Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 31, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3 | ||
Entity Common Stock, Shares Outstanding | 316,028,908 | ||
Documents Incorporated by Reference | Designated portions of the Registrant's Proxy Statement for its 2021 Annual Meeting of Stockholders, which is to be filed subsequent to the date hereof, are incorporated by reference into Part III of this Annual Report on Form 10-K, or the Report, to the extent described therein. | ||
Entity Central Index Key | 0001158463 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 1,918 | $ 959 |
Investment securities | 1,135 | 369 |
Receivables, less allowance (2020 - $2; 2019-$1) | 98 | 231 |
Inventories, less allowance (2020 - $27; 2019-$22) | 71 | 81 |
Prepaid expenses and other | 123 | 146 |
Total current assets | 3,345 | 1,786 |
PROPERTY AND EQUIPMENT | ||
Flight equipment | 10,256 | 10,332 |
Pre-delivery deposits for flight equipment | 420 | 433 |
Total flight equipment and pre-delivery deposits, gross | 10,676 | 10,765 |
Less accumulated depreciation | 2,888 | 2,768 |
Total flight equipment and pre-delivery deposits, net | 7,788 | 7,997 |
Other property and equipment | 1,202 | 1,145 |
Less accumulated depreciation | 591 | 528 |
Total other property and equipment, net | 611 | 617 |
Total property and equipment, net | 8,399 | 8,614 |
Operating lease assets | 804 | 912 |
OTHER ASSETS | ||
Investment securities | 2 | 3 |
Restricted cash | 51 | 59 |
Intangible assets, net of accumulated amortization of $360 and $319, at 2020 and 2019, respectively. | 261 | 241 |
Other | 544 | 303 |
Total other assets | 858 | 606 |
TOTAL ASSETS | 13,406 | 11,918 |
CURRENT LIABILITIES | ||
Accounts payable | 365 | 401 |
Air traffic liability | 1,122 | 1,119 |
Accrued salaries, wages and benefits | 409 | 376 |
Other accrued liabilities | 215 | 295 |
Operating lease liabilities | 113 | 128 |
Current maturities of long-term debt and finance lease obligations | 450 | 344 |
Total current liabilities | 2,674 | 2,663 |
LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS | 4,413 | 1,990 |
LONG-TERM OPERATING LEASE LIABILITIES | 752 | 690 |
DEFERRED TAXES AND OTHER LIABILITIES | ||
Deferred income taxes | 922 | 1,251 |
Air traffic liability - non-current | 616 | 481 |
Other | 78 | 44 |
Total deferred taxes and other liabilities | 1,616 | 1,776 |
COMMITMENTS AND CONTINGENCIES (Notes 11 & 12) | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, $0.01 par value; 25 shares authorized, none issued | 0 | 0 |
Common stock, $0.01 par value; 900 shares authorized, 474 and 427 shares issued and 316 and 282 shares outstanding at 2020 and 2019, respectively | 5 | 4 |
Treasury stock, at cost; 158 and 145 shares at 2020 and 2019, respectively | (1,981) | (1,782) |
Additional paid-in capital | 2,959 | 2,253 |
Retained earnings | 2,968 | 4,322 |
Accumulated other comprehensive income | 0 | 2 |
Total stockholders’ equity | 3,951 | 4,799 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 13,406 | $ 11,918 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for receivables | $ 2 | $ 1 |
Allowance for inventories | 27 | 22 |
Accumulated amortization | $ 360 | $ 319 |
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) | 474 | 427 |
Common stock, shares outstanding (in shares) | 316 | 282 |
Treasury stock, shares (in shares) | 158 | 145 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING REVENUES | |||
Total revenue | $ 2,957 | $ 8,094 | $ 7,658 |
OPERATING EXPENSES | |||
Aircraft fuel and related taxes | 631 | 1,847 | 1,899 |
Salaries, wages and benefits | 2,032 | 2,320 | 2,044 |
Landing fees and other rents | 358 | 474 | 462 |
Depreciation and amortization | 535 | 525 | 469 |
Aircraft rent | 85 | 99 | 104 |
Sales and marketing | 110 | 290 | 294 |
Maintenance, materials and repairs | 441 | 619 | 625 |
Other operating expenses | 762 | 1,106 | 1,060 |
Special items | (283) | 14 | 435 |
Total operating expenses | 4,671 | 7,294 | 7,392 |
OPERATING (LOSS) INCOME | (1,714) | 800 | 266 |
OTHER INCOME (EXPENSE) | |||
Interest expense | (179) | (79) | (70) |
Capitalized interest | 13 | 14 | 10 |
Gain on equity method investments | 0 | 15 | 0 |
Interest income and other | (13) | 18 | 13 |
Total other income (expense) | (179) | (32) | (47) |
(LOSS) INCOME BEFORE INCOME TAXES | (1,893) | 768 | 219 |
Income tax (benefit) expense | (539) | 199 | 30 |
NET (LOSS) INCOME | $ (1,354) | $ 569 | $ 189 |
(LOSS) EARNINGS PER COMMON SHARE | |||
Basic (in dollars per share) | $ (4.88) | $ 1.92 | $ 0.60 |
Diluted (in dollars per share) | $ (4.88) | $ 1.91 | $ 0.60 |
Passenger | |||
OPERATING REVENUES | |||
Total revenue | $ 2,733 | $ 7,786 | $ 7,381 |
Other | |||
OPERATING REVENUES | |||
Total revenue | $ 224 | $ 308 | $ 277 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive (Loss) Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Comprehensive Income (Loss) [Abstract] | |||
Net (loss) income | $ (1,354) | $ 569 | $ 189 |
Changes in fair value of derivative instruments, net of reclassifications into earnings, net of deferred taxes of $0, $(1), and $2 in 2020, 2019, and 2018, respectively | (2) | 5 | (3) |
Total other comprehensive (loss) income | (2) | 5 | (3) |
COMPREHENSIVE (LOSS) INCOME | $ (1,356) | $ 574 | $ 186 |
Consolidated Statement of Com_2
Consolidated Statement of Comprehensive (Loss) Income (Parentheticals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Parenthetical Disclosures [Abstract] | |||
Other comprehensive income (loss), tax | $ 0 | $ 1 | $ (2) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net (loss) income | $ (1,354) | $ 569 | $ 189 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Deferred income taxes | (329) | 139 | 90 |
Impairment of long-lived assets | 273 | 0 | 319 |
Depreciation and amortization | 535 | 525 | 469 |
Stock-based compensation | 28 | 31 | 28 |
Losses on sale-leaseback transactions | 106 | 0 | 0 |
Changes in certain operating assets and liabilities: | |||
Decrease (increase) in receivables | 144 | (3) | 46 |
Decrease (increase) in inventories, prepaid and other | 52 | 188 | (178) |
Increase in air traffic liability | 66 | 118 | 131 |
(Decrease) increase in accounts payable and other accrued liabilities | (255) | (91) | 103 |
Other, net | 51 | (27) | 3 |
Net cash (used in) provided by operating activities | (683) | 1,449 | 1,200 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Capital expenditures | (715) | (932) | (908) |
Pre-delivery deposits for flight equipment | (76) | (224) | (206) |
Purchase of held-to-maturity investments | 0 | (374) | (429) |
Proceeds from the maturities of held-to-maturity investments | 21 | 534 | 505 |
Purchase of available-for-sale securities | (1,962) | (1,000) | (979) |
Proceeds from the sale of available-for-sale securities | 1,174 | 880 | 875 |
Proceeds from sale-leaseback transactions | 209 | 0 | 0 |
Other, net | 0 | (13) | (15) |
Net cash (used in) investing activities | (1,349) | (1,129) | (1,157) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from issuance of long-term debt | 2,541 | 981 | 687 |
Proceeds from short-term borrowings | 981 | 0 | 0 |
Proceeds from sale-leaseback transactions | 354 | 0 | 0 |
Proceeds from issuance of common stock | 620 | 51 | 48 |
Proceeds from issuance of stock warrants | 28 | 0 | 0 |
Repayment of long-term debt and finance lease obligations | (372) | (323) | (222) |
Repayment of short-term borrowings | (1,000) | 0 | 0 |
Acquisition of treasury stock | (167) | (542) | (382) |
Other, net | (2) | (2) | 0 |
Net cash provided by financing activities | 2,983 | 165 | 131 |
INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 951 | 485 | 174 |
Cash, cash equivalents and restricted cash at beginning of period | 1,018 | 533 | 359 |
Cash, cash equivalents, and restricted cash at end of period | 1,969 | 1,018 | 533 |
SUPPLEMENTAL CASH FLOW INFORMATION | |||
Cash payments for interest (net of amount capitalized) | 139 | 62 | 59 |
Cash payments for income taxes (net of refunds) | 5 | (52) | 11 |
Operating lease assets obtained in exchange for operating lease liabilities | 144 | 7 | 20 |
Total cash, cash equivalents and restricted cash | $ 1,018 | $ 1,018 | $ 533 |
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, 2017 | 418 | (97) | ||||
Beginning balance at Dec. 31, 2017 | $ 4,805 | $ 4 | $ (890) | $ 2,127 | $ 3,564 | $ 0 |
Net (loss) income | 189 | 189 | ||||
Other comprehensive income (loss) | (3) | (3) | ||||
Vesting of restricted stock units (in shares) | 1 | |||||
Vesting of restricted stock units | 7 | $ (7) | ||||
Stock compensation expense | 28 | 28 | ||||
Stock issued under crewmember stock purchase plan (in shares) | 3 | |||||
Shares issued under Crewmember Stock Purchase Plan | 48 | 48 | ||||
Shares repurchased (in shares) | 19 | |||||
Shares repurchased | (375) | $ (375) | 0 | |||
Ending balance at Dec. 31, 2018 | 4,685 | $ 4 | $ (1,272) | 2,203 | 3,753 | (3) |
Ending balance (in shares) at Dec. 31, 2018 | 422 | (116) | ||||
Net (loss) income | 569 | 569 | ||||
Other comprehensive income (loss) | 5 | 5 | ||||
Vesting of restricted stock units (in shares) | 2 | |||||
Vesting of restricted stock units | 6 | $ (6) | ||||
Stock compensation expense | 31 | 31 | ||||
Stock issued under crewmember stock purchase plan (in shares) | 3 | |||||
Shares issued under Crewmember Stock Purchase Plan | 51 | 51 | ||||
Shares repurchased (in shares) | 29 | |||||
Shares repurchased | (536) | $ (504) | (32) | |||
Ending balance at Dec. 31, 2019 | 4,799 | $ 4 | $ (1,782) | 2,253 | 4,322 | 2 |
Ending balance (in shares) at Dec. 31, 2019 | 427 | (145) | ||||
Net (loss) income | (1,354) | (1,354) | ||||
Other comprehensive income (loss) | (2) | (2) | ||||
Vesting of restricted stock units (in shares) | 1 | |||||
Vesting of restricted stock units | 7 | $ (7) | ||||
Stock compensation expense | 28 | 28 | ||||
Stock issued under crewmember stock purchase plan (in shares) | 4 | |||||
Shares issued under Crewmember Stock Purchase Plan | 35 | 35 | ||||
Shares repurchased (in shares) | 13 | |||||
Shares repurchased | (160) | $ (192) | 32 | |||
CARES Act warrant issuance | 28 | 28 | ||||
Shares issued under common stock offering (in shares) | 42 | |||||
Shares issued under common stock offering | 584 | $ 1 | 583 | |||
Ending balance at Dec. 31, 2020 | $ 3,951 | $ 5 | $ (1,981) | $ 2,959 | $ 2,968 | $ 0 |
Ending balance (in shares) at Dec. 31, 2020 | 474 | (158) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation JetBlue provides air transportation services across the United States, the Caribbean, and Latin America. Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP, and include the accounts of JetBlue and our subsidiaries. All majority-owned subsidiaries are consolidated with all intercompany transactions and balances being eliminated. Use of Estimates The preparation of our consolidated financial statements and accompanying notes in conformity with GAAP requires us to make certain estimates and assumptions. Actual results could differ from those estimates. Fair Value The Fair Value Measurements and Disclosures topic of the Financial Accounting Standards Board, or FASB, Accounting Standards Codification ® , or Codification, establishes a framework for measuring fair value and requires enhanced disclosures about fair value measurements. This topic clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The topic also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs . Refer to Note 14 to o ur consolidated financial statements for more information. Cash and Cash Equivalents Our cash and cash equivalents include short-term, highly liquid investments which are readily convertible into cash. These investments include money market securities, commercial paper, and time deposits with maturities of three months or less when purchased. Restricted Cash Restricted cash pri marily consists of se curity deposits, funds held in escrow for estimated workers’ compensation obligations, and performance bonds for aircraft and facility leases. Accounts and Other Receivables Accounts and other receivables are carried at cost. They primarily consist of amounts due from credit card companies associated with sales of tickets for future travel. We estimate an allowance for doubtful accounts based on known troubled accounts, if any, and historical experience of losses incurred, as well as current and expected conditions. Investment Securities Investment securities consist of available-for-sale investment securities and held-to-maturity investment securities. When sold, we use a specific identification method to determine the cost of the securities. Available-for-sale investment securities Our available-for-sale investment securities include highly liquid investments such as time deposits, U.S. Treasury bills with maturities between three and twelve months, commercial paper, and convertible debt securities which are stated at fair value. Held-to-maturity investment securities Our held-to-maturity investments consist of investment-grade interest bearing instruments, such as corporate bonds and U.S. Treasury notes, which are stated at amortized cost. We do not intend to sell these investment securities and the contractual maturities are not greater than 24 months. Those with maturities less than twelve months are included in short-term investments on our consolidated balance sheets. Those with remaining maturities in excess of twelve months are included in long-term investments on our consolidated balance sheets. We did not record any material gains or losses on these securities during the years ended December 31, 2020, 2019 or 2018. The estimated fair value of these investments approximated their carrying value as of December 31, 2020 and 2019. The carrying values of investment securities consisted of the following at December 31, 2020 and 2019 (in millions): December 31, 2020 December 31, 2019 Available-for-sale securities Time deposits $ 1,130 $ 325 Commercial paper — 20 Debt securities 7 6 Total available-for-sale securities 1,137 351 Held-to-maturity securities Corporate bonds — 21 Total held-to-maturity securities — 21 Total investment securities $ 1,137 $ 372 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 Codification. The carrying amount of our equity method investments, which is recorded within other assets on our consolidated balance sheets, was $34 million and $38 million as of December 31, 2020 and 2019, respectively. In September 2019, we recognized a gain of $15 million on one of our equity method investments related to its fair value measurement upon the closing of a subsequent financing round. 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 was $40 million and $41 million as of December 31, 2020 and December 31, 2019, respectively. 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 and $13 million as of December 31, 2020 and 2019, respectively. Derivative Instruments Our derivative instruments include fuel hedge contracts, such as jet fuel call options and call option spreads, which are stated at fair value, net of any collateral po stings. Derivative instruments are included in other current assets and other current liabilities on our consolidated balance sheets. Refer to Note 13 to our c o nsolidated financial statements for more information. Inventories Inventories consist of expendable aircraft spare parts and supplies that are stated at average cost, as well as aircraft fuel that is accounted for on a first-in, first-out basis. These items are expensed when used or consumed. An allowance for obsolescence on aircraft spare parts and supplies is provided over the remaining useful life of the related aircraft fleet. Property and Equipment We record our property and equipment at cost and depreciate these assets on a straight-line basis over their estimated useful lives to their estimated residual values. We capitalize additions, modifications enhancing the operating performance of our assets, as well as the interest related to pre-delivery deposits used to acquire new aircraft and the construction of our facilities. Estimated useful lives and residual values for our property and equipment are as follows: Property and Equipment Type Estimated Useful Life Residual Value Aircraft 25 years 20 % Inflight entertainment systems 5-10 years 0 % Aircraft parts Fleet life 10 % Flight equipment leasehold improvements Lower of lease term or economic life 0 % Ground property and equipment 2-10 years 0 % Leasehold improvements—other Lower of lease term or economic life 0 % Buildings on leased land Lease term 0 % Property under finance leases is initially recorded at an amount equal to the present value of future minimum lease payments which is computed on the basis of our incremental borrowing rate or, when known, the interest rate implicit in the lease. Amortization of property under finance leases is on a straight-line basis over the expected useful life to their estimated residual values and is included in depreciation and amortization expense. We record impairment losses on long-lived assets used in operations when events and circumstances indicate the assets may be impaired and the undiscounted future cash flows estimated to be generated by the assets are less than the assets’ net book value. If impairment occurs, the loss is measured by comparing the fair value of the asset to its carrying amount. Software We capitalize certain costs related to the acquisition and development of computer software. We amortize these costs using the straight-line method over the estimated useful life of the software, which is generally five years. The net book value of computer software, which is included in intangible assets on our consolidated balance sheets, was $121 million and $102 million as of December 31, 2020 and 2019, respectively. Amortization expense related to computer software was $44 million, $52 million and $46 million for the years ended December 31, 2020, 2019, and 2018, respectively. As of December 31, 2020, amortization expense related to computer software is expected to be approximately $38 million in 2021, $34 million in 2022, $27 million in 2023, $16 million in 2024, and $6 million in 2025. Indefinite-Lived Intangible Assets Our indefinite-lived intangible assets consist primarily of acquired Slots at certain High Density Airports which result in no amortization expense. Slots are the rights to take-off or land at a specific airport during a specific time period of the day and are a means by which airport capacity and congestion can be managed. We evaluate our indefinite-lived intangible assets for impairment at least annually or when events and circumstances indicate they may be impaired. Indicators include operating or cash flow losses as well as various market factors to determine if events and circumstances could reasonably have affected the fair value. As of December 31, 2020 and 2019, our indefinite-lived intangible assets, which are included in intangible assets on our consolidated balance sheets, were $139 million . We performed an impairment assessment as of December 31, 2020 and determined our indefinite-lived intangible assets were not impaired. Passenger Revenue Ticket sales and the fees collected for related ancillary services are initially deferred in air traffic liability. Air traffic liability represents tickets sold but not yet flown, credits which can be used for future travel, and a portion of the liability related to our TrueBlue ® loyalty program. We allocate the transaction price to each performance obligation identified in a passenger ticket on a relative standalone basis. Passenger revenue, including certain ancillary fees directly related to passenger tickets, is recognized when the transportation is provided. Taxes that we are required to collect from our customers, including foreign and U.S. federal transportation taxes, security taxes, and airport facility charges, are excluded from passenger revenue. Those taxes and fees are recorded as a liability upon collection and are relieved from the liability upon remittance to the applicable governmental agency. The majority of the tickets sold are non-refundable. Non-refundable fares may be canceled prior to the scheduled departure date for a credit for future travel. Refundable fares may be canceled at any time prior to the scheduled departure date. Failure to cancel a refundable fare prior to departure will result in the cancellation of the original ticket and an issuance of a credit for future travel. Passenger credits can be used for future travel up to a year from the date of issuance. Passenger breakage revenue from unused tickets and passenger credits will be recognized in proportion to flown revenue based on estimates of expected expiration when the likelihood of the customer exercising his or her remaining rights becomes remote. Breakage revenue consists of non-refundable tickets that remain unused past the departure date, have continued validity, and are expected to ultimately expire unused, as well as passenger credits that are not expected to be redeemed prior to expiration. JetBlue uses estimates based on historical experience of expired tickets and credits and considers other factors that could impact future expiration patterns of tickets and credits. Tickets which do not have continued validity past the departure date are recognized as revenue after the scheduled departure date has lapsed. Passenger ticket costs primarily include credit card fees, commissions paid, and global distribution systems booking fees. Costs are allocated entirely to the purchased travel services and are capitalized until recognized when travel services are provided to the customer. In response to the impact of COVID-19 on air travel, we extended the expiration dates for travel credits issued from February 27, 2020 through June 30, 2020 to a 24-month period. The air traffic liability classified as non-current as of December 31, 2020 represents our current estimate of tickets and credits to be used or refunded beyond one year, while the balance classified as current represents our current estimate of tickets and credits to be used or refunded within one year. We will continue to monitor our customers' travel behavior and may adjust our estimates in the future. Loyalty Program Customers may earn points under our customer loyalty program, TrueBlue ® , based on the fare paid and fare product purchased for a flight. Customers can also earn points through business partners such as credit card companies, hotels, car rental companies, and our participating airline partners. Points Earned From a Ticket Purchase. When a TrueBlue ® member travels, we recognize a portion of the fare as revenue and defer in air traffic liabilities the portion that represents the value of the points net of spoilage, or breakage. We allocate the transaction price to each performance obligation on a relative standalone basis. We determine the standalone selling price of TrueBlue ® points issued using the redemption value approach. To maximize the use of observable inputs, we utilize the actual ticket value of the tickets purchased with TrueBlue ® points. The liability is relieved and passenger revenue is recognized when the points are redeemed and the free travel is provided. Points Sold to TrueBlue ® Partners . Our most significant contract to sell TrueBlue ® points is with our co-branded credit card partner. Co-branded credit card partnerships have the following identified performance obligations: air transportation; use of the JetBlue brand name and access to our frequent flyer customer lists; advertising; and other airline benefits. In determining the estimated selling price, JetBlue considered multiple inputs, methods and assumptions, including: discounted cash flows; estimated redemption value, net of fulfillment discount; points expected to be awarded and redeemed; estimated annual spending by cardholders; estimated annual royalty for use of JetBlue's frequent flyer customer lists; and estimated utilization of other airline benefits. Payments are typically due monthly based on the volume of points sold during the period, and the terms of our contracts are generally from one Amounts allocated to the air transportation element which are initially deferred include a portion that are expected to be redeemed during the following twelve months (classified as a component of Air traffic liability), and a portion that are not