ 1,972 $ 492 $ 4,203 $ 2,295 |
Schedule of Contract Liabilities | Our contract liabilities primarily consist of ticket sales for which transportation has not yet been provided, unused credits available to customers, and outstanding loyalty points available for redemption (in millions): September 30, 2021 December 31, 2020 Air traffic liability - passenger travel $ 1,416 $ 964 Air traffic liability - loyalty program and deferred revenue 1,473 825 Total $ 2,889 $ 1,789 The table below presents the activity of the current and non-current air traffic liability for our loyalty program, and includes points earned and sold to participating companies for the nine months ended September 30, 2021 and 2020 (in millions): Balance at December 31, 2020 $ 733 TrueBlue ® points redeemed (196) TrueBlue ® points earned and sold 308 Balance at September 30, 2021 $ 845 Balance at December 31, 2019 $ 661 TrueBlue ® points redeemed (153) TrueBlue ® points earned and sold 195 Balance at September 30, 2020 $ 703 The timing of our TrueBlue ® point redemptions can vary; however, the majority of our points are redeemed within approximately three years of the date of issuance. |
Long-term Debt, Short-term Bo_2
Long-term Debt, Short-term Borrowings and Finance Lease Obligations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long term debt | The carrying amounts and estimated fair values of our long-term debt, net of debt acquisition costs, at September 30, 2021 and December 31, 2020 were as follows (in millions): September 30, 2021 December 31, 2020 Carrying Value Estimated Fair Value (2) Carrying Value Estimated Fair Value (2) Public Debt Fixed rate special facility bonds, due through 2036 $ 42 $ 46 $ 42 $ 45 Fixed rate enhanced equipment notes: 2019-1 Series AA, due through 2032 547 464 560 440 2019-1 Series A, due through 2028 170 157 174 152 2019-1 Series B, due through 2027 101 132 107 139 2020-1 Series A, due through 2032 607 675 627 658 2020-1 Series B, due through 2028 161 215 170 223 Non-Public Debt Fixed rate enhanced equipment notes, due through 2023 88 89 114 116 Fixed rate equipment notes, due through 2028 675 680 891 1,017 Floating rate equipment notes, due through 2028 115 111 152 144 Floating rate term loan credit facility, due through 2024 — — 702 759 Unsecured CARES Act Payroll Support Program loan, due through 2030 259 224 259 207 Secured CARES Act Loan, due through 2025 — — 104 104 Citibank line of credit, due through 2023 — — 546 533 2020 sale-leaseback transactions, due through 2024 348 382 352 393 Unsecured Consolidated Appropriations Act Payroll Support Program Extension loan, due through 2031 144 124 — — 0.50% convertible senior notes due 2026 735 680 — — Unsecured American Rescue Plan Act of 2021 Payroll Support loan, due through 2031 132 114 — — Total (1) $ 4,124 $ 4,093 $ 4,800 $ 4,930 (1) Total excludes finance lease obligations of $27 million and $63 million at September 30, 2021 and December 31, 2020, respectively. (2) The estimated fair va lues 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 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 8 to our condensed consolidated financial statements for an explanation of the fair value hierarchy structure. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 for the three and nine months ended September 30, 2021 and 2020 (dollars and share data in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net income (loss) $ 130 $ (393) $ (53) $ (981) Weighted average basic shares 318.0 272.4 317.3 274.3 Effect of dilutive securities 3.3 — — — Weighted average diluted shares 321.3 272.4 317.3 274.3 Earnings (loss) per common share: Basic $ 0.41 $ (1.44) $ (0.17) $ (3.58) Diluted $ 0.40 $ (1.44) $ (0.17) $ (3.58) |
Financial Derivative Instrume_2
