#1H jetBlue.... jetblue.com 00000 4Q20 EARNINGS PRESENTATION JANUARY 28, 2020 N3008J 0000 AMOUS AZZO-300 jetBlue Photo courtesy of Zachary Sheinman#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 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.#34Q 2020 EARNINGS UPDATE ROBIN HAYES CHIEF EXECUTIVE OFFICER#4TAKING ACTIONS TO PROTECT OUR STAKEHOLDERS ● ● ● 4Q 2020 BALANCE SHEET $3.1B of liquidity at 4Q close, equal to 38% of 2019 revenue All-in cash burn averaged $6.7M/day (2) in 4Q, versus expected range of $6-8M; EBITDA of ($395M) Adjusted Debt to Cap ratio at 57% (1) (3) jetBlue 4Q 2020 EARNINGS GAAP loss per share of ($1.34); non-GAAP loss per share of ($1.53) (3) • Revenue down (67%) YoY; capacity down (47%) YoY; OpEx down (38%) YoY (GAAP), down (34%)(3) YoY (non-GAAP) (1) As of December 31, 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 ● ● ● ● ● 1Q 2021 PLANNING ASSUMPTIONS* EBITDA between ($525M) - ($625M) Capacity down at least ~(40%) vs 1Q 2019 Revenue down between (65%) and (70%) vs 1Q 2019 Operating expenses down (25%) vs 1Q 2019 - OTHER LIQUIDITY ACTIONS In 4Q 2020, raised $700M via equity offering and sale leasebacks In January 2021, received -$252M of PSP2 funds; expect to receive at least an additional ~$252M in 1Q 2021 *As of January 28, 2021; does not constitute guidance 4#5SETTING THE FOUNDATION FOR OUR RECOVERY jetBlue FINANCIAL GOALS 1. Reduce Cash Burn 2. Rebuild Margins 3. Repair Balance Sheet Rebuild Customer Confidence Strengthen Network Deploy Revenue Initiatives Reshape Cost Structure Invest in Return- Accretive Aircraft ● ● ● ● ● ● • Upgrading revenue management system; optimizing ancillary product offering and building EMD capabilities Growing Loyalty revenue; ongoing co-brand RFP Expanding JetBlue Travel Products offerings ● ● ACTIONS ● Continuing Safety from the Ground Up program Partnering with health providers for testing new technologies Focusing on educating customers to facilitate air travel Supporting cash generation with 80+ new routes announced Responding to demand changes with flexible schedules Reinforcing Focus Cities: NY growth in EWR; LA move to LAX and Northeast partnership with American Airlines Realigning cost structure to lower capacity and revenue Reducing fixed costs permanently Executing plan to better CASM Ex-Fuel than 2019 in 2022* Incorporating A220s, A321LD and A321LR into the fleet Supporting network strategy and margin recovery with order book Balancing capital deployment and debt repayments *Assumes capacity in 2022 returns to 2019 levels 5#6COMMERCIAL UPDATE & OUTLOOK JOANNA GERAGHTY PRESIDENT & CHIEF OPERATING OFFICER#7DEMAND CHALLENGES CONTINUE; FOCUS ON LONG TERM RECOVERY jetBlue REVENUE YOY/YO2Y GROWTH -70% Actual Current planning assumption* ||| |||| -69% -67% -76% -64% Estimate Oct '20 Nov '20 Dec '20 -65% -70% 3Q20 4Q 20 1Q 21* *Versus 1Q19. Current planning assumption as of January 28, 2021; does not constitute guidance ● 4Q20 revenue driven by COVID-19 trends, demand improved modestly vs 3Q20 Relatively strong revenue in October; trends stalled in early November, mainly driven by case counts Close-in strength in volumes during December holiday weeks Expect continued demand softness during 1Q21 Improving system load factors, driven by Florida and Latin/Caribbean region Potential headwind from recent CDC mandate requiring testing for all international arrivals. 