#1Lately PERS Jetblue.com AB oooooooooooo H C-GPJH 00000000000 AIRBUS A220-300 jetBlue 3Q 2020 EARNINGS PRESENTATION OCTOBER 27, 2020 H jetBlue#2SAFE HARBOR Statements in this presentation (or otherwise made by JetBlue or on JetBlue's behalf) contain various forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, which represent our management's beliefs and assumptions concerning future events. When used in this document and in documents incorporated herein by reference, the words "expects,” “plans,” “anticipates," "indicates," "believes," "forecast,” “guidance," "outlook," "may,” “will,” “should,” “seeks,” “targets" and similar expressions are intended to identify forward-looking statements. Forward-looking statements involve risks, uncertainties and assumptions, and are based on information currently available to us. Actual results may differ materially from those expressed in the forward-looking statements due to many factors, including, without limitation, our extremely competitive industry; volatility in financial and credit markets which could affect our ability to obtain debt and/or lease financing or to raise funds through debt or equity issuances; our significant fixed obligations and substantial indebtedness; volatility in fuel prices, maintenance costs and interest rates; our reliance on high daily aircraft utilization; our ability to implement our growth strategy; our ability to attract and retain qualified personnel and maintain our culture as we grow; our reliance on a limited number of suppliers, including for aircraft, aircraft engines and parts and vulnerability to delays by those suppliers; our dependence on the New York and Boston metropolitan markets and the effect of increased congestion in these markets; our reliance on automated systems and technology; our being subject to potential unionization, work stoppages, slowdowns or increased labor costs; our presence in some international emerging markets that may experience political or economic instability or may subject us to legal risk; reputational and business risk from information security breaches or cyber-attacks; changes in or additional domestic or foreign government regulation, including new or increased tariffs; changes in our industry due to other airlines' financial condition; acts of war or terrorism; global economic conditions or an economic downturn leading to a continuing or accelerated decrease in demand for air travel; the impact of infectious diseases that affects demand for air travel or travel behavior, such as the ongoing impact of the coronavirus ("COVID-19"); adverse weather conditions or natural disasters; and external geopolitical events and conditions. It is routine for our internal projections and expectations to change as the year or each quarter in the year progresses, and therefore it should be clearly understood that the internal projections, beliefs and assumptions upon which we base our expectations may change prior to the end of each quarter or year. Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. Further information concerning these and other factors is contained in the Company's Securities and Exchange Commission filings, including but not limited to, the Company's 2019 Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. In light of these risks and uncertainties, the forward-looking events discussed in this presentation might not occur. Our forward-looking statements speak only as of the date of this presentation. Other than as required by law, we undertake no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise. This presentation also includes certain "non-GAAP financial measures" as defined under the Exchange Act and in accordance with Regulation G. We have included reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and provided in accordance with U.S. GAAP within the Appendix A section of this presentation. jetBlue 2020#3jetBlue 3Q 2020 EARNINGS UPDATE ROBIN HAYES CHIEF EXECUTIVE OFFICER 2020#4TAKING ACTIONS TO PROTECT OUR STAKEHOLDERS ● 3Q 2020 BALANCE SHEET $3.1B of liquidity at 3Q close, equal to 38% of 2019 revenue Cash burn average $6.1 M/day (2) in 3Q, lower than expected range of $7-9M; expect $4-6M/day in 4Q Adjusted Debt to Cap ratio at 58% (1) (3) jetBlue 2020 3Q 2020 EARNINGS 3Q revenue down (76%) YoY; capacity down (58%) YoY; OpEx down (45%) YoY (GAAP), down (39%) (3) YoY (non-GAAP) GAAP loss per share of ($1.44); non-GAAP loss per share of ($1.75) (3) (1) As of September 30, 2020 (2) This cash burn includes SW&B paid with CARES Act PSP funds (3) Refer to reconciliations of non-GAAP financial measures in Appendix A ● ● ● ● ● ● 4Q 2020 PLANNING ASSUMPTIONS* 4Q capacity down ~(45%) Yo Y 4Q revenue down ~(65%) YoY 4Q operating expenses down ~(30%) YoY OTHER LIQUIDITY ACTIONS Refinanced $1B 364-day term loan with EETC transactions Raised over $300M with sale leaseback proceeds Drew down $114M of CARES Act Loan Program Reduced CAPEX for 2020-2022 by ~$2B *As of October 27, 2020; does not constitute guidance 4#5SETTING THE FOUNDATION FOR OUR RECOVERY FINANCIAL GOALS 1. Reduce Cash Burn 2. Rebuild Margins 3. Repair Balance Sheet jetBlue 2020 Rebuild Customer Confidence Strengthen Network Deploy Revenue Initiatives Reshape Cost Structure Invest in Return- Accretive Aircraft ● ● ● ● • 60+ new routes to support cash generation Schedule flexibility in response to demand changes Focus City reinforcement: NY growth in EWR; LA move to LAX ● ACTIONS ● Safety from the Ground Up program Partnerships with authorities to implement public health policies Focus on testing/health measures to facilitate air travel Upgrading revenue management optimization system Adjusted approach to seat caps JetBlue Travel Products subsidiary offerings for leisure travel Realign cost structure to lower capacity and revenue Permanent reduction of fixed costs • Drive structural margin improvement with revenue recovery • E190 fleet replacement with economically superior A220s Network plan growth during recovery with fuel efficient A321s Balance capital deployment and debt repayments 5#6jetBlue COMMERCIAL UPDATE & OUTLOOK JOANNA GERAGHTY PRESIDENT & CHIEF OPERATING OFFICER 2020#7PLANNING FOR GRADUAL IMPROVEMENT IN BOOKINGS THROUGH YEAR END -79% July Aug REVENUE YOY GROWTH jetBlue 2020 Actual ||| || -68% -80% -76% -90% Estimate Sept Current planning assumption* 2Q ~ -65% 3Q 4Q* *Current planning assumption as of October 27, 2020; does not constitute guidance 3Q revenue driven by leisure/VFR travel, despite headwinds from quarantine measures in place Demand gradually improved throughout August and September Booking curve remained close-in during the quarter Expect continued sequential revenue improvement during 4Q Continued momentum in leisure/VFR booking trends, despite increasing COVID-19 case counts in various geographies Seeing momentum in initial bookings for Thanksgiving and December holiday period 7#8ADJUSTING CAPACITY TO PROTECT LIQUIDITY July jetBlue 2020 ASM YOY GROWTH Aug Flown ||| |! -50% -58% -61% -62% -85% Planned Sept Current planning assumption* 2Q 3Q ~ -45% 4Q* *Current planning assumption as of October 27, 2020; does not constitute guidance ● ● Adapting capacity in response to fluid demand trends Refined 3Q capacity resulted in improved load factors and increased cash per flight New markets performing at or above expectations Planning 4Q capacity in line with demand expectations Sequential capacity adds to capture expected improvements in bookings for travel during peak season Managing capacity around the peaks and troughs, monitoring close-in bookings 8#9jetBlue FINANCIAL UPDATE & OUTLOOK STEVE PRIEST CHIEF FINANCIAL OFFICER 2020#10SUMMARY FINANCIALS 3Q 2020 jetBlue 2020 METRIC ASM (millions) RASM (cents) CASM (cents) CASM ex-Fuel(¹) (cents) Fuel ($/gallon) Earnings per Share (GAAP) Earnings per Share (¹) (Non-GAAP) 3Q 2020 6,905 7.12 14.60 14.64 1.23 (1.44) (1.75) (1) Refer to reconciliations of non-GAAP financial measures in Appendix A 3Q 2019 16,296 12.80 11.29 8.33 2.06 0.63 0.59 Change YoY (57.6%) (44.4%) 29.3% 75.7% (40.4%) 10#11MAINTAINING A STRONG LIQUIDITY POSITION 3,434 6/30/20 Liquidity (1) jetBlue 2020 426 Adjusted Operating Activities (2) 162 CAPEX 135 997 913 114 EETC Transactions Scheduled Debt Payments (3) Prepayment After Fees After Fees 364-Term Loan CARES Act Loan -27- CARES Act Payroll Support Funds (4) (1) Cash, cash equivalents and short-term investments, and restricted cash for CARES Act PSP (2) Includes net sales, operating cash outlays, working capital timing, and excludes cash interest payments (3) Includes cash interest payments (4) Includes $19M of grant and $8M of unsecured loan for the additional Payroll Support Program Note: Rounding may result in immaterial differences 327 Sale Leaseback Transactions 3,093 9/30/20 Liquidity (¹) 11#12MANAGING COSTS TO SUPPORT CASH POSITIVE FLYING Actual GAAP -45% YOY OPERATING EXPENSES* Actual Non-GAAP (1) -39% 3Q Planned - -30% 4Q** ● ● COST INITIATIVES Continuing taking tactical capacity and cost actions to drive positive cash flying Managing day-to-day flying decisions based on breakeven economics Reshaping cost structure to support margin recovery efforts Permanently reducing fixed costs and driving more variability in the cost structure *Operating expenses include non-cash expenses (e.g., depreciation and amortization) Current planning assumption as of October 27, 2020; does not constitute guidance (1) Operating expenses excluding special items; refer to reconciliations of non-GAAP financial measures in Appendix A jetBlue 2020 12#13REDUCING OUR CAPITAL EXPENDITURES ● ● 162 3Q REVISED CAPEX jetBlue 2020 Actual Planned (US$ million) 200 4Q* -800 2020* Lowered CAPEX for 2020-2022 by ~$2B(1) Remaining 2020 NEO deliveries to be financed through sale leasebacks Focusing on high ROI projects for non-aircraft CAPEX (1) Cumulative CAPEX reduction vs pre-pandemic plan As of 12/31/2019 259 6 35 28 130 60 FLEET* As of 12/31/2020* 267 1 13 35 28 130 60 2019 2020* E190 A320 A321 HD A321 Mint A321neo HD A220 In Q3, took delivery of two A321neos Anticipate taking two more A321neos, one A220 in Q4 *Current planning assumption as of October 27, 2020; does not constitute guidance. Please refer to Appendix C for latest order book 13#14MANAGING LEVERAGE TO PRESERVE LIQUIDITY jetBlue ● ● ● 34% Dec 31 2019 2020 LEVERAGE Adjusted Debt to Cap (¹) 44% 55% Mar 31 2020 Jun 30 2020 58% Sep 30 2020 Refinanced $1B 364-day term loan Received $114M from CARES Act Loan Program Executed over $300M in sale leasebacks for old and new aircraft (1) Refer to reconciliations of non-GAAP financial measures in Appendix A 95 DEBT REPAYMENTS* Principal 3Q 40 Interest (US$ million) 93 50 4Q** *Cash outflows related to debt repayment schedule (principal and interest) as of 9/30/2020; does not assume any future debt raises and does not constitute guidance **Current planning assumption as of October 27, 2020; does not constitute guidance. 14#15jetBlue 2020 Questions? 15#16APPENDIX A Non-GAAP Financial Measures JetBlue sometimes uses non-GAAP financial measures in this presentation. Non-GAAP financial measures are financial measures that are derived from the consolidated financial statements, but that are not presented in accordance with generally accepted accounting principles in the United States, or GAAP. We believe these non-GAAP financial measures provide a meaningful comparison of our results to others in the airline industry and our prior year results. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, our financial performance measures prepared in accordance with GAAP. Further, our non-GAAP information may be different from the non-GAAP information provided by other companies. The information in Appendices A and B provides an explanation of each non-GAAP financial measure and shows a reconciliation of non-GAAP financial measures used in this presentation to the most directly comparable GAAP financial measures. jetBlue 2020 16#173Q 2020 FINANCIAL RESULTS * Refer to reconciliations of non-GAAP financial measures in this Appendix A jetBlue 2020 US$ Millions Total Operating Revenues Aircraft fuel and related taxes Salaries, wages and benefits Landing fees and other rents Depreciation and amortization Aircraft rent Sales and marketing Maintenance, materials and repairs Other operating expenses Special items Operating (Loss) Income Other Income (Expense) (Loss) income before income taxes Income tax (benefit) expense NET (LOSS) INCOME Pre-Tax Margin (Loss) Earnings per Share (EPS) (GAAP) Adj. Pre-Tax Margin* Adj. (Loss) Earnings