Financial Derivative Instruments and Risk Management (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Fuel derivatives Hedge effectiveness losses recognized in aircraft fuel expense $ — $ 2 $ — $ 5 Losses on derivatives resulting from the discontinuance of hedge accounting recognized in interest income and other — 1 — 6 Hedge losses on derivatives recognized in comprehensive income — — — 11 Percentage of actual consumption economically hedged — % 27 % — % 25 % |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 and December 31, 2020 (in millions): September 30, 2021 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 1,616 $ 50 $ — $ 1,666 Available-for-sale investment securities 36 1,065 — 1,101 December 31, 2020 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 1,330 $ 130 $ — $ 1,460 Available-for-sale investment securities — 1,137 — 1,137 Refe r to Note 3 to ou r condensed consolidated financial statements for fair value information related to our outstanding debt obligations as of September 30, 2021 and December 31, 2020. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of accumulated other comprehensive income (loss), net of tax | A rollforward of the amounts included in accumulated other comprehensive income (loss), net of taxes for the three months ended September 30, 2021 and 2020 is as follows (in millions): Aircraft Fuel Derivatives (1)(2) Balance of accumulated income, at June 30, 2021 $ — Reclassifications into earnings, net of deferred taxes of $0 — Change in fair value, net of deferred taxes of $0 — Balance of accumulated income, at September 30, 2021 $ — Balance of accumulated (loss), at June 30, 2020 $ (3) Reclassifications into earnings, net of deferred taxes $(1) 1 Change in fair value, net of deferred taxes of $0 — Balance of accumulated (loss), at September 30, 2020 $ (2) A rollforward of the amounts included in accumulated other comprehensive income (loss), net of taxes for the nine months ended September 30, 2021 and 2020 is as follows (in millions): Aircraft Fuel Derivatives (1)(2) Balance of accumulated income, at December 31, 2020 $ — Reclassifications into earnings, net of deferred taxes of $0 — Change in fair value, net of deferred taxes of $0 — Balance of accumulated income, at September 30, 2021 $ — Balance of accumulated income, at December 31, 2019 $ 2 Reclassifications into earnings, net of deferred taxes $(4) 7 Change in fair value, net of deferred taxes of $5 (11) Balance of accumulated (loss), at September30, 2020 $ (2) (1) Reclassified to aircraft fuel expense. |
Special Items (Tables)
Special Items (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of unusual or infrequent items, or both | The following is a listing of special items presented on our consolidated statements of operations for the three and nine months ended September 30, 2021 and 2020 (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Special Items Federal payroll support grant recognition (1) $ (186) $ (332) $ (830) $ (636) CARES Act employee retention credit (2) — — (11) — Fleet impairment (3) — 56 — 258 Severance and benefit costs (4) — 58 — 58 Losses on sale-leaseback transactions (5) — 106 — 106 Total $ (186) $ (112) $ (841) $ (214) (1) As discussed in Note 3 to our condensed consolidated financial statements, we received assistance in the form of grants and unsecured loans under various federal payroll support programs. Funds under these federal payroll support programs were to be used exclusively for the continuation of payment of crewmember wages, salaries and benefits. The carrying values of the payroll support grants were recorded within other liabilities and were recognized as contra-expenses within special items on our consolidated statements of operations as the funds are utilized. We utilized $186 million and $830 million of the payroll support grants for the three and nine months ended September 30, 2021, respectively. Our payroll support grants were fully utilized as of September 30, 2021. (2) The Employee Retention Credit ("ERC") under the CARES Act is a refundable tax credit which encourages businesses to keep employees on the payroll during the COVID-19 pandemic. Eligible employers can qualify for up to $5,000 of credit for each employee based on qualified wages paid after March 12, 2020 and before January 1, 2021. The Internal Revenue Service ("IRS") subsequently issued Notice 2021-23 and Notice 2021-49 which collectively extended the ERC eligibility to cover qualified wages paid after December 31, 2020 and before January 1, 2022. Qualified wages are the wages paid to an employee for the time that the employee is not providing services due to an economic hardship, specifically, either (1) a full or partial suspension of operations by order of a governmental authority due to COVID-19, or (2) a