expected to be redeemed during the following twelve months (classified as Air traffic liability - non-current). We periodically update this analysis and adjust the split between current and non-current liabilities as appropriate. Points earned by TrueBlue ® members never expire. TrueBlue ® members can pool points between small groups of people, branded as Points Pooling™. Breakage is estimated using historical redemption patterns to determine a breakage rate. Breakage rates used to estimate breakage revenue are evaluated annually. Changes to breakage estimates impact revenue recognition prospectively. Airframe and Engine Maintenance and Repair Regular airframe maintenance for owned and leased flight equipment is charged to expense as incurred unless covered by a third-party long-term flight hour service agreement. We have separate service agreements in place covering scheduled and unscheduled repairs of certain airframe line replacement unit components as well as the engines in our fleet. Certain of these agreements require monthly payments at rates based either on the number of cycles each aircraft was operated during each month or the number of flight hours each engine was operated during each month, subject to annual escalations. These power by the hour agreements transfer certain risks, including cost risks, to the third-party service providers. They generally fix the amount we pay per flight hour or number of cycles in exchange for maintenance and repairs under a predefined maintenance program, which are representative of the time and materials that would be consumed. These costs are expensed as the related flight hours or cycles are incurred. Advertising Costs Advertising costs, which are included in sales and marketing, are expensed as incurred. Advertising expense was $45 million i n 2020, $66 million in 2019 and $72 million in 2018. Share-Based Compensation We record compensation expense for share-based awards based on the grant date fair value of those awards. Share-based compensation expense includes an estimate for pre-vesting forfeitures and is recognized over the requisite service periods of the awards on a straight-line basis. Income Taxes We account for income taxes utilizing the liability method. Deferred income taxes are recognized for the tax consequences of temporary differences between the tax and financial statement reporting bases of assets and liabilities. A valuation allowance for deferred tax assets is provided unless realization of the asset is judged by us to be more likely than not. Our policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. Recently Issued 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. This update also removed the requirement to calculate income tax expense for standalone financial statements of wholly-owned subsidiaries. ASU 2019-12 is effective for annual reporting periods beginning after December 15, 2020. We have substantially completed our assessment of the new standard and do not expect its adoption to have a material impact on our consolidated financial statements. Recently Adopted Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The update requires the use of an "expected loss" model on certain types of financial instruments and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. For trade receivables, loans, and held-to-maturity debt securities, entities are required to estimate lifetime expected credit losses. For available-for-sale debt securities, entities will be required to recognize an allowance for credit losses rather than a reduction to the carrying value of the asset. We adopted the requirements of ASU 2016-13 as of January 1, 2020 using a modified retrospective transition approach. The adoption of ASU 2016-13 did not have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The update eliminates, adds, and modifies certain disclosure requirements for fair value measurements. We adopted the requirements of ASU 2018-13 as of January 1, 2020. The adoption of ASU 2018-13 did not have a significant impact on our consolidated financial statement disclosures. |
The COVID-19 Pandemic
The COVID-19 Pandemic | 12 Months Ended |
Dec. 31, 2020 | |
Unusual or Infrequent Items, or Both [Abstract] | |
The COVID-19 Pandemic | The COVID-19 Pandemic The unprecedented coronavirus ("COVID-19") pandemic and the related travel restrictions and physical distancing measures implemented throughout the world have significantly reduced demand for air travel. Beginning in March 2020, large public events were canceled, governmental authorities began imposing restrictions on non-essential activities, businesses suspended travel, and popular leisure destinations temporarily closed to visitors. Certain countries have imposed bans on international travelers for specified periods or indefinitely. Demand for air travel began to weaken at the end of February 2020. The pace of decline accelerated throughout March into April 2020 and demand remained depressed throughout the rest of 2020. This decline in demand has had a material adverse impact on our operating revenues and financial position. Our operating revenues for the year ended December 31, 2020 declined by 63.5% year-over-year. Although demand began to improve as the year progressed, it remained significantly lower than in prior yea rs. The exact timing and pace of the recovery is uncertain given the significant impact of the pandemic on the overall U.S. and global economy. Some states have experienced a resurgence of COVID-19 cases after reopening and as a result, certain other states have implemented travel restrictions or advisories for travelers from such states. We have also seen a similar resurgence of COVID-19 cases in other countries and we expect to continue to see fluctuations in the number of cases, which we believe will result in actions by governmental authorities restricting activities. We expect the demand environment to remain depressed until the majority of the U.S. population is vaccinated against COVID-19. Our response to the pandemic and the measures we take to secure additional liquidity may be modified as we have more clarity on the timing of demand recovery. In response to the COVID-19 pandemic, since March 2020 we have implemented the following measures to focus on the safety of our customers, our crewmembers, and our business. Customers and Crewmembers The safety of our customers and crewmembers continues to be a priority. As the COVID-19 pandemic developed, we took steps to promote physical distancing and implemented new procedures that reflect the recommendations of health experts, including the following: • Introduced "Safety from the Ground Up", an initiative with a multi-layer approach that encompasses enhanced safety and cleaning measures on our flights, at our airports, and in our offices; • Instituted temperature checks for our customer-facing and support-center crewmembers; • Updated our sick leave policy to provide up to 14 days of paid sick leave for crewmembers who were diagnosed with COVID-19 or were required to quarantine; • Implemented a framework for internal contact tracing, crewmember notification, and a return to work clearance process for all crewmembers, wherever they may be located; • Required face coverings for all crewmembers while boarding, in flight, and when physical distancing cannot be maintained; • Administered more frequent disinfecting of common surfaces and areas with high touchpoints in our facilities; • Enhanced daily and overnight cleaning of our aircraft and all facilities, using electrostatic spraying of disinfectant in the cabins of aircraft parked overnight at selected focus cities; • Required customers to wear face coverings during check-in, boarding, and inflight; • Limited the number of seats sold on most flights through January 7, 2021; • Suspended group boarding and implemented a back-to-front boarding process to minimize passing in the aisle; • Eliminated layovers for crewmembers in New York City and worked with crew transportation companies to ensure physical distancing; • Implemented jump seat buffers on our flights to further promote physical distancing measures; • Provided enhanced flexibility to our customers by waiving change and cancel fees for customers with existing bookings made through March 31, 2021, while also extending the expiration date of travel credits issued between February 27, 2020 and June 30, 2020 for flight purchases to 24 months; and • Announced our partnership with Vault Health to provide discounted at-home COVID-19 testing to customers with pending travel plans. Our Business The COVID-19 pandemic drove a significant decline in demand beginning in the second half of March 2020. We significantly reduced our capacity to a level that maintains essential services to align with demand. Our capacity for the year ended December 31, 2020 declined by 48.8% year-over-year. As a result of the significant reduction in demand expectations and lower capacity, we have temporarily parked a portion of our fleet. The reductions in demand and in our capacity have resulted in a significant reduction to our revenue. As a result, we have, and will continue to implement cost saving initiatives to reduce our overall level of cash spend. Some of the initiatives we have undertaken include: • Adjustments in flying capacity to align with the expected demand. • Temporary consolidations of our operations in certain cities that contain multiple airport locations. • Renegotiated service rates with business partners and extended payment terms. • Instituted a company-wide hiring freeze. • Implemented salary reductions for a portion of our crewmembers, including our officers throughout 2020 and continuing into 2021. • Offered crewmembers voluntary time off and separation programs, with most departures for the separation program occurring during the third quarter of 2020. We believe the unprecedented impact of COVID-19 on the demand for air travel and the corresponding decline in revenue will continue to have an adverse impact on our operating cash flow. Given this situation, we have taken actions to increase liquidity, strengthen our financial position, and conserve cash. Some of the actions we have taken since the onset of the pandemic through December 31, 2020 include: • Executed a $1.0 billion 364-day delayed draw term loan agreement in March 2020 and immediately drew down on the facility for the full amount available. This term loan facility was repaid during the third quarter. • Borrowed on our existing $550 million revolving credit facility in April 2020. • Executed a $150 million pre-purchase arrangement of TrueBlue® points with our co-brand credit card partner in April 2020. • Suspended non-critical capital expenditure projects. • Amended our purchase agreement with Airbus which changed the timing of our Airbus A321 and A220 deliveries in May and October 2020 resulting in approximately $2.0 billion of reduction in aircraft capital expenditures through 2022. • Suspended share repurchases. • Obtained $963 million of government funding under the Payroll Support Program of The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which is discussed further below. • Executed a $750 million term loan credit facility and immediately drew down on the facility for the full amount available in June 2020. • Entered into $563 million of sale-leaseback transactions; which is discussed further below. • Completed public placements of equipment notes in an aggregate principal amount of $923 million secured by 49 Airbus A321 aircraft in August 2020, which is discussed further in Note 4 to our consolidated financial statements. The net proceeds were primarily used to repay the outstanding borrowings under our 364-day delayed draw term loan facility that was due to be repaid in March 2021. • Entered into a Loan and Guarantee agreement, as amended, with the United States Department of the Treasury ("Treasury") under the Loan Program of the CARES Act which gives us access to loans in an aggregate principal amount of up to $1.9 billion until May 28, 2021, which is discussed further below. We drew down $115 million under the Loan Program on September 29, 2020. • Completed the public offering of 42 million shares of our common stock for net proceeds of $583 million in December 2020. As a result of these activities, we had cash, cash equivalents, and short-term investments of approximately $3.1 billion at December 31, 2020. In 2020, we executed $563 million of 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. Valuation of Long-Lived Assets 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. As discussed above, 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, and maintenance conditions. Based on the assessment, we determined the future forecasted 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 impairment los ses of $273 million for th e year ended December 31, 2020. These losses represent the difference between the book value of these assets and their fair value. In determining fair value, we obtained third party valuations for our Embraer E190 fleet, which considered the effects of the current market environment, age of the assets, and marketability. For our owned Embraer E190 aircraft and related spare parts, we made adjustments to the valuations to reflect the impact of their current maintenance conditions to determine fair value. Our estimate of fair value was not based on distressed sales or forced liquidations. The fair value of our Embraer E190 aircraft under operating lease and related parts was based on the present value of current market lease rates utilizing a market discount rate for the remaining term of each lease. Since the fair value of our Embraer E190 fleet was determined using unobservable inputs, it is classified as Level 3 in the fair value hierarchy. We evaluated the remaining fleet types and determined the future cash flows of our Airbus A320 and Airbus A321 fleets exceeded their carrying value as of December 31, 2020. As the extent of the ongoing impact from the COVID-19 pandemic remains uncertain, we will update our assessment as new information becomes available. The Coronavirus Aid, Relief, and Economic Security (CARES) Act On March 27, 2020, Congress passed 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"). Payroll Support Program On April 23, 2020, we entered into a Payroll Support Program Agreement (the "PSP Agreement") 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 payment of $936 million (the "Payroll Support Payment"), consisting of $685 million in grants and $251 million in an unsecured term loan. The loan has a 10-year term and bears 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. In consideration for the Payroll Support Payment, we issued warrants to purchase approximately 2.6 million shares of our common stock to the Treasury 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 JetBlue's option, in whole or in part at any time. In accordance with the PSP Agreement, we are required to comply with the relevant provisions of the CARES Act which, among other things, includes the following: the requirement to use the Payroll Support Payment exclusively for the continuation of payment of crewmember wages, salaries and benefits; the prohibition on involuntary furloughs and reductions in crewmember pay rates and benefits through September 30, 2020; the requirement that certain levels of commercial air service be maintained until March 1, 2022; the prohibitions on share repurchases and the payment of common stock dividends; and restrictions on the payment of certain executive compensation until March 24, 2022. On September 30, 2020, Treasury provided us with a payment of $27 million (the "Additional Payroll Support Payment"), consisting of $19 million in grants and $8 million in an unsecured term loan under the PSP Agreement. The terms of the unsecured term loan are identical to those under the initial loan issued on April 23, 2020. In consideration for the Additional Payroll Support Payment, we issued warrants to purchase approximately 85,540 additional shares of our common stock to the Treasury (the "Additional PSP Warrants"). The Additional PSP Warrants have the same terms and exercise price as the initial warrants issued on April 23, 2020 under the Payroll Support Program. The total payroll support funding of $963 million received under the CARES Act was originally classified as short-term restricted cash since the funds had to be utilized to pay the salaries and benefits costs of our crewmembers. The funds were reclassified from short-term restricted cash within prepaid expenses and other on our consolidated balance sheets to cash and cash equivalents when the funds were utilized. No payroll support funding remained available as of December 31, 2020. The carrying value relating to the payroll support grants was recorded within other accrued liabilities and was 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, estimated to be $19 million, was recorded within additional paid-in capital and reduced the total carrying value of the grants to $685 million. Proceeds from the payroll support grants and from the issuance of warrants were classified within operating activities and financing activities, respectively, on our consolidated statements of cash flows. Our funding from the payroll support grants have been fully utilized as of December 31, 2020. The carrying value relating to the unsecured term loan is recorded within long-term debt and finance lease obligations on our consolidated balance sheets. The proceeds from the loan were classified as financing activities on our consolidated statement of cash flows. Loan Program Under the CARES Act Loan Program as signed in April 2020 and subsequently amended in November 2020, JetBlue has the ability to borrow up to a total of approximately $1.9 billion from the Treasury. If we accept the full amount of the loan, we will issue warrants to purchase approximately 20.5 million shares of our common stock to the Treasury. Any amount received under the Loan Program will be subject to the relevant provisions of the CARES Act, including many of those described above under the Payroll Support Program. We made an initial drawing of $115 million under the 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. As of December 31, 2020, approximately $1.8 billion of the borrowing capacity remained available to us. On January 15, 2021, we entered into a letter agreement with Treasury which provided an extension of the Loan Agreement allowing us the option to access the remaining borrowing capacity through May 28, 2021. Payroll Tax Deferral The CARES Act also provides for deferred payments of the employer portion of social security taxes through the end of 2020, with 50% of the deferred amount due December 31, 2021 and the remaining 50% due December 31, 2022. We have deferred $48 million in payments through December 31, 2020. Income Taxes Among other things, the CARES Act permits net operating loss (NOL) carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid incomes taxes. As a result, the Company’s effective tax rate includes an income tax benefit related to the anticipated refunds from tax losses generated during 2020 that are permitted to be carried back to certain years when the U.S. federal income tax rate was 35%. Consolidated Appropriations Act, 2021 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”). Pursuant to the Payroll Support Program 2, on January 15, 2021, Treasury provided to us a payment of approximately $252 million (the “2021 Payroll Support Payment”) under the PSP Extension Agreement. The 2021 Payroll Support Payment includes a grant of approximately $206 million and a loan of $46 million. In consideration for the 2021 Payroll Support Payment, we issued to Treasury warrants to purchase 316,583 shares of our common stock at an exercise price of $14.43 per share. The loan will mature 10 years after issuance and the warrants will expire five years after issuance. These transactions had no impact on our 2020 consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company categorizes the revenue 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 revenue recognized by revenue source for the years ended December 31, 2020, 2019, and 2018 (in millions): 2020 2019 2018 Passenger revenue Passenger travel $ 2,551 $ 7,395 $ 7,061 Loyalty revenue - air transportation 182 391 320 Other revenue Loyalty revenue 168 201 168 Other revenue 56 107 109 Total revenue $ 2,957 $ 8,094 $ 7,658 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. 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): December 31, 2020 December 31, 2019 Air traffic liability - passenger travel $ 964 $ 929 Air traffic liability - loyalty program (air transportation) 733 661 Deferred revenue 41 10 Total $ 1,738 $ 1,600 During the years ended December 31, 2020 and 2019, we recognized passenger revenue of $745 million and $878 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 expire one year from the date of issuance. In response to the impact of COVID-19 on air travel, we extended the expiration dates for travel credits issued from February 27, 2020 through June 30, 2020 to a 24-month period. Accordingly, any revenue associated with these travel credits, which are initially deferred in air traffic liability, will be recognized within 24 months. Based on our customers' behaviors and estimates of breakage, we expect $80 million of the outstanding travel credits at December 31, 2020 will be recognized into revenue beyond 12 months. We have, accordingly, reclassified this amount to air traffic liability - non-current on our consolidated balance sheets. Given the change in contract duration, our estimates of revenue from unused tickets may be subject to variability and differ from historical experience. 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. In April 2020, we executed a pre-purchase arrangement of TrueBlue® points with our co-brand credit card partner for $150 million. The funds are expected to be applied to future point purchases ratably over the course of one year. As the funds are not yet associated with a point, they are considered to be short-term and have been included within other accrued liabilities on our consolidated balance sheets. The value of funds received in excess of points acquired for this arrangement was approximately $38 million as of December 31, 2020. 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 (in millions): Balance at December 31, 2018 $ 580 TrueBlue ® points redeemed (391) TrueBlue ® points earned and sold 472 Balance at December 31, 2019 661 TrueBlue ® points redeemed (182) TrueBlue ® points earned and sold 254 Balance at December 31, 2020 $ 733 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 | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt, Short-term Borrowings and Finance Lease Obligations | Long-term Debt, Short-term Borrowings and Finance Lease Obligations Long-term debt and finance lease obligations and the related weighted average interest rate at December 31, 2020 and 2019 consisted of the following (in millions): December 31, 2020 December 31, 2019 Secured Debt Fixed rate specialty bonds, due through 2036 43 4.9 % 43 4.9 % Fixed rate enhanced equipment notes: 2019-1 Series AA, due through 2032 567 2.8 % 589 2.8 % 2019-1 Series A, due through 2028 176 3.0 % 183 3.0 % 2019-1 Series B, due through 2027 109 8.2 % — — % 2020-1 Series A, due through 2032 635 4.1 % — — % 2020-1 Series B, due through 2028 172 7.8 % — — % Fixed rate enhanced equipment notes, due through 2023 115 4.5 % 134 4.5 % Fixed rate equipment notes, due through 2028 895 4.2 % 1,113 4.2 % Floating rate equipment notes, due through 2028 153 2.6 % 201 4.3 % Floating rate term loan credit facility, due through 2024 712 6.4 % — — % Secured CARES Act Loan, due through 2025 106 3.2 % — — % Citibank line of credit, due through 2023 550 2.2 % — — % 2020 sale-leaseback transactions, due through 2024 352 7.6 % — — % Finance Leases 63 4.6 % 89 4.8 % Unsecured Debt Unsecured CARES Act Payroll Support Program loan, due through 2030 259 2.0 % — — % Total debt and finance lease obligations 4,907 2,352 Less: Current maturities (450) (344) Less: Debt acquisition cost (44) (18) Long-term debt and finance lease obligations $ 4,413 $ 1,990 Fixed Rate Specialty Bonds In November 2005, the Greater Orlando Aviation Authority, or GOAA, issued special purpose airport facilities revenue bonds to JetBlue as reimbursement for certain airport facility construction and other costs. In April 2013, GOAA issued $42 million in special purpose airport facility revenue bonds to refund the bonds issued in 2005. The proceeds from the refunded bonds were loaned to us and we recorded the issuance of $43 million, net of $1 million premium, as long-term debt on our consolidated balance sheets. Fixed Rate Enhanced Equipment Notes 2019-1 Equipment Notes In November 2019, we completed a public placement of equipment notes in an aggregate principal amount of $772 million secured by 25 Airbus A321 aircraft. The equipment notes were issued in two series: (i) Series AA, bearing interest at the rate of 2.75% per annum in the aggregate principal amount equal to $589 million, and (ii) Series A, bearing interest at the rate of 2.95% per annum in the aggregate principal amount equal to $183 million. Principal and interest are payable semi-annually. 