7#8EXPECT TO ADJUST CAPACITY TO MEET STRATEGIC AND FINANCIAL GOALS jetBlue I! -47% -52% ASM YOY/YO2Y GROWTH Flown -43% Oct '20 Nov '20 Dec '20 Planned -58% Current planning assumption* -47% At least -40% 3Q20 4Q20 1Q21* *Versus 1Q19. Current planning assumption as of January 28, 2021; does not constitute guidance ● Planning to adjust capacity to improve cash burn Reacting to demand softness with tactical capacity actions in most affected and/or restricted regions - - Redeploying aircraft to stronger areas of the network, including new geographies with untapped potential Medium term planning focused on structural rebalancing of the network - Planning 1Q capacity decline of at least (40%) Yo2Y; managing capacity during peaks and troughs, monitoring close-in bookings Diversifying network with new VFR/leisure markets to offset business demand challenges 8#9FINANCIAL UPDATE & OUTLOOK STEVE PRIEST CHIEF FINANCIAL OFFICER#10SUMMARY FINANCIALS 4Q 2020 jetBlue METRIC ASM (millions) RASM (cents) CASM (cents) CASM ex-Fuel(1) (cents) Fuel ($/gallon) Earnings/(Loss) per Share (GAAP) Earnings/(Loss) per Share (¹) (Non-GAAP) 4Q 2020 8,480 7.80 13.16 12.31 1.31 (1.34) (1.53) (1) Refer to reconciliations of non-GAAP financial measures in Appendix A 4Q 2019 16,079 12.63 11.22 8.31 2.07 0.56 0.56 Change YoY (47.3%) (38.3%) 17.2% 48.2% (36.9%) 10#11PRESERVING A STRONG LIQUIDITY POSITION jetBlue 3,093 9/30/20 Liquidity (1) (459) Cash From Operations (2) (195) CAPEX (1) Cash, cash equivalents and short-term investments (2) Represents cash from operations on GAAP cash flow statement (3) Includes principal and sale-leaseback payments treated as finance leases Note: Rounding may result in immaterial differences (100) Scheduled Debt Payments (3) 714 Equity Offering and Other Transactions 3,053 12/31/20 Liquidity (1) 11#12EXPECT TO CONTINUE DISCIPLINED COST MANAGEMENT TO AID RECOVERY jetBlue YOY/YO2Y OPERATING EXPENSES* Actual GAAP -38% Actual Non-GAAP (1) -34% 4Q20 Planned - -25% 1Q21** ● COST INITIATIVES Continuing to reshape cost structure to protect liquidity and rebuild margins 4Q20 performance was better than expected, as a result of capacity actions and solid cost execution 1Q21 sequential increase driven by capacity plan, CARES Act impact, external cost headwinds (i.e., higher fuel prices, airport rents and landing fees) *Operating expenses include non-cash expenses (e.g., depreciation and amortization) **Versus 1Q19. Current planning assumption as of January 28, 2021; does not constitute guidance (1) Operating expenses excluding special items; refer to reconciliations of non-GAAP financial measures in Appendix A 12#13SETTING FOUNDATION FOR STRUCTURALLY BETTER MARGINS jetBlue COST PLAN PROGRESSION -$7.2B** ~$0.53B -$2.7B -$4.0B 2019A -$5.9B** -$0.55B -$2.5B -$2.9B 2021* Variable Fixed D&A *Full year 2021 capacity at 75% of 2019 capacity **Excludes operating expenses related to other non-airline businesses ● ACTIONS Targeting better CASM ex-Fuel than 2019 post-pandemic in 2022* Assumes capacity in 2022 returns to 2019 levels Strong focus on fixed cost reduction Maintaining and scaling $150 - $200M of fixed cost reductions achieved in 2020 Support function cost reduction via technology, automation, process standardization Variable cost efficiencies achieved via productivity and fleet investments made since 2019 scale with growth 2021 includes temporary headwinds from Safety from the Ground Up investments and rents and landing fees *Current planning assumption as of January 28, 2021; does not constitute guidance Note: Rounding may result in immaterial differences 13#14CONTINUING TO INVEST IN MARGIN ACCRETIVE AIRCRAFT ● jetBlue 195 4Q20 REVISED CAPEX Actual Planned (US$ million) -295 1Q21* - 1,000 2021* 2021 CAPEX expected to be -$1B Evaluating financing options for future aircraft deliveries Plan to restrict non-aircraft CAPEX to highest ROI projects with fastest cash payback As of 12/31/2019 259 69 130 60 FLEET* As of 12/31/2020 267 1 76 130 60 As of 12/31/2021* 282 8 3 81 130 60 2019 2020 E190 A320 A321 A321LR A220 2021* In 4Q20, took delivery of two A321neos and one A220 Anticipate taking three more A321neos in 1Q21 *Current planning assumption as of January 28, 2021; does not constitute guidance. The fleet count assumes that some aircraft will be out of service. Please refer to Appendix C for latest order book 14#15AIM TO MAINTAIN RELATIVE BALANCE SHEET STRENGTH ● jetBlue 34% Dec 31 2019 LEVERAGE Adjusted Debt to Cap 57% Dec 31 2020 During 4Q20 raised $700M from equity offering and sale leaseback transactions (1) Refer to reconciliations of non-GAAP financial measures in Appendix A 93 CASH DEBT SERVICE* Principal 48 4Q20 Interest (US$ million) 94 32 1Q 21** *Cash outflows related to debt repayment schedule (principal and interest) as of 12/31/2020; does not assume any future debt raises and does not constitute guidance The principal cash payments exclude sale-leaseback payments treated as finance leases **Current planning assumption as of January 28, 2021; does not constitute guidance. 15#16jetBlue QUESTIONS? WELCOME ABOARD DIRECTV MOVIES MY TRIP SHOWS THE JETBLUE EXPERIENCE 16#17APPENDIX 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 17#184Q 2020 FINANCIAL RESULTS jetBlue * Refer to reconciliations of non-GAAP financial measures in this Appendix A 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) 4Q 2020 661 134 472 100 128 25 26 97 202 (69) (454) (58) (512) (131) (381) (77.5%) ($1.34) (87.9%) ($1.53) 4Q 2019 2,031 455 589 112 140 23 75 137 272 1 227 (7) 220 59 161 10.8% $0.56 10.9% $0.56 Var % (67.4) (70.5) (20.0) (10.5) (8.3) 7.7 (64.8) (29.4) (25.8) NM (300.1) 744.4 (332.8) (324.3) (335.9) (88.3) pts (98.8) pts 18#19Operating 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 our subsidiaries, 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, contra-expenses recognized on the Employee Retention Credits provided by the CARES Act, impairment charges of our Embraer E190 fleet, losses generated from certain 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 and one-time costs related to the implementation of our pilots' collective bargaining agreement. 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 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) $ 1,115 2020 134 6 (69) 1,044 $ $ Three Months Ended December 31, per ASM 13.16 1.58 0.08 (0.81) 12.31 $ $ $ 1,804 455 12 1 1,336 2019 $ $ per ASM 11.22 2.83 0.08 8.31 $ $ $ 4,671 2020 631 35 (283) 4,288 $ $ Twelve Months Ended December, 31 per ASM 14.29 1.93 0.10 (0.86) 13.12 $ $ $ 7,294 1,847 46 14 5,387 2019 $ $ per ASM 11.43 2.89 0.08 0.02 8.44 19#20Earnings before interest, taxes, depreciation, amortization, and special Items Earnings before interest, taxes, depreciation, and amortization (EBITDA) is a non-GAAP financial measure. We believes this measure allows investors to better understand the financial performance of the company by presenting earnings without including the effects of capital structure, tax rates, depreciation, and amortization. We further adjusted EBITDA to account for the impact of special items which are unusual or infrequent in nature. jetBlue Net (loss) Less: NON-GAAP FINANCIAL MEASURE EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AMORTIZATION, AND