significant decline in gross receipts. Our policy is to recognize the ERC when it is filed with the IRS. We recognized $11 million of ERC as a contra-expense within special items on our consolidated statements of operations for the nine months ended September 30, 2021. No ERC was recognized during the three months ended September 30, 2021. (3) Under the Property, Plant, and Equipment topic of the Codification, we are required to assess long-lived assets for impairment when events and circumstances indicate that the assets may be impaired. An impairment of long-lived assets exists when the sum of the estimated undiscounted future cash flows expected to be generated directly by the assets are less than the book value of the assets. Our long-lived assets include both owned and leased properties which are classified as property and equipment, and operating lease assets on our consolidated balance sheets, respectively. Our operations were adversely impacted by the unprecedented decline in demand for travel caused by the COVID-19 pandemic. To determine if impairment exists in our fleet, we grouped our aircraft by fleet-type and estimated their future cash flows based on projections of capacity, aircraft age, maintenance requirements, and other relevant conditions. Based on the assessment, we determined the future cash flows from the operation of our Embraer E190 fleet were lower than the carrying value. For those aircraft, including the ones that are under operating lease, and related spare parts in our Embraer E190 fleet, we recorded an impairment loss of $56 million and $258 million for the three and nine months ended September 30, 2020, respectively. These losses represent the difference between the book value of these assets and their fair value. We estimated the fair value of our Embraer E190 fleet using third party valuations and considered specific circumstances such as aircraft age, maintenance requirements and condition, and therefore classified as Level 3 in the fair value hierarchy. We evaluated the remaining fleet and determined the future cash flows of our Airbus A320 and Airbus A321 fleet exceeded their carrying value as of September 30, 2021. No impairment loss was recorded for the three and nine months ended September 30, 2021. As the extent of the ongoing impact from the COVID-19 pandemic remains uncertain, we will update our assessment as new information becomes available. (4) The unprecedented declines in demand and in our capacity caused by COVID-19 has led to a significant reduction to our staffing needs. In June 2020, we announced voluntary separation programs which allowed eligible crewmembers the opportunity to voluntarily separate from the Company in exchange for severance, health coverage for a specified period of time, and travel privileges based on years of service. Virtually all of our crewmembers were eligible to participate in the voluntary separation program with the exception of our union-represented crewmembers and crewmembers of our wholly-owned subsidiaries (JetBlue Technology Ventures and JetBlue Travel Products). Separation agreements for the majority of the crewmembers who elected to participate in the voluntary programs were executed in the third quarter of 2020. One-time costs of $58 million, consisting of severance and health benefits, were recorded for the three months ended September 30, 2020 in connection with the programs. Approximately $39 million of this charge was disbursed during the third quarter of 2020. Substantially all of the remaining balance has been disbursed as of September 30, 2021 with the residual amount expected to be disbursed by mid-2022. Accruals related to the voluntary separation programs are primarily recorded in accrued salaries, wages and benefits, and accounts payable on our consolidated balance sheets. (5) In the third quarter of 2020, we executed $327 million of aircraft sale-leaseback transactions. Of these transactions, $118 million did not qualify as sales for accounting purposes. The remaining $209 million qualified as sales and generated a loss of $106 million. These losses represent the difference between the book value of these assets and their fair value. We estimated the fair value of the related aircraft considering third party valuations and considered specific circumstances such as aircraft age, maintenance requirements and condition, and therefore classified as Level 3 in the fair value hierarchy. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Short-Term and Long-Term Investment Securities (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||||