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. 2020-1 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. Fixed Rate Enhanced Equipment Notes, Due Through 2023 In March 2014, we completed a private placement of $226 million in pass-through certificates, Series 2013-1. The certificates were issued by a pass-through trust and are not obligations of JetBlue. The proceeds from the issuance of the pass-through certificates were used to purchase equipment notes issued by JetBlue and secured by 14 of our aircraft. Principal and interest are payable semi-annually. Fixed Rate Equipment Notes, Due Through 2028 In 2019, we issued $219 million in fixed rate equipment notes due through 2027, which are secured by 10 Airbus A320 aircraft and two Airbus A321 aircraft. In 2018, we issued $567 million in fixed rate equipment notes due through 2028, which are secured by 14 Airbus A320 aircraft and 10 Airbus A321 aircraft. Floating Rate Equipment Notes, Due Through 2028 Interest rates adjust quarterly or semi-annually based on LIBOR, plus a margin. In 2018, we issued $120 million in floating rate equipment notes due through 2028, which are secured by six Airbus A320 aircraft and one Airbus A321 aircraft. Floating Rate Term Loan Credit Facility, Due Through 2024 On June 17, 2020, we entered into a $750 million term loan credit facility with Barclays Bank PLC, as administrative agent. The loans under this term loan credit facility bear 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 are 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. The term loan facility is subject to amortization payments of 5% per year, payable quarterly, commencing on September 30, 2020 with the remaining balance due and payable in a single payment on the maturity date of June 17, 2024. The interest rate on our outstanding balance was 6.25% as of December 31, 2020. Secured CARES Act Loan Program As discussed in Note 2 to our consolidated financial statements, under the CARES Act Loan Program, we have the ability to borrow up to a total of approximately $1.9 billion from the Treasury. Any loans issued under the Loan Program are expected to be senior secured obligations of the Company. If we accept the full amount of the loan, we will issue warrants to purchase approximately 20.5 million shares of our common stock to the Treasury. Any amount received under the Loan Program will be subject to the relevant provisions of the CARES Act, including many of those described above under the Payroll Support Program. Unless otherwise terminated early, all borrowings under the Loan Agreement are due and payable on the fifth anniversary of the initial borrowing date. We made a drawing of $115 million under the Loan Agreement on September 29, 2020. Borrowings under the Loan Agreement bear interest at a variable rate equal to LIBOR (or another rate based on certain market interest rates, plus a margin of 1% per annum, in each case with a floor of 0%), plus a margin of 2.75% per annum. Our obligations under the Loan Agreement are secured by liens on (i) certain eligible aircraft and engine collateral, (ii) certain loyalty program assets, including JetBlue's rights in certain loyalty program agreements, loyalty program data and intellectual property, and (iii) certain cash accounts (collectively, the "Collateral"). Under the terms of the Loan Agreement, we may also pledge eligible spare parts, slots, gates and routes, and additional aircraft, real property, ground support equipment, flight simulators and equity interests. The Loan Agreement includes affirmative and negative covenants that restrict our ability to, among other things, dispose of Collateral, merge, consolidate or sell assets, incur certain additional indebtedness or pay certain dividends. In addition, we are required to maintain unrestricted cash and cash equivalents and unused commitments available under all revolving credit facilities aggregating not less than $550 million and to maintain a minimum ratio of the borrowing base of the Collateral (determined as the sum of a specified percentage of the appraised value of each type of Collateral) to outstanding obligations under the Loan Agreement of not less than 1.6 to 1.0. If we do not meet the minimum collateral coverage ratio, we must either provide additional Collateral to secure our obligations under the Loan Agreement or repay the loans by an amount necessary to maintain compliance with the collateral coverage ratio. The Loan Agreement contains events of default customary for similar financings. Upon the occurrence of an event of default, the outstanding obligations under the Loan Agreement may be accelerated and become due and payable immediately. In addition, if certain change of control events occur with respect to JetBlue, we will be required to prepay the loans in full under the Loan Agreement. In connection with the Loan Agreement and the initial borrowing amount of $115 million, on September 29, 2020, 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. As of December 31, 2020, approximately $1.8 billion of the borrowing capacity remained available to us. On January 15, 2021, we entered into a letter agreement with Treasury which provided an extension of the Loan Agreement allowing us the option to access the remaining borrowing capacity through May 28, 2021. Citibank Line of Credit In August 2019, we amended our revolving Credit and Guaranty Agreement with Citibank N.A. as the administrative agent. The amendment increased our borrowing capacity by $125 million to $550 million and extended the term of the facility through August 2023. Borrowings under the Credit and Guaranty Agreement bear interest at a variable rate equal to LIBOR, plus a margin. The Credit and Guaranty Agreement is secured by spare parts, aircraft, and certain other assets. The Credit and Guaranty Agreement includes covenants that require us to maintain certain minimum balances in unrestricted cash, cash equivalents, and unused commitments available under 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 and Guaranty Agreement on April 22, 2020. The interest rate on our outstanding balance wa s 2.20% as of December 31, 2020. 2020 Sale-Leaseback Transactions As discussed in Note 2 to our consolidated financial statements, in 2020, we executed $563 million of 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 Finance Leases As of December 31, 2020, two Airbus A320 aircraft, two Airbus A321 aircraft, and various computer equipment under finance leases were included in property and equipment at a cost of $188 million with accumulated amortization of $54 million. The future minimum lease payments under these non-cancelable leases are $40 million in 2021, $11 million in 2022, $11 million in 2023, $5 million in 2024, and no payments in the years thereafter. Included in the future minimum lease payments is $4 million representing interest, resulting in a present value of finance leases of $63 million with a current portion of $37 million and a long-term portion of $26 million. As of December 31, 2019, four finance leased Airbus A320 aircraft and two finance leased A321 aircraft were included in property and equipment at a cost of $250 million with accumulated amortization of $80 million. Unsecured CARES Act Payroll Support Program Loan As discussed in Note 2 to our consolidated financial statements, on April 23, 2020, we entered into the PSP Agreement under the CARES Act with the Treasury. Pursuant to the agreement, JetBlue received a Payroll Support Payment of $936 million (the "Payroll Support Payment") which included a grant of $685 million and a promissory note for $251 million. The note matures 10 years after issuance and is payable in a lump sum at maturity. As part of the agreement, JetBlue issued to the Treasury warrants to acquire more than 2.6 million shares of our common stock under the program at an exercise price of $9.50 per share. The warrants expire five years after issuance. On September 30, 2020, Treasury provided us Additional Payroll Support Payment of $27 million consisting of $19 million in grants and $8 million in an unsecured term loan under the PSP Agreement. The terms of the unsecured term loan are identical to those under the initial loan issued on April 23, 2020. In consideration for the Additional Payroll Support Payment, we issued Additional PSP Warrants to purchase approximately 85,540 additional shares of our common stock to the Treasury. The Additional PSP Warrants have the same terms and exercise price as the initial warrants issued on April 23, 2020. As of December 31, 2020, we believe we were in material compliance with all of our covenants in relation to our debt and lease agreements. Maturities of our debt and finance leases, net of debt acquisition costs, for the next five years are as follows (in millions): Maturities 2021 $ 440 2022 421 2023 1,181 2024 962 2025 308 Thereafter 1,551 Aircraft, engines, and other equipment and facilit ies having a net book value of $6.9 billion at December 31, 2020 were pledged as security under various financing arrangements. Cash payments for interest related to debt and finance lease obligations, net of capitalized interest, aggregated $128 million, $62 million and $59 million in 2020, 2019, and 2018, respectively. The carrying amounts and estimated fair values of our long-term debt, net of debt acquisition costs, at December 31, 2020 and 2019 were as follows (in millions): December 31, 2020 December 31, 2019 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Public Debt Fixed rate special facility bonds, due through 2036 $ 42 $ 45 $ 42 $ 46 Fixed rate enhanced equipment notes: 2019-1 Series AA, due through 2032 560 440 581 586 2019-1 Series A, due through 2028 174 152 181 186 2019-1 Series B, due through 2027 107 139 — — 2020-1 Series A, due through 2032 627 658 — — 2020-1 Series B, due through 2028 170 223 — — Non-Public Debt Fixed rate enhanced equipment notes, due through 2023 114 116 133 141 Fixed rate equipment notes, due through 2028 891 1,017 1,107 1,201 Floating rate equipment notes, due through 2028 152 144 201 207 Floating rate term loan credit facility, due through 2024 702 759 — — Unsecured CARES Act Payroll Support Program loan, due through 2030 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 352 393 — — Total (1) $ 4,800 $ 4,930 $ 2,245 $ 2,367 (1) Total excludes finance lease obligations of $63 million and $89 million at December 31, 2020 and 2019, respectively. The estimated fair values of our publicly held long-term debt are classified as Level 2 in the fair value hierarchy. The fair values of our enhanced equipment notes and our special facility bonds were based on quoted market prices in markets with low trading volumes. The fair value of our non-public debt was estimated using a discounted cash flow analysis based on our borrowing rates for instruments with similar terms and therefore classified as Level 3 in the fair value hierarchy. The fair values of our other financial instruments approximate their carrying values. Refer to Note 14 to our 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. Short-term Borrowings Morgan Stanley Delayed Draw Term Loan Agreement In March 2020, we entered into a 364-day delayed draw term loan credit agreement with Morgan Stanley Senior Funding Inc., as the administrative agent. The delayed draw term loan agreement provided for a term loan facility of up to $1 billion. Borrowings under the credit agreement bore interest at a variable rate equal to LIBOR (but not less than 1% per annum), plus a margin, or at our election, another rate based on certain market interest rates. Our obligations under the delayed draw term loan agreement were secured by liens on certain aircraft and spare engines. The delayed draw term loan agreement included provisions that required us to maintain unrestricted cash and cash equivalents and unused commitments available under all revolving credit facilities (including the term loan facility) aggregating not less than $550 million. We borrowed the full amount of the delayed draw term loan facility in March 2020. Amortization payments equal to 0.25% of the outstanding principal of the term loan were due on the last day of each quarter during the term. The remaining outstanding principal amount of the term loan was required to be repaid in a single installment on the maturity date on March 15, 2021. We repaid the full balance of this delayed draw term loan facility during the third quarter of 2020. 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 years ended December 31, 2020 and 2019, we did not have a balance outstanding or borrowings under this line of credit. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases Operating lease assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. When available, we use the rate implicit in the lease to discount lease payments to present value. For leases that do not provide a readily determinable implicit rate, we estimate our incremental borrowing rate to discount the lease payments based on information available at lease commencement. Leases with a term of 12 months or less are not recorded on the balance sheet. Our lease agreements do not contain any residual value guarantees. For facility leases, we account for the lease and non-lease components as a single lease component. The table below presents the lease-related assets and liabilities recorded on our consolidated balance sheets as of December 31, 2020 and 2019 (in millions): As of December 31, 2020 2019 Assets Classification on Balance Sheet Operating lease assets Operating lease assets $ 804 $ 912 Finance lease assets Property and equipment, net 131 171 Total lease assets $ 935 $ 1,083 Liabilities Classification on Balance Sheet Current: Operating lease liabilities Current operating lease liabilities $ 113 $ 128 Finance lease liabilities Current maturities of long-term debt and finance lease obligations 37 31 Long-term: Operating lease liabilities Long-term operating lease liabilities 752 690 Finance lease liabilities Long-term debt and finance lease obligations 26 58 Total lease liabilities $ 928 $ 907 As of December 31, 2020 2019 Weighted average remaining lease term (in years) Operating leases 9 11 Finance leases 2 3 Weighted average discount rate Operating leases 5.99 % 5.95 % Finance leases 4.60 % 4.75 % Flight Equipment Leases We operated a fleet of 267 aircraft as of December 31, 2020. Of our fleet, 62 aircraft were accounted for under operating leases and four aircraft were accounted for under finance leases. These aircraft leases generally have long durations with remaining terms of nine months to five years. The majority of aircraft operating leases can be renewed at rates based on fair market value at the end of the lease term for one . None of our aircraft operating leases have variable rent payments. We have purchase options for 40 of our aircraft leases at the end of their lease terms. These purchase options are at fair market value and have a one-time option during the term at fixed amounts that were expected to approximate the fair market value at lease inception. As a result of the unprecedented decline in demand for travel caused by the COVID-19 pandemic, we recorded impairment losses of $273 million for the year ended December 31, 2020 relating to our Embraer E190 fleet. These losses were attributed to aircraft and related spare parts including the ones under operating leases. Refer to note 18 to our consolidated financial statements for further details. Facility Leases Our facility leases are primarily for space at the airports we serve. These leases are classified as operating leases and reflect our use of passenger terminal service facilities consisting of ticket counters, gate space, operations support area, and baggage service offices. We lease space directly or indirectly from the local airport authority on varying terms dependent on prevailing practices at each airport. The remaining terms of our airport leases vary from 2 months to 14 years. Our leases at certain airports contain provisions for periodic adjustments of rental rates based on the operating costs of the airports or the frequency of use of the facilities. Some of these leases also include renewal options and/or termination options that are factored into our determination of lease payments when appropriate. Because of the variable nature of the rates, these leases are not recorded as operating lease assets and operating lease liabilities on our consolidated balance sheets. We also have leases for our corporate offices, training center, and various hangars and airport support facilities at our focus cities. Other Ground and Property Equipment We lease certain IT assets, ground support equipment, and various other pieces of equipment. The lease terms of our ground support equipment are less than 12 months. The amount of other equipment we have is not significant. Lease Costs The table below presents certain information related to our lease costs during the years ended December 31, 2020, 2019, and 2018 (in millions): 2020 2019 2018 Operating lease cost $ 160 $ 180 $ 185 Short-term lease cost 1 2 2 Finance lease cost: Amortization of assets 6 9 10 Interest on lease liabilities 2 3 3 Variable lease cost 282 391 379 Sublease income (5) (19) (15) Total net lease cost $ 446 $ 566 $ 564 Other Information The table below presents supplemental cash flow information related to leases during the years ended December 31, 2020, 2019, and 2018 (in millions): 2020 2019 2018 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 146 $ 136 $ 151 Operating cash flows for finance leases 4 5 5 Financing cash flows for finance leases 28 17 17 Lease Commitments The table below presents scheduled future minimum lease payments for operating and finance leases recorded on our consolidated balance sheets, as of December 31, 2020 (in millions): As of December 31, 2020 Operating Leases Finance Leases 2021 $ 160 $ 40 2022 151 11 2023 141 11 2024 119 5 2025 82 — Thereafter 493 — Total minimum lease payments 1,146 67 Less: amount of lease payment representing interest (281) (4) Present value of future minimum lease payment 865 63 Less: current obligations under leases (113) (37) Long-term lease obligations $ 752 $ 26 We d id not ha ve any lease commitments that have not yet commenced as of December 31, 2020. |
Leases | Leases Operating lease assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. When available, we use the rate implicit in the lease to discount lease payments to present value. For leases that do not provide a readily determinable implicit rate, we estimate our incremental borrowing rate to discount the lease payments based on information available at lease commencement. Leases with a term of 12 months or less are not recorded on the balance sheet. Our lease agreements do not contain any residual value guarantees. For facility leases, we account for the lease and non-lease components as a single lease component. The table below presents the lease-related assets and liabilities recorded on our consolidated balance sheets as of December 31, 2020 and 2019 (in millions): As of December 31, 2020 2019 Assets Classification on Balance Sheet Operating lease assets Operating lease assets $ 804 $ 912 Finance lease assets Property and equipment, net 131 171 Total lease assets $ 935 $ 1,083 Liabilities Classification on Balance Sheet Current: Operating lease liabilities Current operating lease liabilities $ 113 $ 128 Finance lease liabilities Current maturities of long-term debt and finance lease obligations 37 31 Long-term: Operating lease liabilities Long-term operating lease liabilities 752 690 Finance lease liabilities Long-term debt and finance lease obligations 26 58 Total lease liabilities $ 928 $ 907 As of December 31, 2020 2019 Weighted average remaining lease term (in years) Operating leases 9 11 Finance leases 2 3 Weighted average discount rate Operating leases 5.99 % 5.95 % Finance leases 4.60 % 4.75 % Flight Equipment Leases We operated a fleet of 267 aircraft as of December 31, 2020. Of our fleet, 62 aircraft were accounted for under operating leases and four aircraft were accounted for under finance leases. These aircraft leases generally have long durations with remaining terms of nine months to five years. The majority of aircraft operating leases can be renewed at rates based on fair market value at the end of the lease term for one . None of our aircraft operating leases have variable rent payments. We have purchase options for 40 of our aircraft leases at the end of their lease terms. These purchase options are at fair market value and have a one-time option during the term at fixed amounts that were expected to approximate the fair market value at lease inception. As a result of the unprecedented decline in demand for travel caused by the COVID-19 pandemic, we recorded impairment losses of $273 million for the year ended December 31, 2020 relating to our Embraer E190 fleet. These losses were attributed to aircraft and related spare parts including the ones under operating leases. Refer to note 18 to our consolidated financial statements for further details. Facility Leases Our facility leases are primarily for space at the airports we serve. These leases are classified as operating leases and reflect our use of passenger terminal service facilities consisting of ticket counters, gate space, operations support area, and baggage service offices. We lease space directly or indirectly from the local airport authority on varying terms dependent on prevailing practices at each airport. The remaining terms of our airport leases vary from 2 months to 14 years. Our leases at certain airports contain provisions for periodic adjustments of rental rates based on the operating costs of the airports or the frequency of use of the facilities. Some of these leases also include renewal options and/or termination options that are factored into our determination of lease payments when appropriate. Because of the variable nature of the rates, these leases are not recorded as operating lease assets and operating lease liabilities on our consolidated balance sheets. We also have leases for our corporate offices, training center, and various hangars and airport support facilities at our focus cities. Other Ground and Property Equipment We lease certain IT assets, ground support equipment, and various other pieces of equipment. The lease terms of our ground support equipment are less than 12 months. The amount of other equipment we have is not significant. Lease Costs The table below presents certain information related to our lease costs during the years ended December 31, 2020, 2019, and 2018 (in millions): 2020 2019 2018 Operating lease cost $ 160 $ 180 $ 185 Short-term lease cost 1 2 2 Finance lease cost: Amortization of assets 6 9 10 Interest on lease liabilities 2 3 3 Variable lease cost 282 391 379 Sublease income (5) (19) (15) Total net lease cost $ 446 $ 566 $ 564 Other Information The table below presents supplemental cash flow information related to leases during the years ended December 31, 2020, 2019, and 2018 (in millions): 2020 2019 2018 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 146 $ 136 $ 151 Operating cash flows for finance leases 4 5 5 Financing cash flows for finance leases 28 17 17 Lease Commitments The table below presents scheduled future minimum lease payments for operating and finance leases recorded on our consolidated balance sheets, as of December 31, 2020 (in millions): As of December 31, 2020 Operating Leases Finance Leases 2021 $ 160 $ 40 2022 151 11 2023 141 11 2024 119 5 2025 82 — Thereafter 493 — Total minimum lease payments 1,146 67 Less: amount of lease payment representing interest (281) (4) Present value of future minimum lease payment 865 63 Less: current obligations under leases (113) (37) Long-term lease obligations $ 752 $ 26 We d id not ha ve any lease commitments that have not yet commenced as of December 31, 2020. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity On December 8, 2017, the Board of Directors approved a two-year share repurchase program, or the 2017 Authorization, of up to $750 million worth of common stock beginning on January 1, 2018. The 2017 Authorization was completed in 2019. On September 19, 2019, the Board of Directors approved a share repurchase program, or the 2019 Authorization, of up to $800 million worth of common stock beginning on October 1, 2019 and ending no later than December 31, 2021. Our share repurchase programs include authorization for repurchases in open market transactions pursuant to Rules 10b-18 and/or 10b5-1 of the Exchange Act, and/or one or more privately-negotiated accelerated stock repurchase transactions. In 2018, we entered into three separate ASR agreements for a sum of $375 million. A total of 19.1 million shares were repurchased under these ASR agreements with an average price paid per share of $19.60. In 2019, we entered into four separate ASR agreements for a sum of $535 million. A total of 28.1 million shares were repurchased under these ASR agreements with an average price paid per share of $19.02. During the first quarter of 2020, we repurchased 13.0 million shares at an average price of $12.27 per share. The total shares purchased by JetBlue under each of the ASRs in 2020, 2019, and 2018 were based on the volume weighted average prices of JetBlue's common stock during the terms of the respective agreements. In accordance with the PSP Agreement and the Loan Agreement with the Treasury, we are prohibited from making any share repurchases. We have suspended our share repurchase program as of March 31, 2020. On December 4, 2020, we completed the public offering of 42.0 million shares of our common stock at a public offering price of $14.40 per share. We intend to use the net proceeds from the offering for general corporate purposes. As of December 31, 2020, we had a total of 26.5 million shar es of our common stock reserved for issuance. These shares are primarily related to our equity incentive plans. Refe r to Note 8 to ou r consolidated financial statements for further details on our share-based compensation. As of December 31, 2020, we had a total of 158.0 million sh ares of treasury stock. |
