Tag Archives: JetBlue Airways

JetBlue ups the ante for Spirit

JetBlue Airways today announced it has enhanced its proposal to the Board of Directors of Spirit Airlines to acquire all of the outstanding common stock of Spirit for $33 cash per share. The enhanced proposal offers Spirit shareholders both superior financial value and greater certainty than the Frontier transaction:

Divestiture commitment: If necessary, JetBlue would agree to divest assets of JetBlue and Spirit up to a material adverse effect on Spirit, with a limited carve-out for actions that would adversely impact JetBlue’s Northeast Alliance (NEA) with American Airlines.

Remedy package to address NEA and regulatory concerns: JetBlue would offer a remedy package that includes the divestiture of all Spirit assets in New York and Boston so that JetBlue does not increase its presence in the airports covered by the NEA. The package would also include gates and assets at other airports, including Fort Lauderdale.

Reverse break-up fee: JetBlue would provide for a $200 million reverse break-up fee, representing approximately $1.80 per Spirit share, that would become payable to Spirit in the unlikely event the JetBlue transaction is not consummated for antitrust reasons.

Superior, all-cash premium: JetBlue’s proposal continues to offer Spirit shareholders $33 in cash per common share, a 47% premium to the value of the Frontier transaction as of April 29, 2022 (a) and a 52% premium to Spirit’s share price as of February 4, 2022 (b) (the last trading day prior to the Spirit-Frontier announcement).

“By creating a national competitor to the Big Four airlines, this transaction would deliver meaningful benefits for customers, superior value for shareholders of both airlines, and new opportunities for our combined crewmembers,” said Robin Hayes, chief executive officer, JetBlue. “We have confidence that we can complete this transaction to bring more low fares and great service to more customers. A JetBlue-Spirit combination will deliver enhanced financial strength and accelerate revenue growth and profitability for JetBlue shareholders.”

The regulatory commitments in JetBlue’s enhanced offer represent a significant improvement compared to those offered by Frontier. The revised offer comes after Spirit limited JetBlue’s access to important due diligence data yet requested unprecedented commitments from JetBlue that far exceed those in prior airline transactions.

“Spirit shareholders would be better off with the certainty of our substantial cash premium, regulatory commitments, and reverse break-up fee protection,” Hayes said. “The Frontier transaction has a similar regulatory profile to ours but offers no divestiture commitment and no reverse break-up fee, while the uncertain value of Frontier’s stock exposes Spirit shareholders to significant risk. We hope the Spirit Board will now recognize that ours is clearly a superior proposal and engage with us more constructively than they have to date. We are making our offer public so their shareholders are aware this attractive value-creating opportunity is available to them.”

Spirit shareholders will assume a number of risks if the Frontier transaction moves forward:

Frontier is not required to undertake any divestitures to obtain the necessary regulatory approvals to close its transaction, despite having greater overlap with Spirit on nonstop routes than JetBlue does, among other regulatory hurdles.

Frontier is not required to pay a reverse break-up fee if the transaction is not consummated for antitrust reasons even though the Frontier transaction has a similar regulatory profile as the proposed transaction with JetBlue.

The value of Frontier’s stock, the basis for the transaction’s value to Spirit shareholders, is subject to significant risks and has already declined approximately 14% since Frontier’s offer was announced. Specifically, the value of Frontier’s stock declined from $12.39 on February 4, 2022, to $10.61 on April 29, 2022, which translated into a deterioration of the value of the Frontier transaction of $3.41 per Spirit share or approximately $370 million.

The financial projections underpinning the transaction with Frontier are based on unrealistically optimistic assumptions, especially with respect to costs associated with personnel attrition and wage inflation. Their model does not consider any wage increases for team members, including pilots, at a time of high attrition and an anticipated shortage of pilots.

JetBlue Effect 3x Greater than ULCCs; Similar Regulatory Profile to Frontier
A combined JetBlue-Spirit will create a more compelling national low-fare competitor to challenge the Big Four airlines that control more than 80% of the U.S. market. When JetBlue introduces its unique combination of low fares and award-winning service onto new routes, legacy carriers lower their fares and customers win with more choice. With its positive effect on competition, and backed by its regulatory commitments, JetBlue has a high degree of confidence in its ability to achieve regulatory approval of its acquisition of Spirit.