Gains (losses) on securities | $ 0 | $ 0 | $ 0 | $ 0 | |
Debt securities, held-to-maturity, sold, realized gain (loss) | 0 | $ 0 | 0 | $ 0 | |
Available-for-sale securities | |||||
Available-for-sale investment securities | 1,101,000,000 | 1,101,000,000 | $ 1,137,000,000 | ||
Total investment securities | 1,101,000,000 | 1,101,000,000 | 1,137,000,000 | ||
Time deposits | |||||
Available-for-sale securities | |||||
Available-for-sale investment securities | 1,060,000,000 | 1,060,000,000 | 1,130,000,000 | ||
Equity securities | |||||
Available-for-sale securities | |||||
Available-for-sale investment securities | 36,000,000 | 36,000,000 | 0 | ||
Debt securities | |||||
Available-for-sale securities | |||||
Available-for-sale investment securities | $ 5,000,000 | $ 5,000,000 | $ 7,000,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Other Investments (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Aug. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||||
Cost method investments - jetblue tech ventures | $ 67 | $ 67 | $ 40 | |
Recognized gain on investment | $ 17 | 37 | 37 | |
Carrying value of investment | $ 36 | $ 36 | ||
Measurement alternative, ownership percentage | 10.00% | 10.00% | ||
Cost method investments - TWA flight center hotel | $ 14 | $ 14 | $ 14 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Equity Method Investments (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Equity method investments | $ 33 | $ 34 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Recently Adopted Accounting Standards (Details) - Convertible Senior Notes Due 2026 - Senior Notes - USD ($) | Sep. 30, 2021 | Mar. 31, 2021 |
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 750,000,000 | |
Debt instrument, interest rate, stated percentage | 0.50% | 0.50% |
Revenue Recognition - Revenue R
Revenue Recognition - Revenue Recognized By Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||||
Passenger travel | $ 1,773 | $ 420 | $ 3,717 | $ 1,973 |
Loyalty revenue - air transportation | 83 | 25 | 196 | 153 |
Loyalty revenue | 80 | 38 | 206 | 127 |
Other revenue | 36 | 9 | 84 | 42 |
Total revenue | $ 1,972 | $ 492 | $ 4,203 | $ 2,295 |
Revenue Recognition - Contract
Revenue Recognition - Contract Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Air traffic liability - passenger travel | $ 1,416 | $ 964 |
Air traffic liability - loyalty program (air transportation) | 1,473 | 825 |
Total | $ 2,889 | $ 1,789 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Contract with customer, liability, revenue recognized | $ 468 | $ 697 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 3 years |
Revenue Recognition - Current A
Revenue Recognition - Current And Non-Current Air Traffic Liability (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Beginning balance | $ 733 | $ 661 |
Increase (decrease) to air traffic liability - points redeemed | (196) | (153) |
Increase (decrease) to air traffic liability - points earned | 308 | 195 |
Ending balance | $ 845 | $ 703 |
Long-term Debt, Short-term Bo_3
Long-term Debt, Short-term Borrowings and Finance Lease Obligations - Narrative (Details) $ / shares in Units, shares in Millions | Sep. 15, 2021USD ($) | Jun. 17, 2021USD ($) | May 06, 2021USD ($)$ / sharesshares | Jan. 15, 2021USD ($)$ / sharesshares | Jun. 17, 2020USD ($) | Apr. 23, 2020USD ($)$ / sharesshares | Mar. 31, 2021USD ($)trading_day$ / shares | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Nov. 03, 2020USD ($) | Sep. 29, 2020USD ($)$ / sharesshares | Aug. 31, 2020USD ($)aircraft |
Line of Credit Facility [Line Items] | |||||||||||||||
Repayment of long-term debt and finance lease obligations | $ 1,775,000,000 | $ 272,000,000 | |||||||||||||
Pledged assets not separately reported flight equipment | $ 5,900,000,000 | 5,900,000,000 | |||||||||||||
Interest expense | 2,000,000 | 4,000,000 | |||||||||||||
Debt issuance costs amortization | 1,000,000 | 2,000,000 | |||||||||||||
Repayments of loan | $ 118,000,000 | ||||||||||||||