(Loss) Earnings Per Share
(Loss) Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
(Loss) Earnings Per Share | Earnings Per Share Basic earnings per share is calculated by dividing net (loss) income 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 Crewmember Stock Purchase Plan, and any other potentially dilutive instruments using the treasury stock metho d. Anti-dilutive common stock equivalents excluded from the computation of diluted earnings per share amounts were 2.0 million for the year ended December 31, 2020. There were no anti-dilutive common stock equivalents for the years ended December 31, 2019 and 2018. The following table shows how we computed basic and diluted earnings per common share for the years ended December 31 (dollars and share data in millions): 2020 2019 2018 Net (loss) income $ (1,354) $ 569 $ 189 Weighted average basic shares 277.5 296.6 312.9 Effect of dilutive securities 2.0 1.8 1.6 Weighted average diluted shares 279.5 298.4 314.5 Earnings per common share Basic $ (4.88) $ 1.92 $ 0.60 Diluted $ (4.88) $ 1.91 $ 0.60 As discussed in Note 6 to our consolidated financial statements, JetBlue entered into various ASR agreements in 2020, 2019, and 2018 and purchased approximately 13.0 million, 28.1 million, and 19.1 million shares, respectively, for $160 million, $535 million, and $375 million, respectively. The number of shares repurchased are based on the volume weighted average prices of JetBlue's common stock during the term of the ASR agreements. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation We have various equity incentive plans under which we have granted stock awards to our eligible crewmembers and members of our Board of Directors. These include the JetBlue Airways Corporation Restated and Amended 2002 Stock Incentive Plan, or 2002 Plan, the JetBlue Airways Corporation 2011 Incentive Compensation Plan, or 2011 Plan, and the JetBlue Airways Corporation 2020 Omnibus Equity Incentive Plan, or the 2020 Plan. The 2002 Plan was replaced by the 2011 Plan and has an immaterial amount of vested deferred stock units outstanding as of December 31, 2020. The 2011 Plan was replaced by the 2020 Plan in May 2020. We additionally have a Crewmember Stock Purchase Plan, or CSPP, that is available to all eligible crewmembers. Unrecognized stock-based compensation expense was approximately $21.2 million as of December 31, 2020. This amount relates to a total of 2.4 million unvested restricted stock units, or RSUs, performance stock units, or PSUs, and deferred stock units, or DSUs, that were outstanding under our 2011 and 2020 Plans. We expect to recognize this stock-based compensation expense over a weighted average period of approximately 17 months. The total stock-based compensation expense, which is included within salaries, wages and benefits on our consolidated statements of operations, for the years ended December 31, 2020, 2019, and 2018 was $28 million, $31 million, and $28 million, respectively. 2011 Incentive Compensation Plan At our Annual Shareholders Meeting held on May 26, 2011, our shareholders approved the JetBlue Airways Corporation 2011 Incentive Compensation Plan. Upon inception, the 2011 Plan had 15.0 million shares of our common stock reserved for issuance. RSUs vest in annual installments over three The 2011 Plan was amended and restated effective January 1, 2014, to include the definition of retirement eligibility. Once a crewmember meets the definition, they will continue to vest their shares as if they remained employed by JetBlue, regardless of their actual employment status with the Company. In accordance with the Compensation-Stock Compensation topic of the Codification, the grant’s explicit service condition is non-substantive and the grant has effectively vested at the time retirement eligibility is met. At our Annual Shareholders Meeting held on May 21, 2015, our shareholders approved amendments to the 2011 Plan increasing the number of shares of Company common stock that remain available for issuance under the plan by 7.5 million. Restricted Stock Units The following is a summary of RSU activity under the 2011 Plan for the year ended December 31, 2020 (in millions except per share data): Shares Weighted Average Grant Date Fair Value Nonvested at beginning of year 2.0 $ 18.59 Granted 1.2 17.96 Vested (0.9) 18.99 Forfeited (0.2) 18.07 Nonvested at end of year 2.1 18.08 The total intrinsic value, determined as of the date of vesting, for all RSUs that vested during the year ended December 31, 2020, 2019 and 2018 was $18 million , $15 million and $16 million, respectively. The weighted average grant-date fair value of share awards during the years ended December 31, 2020, 2019 and 2018 was $17.96 , $17.27, and $20.62, respectively. The vesting period for DSUs under the 2011 Plan is either one three In 2019 and 2018, we granted a nominal amount of PSUs to members of our executive leadership team, payment of which are based upon achievements of certain performance criteria. No PSUs were granted i n 2020 as a result of the economic uncertainty brought on by the COVID-19 pandemic. The 2011 Plan which was set to expire in May 2021 was replaced by JetBlue Airways Corporation 2020 Omnibus Equity Incentive Plan in May 2020. 2020 Omnibus Equity Incentive Plan At our Annual Shareholders Meeting held on May 14, 2020, our shareholders approved the JetBlue Airways Corporation 2020 Omnibus Equity Incentive Plan. Upon inception, the 2020 Plan had 10.5 million shares of our common stock reserved for issuance. The 2020 Plan, by its terms, will terminate no later than May 2030. Under the 2020 plan, we grant RSUs to certain crewmembers and members of our Board of Directors. The vesting periods for the RSUs varies by grant but no less than one year. We also grant DSUs to members of our Board of Directors, and PSUs to certain members of our executive leadership team under the 2020 Plan. We have only granted an insignificant amount of RSUs and DSUs under the 2020 Plan since its adoption in May 2020. Crewmember Stock Purchase Plans In May 2011, our shareholders approved the 2011 Crewmember Stock Purchase Plan, or the 2011 CSPP. At inception, the 2011 CSPP had 8.0 million shares of our common stock reserved for issuance. At our Annual Shareholders Meeting held on May 21, 2015, our shareholders approved amendments to the CSPP increasing the number of shares of Company common stock that remain available for issuance under the plan by 15 million. In May 2020, our shareholders approved the JetBlue Airways Corporation 2020 Crewmember Stock Purchase Plan, or the 2020 CSPP to replace the 2011 CSPP which was set to expire in April 2021. At inception, the 2020 CSPP had 17.5 million shares of our common stock reserved for issuance. The 2020 CSPP, by its terms, will termination no later than May 2030. The other terms of the 2020 CSPP are substantially identical to those of the 2011 CSPP. Our CSPPs have a series of six Under the CSPPs, should we be acquired by merger or sale of substantially all of our assets or sale of more than 50% of our outstanding voting securities, all outstanding purchase rights will automatically be exercised immediately prior to the effective date of the acquisition at a price equal to 85% of the fair market value per share immediately prior to the acquisition. Taxation The Compensation-Stock Compensation topic of the Codification requires deferred taxes be recognized on temporary differences that arise with respect to stock-based compensation attributable to nonqualified stock options and awards. However, no tax benefit is recognized for stock-based compensation attributable to incentive stock options, or ISO, or CSPP shares until there is a disqualifying disposition, if any, for income tax purposes. A portion of our historical stock-based compensation was attributable to CSPP shares; therefore, our effective tax rate was subject to fluctuation. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our income tax expense (benefit) consisted of the following for the years ended December 31 (in millions): 2020 2019 2018 Deferred: Federal $ (247) $ 119 $ 82 State (82) 20 7 Foreign — — 1 Deferred income tax (benefit) expense (329) 139 90 Current: Federal (199) 36 (61) State (9) 19 (5) Foreign (2) 5 6 Current income tax (benefit) expense (210) 60 (60) Total income tax (benefit) expense $ (539) $ 199 $ 30 On March 27, 2020, the CARES Act was enacted in response to the COVID-19 pandemic. The CARES Act permits net operating loss (NOL) carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid incomes taxes. As a result, the Company’s effective tax rate includes an income tax benefit related to the anticipated refunds from tax losses generated during 2020 that are permitted to be carried back to certain years when the U.S. federal income tax rate was 35%. The effective tax rate on income before income taxes differed from the federal income tax statutory rate for the years ended December 31 for the following reasons (in millions): 2020 2019 2018 Income tax (benefit) expense at statutory rate $ (398) $ 161 $ 45 State income tax, net of federal benefit (71) 31 8 Adjustment of net deferred tax liability from enacted tax rate change — — (28) Nondeductible expenses 5 8 5 Net operating loss carryback (73) — — Foreign tax credit re-characterization (13) — — Foreign rate differential 2 (3) (2) Valuation allowance 10 — — Unrecognized tax benefit (3) — — Other, net 2 2 2 Total income tax (benefit) expense $ (539) $ 199 $ 30 The components of our deferred tax assets and liabilities as of December 31 are as follows (in millions): 2020 2019 Deferred tax assets: Deferred revenue/gains $ 161 $ 127 Employee benefits 71 47 Foreign tax credit 81 42 Net operating loss carryforward 335 31 Operating lease liabilities 204 212 Rent expense 33 17 Total deferred tax assets 885 476 Valuation allowance (69) (31) Deferred tax assets, net 816 445 Deferred tax liabilities: Accelerated depreciation (1,538) (1,423) Operating lease assets (197) (236) Other (3) (37) Total deferred tax liabilities (1,738) (1,696) Net deferred tax liability $ (922) $ (1,251) We have a U.S. foreign tax credit carryforward of $79 million which expires in 2028. In evaluating the realizability of the deferred tax assets, we assess whether it is more likely than not that some portion, or all, of the deferred tax assets, will be realized. We consider, among other things, the generation of future taxable income (including reversals of deferred tax liabilities) during the periods in which the related temporary differences will become deductible. At December 31, 2020, we provided a $69 million valuation allowance to reduce the deferred tax assets to an amount that we consider is more likely than not to be realized. Of the total valuation allowance, $59 million relates to foreign NOL carryforward, and $10 million relates to U.S. foreign tax credit carryforward that begins to expire in 2021. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): 2020 2019 2018 Unrecognized tax benefits at January 1, $ 36 $ 33 $ 31 Increases for tax positions taken during the period 1 6 5 Decreases for tax positions taken during a prior period (5) (3) (3) Unrecognized tax benefits December 31, $ 32 $ 36 $ 33 Interest and penalties accrued on unrecognized tax benefits were not significant. If recognized, $12 million of the unrecognized tax benefits as of December 31, 2020 would impact our effective tax rate. We do not expect any significant change in the amount of the unrecognized tax benefits within the next twelve months. As a result of net operating losses and statute of limitations in our major tax jurisdictions, years 2004 through 2019 remain subject to examination by the relevant tax authorities. |
Crewmember Retirement Plan
Crewmember Retirement Plan | 12 Months Ended |
Dec. 31, 2020 | |
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 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 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, pilots receive a non-elective Company contribution of 15% of eligible pilot compensation per the terms of the finalized 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. Refer to Note 11 to our consolidated financial statements for additional information. The Company's non-elective contribution of 15% of eligible pilot compensation vests after three 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 years ended December 31, 2020, 2019, and 2018 were $177 million |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments Flight Equipment Commitments As of December 31, 2020, our firm aircraft orders consisted of 72 Airbus A321neo aircraft and 69 Airbus A220 aircraft, all scheduled for delivery through 2027. Committed expenditures for these aircraft and related flight equipment, including estimated amounts for contractual price escalations and pre-delivery deposits, is approximately $1.0 billion in 2021, $0.7 billion in 2022, $1.5 billion in 2023, $1.8 billion in 2024, $1.2 billion in 2025 and $1.6 billion thereafter. We are scheduled to receive 8 new Airbus A321neo aircraft and 7 new Airbus A220 aircraft in 2021. 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. We continue to work with our business partners, including Airbus, to evaluate the potential financial and operational impact of these announcements on our future aircraft deliveries. 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 December 31, 2020, we had approximately $23 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. In April 2014, ALPA was certified by the National Mediation Board, or NMB, as the representative body for JetBlue pilots after winning a representation election. We reached a final agreement for our first collective bargaining agreement which was ratified by the pilots in July 2018. The agreement is a four-year, renewable contract, which became effective August 1, 2018 and included compensation, benefits, work rules, and other policies. 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 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 TWU. We are currently working with TWU to determine next steps. As of December 31, 2020, approximately 51 percent of our full-time equivalent crewmembers were represented by unions. Except as noted above, our crewmembers do not have third party representation. We enter into individual employment agreements with each of our non-unionized FAA-licensed crewmembers which include dispatchers, technicians, and inspectors as well as air traffic controllers. Each employment agreement is for a term of five years and automatically renews for an additional five years unless either the crewmember or we elect not to renew it by giving at least 90 days' notice before the end of the relevant term. Pursuant to these agreements, these crewmembers can only be terminated for cause. In the event of a downturn in our business that would require a reduction in work hours, we are obligated to pay these crewmembers a guaranteed level of income and to continue their benefits if they do not obtain other aviation employment. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies We self-insure a portion of our losses from claims related to workers’ compensation, environmental issues, property damage, medical insurance for crewmembers, and general liability. Losses are accrued based on an estimate of the ultimate aggregate liability for claims incurred, using standard industry practices and our actual experience. We are a party to many routine contracts under which we indemnify third parties for various risks. These indemnities consist of the following: All of our bank loans, including our aircraft mortgages obligate us to reimburse the bank for any increased costs arising from regulatory changes, including changes in reserve requirements and bank capital requirements; these obligations are standard terms present in loans of this type. These indemnities would increase the interest rate on our debt if they were to be triggered. In all cases, we have the option to repay the loan and avoid the increased costs. These terms match the length of the related loan up to 15 years. Under both aircraft leases with foreign lessors and aircraft mortgages with foreign lenders, we have agreed to customary indemnities concerning withholding tax law changes. Under these contracts we are responsible, should withholding taxes be imposed, for paying such amount of additional rent or interest as is necessary to ensure that the lessor or lender still receives, after taxes, the rent stipulated in the lease or the interest stipulated under the loan. The term of these indemnities matches the length of the related lease o r loan up to 20 years. We have various leases with respect to real property as well as various agreements among airlines relating to fuel consortia or fuel farms at airports. Under these contracts we have agreed to standard language indemnifying the lessor against environmental liabilities associated with the real property or operations described under the agreement, even if we are not the party responsible for the initial event that caused the environmental damage. In the case of fuel consortia at airports, these indemnities are generally joint and several among the participating airlines. We have purchased a standalone environmental liability insurance policy to help mitigate this exposure. Our existing aviation hull and liability policy includes some limited environmental coverage when a cleanup is part of an associated single identifiable covered loss. Under certain contracts, we indemnify specified parties against legal liability arising out of actions by other parties. The terms of these contracts range up to 25 years. Gener ally, we have liability insurance protecting ourselves for the obligations we have undertaken relative to these indemnities. We are unable to estimate the potential amount of future payments under the foregoing indemnities and agreements. Under a certain number of our operating lease agreements we are required to restore certain property or equipment to its original form upon expiration of the related agreement. We have recorded the estimated fair value of these retirement obligations of approximatel y $5 million as of December 31, 2020. This liability may increase over time. Legal Matters Occasionally, we are involved in various claims, lawsuits, regulatory examinations, investigations, and other legal matters involving suppliers, 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. |
Financial Derivative Instrument
Financial Derivative Instruments and Risk Management | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Derivative Instruments and Risk Management | Financial Derivative Instruments and Risk Management As part of our risk management techniques, we periodically purchase over the counter energy derivative instruments and enter into fixed forward price agreements, or FFPs, to manage our exposure to the effect of changes in the price of aircraft fuel. Prices for the underlying commodities have historically been highly correlated to aircraft fuel, making derivatives of them effective at providing short-term protection against 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 the Derivatives and Hedging topic of the Codification which allows for gains and losses on the effective portion of qualifying hedges to be deferred until the underlying planned jet fuel consumption occurs, rather than recognizing the gains and losses on these instruments into earnings during each period they are outstanding. The effective portion of realized aircraft fuel hedging derivative gains and losses is recognized in aircraft fuel expense in the period the underlying fuel is consumed. Ineffectiveness occurs, in certain circumstances, when the change in the total fair value of the derivative instrument differs from the change in the value of our expected future cash outlays for the purchase of aircraft fuel. ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, eliminated the requirement for companies to separately measure and record ineffectiveness after initial qualification. If a hedge does not qualify for hedge accounting, the periodic changes in its fair value are recognized in interest income and other. When aircraft fuel is consumed and the related derivative contract settles, any gain or loss previously recorded in other comprehensive income is recognized in aircraft fuel expense. All cash flows related to our fuel hedging derivatives are classified as operating cash flows. Our current approach to fuel hedging is to enter into hedges on a discretionary basis without a specific target of hedge percentage needs. We view our hedge portfolio as a form of insurance to help mitigate the impact of price volatility and protect us against severe spikes in oil prices, when possible. We did not have any fuel hedging contracts outstanding as of 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): As of December 31, 2020 2019 Fuel derivatives Asset fair value recorded in prepaid expenses and other (1) $ — $ 8 Longest remaining term (months) 0 6 Hedged volume (barrels, in thousands) — 2,112 Estimated amount of existing (gains) losses expected to be reclassified into earnings in the next 12 months $ — $ (2) Year Ended December 31, 2020 2019 2018 Fuel derivatives Hedge effectiveness (gains) losses recognized in aircraft fuel expense $ 7 $ 5 $ 2 Losses on derivatives resulting from the discontinuance of hedge accounting recognized in interest income and other $ 8 $ — $ — Hedge (gains) losses on derivatives recognized in comprehensive income $ 11 $ (1) $ 6 Percentage of actual consumption economically hedged 25 % 6 % 4 % (1) Gross asset of each contract prior to consideration of offsetting positions with each counterparty and prior to impact of collateral paid. Any outstanding derivative instrument exposes us to credit loss in connection with our fuel contracts in the event of nonperformance by the counterparties to the agreements, but we do not expect 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. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2020 | |