JetBlue’s entry into new nonstop routes triggers fare decreases from legacy airlines that are more significant than those resulting from ultra-low-cost carriers (ULCCs) – approximately 16%, or three times the result of ULCCs on legacy nonstop routes – known as the JetBlue Effect.

The faster expansion of JetBlue and the JetBlue Effect, coupled with a proposed remedy package and the continued expansion of other ULCCs, will address regulatory concerns that Spirit, the regulators, or the courts may have.

Both transactions would result in companies of similar size, creating the No. 5 U.S. airline: JetBlue/Spirit would have a 9% market share based on full year 2022 seats compared to 8% for a combined Frontier/Spirit.

Contrary to common misperceptions, JetBlue has significantly less overlap with Spirit in terms of flights, seats, and ASMs than Frontier in the metropolitan areas served by both (c). JetBlue overlaps with Spirit only on 48 nonstop routes compared to Spirit and Frontier’s overlap on 76 nonstop routes (d).

The NEA – which JetBlue strongly believes will be allowed to continue because the alliance is delivering the customer benefits promised – is not a factor in this transaction. Given the remedy package, JetBlue’s analysis finds that the presence of the NEA would have no meaningful economic effect in a JetBlue-Spirit transaction.

“Customers shouldn’t have to choose between a low fare and a great experience, and with JetBlue, it’s possible for customers to have both,” Hayes said. “Both the NEA and the proposed Spirit transaction are strategic actions that accelerate our existing growth plan and bring the JetBlue Effect to more customers in the Northeast, Florida, and around the country. By bringing together the power of the JetBlue and Spirit teams, this combination would strengthen JetBlue’s ability to grow, deliver outstanding service, and compete in a domestic market dominated by the four largest airlines. We look forward to delivering these benefits to all stakeholders once Spirit determines our proposal to be superior and we close the transaction.”

Supporting Information
JetBlue has posted updated slides for investors on its investor relations website at the following web address: http://investor.jetblue.com.

Advisors
Goldman Sachs & Co. LLC is serving as JetBlue’s financial advisor and Shearman & Sterling LLP is serving as JetBlue’s legal advisor.

(a) Represents premium over the value of the Frontier transaction of $22.42 as of April 29, 2022, based on Frontier’s last closing price and the terms of the merger agreement between Spirit and Frontier.
(b) Represents premium over Spirit’s $21.73 closing share price on February 4, 2022.
(c) Based on full-year data for both 2019 and 2021 based on scheduled flights/seats/ASMs.
(d) Based on Q1-Q3 2021 DOT data.

JetBlue adapts to changes in the industry, reduces summer schedule to be more reliable, reports a GAAP pre-tax loss of $398 million in the first quarter of 2022

JetBlue Airways today announced a series of investments that will set up the airline to reliably deliver the JetBlue experience during what is expected to be a record-breaking summer. JetBlue’s broad and comprehensive plan includes a reduction of its summer schedule, focus on hiring and training, efforts to reduce customer support call volume and hold times, proactive aircraft maintenance efforts, and facilities/infrastructure readiness.

As the aviation industry has rebounded from the historic impact of COVID-19, airlines have faced ongoing challenges this year from the Omicron wave, staffing ramp up, attrition, weather events, and air traffic control delays. JetBlue’s plan builds more flexibility into its schedule and crew staffing to recover from these events, and ensures its facilities and technology are equipped to handle increased demand, especially in New York where the airline is growing nearly 50 percent as part of its Northeast Alliance (NEA) with American Airlines.

Reduced schedule offers more buffer and flexibility to recover from disruptions

Even though the industry continues to forecast robust demand, JetBlue is taking steps to reduce its flight schedule for increased reliability. A reduced schedule will add more buffer room throughout the day to make up for operational disruptions and put less stress on its crew resources.

JetBlue originally planned to grow capacity this year by 11 to 15 percent compared to 2019. Now, with its reduced schedule, JetBlue’s capacity will grow zero to five percent compared to 2019. Most importantly, JetBlue is reducing its summer schedule by more than 10 percent from its original plan, and scheduled aircraft utilization will be down 10 to 15 percent compared to 2019.