CARES act, payroll support program, total payment | $ 963,000,000 | ||||||||||||||
CARES act, payroll support program, grant | $ 704,000,000 | ||||||||||||||
Debt instrument, term | 10 years | ||||||||||||||
Class of warrant or right, outstanding (in shares) | shares | 2.7 | 1.2 | |||||||||||||
Class of warrant or right, exercise price of warrants or rights (in dollars per share) | $ / shares | $ 9.50 | $ 9.50 | |||||||||||||
Warrants and rights outstanding, term | 5 years | ||||||||||||||
Line of credit, current | 0 | 0 | |||||||||||||
CARES act, secured loans, eligibility amount | $ 1,900,000,000 | ||||||||||||||
Proceeds from sale leaseback transactions | $ 327,000,000 | $ 563,000,000 | |||||||||||||
Proceeds from sale-leaseback transactions | 118,000,000 | 0 | 236,000,000 | 354,000,000 | |||||||||||
Proceeds from sale-leaseback transactions | 209,000,000 | 0 | 209,000,000 | 209,000,000 | |||||||||||
Losses on sale-leaseback transactions | $ 0 | $ (106,000,000) | 0 | $ (106,000,000) | $ 106,000,000 | ||||||||||
Payroll Support 2 Payments | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
CARES act, payroll support program, grant | $ 436,000,000 | ||||||||||||||
Debt instrument, term | 10 years | ||||||||||||||
Class of warrant or right, outstanding (in shares) | shares | 1 | ||||||||||||||
CARES Act, Payroll Support Program 2, Total Payment | $ 580,000,000 | ||||||||||||||
Class of warrant or right, exercise price of warrants or rights (in dollars per share) | $ / shares | $ 14.43 | ||||||||||||||
Payroll Support 3 Payments | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
CARES act, payroll support program, total payment | $ 541,000,000 | ||||||||||||||
CARES act, payroll support program, grant | $ 409,000,000 | ||||||||||||||
Debt instrument, term | 10 years | ||||||||||||||
Class of warrant or right, outstanding (in shares) | shares | 0.7 | ||||||||||||||
Class of warrant or right, exercise price of warrants or rights (in dollars per share) | $ / shares | $ 19.90 | ||||||||||||||
Long-term Debt | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Repayment of long-term debt and finance lease obligations | 1,800,000,000 | ||||||||||||||
Issuance of debt | $ 1,000,000,000 | ||||||||||||||
Convertible Senior Notes Due 2026 | Senior Notes | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Debt instrument, interest rate, stated percentage | 0.50% | 0.50% | 0.50% | ||||||||||||
Debt instrument, face amount | $ 750,000,000 | ||||||||||||||
Proceeds from offering | $ 734,000,000 | ||||||||||||||
Debt instrument, convertible ratio | 0.0385802 | ||||||||||||||
Debt instrument, convertible, conversion price (in dollars per share) | $ / shares | $ 25.92 | ||||||||||||||
Convertible Senior Notes Due 2026 | Senior Notes | Debt Instrument, Redemption, Period One | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Debt instrument, redemption price, percentage | 100.00% | ||||||||||||||
Trading days | trading_day | 20 | ||||||||||||||
Convertible Senior Notes Due 2026 | Senior Notes | Debt Instrument, Redemption, Period Two | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Debt instrument, redemption price, percentage | 130.00% | ||||||||||||||
Trading days | trading_day | 30 | ||||||||||||||
Floating rate term loan credit facility, due through 2024 | Long-term Debt | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Repayments of loan | $ 722,000,000 | ||||||||||||||
Line of credit facility, outstanding balance | $ 0 | $ 0 | |||||||||||||
Fixed rate enhanced equipment notes, 2020-1A and B | Long-term Debt | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Debt instrument, face amount | $ 808,000,000 | ||||||||||||||
Fixed rate enhanced equipment notes, 2020-1A and B | Long-term Debt | Airbus A321 | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Secured debt | aircraft | 24 | ||||||||||||||
2020-1 Series A, due through 2032 | Long-term Debt | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Debt instrument, interest rate, stated percentage | 4.00% | ||||||||||||||
Debt instrument, face amount | $ 636,000,000 | ||||||||||||||
2020-1 Series B, due through 2028 | Long-term Debt | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Debt instrument, interest rate, stated percentage | 7.75% | ||||||||||||||