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 (in millions): As of 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 As of December 31, 2019 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 611 $ 30 $ — $ 641 Available-for-sale investment securities — 351 — 351 Aircraft fuel derivatives — 8 — 8 Refer to Note 4 to our consolidated financial statements for fair value information related to our outstanding debt obligations as of December 31, 2020 and 2019. The carrying values of all other financial instruments approximated their fair values at December 31, 2020 and 2019. Cash equivalents Our cash equivalents include money market se curities, commercial paper, and ti me 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 , commercial paper, and convertible debt securities. The fair values of these instruments are based on observable inputs in non-active markets, which are therefore classified as Level 2 in the hierarchy. We did not record any material gains or losses on these securities during the years ended December 31, 2020, 2019, and 2018. Aircraft fuel derivatives |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [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 years ended December 31, 2020, 2019, and 2018 is as follows (in millions): Aircraft Fuel Derivatives (1)(2) Total Balance of accumulated income, at December 31, 2017 $ — $ — Reclassifications into earnings, net of deferred taxes of $0 1 1 Change in fair value, net of deferred taxes of $2 (4) (4) Balance of accumulated (loss), at December 31, 2018 (3) (3) Reclassifications into earnings, net of deferred taxes of $(1) 4 4 Change in fair value, net of deferred taxes of $0 1 1 Balance of accumulated income, at December 31, 2019 2 2 Reclassifications into earnings, net of deferred taxes of $(5) 9 9 Change in fair value, net of deferred taxes of $5 (11) (11) Balance of accumulated income, at December 31, 2020 $ — $ — (1) Reclassified to aircraft fuel expense. (2) In 2020, the Company made several capacity reductions in response to the COVID-19 pandemic. These capacity reductions led to the discontinuance of hedge accounting on a number of our aircraft fuel derivatives as the forecasted consumption of aircraft fuel was no longer probable. L osses of $5 million that were previously deferred in other comprehensive loss were reclassified to interest income and other during the year ended December 31, 2020. |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information Under the Segment Reporting topic of the Codification, disclosures are required for operating segments that are regularly reviewed by chief operating decision makers. Air transportation services accounted for substantially all of the Company’s operations in 2020, 2019 and 2018. Operating revenues are allocated to geographic regions, as defined by the Department of Transportation, or DOT, based upon the origination and destination of each flight segment. As of December 31, 2020, we se rved 31 lo cations in the Caribbean and Latin American region, or Latin America as defined by the DOT. However, our management includes our three destinations in Puerto Rico and one destination in the U.S. Virgin Islands in our Caribbean and Latin America allocation of revenues. Therefore, we have reflected these locations within the Caribbean and Latin America region in the table below. Operating revenues by geographic regions for the years ended December 31 are summarized below (in millions): 2020 2019 2018 Domestic $ 1,890 $ 5,633 $ 5,386 Caribbean & Latin America 1,067 2,461 2,272 Total $ 2,957 $ 8,094 $ 7,658 Our tangible assets primarily consist of our fleet of aircraft, which is deployed systemwide, with no individual aircraft dedicated to any specific route or region; therefore our assets do not require any allocation to a geographic area. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) Quarterly results of operations for the years ended December 31, 2020 and 2019 are summarized below (in millions, except per share amounts): First Second Third Fourth 2020 Operating revenues $ 1,588 $ 215 $ 492 $ 661 Operating (loss) (1) (334) (410) (516) (454) Net (loss) (1) (268) (320) (393) (373) (Loss) per share (1) $ (0.97) $ (1.18) $ (1.44) $ (1.31) 2019 Operating revenues $ 1,871 $ 2,105 $ 2,086 $ 2,031 Operating income (2) 76 250 247 227 Net income (2)(3) 42 179 187 161 Basic earnings per share $ 0.14 $ 0.60 $ 0.63 $ 0.56 Diluted earnings per share (2)(3) $ 0.14 $ 0.59 $ 0.63 $ 0.56 (1) Our 2020 results include the effects of various special items. We record special items of $202 million, or ($0.55) per share in the first quarter of 2020, $(304) million, or $0.84 per share in the second quarter of 2020, $(112) million, or $0.31 per share in the third quarter of 2020, and $(69) million, or $0.19 per share in the fourth quarter of 2020. See Note 18 to our consolidated financial statements for details. (2) Our 2019 reported results include special items related to the Embraer E190 fleet transition and the ratification of our pilots' collective bargaining agreement. We recorded special items of $12 million or ($0.02) per diluted share in the first quarter and $2 million or ($0.01) per diluted share in the second quarter of 2 019. See Note 18 to our consolidated financial statements for details. (3) During the third quarter of 2019, we recorded a gain of $15 million, or $0.04 per diluted share, on one of our equity method investments related to its fair value measurement upon the closing of a subsequent financing round. The sum of the quarterly results may not equal the annual amount reported due to immaterial rounding differences. The sum of the quarterly earnings per share amounts does not equal the annual amount reported since per share amounts are computed independently for each quarter and for the full year based on respective weighted average common shares outstanding and other dilutive potential common shares. |
Special Items
Special Items | 12 Months Ended |
Dec. 31, 2020 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Special Items | Special Items The following is a listing of special items presented on our consolidated statements of operations (in millions): Year Ended December 31, 2020 2019 2018 Special Items CARES Act payroll support grant recognition (1) $ (685) $ — $ — CARES Act employee retention credit (2) (36) Fleet impairment (3) 273 — — Severance and benefit costs (4) 59 — — Losses on sale-leaseback transactions (5) 106 — — Embraer E190 fleet transition costs (6) — 6 362 Union contract costs (7) — 8 73 Total $ (283) $ 14 $ 435 (1) As discussed in Note 2 to o ur consolidated financial statements, we entered into a PSP Agreement with the Treasury governing our participation in the Payroll Support Program under the CARES Act. Under the Payroll Support Program, Treasury provided us with payroll support funding totali ng $963 million, consisting of $704 million in grants and $259 million in an unsecured term loan. The payroll support funds were to be used exclusively for the continuation of payment of crewmember wages, salaries and benefits. The carrying value of the payroll support grants which totale d to $685 million (after consideration of the warrants we issued) w as recorded within other liabilities and were recognized as a contra-expense within special items on our consolidated statements of operations as the funds were utilized. The payroll support grants were fully utilized in 2020. (2) The Employee Retention Credit (ERC) under the CARES Act is a refundable tax credit which encourages business 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. 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. We recognized $36 million of ERC as a contra-expense within special items on our consolidated statements of operations in 2020. (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 forecasted 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. As dis cussed in Note 2 to our consolidated financial statements, 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, and maintenance conditions. Based on the assessment, we determined the future cash flows from the operation 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 impairment losses of $273 million for the year ended December 31, 2020. These losses represent the difference between the book value of these assets and their fair value. In determining fair value, we obtained third party valuations for our Embraer E190 fleet, which considered the effects of the current market environment, age of the assets, and marketability. For our owned Embraer E190 aircraft and related spare parts, we made adjustments to the valuations to reflect the impact of their current maintenance conditions to determine fair value. Our estimate of fair value was not based on distressed sales or forced liquidations. The fair value of our Embraer E190 aircraft under operating lease and related parts was based on the present value of current market lease rates utilizing a market discount rate for the remaining term of each lease. Since the fair value of our Embraer E190 fleet was determined using unobservable inputs, it is classified as Level 3 in the fair value hierarchy. We e valuated the remaining fleet types and determined the future cash flows of our Airbus A320 and Airbus A321 fleets exceeded their carrying value as of December 31, 2020. 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 a voluntary separation program 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 program were executed in the third quarter. One-time costs of $59 million , consisting of severance and health benefits, were recorded for the year ended December 31, 2020 in connection with the program. Approximate ly $44 million of this ch arge was disbursed during the year. Accruals related to the voluntary separation program are primarily recorded in accrued salaries, wages and benefits, and accounts payable on our consolidated balance sheets. The remaining balance is expected to be disbursed throughout 2021. (5) In 2020, we executed $563 million of sale-leaseback transactions. Of these transactions, $354 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. (6) In July 2018, we announced our decision to exit the Embraer E190 fleet and order 60 Airbus A220-300 aircraft, formerly known as the Bombardier CS300, for expected deliveries beginning in 2020 with the option to purchase 60 additional aircraft. For the year ended December 31, 2018, fleet transition costs include a $319 million impairment charge of flight equipment and other property and equipment related to our fleet review and certain termination costs associated with the transition. We assessed our Embraer E190 asset group by comparing projected undiscounted cash flows over the remaining time period we expect to utilize the aircraft to the book value of the asset group and determined the book value was in excess of the cash flows. We estimated the fair value of our Embraer E190 asset group using third party valuations and considering specific circumstances of our fleet such as aircraft age, maintenance requirements and condition, and therefore classified as Level 3 in the fair value hierarchy. We reassessed our Embraer E190 assets and adjusted the depreciable lives and salvage value to align with our expected transition dates to the Airbus A220-300 through 2025. Fleet transition costs for the year ended December 31, 2019 include certain contract termination costs associated with the transition. In 2019, we converted 10 of our options for the A220-300 aircraft into firm orders. Options for 50 additional A220-300 aircraft deliveries remain available to us as of December 31, 2020. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS (in millions) Balance at Additions Charged to Deductions Balance at Year Ended December 31, 2020 Valuation allowance for deferred tax assets $ 31 $ 38 $ — $ 69 Allowance for obsolete inventory parts 22 5 — 27 Allowance for doubtful accounts 1 6 5 (1) 2 Total $ 54 $ 49 $ 5 $ 98 Year Ended December 31, 2019 Valuation allowance for deferred tax assets $ 21 $ 10 $ — $ 31 Allowance for obsolete inventory parts 18 4 — 22 Allowance for doubtful accounts 1 6 6 (1) 1 Total $ 40 $ 20 $ 6 $ 54 Year Ended December 31, 2018 Valuation allowance for deferred tax assets $ 1 $ 20 $ — $ 21 Allowance for obsolete inventory parts 14 4 — 18 Allowance for doubtful accounts 1 6 6 (1) 1 Total $ 16 $ 30 $ 6 $ 40 (1) Uncollectible accounts written off, net of recoveries. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation JetBlue provides air transportation services across the United States, the Caribbean, and Latin America. Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP, and include the accounts of JetBlue and our subsidiaries. All majority-owned subsidiaries are consolidated with all intercompany transactions and balances being eliminated. |
Use of Estimates | Use of Estimates The preparation of our consolidated financial statements and accompanying notes in conformity with GAAP requires us to make certain estimates and assumptions. Actual results could differ from those estimates. |
Fair Value | Fair Value The Fair Value Measurements and Disclosures topic of the Financial Accounting Standards Board, or FASB, Accounting Standards Codification ® , or Codification, establishes a framework for measuring fair value and requires enhanced disclosures about fair value measurements. This topic clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The topic also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs . Refer to Note 14 to o ur consolidated financial statements for more information. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Restricted Cash | Restricted Cash Restricted cash pri marily consists of se curity deposits, funds held in escrow for estimated workers’ compensation obligations, and performance bonds for aircraft and facility leases. |
Accounts and Other Receivables | Accounts and Other Receivables |
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 highly liquid investments such as time deposits, U.S. Treasury bills with maturities between three and twelve months, commercial paper, and convertible debt securities which are stated at fair value. Held-to-maturity investment securities Our held-to-maturity investments consist of investment-grade interest bearing instruments, such as corporate bonds and U.S. Treasury notes, which are stated at amortized cost. We do not intend to sell these investment securities and the contractual maturities are not greater than 24 months. Those with maturities less than twelve months are included in short-term investments on our consolidated balance sheets. Those with remaining maturities in excess of twelve months are included in long-term investments on our consolidated balance sheets. We did not record any material gains or losses on these securities during the years ended December 31, 2020, 2019 or 2018. The estimated fair value of these investments approximated their carrying value as of December 31, 2020 and 2019. The carrying values of investment securities consisted of the following at December 31, 2020 and 2019 (in millions): December 31, 2020 December 31, 2019 Available-for-sale securities Time deposits $ 1,130 $ 325 Commercial paper — 20 Debt securities 7 6 Total available-for-sale securities 1,137 351 Held-to-maturity securities Corporate bonds — 21 Total held-to-maturity securities — 21 Total investment securities $ 1,137 $ 372 |
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 |
Other Investments | Other InvestmentsOur 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. |
Derivative Instruments | Derivative Instruments Our derivative instruments include fuel hedge contracts, such as jet fuel call options and call option spreads, which are stated at fair value, net of any collateral po stings. Derivative instruments are included in other current assets and other current liabilities on our consolidated balance sheets. Refer to Note 13 to our c o nsolidated financial statements for more information. |
Inventories | Inventories Inventories consist of expendable aircraft spare parts and supplies that are stated at average cost, as well as aircraft fuel that is accounted for on a first-in, first-out basis. These items are expensed when used or consumed. An allowance for obsolescence on aircraft spare parts and supplies is provided over the remaining useful life of the related aircraft fleet. |
Property and Equipment | Property and Equipment We record our property and equipment at cost and depreciate these assets on a straight-line basis over their estimated useful lives to their estimated residual values. We capitalize additions, modifications enhancing the operating performance of our assets, as well as the interest related to pre-delivery deposits used to acquire new aircraft and the construction of our facilities. Estimated useful lives and residual values for our property and equipment are as follows: Property and Equipment Type Estimated Useful Life Residual Value Aircraft 25 years 20 % Inflight entertainment systems 5-10 years 0 % Aircraft parts Fleet life 10 % Flight equipment leasehold improvements Lower of lease term or economic life 0 % Ground property and equipment 2-10 years 0 % Leasehold improvements—other Lower of lease term or economic life 0 % Buildings on leased land Lease term 0 % Property under finance leases is initially recorded at an amount equal to the present value of future minimum lease payments which is computed on the basis of our incremental borrowing rate or, when known, the interest rate implicit in the lease. Amortization of property under finance leases is on a straight-line basis over the expected useful life to their estimated residual values and is included in depreciation and amortization expense. |
Software | Software We capitalize certain costs related to the acquisition and development of computer software. We amortize these costs using the straight-line method over the estimated useful life of the software, which is generally five years. The net book value of computer software, which is included in intangible assets on our consolidated balance sheets, was $121 million and $102 million as of December 31, 2020 and 2019, respectively. Amortization expense related to computer software was $44 million, $52 million and $46 million for the years ended December 31, 2020, 2019, and 2018, respectively. As of December 31, 2020, amortization expense related to computer software is expected to be approximately $38 million in 2021, $34 million in 2022, $27 million in 2023, $16 million in 2024, and $6 million in 2025. |
Indefinite-Lived Intangible Assets | Indefinite-Lived Intangible Assets Our indefinite-lived intangible assets consist primarily of acquired Slots at certain High Density Airports which result in no amortization expense. Slots are the rights to take-off or land at a specific airport during a specific time period of the day and are a means by which airport capacity and congestion can be managed. We evaluate our indefinite-lived intangible assets for impairment at least annually or when events and circumstances indicate they may be impaired. Indicators include operating or cash flow losses as well as various market factors to determine if events and circumstances could reasonably have affected the fair value. As of December 31, 2020 and 2019, our indefinite-lived intangible assets, which are included in intangible assets on our consolidated balance sheets, were $139 million . We performed an impairment assessment as of December 31, 2020 and determined our indefinite-lived intangible assets were not impaired. |
Passenger Revenue | Passenger Revenue Ticket sales and the fees collected for related ancillary services are initially deferred in air traffic liability. Air traffic liability represents tickets sold but not yet flown, credits which can be used for future travel, and a portion of the liability related to our TrueBlue ® loyalty program. We allocate the transaction price to each performance obligation identified in a passenger ticket on a relative standalone basis. Passenger revenue, including certain ancillary fees directly related to passenger tickets, is recognized when the transportation is provided. Taxes that we are required to collect from our customers, including foreign and U.S. federal transportation taxes, security taxes, and airport facility charges, are excluded from passenger revenue. Those taxes and fees are recorded as a liability upon collection and are relieved from the liability upon remittance to the applicable governmental agency. The majority of the tickets sold are non-refundable. Non-refundable fares may be canceled prior to the scheduled departure date for a credit for future travel. Refundable fares may be canceled at any time prior to the scheduled departure date. Failure to cancel a refundable fare prior to departure will result in the cancellation of the original ticket and an issuance of a credit for future travel. Passenger credits can be used for future travel up to a year from the date of issuance. Passenger breakage revenue from unused tickets and passenger credits will be recognized in proportion to flown revenue based on estimates of expected expiration when the likelihood of the customer exercising his or her remaining rights becomes remote. Breakage revenue consists of non-refundable tickets that remain unused past the departure date, have continued validity, and are expected to ultimately expire unused, as well as passenger credits that are not expected to be redeemed prior to expiration. JetBlue uses estimates based on historical experience of expired tickets and credits and considers other factors that could impact future expiration patterns of tickets and credits. Tickets which do not have continued validity past the departure date are recognized as revenue after the scheduled departure date has lapsed. Passenger ticket costs primarily include credit card fees, commissions paid, and global distribution systems booking fees. Costs are allocated entirely to the purchased travel services and are capitalized until recognized when travel services are provided to the customer. In response to the impact of COVID-19 on air travel, we extended the expiration dates for travel credits issued from February 27, 2020 through June 30, 2020 to a 24-month period. The air traffic liability classified as non-current as of December 31, 2020 represents our current estimate of tickets and credits to be used or refunded beyond one year, while the balance classified as current represents our current estimate of tickets and credits to be used or refunded within one year. We will continue to monitor our customers' travel behavior and may adjust our estimates in the future. |