JetBlue’s capacity cuts take into account the impact of higher-priced fuel and are distributed throughout its network. Even with the reductions, JetBlue will grow significantly in New York’s three major airports as part of the NEA – from 200 flights a day in 2019 to nearly 300 flights a day. JetBlue has trimmed some of its growth at Newark to ease congestion and ensure the terminal facilities can accommodate its schedule until construction is completed on the new Terminal A.

Accelerating staffing and training to support the schedule

Like many businesses across a range of industries, staffing resources have pressured airlines as customers returned. Even though it’s pulling down some flying, JetBlue is moving forward with hiring efforts to staff up for the summer, including 5,000 new crewmembers in New York. The airline’s recently expanded training facility in Orlandois operating at maximum capacity.

In addition to general staffing, JetBlue is working through a backlog of pilot training and re-certification flights after delays from Omicron. Volatile pilot attrition is also creating a need for additional recruiting and training capacity. JetBlue has increased its pilot training team and simulator capacity to meet this demand.

Addressing customer call volume and hold times

Recent operational disruptions have led to a record number of calls into JetBlue’s customer support center and extended wait times. These disruptions, coupled with the greater number of customers taking advantage of ticket flexibility and calls regarding other COVID-related questions, have taxed customer service teams across the industry.

Since the fall, JetBlue has brought on board more than 1,100 new hires into customer support and continues to increase hiring and training while bringing on outside support to help manage call volume. By this summer, JetBlue expects to have its largest-ever customer support team ready to support customers as many embark on their first vacation or travel experience since the pandemic.

JetBlue is continuing to strengthen staffing for its suite of digital tools to help customers avoid waiting on hold, including online chat capabilities and support via iMessage. In addition, JetBlue is improving self-service capabilities on its website to offer customers additional options to make changes without calling.

JetBlue is also working to proactively cancel flights on days when bad weather is forecasted or if it anticipates air traffic control delays due to congestion or air traffic control center staffing shortages. The dynamic nature of spring and summer weather, including thunderstorms, sometimes prevents this, but the airline is working to provide cancellation well in advance of arriving to the airport so customers have time to adjust their plans.

Reducing disruptions due to maintenance

The reduced schedule frees up aircraft time to give the airline additional opportunities to get ahead of planned maintenance programs. JetBlue is investing in additional preventative maintenance as well as reserving more aircraft as spares this summer to reduce the impact of maintenance-related cancellations and delays.

With COVID-19 supply chain challenges continuing, JetBlue has pre-purchased long lead parts, tools, and equipment as well as added additional inventory of frequently used parts, to mitigate potential delays.

Handling a record summer at JFK

This summer, JetBlue will operate approximately 190 daily flights from New York’s John F. Kennedy International Airport (JFK) as it continues to expand its footprint as part of the NEA. With its heavy concentration in the Northeast and major operation at JFK, ensuring that JFK runs smoothly is essential for the entire network.

In addition to hiring across workgroups, JetBlue is making a number of investments at JFK’s Terminal 5:

Redeveloping a portion of the lobby to add more kiosks and open additional space for customer throughput.
Retiming flights for the busiest international markets to ensure enough lobby space is available for COVID documentation checks.
Smoothing out some of the peaks in the schedule to ease congestion in the lobby, TSA checkpoint, and gates.
Dedicating ground staffing crews at gates across Terminal 5 and adding ground equipment.

While summer reliability continues to be the focus, JetBlue will also see a significant improvement in its airport facilities across focus cities this fall, as new terminals and space become available to support the airline’s growth. JetBlue will be consolidating or opening new or renovated terminal spaces in LaGuardia, Newark, and Orlando.