Debt instrument, face amount | $ 172,000,000 | ||||||||||||||
2019-1 Series B, due through 2027 | Long-term Debt | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Debt instrument, interest rate, stated percentage | 8.00% | ||||||||||||||
Debt instrument, face amount | $ 115,000,000 | ||||||||||||||
2019-1 Series B, due through 2027 | Long-term Debt | Airbus A321 | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Secured debt | aircraft | 25 | ||||||||||||||
US Department of Treasury | Unsecured Debt | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Debt instrument, interest rate, stated percentage | 1.00% | ||||||||||||||
Debt instrument, face amount | $ 259,000,000 | ||||||||||||||
US Department of Treasury | Unsecured Debt | Payroll Support 2 Payments | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Debt instrument, interest rate, stated percentage | 1.00% | ||||||||||||||
Debt instrument, face amount | $ 144,000,000 | ||||||||||||||
US Department of Treasury | Unsecured Debt | Payroll Support 3 Payments | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Debt instrument, interest rate, stated percentage | 1.00% | ||||||||||||||
Debt instrument, face amount | $ 132,000,000 | ||||||||||||||
US Department of Treasury | Unsecured Debt | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Debt instrument, basis spread on variable rate | 2.00% | ||||||||||||||
US Department of Treasury | Unsecured Debt | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Payroll Support 2 Payments | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Debt instrument, basis spread on variable rate | 2.00% | ||||||||||||||
US Department of Treasury | Unsecured Debt | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Payroll Support 3 Payments | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Debt instrument, basis spread on variable rate | 2.00% | ||||||||||||||
Barclays | Floating rate term loan credit facility, due through 2024 | Long-term Debt | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Debt instrument, face amount | $ 750,000,000 | ||||||||||||||
Barclays | Floating rate term loan credit facility, due through 2024 | London Interbank Offered Rate (LIBOR) | Long-term Debt | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Debt instrument, basis spread on variable rate | 1.00% | ||||||||||||||
US Department of Treasury | Secured CARES Act Loan, due through 2025 | Long-term Debt | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Debt instrument, face amount | $ 115,000,000 | ||||||||||||||
Citibank | Citibank line of credit, due through 2023 | Line of Credit | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Line of credit facility, outstanding balance | 0 | 0 | |||||||||||||
Line of credit, current | 550,000,000 | 550,000,000 | |||||||||||||
Morgan Stanley | Line of Credit | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 200,000,000 | $ 200,000,000 |
Long-term Debt, Short-term Bo_4
Long-term Debt, Short-term Borrowings and Finance Lease Obligations - Maturities Of Our Debt and Finance Leases (Details) $ in Millions | Sep. 30, 2021USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2021 | $ 130 |
2022 | 355 |
2023 | 564 |
2024 | 332 |
2025 | 192 |
Thereafter | $ 2,600 |
Long-term Debt, Short-term Bo_5
Long-term Debt, Short-term Borrowings and Finance Lease Obligations - Schedule of Carrying Amounts and Estimated Fair Value of Debt (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 4,124 | $ 4,800 |
Long term debt, fair value | 4,093 | 4,930 |
Finance lease, liability | 27 | 63 |
Fixed rate special facility bonds, due through 2036 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 42 | 42 |
Long term debt, fair value | 46 | 45 |
2019-1 Series AA, due through 2032 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 547 | 560 |
Long term debt, fair value | 464 | 440 |
2019-1 Series A, due through 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 170 | 174 |
Long term debt, fair value | 157 | 152 |
2019-1 Series B, due through 2027 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 101 | 107 |
Long term debt, fair value | 132 | 139 |
2020-1 Series A, due through 2032 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 607 | 627 |
Long term debt, fair value | 675 | 658 |