per Share (EPS)* (Non- GAAP) 3Q 2020 492 102 482 84 127 23 24 111 167 (112) (516) (62) (578) (185) (393) (117.4%) ($1.44) (140.1%) ($1.75) 3Q 2019 2,086 471 580 125 134 26 74 158 271 247 7 254 67 187 12.2% $0.63 11.4% $0.59 Var % (76.4) (78.4) (16.9) (32.7) (5.0) (12.5) (68.3) (30.2) (38.1) (308.8) 1,068.5 (327.8) (376.4) (310.4) (129.6) pts (151.5) pts 17#18Operating expense per available seat mile, excluding fuel and related taxes, other non-airline operating expenses, and special items ("CASM Ex-Fuel") Operating expenses per available seat mile, or CASM, is a common metric used in the airline industry. We exclude aircraft fuel and related taxes, operating expenses related to other non-airline businesses, such as JetBlue Technology Ventures and JetBlue Travel Products, and special items from operating expenses to determine CASM ex-fuel, which is a non-GAAP financial measure. In 2020, special items include contra-expenses recognized on the utilization of payroll support grants received under the CARES Act, impairment charges of our Embraer E190 fleet, losses generated from sale-leaseback transactions, and one-time costs associated with our voluntary crew member separation programs. Special items for 2019 include one-time costs related to the Embraer E190 fleet transition, one-time costs related to the implementation of our pilots' collective bargaining agreement, as well as a gain on an equity method investment. We believe that CASM ex-fuel is useful for investors because it provides investors the ability to measure financial performance excluding items beyond our control, such as fuel costs, which are subject to many economic and political factors, or not related to the generation of an available seat mile, such as operating expense related to certain non-airline businesses. We believe this non- GAAP measure is more indicative of our ability to manage airline costs and is more comparable to measures reported by other major airlines. jetBlue 2020 Total operating expenses Less: Aircraft fuel and related taxes Other non-airline expenses Special items Operating expenses, excluding fuel $ $ NON-GAAP FINANCIAL MEASURE RECONCILIATION OF OPERATING EXPENSE PER ASM, EXCLUDING FUEL ($ in millions, per ASM data in cents) (unaudited) $ 1,008 2020 102 7 (112) 1,011 $ $ Three Months Ended September 30, per ASM 14.60 1.47 0.10 (1.61) 14.64 $ $ $ 1,839 471 10 1,358 2019 $ $ per ASM 11.29 2.89 0.07 8.33 $ $ $ 3,555 2020 496 29 (214) 3,244 $ $ Nine Months Ended September 30, per ASM 14.69 2.05 0.12 (0.88) 13.40 $ $ $ 5,490 1,392 32 14 4,052 2019 $ $ per ASM 11.50 2.92 0.07 0.03 8.48 18#19Operating Expense, Income before Taxes, Net Income and Earnings per Share, excluding special items and gain on equity method investments Our GAAP results in the applicable periods were impacted by charges that are deemed special items, and gain on equity method investments. We believe the impacts of these items make our results difficult to compare to prior periods as well as future periods and guidance. In 2020, special items include contra-expenses recognized on the utilization of payroll support grants received under the CARES Act, impairment charges of our Embraer E190 fleet, losses generated from sale-leaseback transactions, and one-time costs associated with our voluntary crew member separation programs. Special items for 2019 include one-time costs related to the Embraer E190 fleet transition, one-time costs related to the implementation of our pilots' collective bargaining agreement, as well as a gain on an equity method investment. We believe the impacts of these items distort our overall trends and that our metrics and results are enhanced with the presentation of our results excluding the impact of these items. The table below provides a reconciliation of our GAAP reported amounts to the non-GAAP amounts excluding the impacts of these items. jetBlue 2020 NON-GAAP FINANCIAL MEASURE RECONCILIATION OF OPERATING EXPENSE, INCOME BEFORE TAXES, NET INCOME AND EARNINGS PER SHARE EXCLUDING SPECIAL ITEMS AND GAIN ON EQUITY METHOD INVESTMENTS (in millions, except per share amounts) (unaudited) Total operating revenues Total operating expenses