Loyalty Program | Loyalty Program Customers may earn points under our customer loyalty program, TrueBlue ® , based on the fare paid and fare product purchased for a flight. Customers can also earn points through business partners such as credit card companies, hotels, car rental companies, and our participating airline partners. Points Earned From a Ticket Purchase. When a TrueBlue ® member travels, we recognize a portion of the fare as revenue and defer in air traffic liabilities the portion that represents the value of the points net of spoilage, or breakage. We allocate the transaction price to each performance obligation on a relative standalone basis. We determine the standalone selling price of TrueBlue ® points issued using the redemption value approach. To maximize the use of observable inputs, we utilize the actual ticket value of the tickets purchased with TrueBlue ® points. The liability is relieved and passenger revenue is recognized when the points are redeemed and the free travel is provided. Points Sold to TrueBlue ® Partners . Our most significant contract to sell TrueBlue ® points is with our co-branded credit card partner. Co-branded credit card partnerships have the following identified performance obligations: air transportation; use of the JetBlue brand name and access to our frequent flyer customer lists; advertising; and other airline benefits. In determining the estimated selling price, JetBlue considered multiple inputs, methods and assumptions, including: discounted cash flows; estimated redemption value, net of fulfillment discount; points expected to be awarded and redeemed; estimated annual spending by cardholders; estimated annual royalty for use of JetBlue's frequent flyer customer lists; and estimated utilization of other airline benefits. Payments are typically due monthly based on the volume of points sold during the period, and the terms of our contracts are generally from one Amounts allocated to the air transportation element which are initially deferred include a portion that are expected to be redeemed during the following twelve months (classified as a component of Air traffic liability), and a portion that are not expected to be redeemed during the following twelve months (classified as Air traffic liability - non-current). We periodically update this analysis and adjust the split between current and non-current liabilities as appropriate. Points earned by TrueBlue ® members never expire. TrueBlue ® |
Airframe and Engine Maintenance and Repair | Airframe and Engine Maintenance and Repair Regular airframe maintenance for owned and leased flight equipment is charged to expense as incurred unless covered by a third-party long-term flight hour service agreement. We have separate service agreements in place covering scheduled and unscheduled repairs of certain airframe line replacement unit components as well as the engines in our fleet. Certain of these agreements require monthly payments at rates based either on the number of cycles each aircraft was operated during each month or the number of flight hours each engine was operated during each month, subject to annual escalations. These power by the hour agreements transfer certain risks, including cost risks, to the third-party service providers. They generally fix the amount we pay per flight hour or number of cycles in exchange for maintenance and repairs under a predefined maintenance |
Advertising Costs | Advertising CostsAdvertising costs, which are included in sales and marketing, are expensed as incurred. |
Share-Based Compensation | Share-Based Compensation We record compensation expense for share-based awards based on the grant date fair value of those awards. Share-based compensation expense includes an estimate for pre-vesting forfeitures and is recognized over the requisite service periods of the awards on a straight-line basis. |
Income Taxes | Income Taxes We account for income taxes utilizing the liability method. Deferred income taxes are recognized for the tax consequences of temporary differences between the tax and financial statement reporting bases of assets and liabilities. A valuation allowance for deferred tax assets is provided unless realization of the asset is judged by us to be more likely than not. Our policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. |
Recently Issued And Adopted Accounting Standards | Recently Issued 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. This update also removed the requirement to calculate income tax expense for standalone financial statements of wholly-owned subsidiaries. ASU 2019-12 is effective for annual reporting periods beginning after December 15, 2020. We have substantially completed our assessment of the new standard and do not expect its adoption to have a material impact on our consolidated financial statements. Recently Adopted Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The update requires the use of an "expected loss" model on certain types of financial instruments and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. For trade receivables, loans, and held-to-maturity debt securities, entities are required to estimate lifetime expected credit losses. For available-for-sale debt securities, entities will be required to recognize an allowance for credit losses rather than a reduction to the carrying value of the asset. We adopted the requirements of ASU 2016-13 as of January 1, 2020 using a modified retrospective transition approach. The adoption of ASU 2016-13 did not have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The update eliminates, adds, and modifies certain disclosure requirements for fair value measurements. We adopted the requirements of ASU 2018-13 as of January 1, 2020. The adoption of ASU 2018-13 did not have a significant impact on our consolidated financial statement disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Marketable securities | The carrying values of investment securities consisted of the following at December 31, 2020 and 2019 (in millions): December 31, 2020 December 31, 2019 Available-for-sale securities Time deposits $ 1,130 $ 325 Commercial paper — 20 Debt securities 7 6 Total available-for-sale securities 1,137 351 Held-to-maturity securities Corporate bonds — 21 Total held-to-maturity securities — 21 Total investment securities $ 1,137 $ 372 |
Property, plant and equipment | Estimated useful lives and residual values for our property and equipment are as follows: Property and Equipment Type Estimated Useful Life Residual Value Aircraft 25 years 20 % Inflight entertainment systems 5-10 years 0 % Aircraft parts Fleet life 10 % Flight equipment leasehold improvements Lower of lease term or economic life 0 % Ground property and equipment 2-10 years 0 % Leasehold improvements—other Lower of lease term or economic life 0 % Buildings on leased land Lease term 0 % |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The following table provides the revenue recognized by revenue source for the years ended December 31, 2020, 2019, and 2018 (in millions): 2020 2019 2018 Passenger revenue Passenger travel $ 2,551 $ 7,395 $ 7,061 Loyalty revenue - air transportation 182 391 320 Other revenue Loyalty revenue 168 201 168 Other revenue 56 107 109 Total revenue $ 2,957 $ 8,094 $ 7,658 |
Contract with customer, asset and liability | 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): December 31, 2020 December 31, 2019 Air traffic liability - passenger travel $ 964 $ 929 Air traffic liability - loyalty program (air transportation) 733 661 Deferred revenue 41 10 Total $ 1,738 $ 1,600 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 (in millions): Balance at December 31, 2018 $ 580 TrueBlue ® points redeemed (391) TrueBlue ® points earned and sold 472 Balance at December 31, 2019 661 TrueBlue ® points redeemed (182) TrueBlue ® points earned and sold 254 Balance at December 31, 2020 $ 733 |
Long-term Debt, Short-term Bo_2
Long-term Debt, Short-term Borrowings, and Finance Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Long-term debt and finance lease obligations and the related weighted average interest rate at December 31, 2020 and 2019 consisted of the following (in millions): December 31, 2020 December 31, 2019 Secured Debt Fixed rate specialty bonds, due through 2036 43 4.9 % 43 4.9 % Fixed rate enhanced equipment notes: 2019-1 Series AA, due through 2032 567 2.8 % 589 2.8 % 2019-1 Series A, due through 2028 176 3.0 % 183 3.0 % 2019-1 Series B, due through 2027 109 8.2 % — — % 2020-1 Series A, due through 2032 635 4.1 % — — % 2020-1 Series B, due through 2028 172 7.8 % — — % Fixed rate enhanced equipment notes, due through 2023 115 4.5 % 134 4.5 % Fixed rate equipment notes, due through 2028 895 4.2 % 1,113 4.2 % Floating rate equipment notes, due through 2028 153 2.6 % 201 4.3 % Floating rate term loan credit facility, due through 2024 712 6.4 % — — % Secured CARES Act Loan, due through 2025 106 3.2 % — — % Citibank line of credit, due through 2023 550 2.2 % — — % 2020 sale-leaseback transactions, due through 2024 352 7.6 % — — % Finance Leases 63 4.6 % 89 4.8 % Unsecured Debt Unsecured CARES Act Payroll Support Program loan, due through 2030 259 2.0 % — — % Total debt and finance lease obligations 4,907 2,352 Less: Current maturities (450) (344) Less: Debt acquisition cost (44) (18) Long-term debt and finance lease obligations $ 4,413 $ 1,990 |
Schedule of maturities of long-term debt | Maturities of our debt and finance leases, net of debt acquisition costs, for the next five years are as follows (in millions): Maturities 2021 $ 440 2022 421 2023 1,181 2024 962 2025 308 Thereafter 1,551 |
Carrying amounts and estimated fair values of long-term debt | The carrying amounts and estimated fair values of our long-term debt, net of debt acquisition costs, at December 31, 2020 and 2019 were as follows (in millions): December 31, 2020 December 31, 2019 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Public Debt Fixed rate special facility bonds, due through 2036 $ 42 $ 45 $ 42 $ 46 Fixed rate enhanced equipment notes: 2019-1 Series AA, due through 2032 560 440 581 586 2019-1 Series A, due through 2028 174 152 181 186 2019-1 Series B, due through 2027 107 139 — — 2020-1 Series A, due through 2032 627 658 — — 2020-1 Series B, due through 2028 170 223 — — Non-Public Debt Fixed rate enhanced equipment notes, due through 2023 114 116 133 141 Fixed rate equipment notes, due through 2028 891 1,017 1,107 1,201 Floating rate equipment notes, due through 2028 152 144 201 207 Floating rate term loan credit facility, due through 2024 702 759 — — Unsecured CARES Act Payroll Support Program loan, due through 2030 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 352 393 — — Total (1) $ 4,800 $ 4,930 $ 2,245 $ 2,367 (1) Total excludes finance lease obligations of $63 million and $89 million at December 31, 2020 and 2019, respectively. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of lease assets and liabilities | The table below presents the lease-related assets and liabilities recorded on our consolidated balance sheets as of December 31, 2020 and 2019 (in millions): As of December 31, 2020 2019 Assets Classification on Balance Sheet Operating lease assets Operating lease assets $ 804 $ 912 Finance lease assets Property and equipment, net 131 171 Total lease assets $ 935 $ 1,083 Liabilities Classification on Balance Sheet Current: Operating lease liabilities Current operating lease liabilities $ 113 $ 128 Finance lease liabilities Current maturities of long-term debt and finance lease obligations 37 31 Long-term: Operating lease liabilities Long-term operating lease liabilities 752 690 Finance lease liabilities Long-term debt and finance lease obligations 26 58 Total lease liabilities $ 928 $ 907 As of December 31, 2020 2019 Weighted average remaining lease term (in years) Operating leases 9 11 Finance leases 2 3 Weighted average discount rate Operating leases 5.99 % 5.95 % Finance leases 4.60 % 4.75 % |
Lease, cost | The table below presents certain information related to our lease costs during the years ended December 31, 2020, 2019, and 2018 (in millions): 2020 2019 2018 Operating lease cost $ 160 $ 180 $ 185 Short-term lease cost 1 2 2 Finance lease cost: Amortization of assets 6 9 10 Interest on lease liabilities 2 3 3 Variable lease cost 282 391 379 Sublease income (5) (19) (15) Total net lease cost $ 446 $ 566 $ 564 |
Schedule of leases, supplemental cash flows | The table below presents supplemental cash flow information related to leases during the years ended December 31, 2020, 2019, and 2018 (in millions): 2020 2019 2018 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 146 $ 136 $ 151 Operating cash flows for finance leases 4 5 5 Financing cash flows for finance leases 28 17 17 |
Lessee, operating lease, liability, maturity | The table below presents scheduled future minimum lease payments for operating and finance leases recorded on our consolidated balance sheets, as of December 31, 2020 (in millions): As of December 31, 2020 Operating Leases Finance Leases 2021 $ 160 $ 40 2022 151 11 2023 141 11 2024 119 5 2025 82 — Thereafter 493 — Total minimum lease payments 1,146 67 Less: amount of lease payment representing interest (281) (4) Present value of future minimum lease payment 865 63 Less: current obligations under leases (113) (37) Long-term lease obligations $ 752 $ 26 |
(Loss) Earnings Per Share (Tabl
(Loss) Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of (loss) earnings per share, basic and diluted | The following table shows how we computed basic and diluted earnings per common share for the years ended December 31 (dollars and share data in millions): 2020 2019 2018 Net (loss) income $ (1,354) $ 569 $ 189 Weighted average basic shares 277.5 296.6 312.9 Effect of dilutive securities 2.0 1.8 1.6 Weighted average diluted shares 279.5 298.4 314.5 Earnings per common share Basic $ (4.88) $ 1.92 $ 0.60 Diluted $ (4.88) $ 1.91 $ 0.60 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of restricted stock unit activity | The following is a summary of RSU activity under the 2011 Plan for the year ended December 31, 2020 (in millions except per share data): Shares Weighted Average Grant Date Fair Value Nonvested at beginning of year 2.0 $ 18.59 Granted 1.2 17.96 Vested (0.9) 18.99 Forfeited (0.2) 18.07 Nonvested at end of year 2.1 18.08 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for income taxes | Our income tax expense (benefit) consisted of the following for the years ended December 31 (in millions): 2020 2019 2018 Deferred: Federal $ (247) $ 119 $ 82 State (82) 20 7 Foreign — — 1 Deferred income tax (benefit) expense (329) 139 90 Current: Federal (199) 36 (61) State (9) 19 (5) Foreign (2) 5 6 Current income tax (benefit) expense (210) 60 (60) Total income tax (benefit) expense $ (539) $ 199 $ 30 |
Schedule of income taxes differed from the federal income tax statutory rate | The effective tax rate on income before income taxes differed from the federal income tax statutory rate for the years ended December 31 for the following reasons (in millions): 2020 2019 2018 Income tax (benefit) expense at statutory rate $ (398) $ 161 $ 45 State income tax, net of federal benefit (71) 31 8 Adjustment of net deferred tax liability from enacted tax rate change — — (28) Nondeductible expenses 5 8 5 Net operating loss carryback (73) — — Foreign tax credit re-characterization (13) — — Foreign rate differential 2 (3) (2) Valuation allowance 10 — — Unrecognized tax benefit (3) — — Other, net 2 2 2 Total income tax (benefit) expense $ (539) $ 199 $ 30 |
Schedule of deferred tax assets and deferred liabilities | The components of our deferred tax assets and liabilities as of December 31 are as follows (in millions): 2020 2019 Deferred tax assets: Deferred revenue/gains $ 161 $ 127 Employee benefits 71 47 Foreign tax credit 81 42 Net operating loss carryforward 335 31 Operating lease liabilities 204 212 Rent expense 33 17 Total deferred tax assets 885 476 Valuation allowance (69) (31) Deferred tax assets, net 816 445 Deferred tax liabilities: Accelerated depreciation (1,538) (1,423) Operating lease assets (197) (236) Other (3) (37) Total deferred tax liabilities (1,738) (1,696) Net deferred tax liability $ (922) $ (1,251) |
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): 2020 2019 2018 Unrecognized tax benefits at January 1, $ 36 $ 33 $ 31 Increases for tax positions taken during the period 1 6 5 Decreases for tax positions taken during a prior period (5) (3) (3) Unrecognized tax benefits December 31, $ 32 $ 36 $ 33 |
Financial Derivative Instrume_2
Financial Derivative Instruments and Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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): As of December 31, 2020 2019 Fuel derivatives Asset fair value recorded in prepaid expenses and other (1) $ — $ 8 Longest remaining term (months) 0 6 Hedged volume (barrels, in thousands) — 2,112 Estimated amount of existing (gains) losses expected to be reclassified into earnings in the next 12 months $ — $ (2) Year Ended December 31, 2020 2019 2018 Fuel derivatives Hedge effectiveness (gains) losses recognized in aircraft fuel expense $ 7 $ 5 $ 2 Losses on derivatives resulting from the discontinuance of hedge accounting recognized in interest income and other $ 8 $ — $ — Hedge (gains) losses on derivatives recognized in comprehensive income $ 11 $ (1) $ 6 Percentage of actual consumption economically hedged 25 % 6 % 4 % (1) Gross asset of each contract prior to consideration of offsetting positions with each counterparty and prior to impact of collateral paid. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements, recurring | 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 (in millions): As of 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 As of December 31, 2019 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 611 $ 30 $ — $ 641 Available-for-sale investment securities — 351 — 351 Aircraft fuel derivatives — 8 — 8 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Accumulated other comprehensive income (loss), net of taxes | 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 years ended December 31, 2020, 2019, and 2018 is as follows (in millions): Aircraft Fuel Derivatives (1)(2) Total Balance of accumulated income, at December 31, 2017 $ — $ — Reclassifications into earnings, net of deferred taxes of $0 1 1 Change in fair value, net of deferred taxes of $2 (4) (4) Balance of accumulated (loss), at December 31, 2018 (3) (3) Reclassifications into earnings, net of deferred taxes of $(1) 4 4 Change in fair value, net of deferred taxes of $0 1 1 Balance of accumulated income, at December 31, 2019 2 2 Reclassifications into earnings, net of deferred taxes of $(5) 9 9 Change in fair value, net of deferred taxes of $5 (11) (11) Balance of accumulated income, at December 31, 2020 $ — $ — (1) Reclassified to aircraft fuel expense. (2) In 2020, the Company made several capacity reductions in response to the COVID-19 pandemic. These capacity reductions led to the discontinuance of hedge accounting on a number of our aircraft fuel derivatives as the forecasted consumption of aircraft fuel was no longer probable. L osses of $5 million that were previously deferred in other comprehensive loss were reclassified to interest income and other during the year ended December 31, 2020. |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of operating revenues by geographic regions | Operating revenues are allocated to geographic regions, as defined by the Department of Transportation, or DOT, based upon the origination and destination of each flight segment. As of December 31, 2020, we se rved 31 lo cations in the Caribbean and Latin American region, or Latin America as defined by the DOT. However, our management includes our three destinations in Puerto Rico and one destination in the U.S. Virgin Islands in our Caribbean and Latin America allocation of revenues. Therefore, we have reflected these locations within the Caribbean and Latin America region in the table below. Operating revenues by geographic regions for the years ended December 31 are summarized below (in millions): 2020 2019 2018 Domestic $ 1,890 $ 5,633 $ 5,386 Caribbean & Latin America 1,067 2,461 2,272 Total $ 2,957 $ 8,094 $ 7,658 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | Quarterly results of operations for the years ended December 31, 2020 and 2019 are summarized below (in millions, except per share amounts): First Second Third Fourth 2020 Operating revenues $ 1,588 $ 215 $ 492 $ 661 Operating (loss) (1) (334) (410) (516) (454) Net (loss) (1) (268) (320) (393) (373) (Loss) per share (1) $ (0.97) $ (1.18) $ (1.44) $ (1.31) 2019 Operating revenues $ 1,871 $ 2,105 $ 2,086 $ 2,031 Operating income (2) 76 250 247 227 Net income (2)(3) 42 179 187 161 Basic earnings per share $ 0.14 $ 0.60 $ 0.63 $ 0.56 Diluted earnings per share (2)(3) $ 0.14 $ 0.59 $ 0.63 $ 0.56 (1) Our 2020 results include the effects of various special items. We record special items of $202 million, or ($0.55) per share in the first quarter of 2020, $(304) million, or $0.84 per share in the second quarter of 2020, $(112) million, or $0.31 per share in the third quarter of 2020, and $(69) million, or $0.19 per share in the fourth quarter of 2020. See Note 18 to our consolidated financial statements for details. (2) Our 2019 reported results include special items related to the Embraer E190 fleet transition and the ratification of our pilots' collective bargaining agreement. We recorded special items of $12 million or ($0.02) per diluted share in the first quarter and $2 million or ($0.01) per diluted share in the second quarter of 2 019. See Note 18 to our consolidated financial statements for details. (3) During the third quarter of 2019, we recorded a gain of $15 million, or $0.04 per diluted share, on one of our equity method investments related to its fair value measurement upon the closing of a subsequent financing round. |
Special Items (Tables)
Special Items (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Schedule of unusual or infrequent items, or both | The following is a listing of special items presented on our consolidated statements of operations (in millions): Year Ended December 31, 2020 2019 2018 Special Items CARES Act payroll support grant recognition (1) $ (685) $ — $ — CARES Act employee retention credit (2) (36) Fleet impairment (3) 273 — — Severance and benefit costs (4) 59 — — Losses on sale-leaseback transactions (5) 106 — — Embraer E190 fleet transition costs (6) — 6 362 Union contract costs (7) — 8 73 Total $ (283) $ 14 $ 435 (1) As discussed in Note 2 to o ur consolidated financial statements, we entered into a PSP Agreement with the Treasury governing our participation in the Payroll Support Program under the CARES Act. Under the Payroll Support Program, Treasury provided us with payroll support funding totali ng $963 million, consisting of $704 million in grants and $259 million in an unsecured term loan. The payroll support funds were to be used exclusively for the continuation of payment of crewmember wages, salaries and benefits. The carrying value of the payroll support grants which totale d to $685 million (after consideration of the warrants we issued) w as recorded within other liabilities and were recognized as a contra-expense within special items on our consolidated statements of operations as the funds were utilized. The payroll support grants were fully utilized in 2020. (2) The Employee Retention Credit (ERC) under the CARES Act is a refundable tax credit which encourages business 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. 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. We recognized $36 million of ERC as a contra-expense within special items on our consolidated statements of operations in 2020. (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 forecasted 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. As dis cussed in Note 2 to our consolidated financial statements, 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, and maintenance conditions. Based on the assessment, we determined the future cash flows from the operation 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 impairment losses of $273 million for the year ended December 31, 2020. These losses represent the difference between the book value of these assets and their fair value. In determining fair value, we obtained third party valuations for our Embraer E190 fleet, which considered the effects of the current market environment, age of the assets, and marketability. For our owned Embraer E190 aircraft and related spare parts, we made adjustments to the valuations to reflect the impact of their current maintenance conditions to determine fair value. Our estimate of fair value was not based on distressed sales or forced liquidations. The fair value of our Embraer E190 aircraft under operating lease and related parts was based on the present value of current market lease rates utilizing a market discount rate for the remaining term of each lease. Since the fair value of our Embraer E190 fleet was determined using unobservable inputs, it is classified as Level 3 in the fair value hierarchy. We e valuated the remaining fleet types and determined the future cash flows of our Airbus A320 and Airbus A321 fleets exceeded their carrying value as of December 31, 2020. 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 a voluntary separation program 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 program were executed in the third quarter. One-time costs of $59 million , consisting of severance and health benefits, were recorded for the year ended December 31, 2020 in connection with the program. Approximate ly $44 million of this ch arge was disbursed during the year. Accruals related to the voluntary separation program are primarily recorded in accrued salaries, wages and benefits, and accounts payable on our consolidated balance sheets. The remaining balance is expected to be disbursed throughout 2021. (5) In 2020, we executed $563 million of sale-leaseback transactions. Of these transactions, $354 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. (6) In July 2018, we announced our decision to exit the Embraer E190 fleet and order 60 Airbus A220-300 aircraft, formerly known as the Bombardier CS300, for expected deliveries beginning in 2020 with the option to purchase 60 additional aircraft. For the year ended December 31, 2018, fleet transition costs include a $319 million impairment charge of flight equipment and other property and equipment related to our fleet review and certain termination costs associated with the transition. We assessed our Embraer E190 asset group by comparing projected undiscounted cash flows over the remaining time period we expect to utilize the aircraft to the book value of the asset group and determined the book value was in excess of the cash flows. We estimated the fair value of our Embraer E190 asset group using third party valuations and considering specific circumstances of our fleet such as aircraft age, maintenance requirements and condition, and therefore classified as Level 3 in the fair value hierarchy. We reassessed our Embraer E190 assets and adjusted the depreciable lives and salvage value to align with our expected transition dates to the Airbus A220-300 through 2025. Fleet transition costs for the year ended December 31, 2019 include certain contract termination costs associated with the transition. In 2019, we converted 10 of our options for the A220-300 aircraft into firm orders. Options for 50 additional A220-300 aircraft deliveries remain available to us as of December 31, 2020. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Debt securities, held-to-maturity, sold, realized gain (loss) | $ 0 | $ 0 | $ 0 | |