2020-1 Series B, due through 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 161 | 170 |
Long term debt, fair value | 215 | 223 |
Fixed rate enhanced equipment notes, due through 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 88 | 114 |
Long term debt, fair value | 89 | 116 |
Fixed rate equipment notes, due through 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 675 | 891 |
Long term debt, fair value | 680 | 1,017 |
Floating rate equipment notes, due through 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 115 | 152 |
Long term debt, fair value | 111 | 144 |
Floating rate term loan credit facility, due through 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 702 |
Long term debt, fair value | 0 | 759 |
Unsecured CARES Act Payroll Support Program loan, due through 2030 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 259 | 259 |
Long term debt, fair value | 224 | 207 |
Secured CARES Act Loan, due through 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 104 |
Long term debt, fair value | 0 | 104 |
Citibank line of credit, due through 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 546 |
Long term debt, fair value | 0 | 533 |
2020 sale-leaseback transactions, due through 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 348 | 352 |
Long term debt, fair value | 382 | 393 |
Unsecured Consolidated Appropriations Act Payroll Support Program Extension loan, due through 2031 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 144 | 0 |
Long term debt, fair value | $ 124 | 0 |
0.50% convertible senior notes due 2026 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 0.50% | |
Long-term debt | $ 735 | 0 |
Long term debt, fair value | 680 | 0 |
Unsecured American Rescue Plan Act of 2021 Payroll Support loan, due through 2031 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 132 | 0 |
Long term debt, fair value | $ 114 | $ 0 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Feb. 24, 2020 | Mar. 18, 2020 | Mar. 16, 2020 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Earnings Per Share [Abstract] | ||||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 1.9 | 3.5 | 1.7 | |||
Payment for repurchase of common stock | $ 160 | |||||
Treasury stock, shares, acquired (in shares) | 6.6 | 11.5 | 4.9 | |||
Accelerated share repurchases, final price paid per share (in dollars per share) | $ 13.91 |
Earnings (Loss) Per Share - Com
Earnings (Loss) Per Share - Computed Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ 130 | $ (393) | $ (53) | $ (981) |
Weighted average basic shares (in shares) | 318 | 272.4 | 317.3 | 274.3 |
Effect of dilutive securities (in shares) | 3.3 | 0 | 0 | 0 |
Weighted average diluted shares (in shares) | 321.3 | 272.4 | 317.3 | 274.3 |
Basic (in dollars per share) | $ 0.41 | $ (1.44) | $ (0.17) | $ (3.58) |
Diluted (in dollars per share) | $ 0.40 | $ (1.44) | $ (0.17) | $ (3.58) |
Crewmember Retirement Plan (Det
Crewmember Retirement Plan (Details) - USD ($) $ in Millions | Jan. 01, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Retirement Benefits [Abstract] | ||||||
Percentage of employees pay | 100.00% | |||||
Percentage of employees' gross pay | 5.00% | |||||
Contribution vesting period | 3 years | |||||
Discretionary contribution | 5.00% | |||||
Period of discretionary contribution | 3 years | |||||
Percentage of FAA licensed employees gross pay for which ER can contribute discretionary profit sharing contribution to plan | 3.00% | |||||
Percentage of company contribution to pilots retirement program | 16.00% | 15.00% | ||||
Pilots retirement vesting period | 3 years | |||||
Percent 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% | |||||
Contribution to employee retirement plan | $ 57 | $ 42 | $ 157 | $ 135 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Sep. 30, 2021USD ($)aircraft |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Remainder of fiscal year 2021 | $ 200 |
2022 | 900 |
2023 | 1,600 |
2024 | 1,800 |
2025 | 1,300 |
Thereafter | 1,900 |
Restricted assets pledged under letter of credit | 28 |
Restricted assets pledged related to workers compensation insurance policies and other business partner agreements | $ 26 |
A-321 Neo | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Unrecorded unconditional purchase obligations disclosure | aircraft | 64 |