On the financial side, JetBlue Airways Corporation today reported its results for the first quarter of 2022:

Reported GAAP loss per share of ($0.79) in the first quarter of 2022 compared to diluted earnings per share of $0.14 in the first quarter of 2019. Adjusted loss per share was ($0.80)⁽¹⁾ in the first quarter of 2022 versus adjusted diluted earnings per share of $0.16⁽¹⁾ in the first quarter of 2019.
GAAP pre-tax loss of ($398) million in the first quarter of 2022, compared to a pre-tax income of $58 million in the first quarter of 2019. Excluding one-time items, adjusted pre-tax loss of ($400) million⁽¹⁾ in the first quarter of 2022 versus adjusted pre-tax income of $70 million⁽¹⁾ in the first quarter of 2019.

Operational and Financial Highlights from the First Quarter

Capacity declined by 0.3% year over three, compared to our guidance for capacity to decline 1% year over three.
Revenue declined 7.2% year over three, compared to our guidance of a 6% to 9% decline year over three. This was approximately 6 percentage points ahead of the midpoint of our initial forecast of an 11% to 16% decline year over three, driven by pent-up demand that materialized beyond our expectations.
Operating expenses per available seat mile increased 17.5% year over three. Operating expenses per available seat mile, excluding fuel and special items (CASM ex-fuel)⁽¹⁾ increased 13.9%⁽¹⁾ year over three, compared to our guidance of a 13% to 15% increase year over three.

Balance Sheet and Liquidity

As of March 31, 2022, JetBlue’s adjusted debt to capital ratio was 54%⁽¹⁾.
JetBlue ended the first quarter of 2022 with approximately $2.9 billion in unrestricted cash, cash equivalents, short-term investments, and long-term marketable securities, or 36% of 2019 revenue. This excludes our $550 million undrawn revolving credit facility.
JetBlue paid down approximately $83 million in regularly scheduled debt and finance lease obligations during the first quarter of 2022.

Fuel Expense and Hedging

The realized fuel price in the first quarter 2022 was $2.90 per gallon, a 41% increase versus first quarter 2019 realized fuel price of $2.05.
As of April 26, 2022, JetBlue has not entered into forward fuel derivative contracts to hedge its fuel consumption for the second quarter of 2022. Based on the forward curve as of April 19, 2022, JetBlue expects an average all-in price per gallon of fuel of $3.79 in the second quarter of 2022.

Leveraging the Northeast Alliance to Deliver Value for All Stakeholders

JetBlue announced new benefits for TrueBlue Mosaic and AAdvantage status members traveling on either airline. The expanded list of new benefits include complimentary extra legroom seating based on availability at check-in; two complimentary checked bags; and same-day confirmed changes.
During the first quarter, JetBlue launched three new BlueCities: Puerto Vallarta, Kansas City, and Milwaukee. Later this quarter, we plan to launch service to Asheville as well as our inaugural Canadian BlueCity, Vancouver.
JetBlue remains on track to operate almost 300 daily departures from New York City airports.

Ensuring Our Long-Term Sustainability

JetBlue recently announced another deal for Sustainable Aviation Fuel (SAF) supply with Aemetis, committing to purchase 125 million blended gallons of the renewable fuel from their facility in California from 2025-2034.
JetBlue Technology Ventures announced recent investments in Electric Power Systems, a leading provider of aerospace battery systems; Air Company, focused on carbon capture and conversion technologies; and the TPG Rise Climate fund as a Limited Partner.
JetBlue Foundation – which supports aviation-related STEM programs – recently awarded grants to 10 charitable organizations to help increase advocacy for inclusion, gender and racial parity within STEM and aviation.

Resetting Plan to Build Back Margins

“Our first quarter results were characterized by a very strong demand acceleration, with revenue coming in more than six points ahead of our initial view in January. We delivered positive year-over-three revenue growth in the month of March as we exited the quarter with tremendous revenue momentum driven by very strong underlying travel demand across all of our core segments,” said Robin Hayes, JetBlue’s Chief Executive Officer.

“To help restore our operational reliability, we are reducing our capacity growth further as we plan more conservatively for the summer and make investments to de-risk the operation. These actions will create more resiliency in the operation, and set us up for a better May, and an even better June and strong summer peak. As we strive to provide the high quality of service that our Customers have come to expect from us, we’re taking proactive measures to invest in and improve our operational performance.

Despite the current operating and fuel environment, we are seeing underlying momentum on our path to transforming JetBlue’s structural profitability. We are making great progress on many of our long-term initiatives in 2022, and these will be meaningful drivers of our earnings growth in the coming years.”