Equity method investments | 34 | 38 | ||
Gain on equity method investments | $ 15 | 0 | 15 | 0 |
Cost method investments - jetblue tech ventures | $ 40 | 41 | ||
Ownership interest | 10.00% | |||
Cost method investments TWA flight center hotel | $ 14 | 13 | ||
Advertising expense | $ 45 | 66 | 72 | |
Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Term of contract under loyalty program | 1 year | |||
Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Term of contract under loyalty program | 7 years | |||
Computer software, intangible asset | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life of software | 5 years | |||
Capitalized computer software, net | $ 121 | 102 | ||
Amortization expense | 44 | 52 | $ 46 | |
2021 | 38 | |||
2022 | 34 | |||
2023 | 27 | |||
2024 | 16 | |||
2025 | 6 | |||
High density airports, take-off and landing slots | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, net (excluding goodwill) | $ 139 | $ 139 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Estimated Useful Lives and Residual Values (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Aircraft | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 25 years |
Residual Value | 20.00% |
Inflight entertainment systems | |
Property, Plant and Equipment [Line Items] | |
Residual Value | 0.00% |
Aircraft parts | |
Property, Plant and Equipment [Line Items] | |
Residual Value | 10.00% |
Flight equipment leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Residual Value | 0.00% |
Ground property and equipment | |
Property, Plant and Equipment [Line Items] | |
Residual Value | 0.00% |
Leasehold improvements—other | |
Property, Plant and Equipment [Line Items] | |
Residual Value | 0.00% |
Buildings on leased land | |
Property, Plant and Equipment [Line Items] | |
Residual Value | 0.00% |
Minimum | Inflight entertainment systems | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Minimum | Ground property and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 2 years |
Maximum | Inflight entertainment systems | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 10 years |
Maximum | Ground property and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 10 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Carrying Values Of Investment Securities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of AFS and HTM Securities [Line Items] | ||
Available-for-sale investment securities | $ 1,137 | $ 351 |
Debt securities, held-to-maturity | 0 | 21 |
Total investment securities | 1,137 | 372 |
Time deposits | ||
Schedule of AFS and HTM Securities [Line Items] | ||
Available-for-sale investment securities | 1,130 | 325 |
Commercial paper | ||
Schedule of AFS and HTM Securities [Line Items] | ||
Available-for-sale investment securities | 0 | 20 |
Debt securities | ||
Schedule of AFS and HTM Securities [Line Items] | ||
Available-for-sale investment securities | 7 | 6 |
Corporate bonds | ||
Schedule of AFS and HTM Securities [Line Items] | ||
Debt securities, held-to-maturity | $ 0 | $ 21 |
The COVID-19 Pandemic (Details)
The COVID-19 Pandemic (Details) - USD ($) | Jan. 15, 2021 | Dec. 04, 2020 | Sep. 30, 2020 | Apr. 23, 2020 | Oct. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 03, 2020 | Sep. 29, 2020 | Apr. 22, 2020 |
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||
Change in revenue, percent | (63.50%) | |||||||||||
Change in capacity, percent | 48.80% | |||||||||||
Long-term debt, term | 364 years | |||||||||||
Loyalty points, pre-purchase arrangement | $ 150,000,000 | |||||||||||
Reduction in aircraft capital expenditures through 2022, relating to airbus purchase agreement amendment | $ 2,000,000,000 | |||||||||||
CARES act, payroll support program, total payment | $ 27,000,000 | $ 936,000,000 | $ 27,000,000 | 963,000,000 | ||||||||
Proceeds from sale leaseback transactions | 563,000,000 | |||||||||||
CARES act, secured loans, eligibility amount | 1,900,000,000 | $ 1,900,000,000 | ||||||||||
Proceeds from issuance of common stock | 620,000,000 | $ 51,000,000 | $ 48,000,000 | |||||||||
Cash, cash equivalents, and short-term investments | 3,100,000,000 | |||||||||||
Proceeds from sale-leaseback transactions | 354,000,000 | 0 | 0 | |||||||||
Proceeds from sale-leaseback transactions | 209,000,000 | 0 | 0 | |||||||||
Losses on sale-leaseback transactions | (106,000,000) | 0 | 0 | |||||||||
Fleet impairment | 273,000,000 | $ 0 | $ 0 | |||||||||
CARES act, payroll support program, grant | $ 19,000,000 | $ 685,000,000 | $ 19,000,000 | $ 704,000,000 | ||||||||
Class of warrant or right, outstanding (in shares) | 85,540 | 2,600,000 | 85,540 | 85,540 | 1,200,000 | |||||||
Class of warrant or right, exercise price of warrants or rights (in dollars per share) | $ 9.50 | $ 9.50 | $ 9.50 | |||||||||
Warrants and rights outstanding, term | 5 years | |||||||||||
Warrants and rights outstanding | $ 19,000,000 | |||||||||||
CARES act, payroll support program, grant, carrying value, total | $ 685,000,000 | |||||||||||
CARES act, class of warrant or right, expected (in shares) | 20,500,000 | |||||||||||
CARES act initial drawing amount | $ 115,000,000 | |||||||||||
Remaining borrowing capacity | $ 1,800,000,000 | |||||||||||
CARES act, payroll tax deferral | 48,000,000 | |||||||||||
Common Stock [Member] | ||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||
Stock issued during period, shares, new issues (in shares) | 42,000,000 | |||||||||||
Proceeds from issuance of common stock | 583,000,000 | |||||||||||
Subsequent Event | ||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||
Class of warrant or right, outstanding (in shares) | 316,583 | |||||||||||
Class of warrant or right, exercise price of warrants or rights (in dollars per share) | $ 14.43 | |||||||||||
CARES act, payroll support program, grant, carrying value, total | $ 206,000,000 | |||||||||||
Treasury payment | 252,000,000 | |||||||||||
CARES act, payroll support program, grant, loan amount | 46,000,000 | |||||||||||
CARES act, payroll support program, grant, carrying value, total 1 | 252,000,000 | |||||||||||
CARES act, payroll support program, grant, loan amount 1 | $ 76,000,000 | |||||||||||
Long-term Debt | ||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||
Debt instrument, face amount | $ 923,000,000 | |||||||||||
Long-term Debt | Airbus A321 | ||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||
Number of aircraft, secured debt transactions | 49 | |||||||||||
Morgan Stanley | Short-term Debt | ||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||
Debt instrument, face amount | $ 1,000,000,000 | |||||||||||
Citibank | Citibank line of credit, due through 2023 | Line of Credit | ||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||
Line of credit, current | 550,000,000 | $ 550,000,000 | ||||||||||
Barclays | Floating rate term loan credit facility, due through 2024 | Long-term Debt | ||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||
Debt instrument, face amount | 750,000,000 | |||||||||||
US Department of Treasury | Secured CARES Act Loan, due through 2025 | Long-term Debt | ||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||
Debt instrument, face amount | $ 115,000,000 | $ 115,000,000 | ||||||||||
US Department of Treasury | Unsecured Debt | ||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||
Debt instrument, face amount | $ 8,000,000 | $ 251,000,000 | $ 8,000,000 | |||||||||
Long-term debt, term | 10 years | |||||||||||
Debt instrument, interest rate, stated percentage | 1.00% | |||||||||||
US Department of Treasury | Unsecured Debt | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||||
Debt instrument, basis spread on variable rate | 2.00% |
Revenue Recognition - Revenue R
Revenue Recognition - Revenue Recognized By Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Passenger revenue | |||||||||||
Passenger travel | $ 2,551 | $ 7,395 | $ 7,061 | ||||||||
Loyalty revenue - air transportation | 182 | 391 | 320 | ||||||||
Other revenue | |||||||||||
Loyalty revenue | 168 | 201 | 168 | ||||||||
Other revenue | 56 | 107 | 109 | ||||||||
Total revenue | $ 661 | $ 492 | $ 215 | $ 1,588 | $ 2,031 | $ 2,086 | $ 2,105 | $ 1,871 | $ 2,957 | $ 8,094 | $ 7,658 |
Revenue Recognition - Contract
Revenue Recognition - Contract Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Air traffic liability - passenger travel | $ 964 | $ 929 |
Air traffic liability - loyalty program (air transportation) | 733 | 661 |
Deferred revenue | 41 | 10 |
Total | $ 1,738 | $ 1,600 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Contract with customer, liability, revenue recognized | $ 745 | $ 878 | |
Outstanding travel credits | 80 | ||
Loyalty points pre-purchase arrangement | $ 150 | ||
Loyalty points pre-purchase arrangement carrying value | $ 38 |
Revenue Recognition - Current A
Revenue Recognition - Current And Non-Current Air Traffic Liability (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Beginning balance | $ 661 | $ 580 |
Increase (decrease) to air traffic liability - points redeemed | (182) | (391) |
Increase (decrease) to air traffic liability - points earned and sold | 254 | 472 |
Ending balance | $ 733 | $ 661 |
Long-term Debt, Short-term Bo_3
Long-term Debt, Short-term Borrowings, and Finance Lease Obligations - Finance Lease Obligations And The Related Weighted Average Interest Rate (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Present value of future minimum lease payment | $ 63 | $ 89 |
Finance leases | 4.60% | 4.75% |
Total debt and capital lease obligations | $ 4,907 | $ 2,352 |
Less: Current maturities | (450) | (344) |
Less: Debt acquisition cost | (44) | (18) |
Long-term debt and finance lease obligations | 4,413 | 1,990 |
Fixed rate specialty bonds, due through 2036 | ||
Debt Instrument [Line Items] | ||
Secured debt | $ 43 | $ 43 |
Weighted average interest rate | 4.90% | 4.90% |
2019-1 Series AA, due through 2032 | ||
Debt Instrument [Line Items] | ||
Secured debt | $ 567 | $ 589 |
Weighted average interest rate | 2.80% | 2.80% |
2019-1 Series A, due through 2028 | ||
Debt Instrument [Line Items] | ||
Secured debt | $ 176 | $ 183 |
Weighted average interest rate | 3.00% | 3.00% |
2019-1 Series B, due through 2027 | ||
Debt Instrument [Line Items] | ||
Secured debt | $ 109 | $ 0 |
Weighted average interest rate | 8.20% | 0.00% |
2020-1 Series A, due through 2032 | ||
Debt Instrument [Line Items] | ||
Secured debt | $ 635 | $ 0 |
Weighted average interest rate | 4.10% | 0.00% |
2020-1 Series B, due through 2028 | ||
Debt Instrument [Line Items] | ||
Secured debt | $ 172 | $ 0 |
Weighted average interest rate | 7.80% | 0.00% |
Fixed rate enhanced equipment notes, due through 2023 | ||
Debt Instrument [Line Items] | ||
Secured debt | $ 115 | $ 134 |
Weighted average interest rate | 4.50% | 4.50% |
Fixed rate equipment notes, due through 2028 | ||
Debt Instrument [Line Items] | ||
Secured debt | $ 895 | $ 1,113 |
Weighted average interest rate | 4.20% | 4.20% |
Floating rate equipment notes, due through 2028 | ||
Debt Instrument [Line Items] | ||
Secured debt | $ 153 | $ 201 |
Weighted average interest rate | 2.60% | 4.30% |
Floating rate term loan credit facility, due through 2024 | ||
Debt Instrument [Line Items] | ||
Secured debt | $ 712 | $ 0 |
Weighted average interest rate | 6.40% | 0.00% |
Secured CARES Act Loan, due through 2025 | ||
Debt Instrument [Line Items] | ||
Secured debt | $ 106 | $ 0 |
Weighted average interest rate | 3.20% | 0.00% |
Citibank line of credit, due through 2023 | ||
Debt Instrument [Line Items] | ||
Secured debt | $ 550 | $ 0 |
Weighted average interest rate | 2.20% | 0.00% |
2020 sale-leaseback transactions, due through 2024 | ||
Debt Instrument [Line Items] | ||
Secured debt | $ 0 | |
Weighted average interest rate | 7.60% | 0.00% |
Unsecured debt | $ 352 | |
Unsecured CARES Act Payroll Support Program loan, due through 2030 | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 2.00% | 0.00% |
Unsecured debt | $ 259 | $ 0 |
Long-term Debt, Short-term Bo_4
Long-term Debt, Short-term Borrowings, and Finance Lease Obligations - Narrative (Details) | Sep. 30, 2020USD ($)shares | Sep. 29, 2020USD ($)$ / sharesshares | Apr. 23, 2020USD ($)$ / sharesshares | Mar. 31, 2020 | Sep. 30, 2020USD ($)shares | Dec. 31, 2020USD ($)aircraft$ / sharesshares | Dec. 31, 2019USD ($)airbusaircraft | Dec. 31, 2018USD ($)airbus | Jan. 15, 2021$ / sharesshares | Nov. 03, 2020USD ($) | Aug. 31, 2020USD ($) | Jun. 17, 2020USD ($) | Apr. 22, 2020USD ($) | Nov. 30, 2019USD ($)aircraft | Aug. 31, 2019USD ($) | Mar. 30, 2014USD ($)aircraft | Apr. 30, 2013USD ($) |
Debt Instrument [Line Items] | |||||||||||||||||
CARES act, secured loans, eligibility amount | $ 1,900,000,000 | $ 1,900,000,000 | |||||||||||||||
CARES act, class of warrant or right, expected (in shares) | shares | 20,500,000 | ||||||||||||||||
Class of warrant or right, outstanding (in shares) | shares | 85,540 | 1,200,000 | 2,600,000 | 85,540 | 85,540 | ||||||||||||
Class of warrant or right, exercise price of warrants or rights (in dollars per share) | $ / shares | $ 9.50 | $ 9.50 | $ 9.50 | ||||||||||||||
Remaining borrowing capacity | $ 1,800,000,000 | ||||||||||||||||
Line of credit facility, current borrowing capacity | 550,000,000 | ||||||||||||||||
Proceeds from sale leaseback transactions | 563,000,000 | ||||||||||||||||
Proceeds from sale-leaseback transactions | 354,000,000 | $ 0 | $ 0 | ||||||||||||||
Proceeds from sale-leaseback transactions | 209,000,000 | 0 | 0 | ||||||||||||||
Losses on sale-leaseback transactions | (106,000,000) | 0 | 0 | ||||||||||||||
Finance lease assets | 131,000,000 | 171,000,000 | |||||||||||||||
Finance lease, right-of-use asset, accumulated amortization | 54,000,000 | 80,000,000 | |||||||||||||||
2021 | 40,000,000 | ||||||||||||||||
2022 | 11,000,000 | ||||||||||||||||
2023 | 11,000,000 | ||||||||||||||||
2024 | 5,000,000 | ||||||||||||||||
Finance lease, liability, undiscounted excess amount | 4,000,000 | ||||||||||||||||
Present value of future minimum lease payment | 63,000,000 | 89,000,000 | |||||||||||||||
Finance lease liabilities | 37,000,000 | 31,000,000 | |||||||||||||||
Finance lease liabilities | 26,000,000 | 58,000,000 | |||||||||||||||
CARES act, payroll support program, total payment | $ 27,000,000 | $ 936,000,000 | $ 27,000,000 | 963,000,000 | |||||||||||||
CARES act, payroll support program, grant | 19,000,000 | 685,000,000 | 19,000,000 | 704,000,000 | |||||||||||||
Pledged assets not separately reported flight equipment | 6,900,000,000 | ||||||||||||||||
Interest paid, including capitalized interest, operating and investing activities | $ 128,000,000 | $ 62,000,000 | 59,000,000 | ||||||||||||||
Term loan percentage | 0.25% | ||||||||||||||||
Subsequent Event | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Class of warrant or right, outstanding (in shares) | shares | 316,583 | ||||||||||||||||
Class of warrant or right, exercise price of warrants or rights (in dollars per share) | $ / shares | $ 14.43 | ||||||||||||||||
A-320-200 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Finance lease, number of aircraft leases | aircraft | 2 | 4 | |||||||||||||||
A-321-200 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Finance lease, number of aircraft leases | aircraft | 2 | 2 | |||||||||||||||
A-320 and A-321 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Finance lease assets | $ 188,000,000 | $ 250,000,000 | |||||||||||||||
2021 | 40,000,000 | ||||||||||||||||
2022 | 11,000,000 | ||||||||||||||||
2023 | 11,000,000 | ||||||||||||||||
2024 | 5,000,000 | ||||||||||||||||
Thereafter | 0 | ||||||||||||||||
Fixed rate enhanced equipment notes, due through 2023 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 226,000,000 | ||||||||||||||||
Fixed rate equipment notes, due through 2028 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 219,000,000 | 567,000,000 | |||||||||||||||
Floating rate equipment notes, due through 2028 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 120,000,000 | ||||||||||||||||
Fixed rate specialty bonds, due through 2036 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 42,000,000 | ||||||||||||||||
Debt instrument, net amount | 43,000,000 | ||||||||||||||||
Debt instrument, unamortized premium | $ 1,000,000 | ||||||||||||||||
Long-term Debt | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 923,000,000 | ||||||||||||||||
Long-term Debt | Airbus A321 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Number of aircraft, secured debt transactions | 49 | ||||||||||||||||
Long-term Debt | Fixed rate enhanced equipment notes, 2020-1A and B | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 808,000,000 | $ 772,000,000 | |||||||||||||||
Long-term Debt | 2019-1 Series B, due through 2027 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 115,000,000 | ||||||||||||||||
Debt instrument, interest rate, stated percentage | 8.00% | ||||||||||||||||
Long-term Debt | 2019-1 Series B, due through 2027 | Airbus A321 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Number of aircraft, secured debt transactions | 24 | 25 | |||||||||||||||
Long-term Debt | 2020-1 Series A, due through 2032 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 636,000,000 | $ 589,000,000 | |||||||||||||||
Debt instrument, interest rate, stated percentage | 4.00% | 2.75% | |||||||||||||||
Long-term Debt | 2020-1 Series B, due through 2028 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 172,000,000 | $ 183,000,000 | |||||||||||||||
Debt instrument, interest rate, stated percentage | 7.75% | 2.95% | |||||||||||||||
Secured Debt | Fixed rate enhanced equipment notes, due through 2023 | A-320-200 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Number of new aircraft held as security | aircraft | 14 | ||||||||||||||||
Secured Debt | Fixed rate equipment notes, due through 2028 | A-320 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Number of new aircraft held as security | airbus | 10 | 14 | |||||||||||||||
Secured Debt | Fixed rate equipment notes, due through 2028 | A-321 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Number of new aircraft held as security | airbus | 2 | 10 | |||||||||||||||
Secured Debt | Floating rate equipment notes, due through 2028 | A-320 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Number of new aircraft held as security | airbus | 6 | ||||||||||||||||
Secured Debt | Floating rate equipment notes, due through 2028 | A-321 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Number of new aircraft held as security | airbus | 1 | ||||||||||||||||
Citibank | Line of Credit | Citibank line of credit, due through 2023 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of credit, current | $ 550,000,000 | $ 550,000,000 | |||||||||||||||
Citibank | Line of Credit | Citibank line of credit, due through 2023 | London Interbank Offered Rate (LIBOR) | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of credit facility, interest rate at period end | 2.20% | ||||||||||||||||
US Department of Treasury | Unsecured Debt | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 8,000,000 | $ 251,000,000 | $ 8,000,000 | ||||||||||||||
Debt instrument, interest rate, stated percentage | 1.00% | ||||||||||||||||
US Department of Treasury | Long-term Debt | Secured CARES Act Loan, due through 2025 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 115,000,000 | $ 115,000,000 | |||||||||||||||
Line of credit facility, collateral fees, amount | 550,000,000 | ||||||||||||||||
Minimum collateral coverage ratio | 1.6 | ||||||||||||||||
US Department of Treasury | Long-term Debt | Secured CARES Act Loan, due through 2025 | London Interbank Offered Rate (LIBOR) | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, basis spread on variable rate | 2.75% | ||||||||||||||||
Morgan Stanley | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of credit facility, current borrowing capacity | 200,000,000 | ||||||||||||||||
Morgan Stanley | Short-term Debt | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | 1,000,000,000 | ||||||||||||||||
Revolving Credit Facility and Letter of Credit Facility | Morgan Stanley | Line of Credit | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term line of credit | $ 0 | $ 0 | |||||||||||||||
Barclays | Long-term Debt | Floating rate term loan credit facility, due through 2024 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 750,000,000 | ||||||||||||||||
Barclays | Long-term Debt | Floating rate term loan credit facility, due through 2024 | London Interbank Offered Rate (LIBOR) | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, interest rate, stated percentage | 6.25% | ||||||||||||||||
Morgan Stanley | Short-term Debt | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 1,000,000,000 | ||||||||||||||||
Debt instrument term | 364 days | ||||||||||||||||
Minimum | US Department of Treasury | Long-term Debt | Secured CARES Act Loan, due through 2025 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, basis spread on variable rate | 0.00% | ||||||||||||||||
Minimum | Revolving Credit Facility and Letter of Credit Facility | Citibank | Line of Credit | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of credit facility, current borrowing capacity | $ 125,000,000 | ||||||||||||||||
Maximum | US Department of Treasury | Long-term Debt | Secured CARES Act Loan, due through 2025 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, basis spread on variable rate | 1.00% | ||||||||||||||||
Maximum | Revolving Credit Facility and Letter of Credit Facility | Citibank | Line of Credit | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of credit facility, current borrowing capacity | $ 550,000,000 |
Long-term Debt, Short-term Bo_5
Long-term Debt, Short-term Borrowings, and Finance Lease Obligations - Maturities Of Our Debt and Finance Leases (Details) $ in Millions | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 440 |