A220-300 | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Unrecorded unconditional purchase obligations disclosure | aircraft | 64 |
Financial Derivative Instrume_3
Financial Derivative Instruments and Risk Management - Hedging Effectiveness (Details) - Fuel Derivatives - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Percentage of actual consumption economically hedged | 0.00% | 27.00% | 0.00% | 25.00% | |
Derivative, collateral, right to reclaim cash | $ 0 | $ 0 | $ 0 | ||
Aircraft Fuel Expense | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Hedge effectiveness losses recognized in aircraft fuel expense | 0 | $ 2,000,000 | 0 | $ 5,000,000 | |
Interest Income | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Losses on derivatives resulting from the discontinuance of hedge accounting recognized in interest income and other | 0 | 1,000,000 | 0 | 6,000,000 | |
Comprehensive Income | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Hedge losses on derivatives recognized in comprehensive income | $ 0 | $ 0 | $ 0 | $ 11,000,000 |
Fair Value (Details)
Fair Value (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Assets | |||||
Available-for-sale investment securities | $ 1,101,000,000 | $ 1,101,000,000 | $ 1,137,000,000 | ||
OCI, debt securities, available-for-sale, gain (loss), after adjustment, before Tax | 0 | $ 0 | 0 | $ 0 | |
Fair Value, Recurring | |||||
Assets | |||||
Cash equivalents | 1,666,000,000 | 1,666,000,000 | 1,460,000,000 | ||
Available-for-sale investment securities | 1,101,000,000 | 1,101,000,000 | 1,137,000,000 | ||
Fair Value, Recurring | Level 1 | |||||
Assets | |||||
Cash equivalents | 1,616,000,000 | 1,616,000,000 | 1,330,000,000 | ||
Available-for-sale investment securities | 36,000,000 | 36,000,000 | 0 | ||
Fair Value, Recurring | Level 2 | |||||
Assets | |||||
Cash equivalents | 50,000,000 | 50,000,000 | 130,000,000 | ||
Available-for-sale investment securities | 1,065,000,000 | 1,065,000,000 | 1,137,000,000 | ||
Fair Value, Recurring | Level 3 | |||||
Assets | |||||
Cash equivalents | 0 | 0 | 0 | ||
Available-for-sale investment securities | $ 0 | $ 0 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated gains (losses) beginning balance | $ 0 | |||
Change in fair value, tax | $ 0 | $ 0 | 0 | $ (5) |
Accumulated gains (losses) ending balance | 0 | 0 | ||
Reclassification into earnings, tax | 0 | 1 | 0 | 4 |
Aircraft Fuel Derivatives | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated gains (losses) beginning balance | 0 | 2 | ||
Reclassifications into earnings, net of taxes | 0 | 7 | ||
Change in fair value, net of deferred taxes | 0 | (11) | ||
Accumulated gains (losses) ending balance | 0 | (2) | 0 | (2) |
Losses previously deferred in other comprehensive loss reclassified to interest income | 5 | |||
Fuel Derivatives | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated gains (losses) beginning balance | 0 | (3) | ||
Reclassification into earnings, tax | 0 | 1 | ||
Change in fair value, net of deferred taxes | 0 | 0 | ||
Accumulated gains (losses) ending balance | $ 0 | (2) | $ 0 | $ (2) |
Losses previously deferred in other comprehensive loss reclassified to interest income | $ 1 |
Special Items (Details)
Special Items (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Special Items [Abstract] | |||||
Federal payroll support grant recognition | $ (186,000,000) | $ (332,000,000) | $ (830,000,000) | $ (636,000,000) | |
CARES act employee retention credit | 0 | 0 | (11,000,000) | 0 | |
Fleet impairment | 0 | 56,000,000 | 0 | 258,000,000 | |
Severance and benefit costs | 0 | 58,000,000 | 0 | 58,000,000 | |
Losses on sale-leaseback transactions | 0 | 106,000,000 | 0 | 106,000,000 | $ (106,000,000) |
Special items | $ (186,000,000) | (112,000,000) | (841,000,000) | (214,000,000) | |
Payments to employees | 5,000 | ||||
Special Item CARES act employee retention credit | 11,000,000 | ||||
Severance and benefit costs, disbursed | 39,000,000 | ||||
Proceeds from sale leaseback transactions | 327,000,000 | 563,000,000 | |||
Proceeds from sale-leaseback transactions | 118,000,000 | 0 | 236,000,000 | 354,000,000 | |
Proceeds from sale-leaseback transactions | $ 209,000,000 | $ 0 | $ 209,000,000 | $ 209,000,000 |