Less: Special items Total operating expenses excluding special items Operating (loss) income Add back: Special items Operating (loss) income excluding special items Operating margin excluding special items (Loss) income before income taxes Add back: Special items. Less: Gain on equity method investments (Loss) income before income taxes excluding special items and gain on equity method investments Pre-tax margin excluding special items and gain on equity method investments Net (loss) income Add back: Special items. Less: Income tax (expense) benefit related to special items. Less: Gain on equity method investments Less: Income tax (expense) related to gain on equity method investments Net (loss) income excluding special items and gain on equity method investments (Loss) Earnings Per Common Share: Basic Add back: Special items, net of tax Less: Gain on equity method investments, net of tax Basic excluding special items and gain on equity method investments Diluted Add back: Special items, net of tax Less: Gain on equity method investments, net of tax Diluted excluding special items and gain on equity method investments $ $ $ $ $ $ $ $ $ $ $ $ $ Three Months Ended September 30, 2019 2020 492 1,008 (112) 1,120 $ (516) (112) (628) -127.6% (578) (112) (690) -140.1% (393) (112) (28) (477) (1.44) (0.31) (1.75) (1.44) (0.31) $ (1.75) $ $ $ $ $ $ $ $ $ $ $ 2,086 1,839 1,839 247 247 11.8% 254 15 239 11.4% 187 15 (4) 176 0.63 0.04 0.59 0.63 0.04 0.59 $ $ $ S $ $ $ $ $ $ $ $ $ Nine Months Ended September 30, 2020 2,295 $ 3,555 (214) 3,769 $ (1,260) (214) (1,474) -64.2% (1,381) (214) -69.5% (981) (214) (53) (1,595) $ (3.58) (0.58) $ (4.16) (3.58) (0.58) $ (4.16) $ (1,142) $ $ $ $ $ $ $ 2019 6,063 5,490 14 5,476 573 14 587 9.7% 548 14 15 547 9.0% 408 14 3 15 (4) 408 1.36 0.03 0.04 1.35 1.35 0.03 0.03 1.35 19#20APPENDIX B: CALCULATION OF LEVERAGE RATIOS Adjusted Debt to Capitalization Ratio Adjusted debt to capitalization ratio is a non-GAAP financial metric which we believe is helpful to investors in assessing the company's overall debt profile. Adjusted debt includes aircraft operating lease liabilities, in addition to total debt and finance leases, to present estimated financial obligations. Adjusted capitalization represents total equity plus adjusted debt. jetBlue 2020 NON-GAAP FINANCIAL MEASURE ADJUSTED DEBT TO CAPITALIZATION RATIO (in millions) (unaudited) Long-term debt and finance leases Current maturities of long-term debt and finance leases Operating lease liabilities aircraft Adjusted debt Long-term debt and finance leases Current maturities of long-term debt and finance leases Operating lease liabilities - aircraft Stockholders' equity Adjusted capitalization Adjusted debt to capitalization ratio September 30, 2020 4,439 400 290 5,129 $ 4,439 400 290 3,717 8,846 58% December 31, 2019 1,990 344 183 2,517 $ 1,990 344 183 4,799 7,316 34% 20#21APPENDIX C: CONTRACTUAL ORDER BOOK jetBlue 2020 2020* 2021 2022 A220 1 7 8 A321NEO 7 5 Delivery schedule, as of October 27, 2020 *Includes 5 deliveries received in 1Q-3Q 2020 A321NEO LR 3 3 Total 8 15 11 21#22APPENDIX D: RELEVANT JETBLUE MATERIALS jetBlue www.investor.jetblue.com/investor-relations DOCUMENT Investor Presentations Earnings Releases Annual Reports SEC Filings Proxy Statements Investor Updates Traffic Reports ESG Reports* LOCATION http://blueir.investproductions.com/investor-relations/events-and-presentations/presentations http://blueir.investproductions.com/investor-relations/financial-information/quarterly-results http://blueir.investproductions.com/investor-relations/financial-information/reports/annual-reports http://blueir.investproductions.com/investor-relations/financial-information/sec-filings http://blueir.investproductions.com/investor-relations/financial-information/reports/proxy-statements http://blueir.investproductions.com/investor-relations/financial-information/investor-updates http://blueir.investproductions.com/investor-relations/financial-information/traffic-releases http://blueir.investproductions.com/investor-relations/financial-information/reports/sustainable-accounting-standards-board-reports * Environmental, Social, and Governance Reports 2020 22