SPECIAL ITEMS (in millions) (unaudited) Interest (expense) Capitalized interest Interest income and other Add back: Income tax (benefits) Depreciation and amortization Earnings before interest, taxes, depreciation, and amortization Add back: Special items Earnings before interest, taxes, depreciation, amortization, and special items $ $ Three Months Ended December 31, 2020 (381) (59) co (2) (131) 128 (326) (69) (395) Twelve Months Ended December 31, 2020 $ $ (1,362) (179) 13 (13) (531) 535 (1,179) (283) (1,462) 20#21Daily cash burn We present cash burn because we believe this metric is helpful to investors to evaluate our ability to maintain liquidity and evaluate cash flows from our core operating performance. Our cash burn is calculated as net cash used in operating activities, net cash used in investing activities, and net cash provided by financing activities adjusted for: (1) cash payments associated with our voluntary separation programs, (2) net purchases of investment securities, and (3) net proceeds from our common stock offering completed in December 2020. jetBlue Net cash (used in) operating activities Net cash (used in) investing activities Net cash provided by financing activities (Decrease) in cash, cash equivalents, and restricted cash Adjustments NON-GAAP FINANCIAL MEASURE DAILY CASH BURN (in millions, except for days in period) (unaudited) Voluntary separation programs Net purchases of investment securities Proceeds from issuance of common stock Total adjustments Adjusted (decrease) in cash Days in period Daily cash burn $ $ Three Months Ended December 31, 2020 (459) (765) 614 (610) 5 570 (583) (8) (618) 92 (6.7) 21#22Operating 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 an one-time gain on equity method investment. In 2020, special items include contra-expenses recognized on the utilization of payroll support grants received under the CARES Act, contra-expenses recognized on the Employee Retention Credits provided by the CARES Act, impairment charges of our Embraer E190 fleet, losses generated from certain 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 as well as one-time costs related to the implementation of our pilots' collective bargaining agreement. We believe the impacts of these items distort our overall trends and that our metrics and results are comparable 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 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 December 31, 2020 661 $ 1,115 (69) 1,184 -79.1% (454) $ (69) (523) (512) (69) (581) -87.9% (434) (1.34) (0.19) (1.53) $ (1.34) (0.19) $ (381) $ (69) (16) (1.53) $ $ $ $ $ $ $ $ 2019 2,031 1,804 1 1,803 227 1 228 11.2% 220 1 221 10.9% 161 1 162 0.56 0.01 0.57 0.56 0.56 $ $ $ $ $ $ $ $ $ $ $ $ $ Twelve Months Ended December 31, 2020 2,957 4,671 (283) 4,954 (1,714) (283) (1,997) -67.5% (1,893) (283) (2,176) -73.6% (1,362) (283) (69) (4.91) (0.77) (5.68) (4.91) (0.77) $ (5.68) $ $ $ $ (1,576) $ $ $ $ $ $ $ $ 2019 8,094 7,294 14 7,280 800 14 814 10.1% 768 14 15 767 9.5% 569 14 4 15 (4) 568 1.92 0.04 0.04 1.92 1.91 0.03 0.04 1.90 22#23APPENDIX 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 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 December 31, 2020 4,413 450 273 5,136 $ 4,413 450 273 3,943 9,079 57% December 31, 2019 1,990 344 183 2,517 SA 1,990 344 183 4,799 7,316 34% 23#24APPENDIX C: CONTRACTUAL ORDER BOOK jetBlue 2021 2022 A220 7 9 A321 NEO 5 Delivery schedule, as of January 28, 2021 A321NEO LR 3 3 Total 15 12 24#25APPENDIX 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 25