2022 | 421 |
2023 | 1,181 |
2024 | 962 |
2025 | 308 |
Thereafter | $ 1,551 |
Long-term Debt, Short-term Bo_6
Long-term Debt, Short-term Borrowings, and Finance Lease Obligations - Net of Debt Acquisition Costs (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 4,800 | $ 2,245 |
Long-term debt, fair value | 4,930 | 2,367 |
Fixed rate specialty bonds, due through 2036 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 42 | 42 |
Long-term debt, fair value | 45 | 46 |
2019-1 Series AA, due through 2032 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 560 | 581 |
Long-term debt, fair value | 440 | 586 |
2019-1 Series A, due through 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 174 | 181 |
Long-term debt, fair value | 152 | 186 |
2019-1 Series B, due through 2027 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 107 | 0 |
Long-term debt, fair value | 139 | 0 |
2020-1 Series A, due through 2032 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 627 | 0 |
Long-term debt, fair value | 658 | 0 |
2020-1 Series B, due through 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 170 | 0 |
Long-term debt, fair value | 223 | 0 |
Fixed rate enhanced equipment notes, due through 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 114 | 133 |
Long-term debt, fair value | 116 | 141 |
Fixed rate equipment notes, due through 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 891 | 1,107 |
Long-term debt, fair value | 1,017 | 1,201 |
Floating rate equipment notes, due through 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 152 | 201 |
Long-term debt, fair value | 144 | 207 |
Floating rate term loan credit facility, due through 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 702 | 0 |
Long-term debt, fair value | 759 | 0 |
Unsecured CARES Act Payroll Support Program loan, due through 2030 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 259 | 0 |
Long-term debt, fair value | 207 | 0 |
Secured CARES Act Loan, due through 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 104 | 0 |
Long-term debt, fair value | 104 | 0 |
Citibank line of credit, due through 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 546 | 0 |
Long-term debt, fair value | 533 | 0 |
2020 sale-leaseback transactions, due through 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 352 | 0 |
Long-term debt, fair value | $ 393 | $ 0 |
Leases - Lease-Related Assets a
Leases - Lease-Related Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Operating lease assets | $ 804 | $ 912 |
Finance lease assets | 131 | 171 |
Total lease assets | $ 935 | $ 1,083 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization |
Current: | ||
Operating lease liabilities | $ 113 | $ 128 |
Finance lease liabilities | $ 37 | $ 31 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent |
Long-term: | ||
Operating lease liabilities | $ 752 | $ 690 |
Finance lease liabilities | 26 | 58 |
Total lease liabilities | $ 928 | $ 907 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligations | us-gaap:LongTermDebtAndCapitalLeaseObligations |
Weighted average remaining lease term (in years) | ||
Operating leases | 9 years | 11 years |
Finance leases | 2 years | 3 years |
Weighted average discount rate | ||
Operating leases | 5.99% | 5.95% |
Finance leases | 4.60% | 4.75% |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)aircraft | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Aircraft leases, minimum remaining lease term | 9 months | ||
Aircraft leases, maximum remaining lease term | 5 years | ||
Fleet impairment | $ | $ 273 | $ 0 | $ 0 |
Facility leases, minimum lease term remaining | 2 months | ||
Facility leases, maximum lease term remaining | 14 years | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Renewal lease term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Renewal lease term | 2 years | ||
Aircraft | |||
Lessee, Lease, Description [Line Items] | |||
Number of aircraft operated | 267 | ||
Number of aircraft accounted for under operating leases | 62 | ||
Finance lease, number of aircraft leases | 4 | ||
Number of aircraft variable rate rent | 0 | ||
Number of aircraft having purchase options | 40 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Operating lease cost | $ 160 | $ 180 | $ 185 |
Short-term lease cost | 1 | 2 | 2 |
Amortization of assets | 6 | 9 | 10 |
Interest on lease liabilities | 2 | 3 | 3 |
Variable lease cost | 282 | 391 | 379 |
Sublease income | (5) | (19) | (15) |
Total net lease cost | $ 446 | $ 566 | $ 564 |
Leases - Other Information (Det
Leases - Other Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Operating cash flows for operating leases | $ 146 | $ 136 | $ 151 |
Operating cash flows for finance leases | 4 | 5 | 5 |
Financing cash flows for finance leases | $ 28 | $ 17 | $ 17 |
Leases - Lease Commitments (Det
Leases - Lease Commitments (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
2021 | $ 160 | |
2022 | 151 | |
2023 | 141 | |
2024 | 119 | |
2025 | 82 | |
Thereafter | 493 | |
Total minimum lease payments | 1,146 | |
Less: amount of lease payment representing interest | (281) | |
Present value of future minimum lease payment | 865 | |
Less: current obligations under leases | (113) | $ (128) |
Operating lease liabilities | 752 | 690 |
Finance Leases | ||
2021 | 40 | |
2022 | 11 | |
2023 | 11 | |
2024 | 5 | |
2025 | 0 | |
Thereafter | 0 | |
Total minimum lease payments | 67 | |
Less: amount of lease payment representing interest | (4) | |
Present value of future minimum lease payment | 63 | 89 |
Less: current obligations under leases | (37) | (31) |
Finance lease liabilities | $ 26 | $ 58 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, shares in Millions | Dec. 08, 2017USD ($) | Mar. 31, 2020$ / sharesshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)agreement$ / sharesshares | Dec. 31, 2018USD ($)agreement$ / sharesshares | Dec. 04, 2020$ / shares | Sep. 19, 2019USD ($) |
Stockholders' Equity Note [Abstract] | |||||||
Stock repurchase program, period in force | 2 years | ||||||
Stock repurchase program, authorized amount | $ | $ 750,000,000 | $ 800,000,000 | |||||
ASR agreements | agreement | 4 | 3 | |||||
Payments for repurchase of common stock | $ | $ 160,000,000 | $ 535,000,000 | $ 375,000,000 | ||||
Treasury stock, shares, acquired (in shares) | shares | 13 | 28.1 | 19.1 | ||||
Accelerated share repurchases, final price paid (in dollars per share) | $ / shares | $ 19.02 | $ 19.60 | |||||
Sale of stock, price (in dollars per share) | $ / shares | $ 12.27 | ||||||
Shares Issued, Price (in dollars per share) | $ / shares | $ 14.40 | ||||||
Common stock reserved for issuance (in shares) | shares | 26.5 | ||||||
Treasury stock, shares (in shares) | shares | 158 | 145 |
(Loss) Earnings Per Share (Deta
(Loss) Earnings Per Share (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 2,000,000 | 0 | 0 | |
Treasury stock, shares, acquired (in shares) | 13,000,000 | 28,100,000 | 19,100,000 | |
Payments for repurchase of common stock | $ 160 | $ 535 | $ 375 |
(Loss) Earnings Per Share - Com
(Loss) Earnings Per Share - Computed Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||||||||||
Net (loss) income | $ (373) | $ (393) | $ (320) | $ (268) | $ 161 | $ 187 | $ 179 | $ 42 | $ (1,354) | $ 569 | $ 189 |
Weighted average basic shares (in shares) | 277.5 | 296.6 | 312.9 | ||||||||
Effect of dilutive securities (in shares) | 2 | 1.8 | 1.6 | ||||||||
Weighted average diluted shares | 279.5 | 298.4 | 314.5 | ||||||||
Basic (in dollars per share) | $ (1.31) | $ (1.44) | $ (1.18) | $ (0.97) | $ 0.56 | $ 0.63 | $ 0.60 | $ 0.14 | $ (4.88) | $ 1.92 | $ 0.60 |
Diluted (in dollars per share) | $ 0.56 | $ 0.63 | $ 0.59 | $ 0.14 | $ (4.88) | $ 1.91 | $ 0.60 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | May 21, 2015 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2012 | May 31, 2011 |
Share-Based Compensation [Abstract] | ||||||
Unrecognized stock-based compensation expense | $ 21.2 | |||||
Number of years expected to recognize stock-based compensation | 17 months | |||||
Share-based payment arrangement, expense | $ 28 | $ 31 | $ 28 | |||
Share-based compensation arrangement by Share-based payment award, number of shares authorized (in shares) | 10.5 | |||||
Share-based compensation arrangement by share-based payment award, number of additional shares authorized (in shares) | 7.5 | |||||
CSPP offering period | 6 months | |||||
Shares issued following the director's departure from the board | six months and one day | |||||
Outstanding voting securities | 50.00% | |||||
Exercise price of purchasing rights as percentage of fair market value per share in case of acquisition | 85.00% | |||||
Incentive Compensation Plan 2011 | ||||||
Share-Based Compensation [Abstract] | ||||||
Share-based compensation arrangement by Share-based payment award, number of shares authorized (in shares) | 15 | |||||
Restricted Stock Unit Activity Under 2011 Plan | ||||||
Share-Based Compensation [Abstract] | ||||||
unvested restricted stock units (in shares) | 2.1 | 2 | ||||
Restricted stock unit activity granted, weighted average grant date fair value (in dollars per share) | $ 17.96 | $ 17.27 | $ 20.62 | |||
Crewmember Stock Purchase Plan 2011 | ||||||
Share-Based Compensation [Abstract] | ||||||
Share-based compensation arrangement by Share-based payment award, number of shares authorized (in shares) | 17.5 | 8 | ||||
Employees contribution towards purchase of common stock | 10.00% | |||||
Purchase price discount based upon the stock price | 15.00% | |||||
Employee stock purchase plan (ESPP), expense | $ 6 | $ 9 | $ 9 | |||
Stock issued under crewmember stock purchase plan (in shares) | 4.1 | 3.2 | 3.2 | |||
Share-based compensation arrangement by share-based payment award, per share weighted average price of shares purchased (in dollars per share) | $ 8.94 | $ 16.06 | $ 15.21 | |||
Restricted Stock Units (RSUs) | ||||||
Share-Based Compensation [Abstract] | ||||||
unvested restricted stock units (in shares) | 2.4 | |||||
Share-based compensation aggregate intrinsic value, vested | $ 18 | $ 15 | $ 16 | |||
Restricted Stock Units (RSUs) | Restricted Stock Unit Activity Under 2011 Plan | ||||||
Share-Based Compensation [Abstract] | ||||||
Share-based compensation arrangement by Share-based payment award, award vesting period | 3 years | |||||
Deferred Stock Units (DSU's) | ||||||
Share-Based Compensation [Abstract] | ||||||
Minimum vesting period | 1 year | |||||
Maximum vesting period | 3 years | |||||
Crewmember Stock Purchase Plan 2011 | ||||||
Share-Based Compensation [Abstract] | ||||||
Share-based compensation arrangement by share-based payment award, number of additional shares authorized (in shares) | 15 |
Share-Based Compensation - RSU
Share-Based Compensation - RSU Activity (Details) - Restricted Stock Unit Activity Under 2011 Plan - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Shares | |||
Nonvested at beginning of year (in shares) | 2 | ||
Granted (in shares) | 1.2 | ||
Vested (in shares) | (0.9) | ||
Forfeited (in shares) | (0.2) | ||
Nonvested at end of year (in shares) | 2.1 | 2 | |
Weighted Average Grant Date Fair Value | |||
Nonvested at beginning of year (in dollars per share) | $ 18.59 | ||
Granted (in dollars per share) | 17.96 | $ 17.27 | $ 20.62 |
Vested (in dollars per share) | 18.99 | ||
Forfeited (in dollars per share) | 18.07 | ||
Nonvested at end of year (in dollars per share) | $ 18.08 | $ 18.59 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred: | |||
Federal | $ (247) | $ 119 | $ 82 |
State | (82) | 20 | 7 |
Foreign | 0 | 0 | 1 |
Deferred income tax (benefit) expense | (329) | 139 | 90 |
Current: | |||
Federal | (199) | 36 | (61) |
State | (9) | 19 | (5) |
Foreign | (2) | 5 | 6 |
Current income tax (benefit) expense | (210) | 60 | (60) |
Total income tax (benefit) expense | $ (539) | $ 199 | $ 30 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate reconciliation, at federal statutory income tax rate, percent | 35.00% | |
Tax credit carryforward, limitations on use | $ 79 | |
Valuation allowance | (69) | $ (31) |
Valuation allowance, deferred tax asset, increase (decrease), amount | 59 | |
Foreign tax credit | 10 | |
Unrecognized tax benefits that would impact effective tax rate | $ 12 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate On Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax (benefit) expense at statutory rate | $ (398) | $ 161 | $ 45 |
State income tax, net of federal benefit | (71) | 31 | 8 |
Adjustment of net deferred tax liability from enacted tax rate change | 0 | 0 | (28) |
Nondeductible expenses | 5 | 8 | 5 |
Net operating loss carryback | (73) | 0 | 0 |
Foreign tax credit re-characterization | (13) | 0 | 0 |
Foreign rate differential | 2 | (3) | (2) |
Valuation allowance | 10 | 0 | 0 |
Unrecognized tax benefit | (3) | 0 | 0 |
Other, net | 2 | 2 | 2 |
Total income tax (benefit) expense | $ (539) | $ 199 | $ 30 |
Income Taxes - Components Of De
Income Taxes - Components Of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Deferred revenue/gains | $ 161 | $ 127 |
Employee benefits | 71 | 47 |
Foreign tax credit | 81 | 42 |
Net operating loss carryforward | 335 | 31 |
Operating lease liabilities | 204 | 212 |
Rent expense | 33 | 17 |
Total deferred tax assets | 885 | 476 |
Valuation allowance | (69) | (31) |
Deferred tax assets, net | 816 | 445 |
Deferred tax liabilities: | ||
Accelerated depreciation | (1,538) | (1,423) |
Operating lease assets | (197) | (236) |
Other | (3) | (37) |
Deferred Tax Liabilities, Gross | (1,738) | (1,696) |
Deferred Tax Liabilities, Net | $ (922) | $ (1,251) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning balance | $ 36 | $ 33 | $ 31 |
Increases for tax positions taken during the period | 1 | 6 | 5 |
Decreases for tax positions taken during a prior period | (5) | (3) | (3) |
Unrecognized tax benefits, ending balance | $ 32 | $ 36 | $ 33 |
Crewmember Retirement Plan (Det
Crewmember Retirement Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Percentage of compensation in cash | 100.00% | ||
Percentage of employees' pay | 5.00% | ||
Years of service | 3 years | ||
Percentage of employee's pay for profit sharing match | 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 | 15.00% | ||
Pilots retirement vesting period | 3 years | ||
Percentage of eligible pre-tax profits the company contributes to profit sharing until the pre-tax margin is 18% | 10.00% | ||
Profit sharing calculation trigger, pretax margin | 18.00% | ||
Percentage of eligible pre-tax profits the company contributes to profit sharing when pre-tax margin is above 18% | 20.00% | ||
Defined contribution plan, cost | $ 177 | $ 196 | $ 172 |
Commitments (Details)
Commitments (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)airbusaircraft | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2021 | $ 1,000 |
2022 | 700 |
2023 | 1,500 |
2024 | 1,800 |
2025 | 1,200 |
Thereafter | 1,600 |
Other Commitments [Abstract] | |
Restricted assets pledged related to workers compensation insurance policies and other business partner agreements | $ 23 |
Percentage of employees represented by unions under collective bargaining agreements | 51.00% |
Employment agreement | five years |
Employment agreement automatic renewal term | five years |
Renewal notice period | 90 days |
A-321 Neo | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Number of aircraft and spare engine orders by the firm | airbus | 72 |
Number of aircraft scheduled to receive next year | aircraft | 8 |
A220-300 | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Number of aircraft and spare engine orders by the firm | airbus | 69 |
Number of aircraft scheduled to receive next year | aircraft | 7 |
Contingencies (Details)
Contingencies (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Contingencies (Textual) [Abstract] | |
Maximum period of limit for loan repayment | 15 years |
Maximum period of limit for repayment regarding leases with foreign lenders | 20 years |
Maximum period of contract range of specified parties related to legal liability | 25 years |
Asset retirement obligations, noncurrent | $ 5 |
Financial Derivative Instrume_3
Financial Derivative Instruments and Risk Management (Details) - Aircraft Fuel Derivatives | 12 Months Ended | ||
Dec. 31, 2020USD ($)aircraft | Dec. 31, 2019USD ($)aircraft | Dec. 31, 2018USD ($) | |
Derivative [Line Items] | |||
Longest remaining term (months) | 0 years | 6 months | |
Hedged volume (barrels, in thousands) | aircraft | 0 | 2,112,000 | |
Estimated amount of existing (gains) losses expected to be reclassified into earnings in the next 12 months | $ 0 | $ (2,000,000) | |
Percentage of actual consumption economically hedged | 25.00% | 6.00% | 4.00% |
Offsetting derivative instruments | $ 0 | $ 0 | |
Aircraft Fuel Expense | |||
Derivative [Line Items] | |||
Hedge effectiveness (gains) losses recognized in aircraft fuel expense | 7,000,000 | 5,000,000 | $ 2,000,000 |
Other Income | |||
Derivative [Line Items] | |||
Losses on derivatives resulting from the discontinuance of hedge accounting recognized in interest income and other | 8,000,000 | 0 | 0 |
Comprehensive Income | |||
Derivative [Line Items] | |||
Hedge (gains) losses on derivatives recognized in comprehensive income | 11,000,000 | (1,000,000) | $ 6,000,000 |
Prepaid Expenses and Other Current Assets | |||
Derivative [Line Items] | |||
Asset fair value recorded in prepaid expenses and other | $ 0 | $ 8,000,000 |
Fair Value - Fair Value Hierarc
Fair Value - Fair Value Hierarchy (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Available-for-sale investment securities | $ 1,137 | $ 351 |
Recurring | ||
Assets | ||
Cash equivalents | 1,460 | 641 |
Available-for-sale investment securities | 1,137 | 351 |
Aircraft fuel derivatives | 8 | |
Recurring | Level 1 | ||
Assets | ||
Cash equivalents | 1,330 | 611 |
Available-for-sale investment securities | 0 | 0 |
Aircraft fuel derivatives | 0 | |
Recurring | Level 2 | ||
Assets | ||
Cash equivalents | 130 | 30 |
Available-for-sale investment securities | 1,137 | 351 |
Aircraft fuel derivatives | 8 | |
Recurring | Level 3 | ||
Assets | ||
Cash equivalents | 0 | 0 |
Available-for-sale investment securities | $ 0 | 0 |
Aircraft fuel derivatives | $ 0 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | |||
Material gains (losses) on available for sale debt securities | $ 0 | $ 0 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated other comprehensive income (loss), net of taxes | |||
Accumulated gains (losses), beginning balance | $ 2 | $ (3) | $ 0 |
Reclassification into earnings, Tax | 5 | 1 | 0 |
Reclassifications into earnings | 9 | 4 | 1 |
Change in fair value | (11) | 1 | (4) |
Change in fair value, tax | (5) | 0 | (2) |
Accumulated gains (losses), ending balance | 0 | 2 | (3) |
Aircraft Fuel Derivatives | |||
Accumulated other comprehensive income (loss), net of taxes | |||
Accumulated gains (losses), beginning balance | 2 | (3) | 0 |
Reclassifications into earnings | 9 | 4 | 1 |
Change in fair value | (11) | 1 | (4) |
Accumulated gains (losses), ending balance | 0 | $ 2 | $ (3) |
Other comprehensive income (loss), cash flow hedge, reclassification for discontinuance, before tax | $ 5 |
Geographic Information (Details
Geographic Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020USD ($)destination | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)destination | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Summarization of operating revenues by geographic regions | |||||||||||
Total revenue | $ | $ 661 | $ 492 | $ 215 | $ 1,588 | $ 2,031 | $ 2,086 | $ 2,105 | $ 1,871 | $ 2,957 | $ 8,094 | $ 7,658 |
Caribbean & Latin America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Number of destinations | destination | 31 | 31 | |||||||||
Summarization of operating revenues by geographic regions | |||||||||||
Total revenue | $ | $ 1,067 | 2,461 | 2,272 | ||||||||
PUERTO RICO | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Number of destinations | destination | 3 | 3 | |||||||||
U.S Virgin Islands | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Number of destinations | destination | 1 | 1 | |||||||||
Domestic | |||||||||||
Summarization of operating revenues by geographic regions | |||||||||||
Total revenue | $ | $ 1,890 | $ 5,633 | $ 5,386 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Quarterly Results Of Operations (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Operating revenues | $ 661 | $ 492 | $ 215 | $ 1,588 | $ 2,031 | $ 2,086 | $ 2,105 | $ 1,871 | $ 2,957 | $ 8,094 | $ 7,658 |
Operating income (loss) | (454) | (516) | (410) | (334) | 227 | 247 | 250 | 76 | (1,714) | 800 | 266 |
Net (loss) income | $ (373) | $ (393) | $ (320) | $ (268) | $ 161 | $ 187 | $ 179 | $ 42 | $ (1,354) | $ 569 | $ 189 |
Basic (in dollars per share) | $ (1.31) | $ (1.44) | $ (1.18) | $ (0.97) | $ 0.56 | $ 0.63 | $ 0.60 | $ 0.14 | $ (4.88) | $ 1.92 | $ 0.60 |
Diluted (in dollars per share) | $ 0.56 | $ 0.63 | $ 0.59 | $ 0.14 | $ (4.88) | $ 1.91 | $ 0.60 |
Quarterly Financial Data (Una_4
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Special items | $ (69) | $ (112) | $ (304) | $ 202 | $ 2 | $ 12 | $ (283) | $ 14 | $ 435 | |
Earnings Per Share, Diluted, Special Items Impact (in dollars per share) | $ 0.19 | $ 0.31 | $ 0.84 | $ (0.55) | $ 0.01 | $ (0.02) | ||||
Gain on equity method investments | $ 15 | $ 0 | $ 15 | $ 0 | ||||||
Gain on equity method investments (in dollars per share) | $ 0.04 |
Special Items (Details)
Special Items (Details) $ in Thousands | Sep. 30, 2020USD ($) | Apr. 23, 2020USD ($) | Dec. 31, 2020USD ($)option | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)option | Dec. 31, 2019USD ($)option | Dec. 31, 2018USD ($) |
Special Items | |||||||||||
CARES Act payroll support grant recognition | $ 685,000 | $ (685,000) | $ 0 | $ 0 | |||||||
CARES Act employee retention credit | (36,000) | ||||||||||
Fleet impairment | 273,000 | 0 | 0 | ||||||||
Severance and benefit costs | 59,000 | 0 | 0 | ||||||||
Losses on sale-leaseback transactions | (106,000) | 0 | 0 | ||||||||
Embraer E190 fleet transition costs | 0 | 6,000 | 362,000 | ||||||||
Union contract costs | 0 | 8,000 | 73,000 | ||||||||
Total | $ (69,000) | $ (112,000) | $ (304,000) | $ 202,000 | $ 2,000 | $ 12,000 | (283,000) | 14,000 | 435,000 | ||
Effective income tax reconciliation, discrete tax effects, Net tax deficiencies | 963,000 | ||||||||||
CARES act, payroll support program, grant | $ 19,000 | $ 685,000 | $ 19,000 | 704,000 | |||||||
Wages paid | 5 | ||||||||||
ERC as contra-expense | 36,000 | ||||||||||
Severance and benefit costs, disbursed | 44,000 | ||||||||||
Proceeds from sale leaseback transactions | 563,000 | ||||||||||
Proceeds from sale-leaseback transactions | 354,000 | 0 | 0 | ||||||||
Proceeds from sale-leaseback transactions | 209,000 | 0 | 0 | ||||||||
Impairment of long-lived assets | $ 273,000 | $ 0 | 319,000 | ||||||||
Ratification bonus | $ 50,000 | ||||||||||
A220-300 | |||||||||||
Special Items | |||||||||||
Number of options converted into firm orders | option | 10 | ||||||||||
Options for aircraft deliveries remaining available | option | 50 | 50 | |||||||||
Unsecured Debt | US Department of Treasury | |||||||||||
Special Items | |||||||||||
Debt instrument, face amount | $ 259,000 | $ 259,000 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Valuation and Qualifying Accounts | |||
Balance at beginning of period | $ 54 | $ 40 | $ 16 |
Additions Charged to Costs and Expenses | 49 | 20 | 30 |
Deductions | 5 | 6 | 6 |
Balance at end of period | 98 | 54 | 40 |
Valuation allowance for deferred tax assets | |||
Valuation and Qualifying Accounts | |||
Balance at beginning of period | 31 | 21 | 1 |
Additions Charged to Costs and Expenses | 38 | 10 | 20 |
Deductions | 0 | 0 | 0 |
Balance at end of period | 69 | 31 | 21 |
Allowance for obsolete inventory parts | |||
Valuation and Qualifying Accounts | |||
Balance at beginning of period | 22 | 18 | 14 |
Additions Charged to Costs and Expenses | 5 | 4 | 4 |
Deductions | 0 | 0 | 0 |
Balance at end of period | 27 | 22 | 18 |
Allowance for doubtful accounts | |||
Valuation and Qualifying Accounts | |||
Balance at beginning of period | 1 | 1 | 1 |
Additions Charged to Costs and Expenses | 6 | 6 | 6 |
Deductions | 5 | 6 | 6 |
Balance at end of period | $ 2 | $ 1 | $ 1 |