Revenue and Capacity

“For the full-year 2022, we are now planning to grow capacity between 0% and 5% versus 2019. Severe weather compounded by air traffic control challenges particularly across Florida and New York have had an outsized impact on our operation where 95% of our daily flights operate. Despite being well on track with our summer operational preparations, we have re-evaluated our capacity planning assumptions for the summer in light of these challenges. We believe our operational investments and capacity reductions will improve our operational performance in the coming months while we continue to fly a record number of customers,” said Joanna Geraghty, JetBlue’s President and Chief Operating Officer.

“For the second quarter, we expect capacity to increase in a range between 0% and 3% year over three. We also expect revenue to increase between 11% and 16% year over three. This includes up to a four point revenue impact from the operational disruption in April. And despite the meaningful impact to the quarter and the year, we expect to generate our best quarterly revenue result in the second quarter, and are positioned to accelerate this momentum through the summer.”

Financial Performance and Outlook

“We are extremely pleased with the demand and revenue momentum, which accelerated throughout the quarter and resulted in first quarter revenue that was roughly six points ahead of our original January forecast; we also executed within the range of our original cost guidance despite abnormally elevated winter weather events. Looking ahead, we are reducing our full-year capacity growth as we work to restore operational reliability and catch up on a backlog of training events, and also as we remain mindful of elevated fuel prices,” said Ursula Hurley, JetBlue’s Chief Financial Officer.

“For the second quarter, we are forecasting CASM ex-Fuel⁽²⁾ to increase 15% to 17% year over three, reflecting some inefficient, close-in capacity reductions in Q2, frontline premium and incentive pay to support the operation, ramp-up costs to maintain our hiring pace for the summer, and our recently signed deal with Air Line Pilots Association.

Our revenue performance for the second quarter is expected to be a record result. However, significantly higher fuel prices and investments in the operation are delaying our return to sustained pre-tax profitability. That said, we believe we are on a path to building back our margins and creating value for our owners through strong revenue growth, disciplined cost control, and a methodical approach to capacity decisions.”

Top Copyright Photo: JetBlue Airways Airbus A321-271NX WL N4022J (msn 10303) (Streamers) LGW (Robbie Shaw). Image: 955805.

JetBlue aircraft slide show:

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JetBlue comments on Spirit’s announcement regarding its proposal

JetBlue Airways has welcomed the determination by the Board of Directors of Spirit Airlines that JetBlue’s offer to acquire Spirit could reasonably be likely to lead to a “Superior Proposal” under the terms of its current merger agreement with Frontier.

“We are pleased the Spirit Board recognizes the compelling value for all stakeholders that JetBlue has offered,” said Robin Hayes, chief executive officer, JetBlue. “We believe JetBlue is the best partner for Spirit, and we look forward to engaging with the Spirit Board to finalize our combination, to create a national low-fare challenger to the four large dominant U.S. carriers that will result in lower fares and better service for customers. As a combined company, we expect we will be able to deliver superior value on a national scale to customers, crewmembers, communities, and shareholders.”

Under the terms of JetBlue’s offer, Spirit shareholders would acquire Spirit for $33 per share in cash, implying a fully diluted equity value of $3.6 billion and providing full and certain value to Spirit shareholders. The proposal represents a premium of 52% to Spirit’s undisturbed share price on February 4, 2022, and a premium of 50% to Spirit’s closing share price on April 4, 2022.

The offer is subject to negotiation and execution of a definitive merger agreement between JetBlue and Spirit and would be subject to approval of Spirit’s Board of Directors, and completion of the transaction would be subject to customary closing conditions, including receipt of required regulatory approvals and approval of Spirit’s stockholders. Completion of the transaction would not be subject to any financing condition.

Goldman Sachs & Co. LLC is serving as JetBlue’s financial advisor and Shearman & Sterling LLP is serving as JetBlue’s legal advisor.

Spirit Airlines to begin discussions with JetBlue Airways

Spirit Airlines has made this announcement:

Spirit Airlines, Inc. has announced that its Board of Directors has determined, after consultation with the Company’s outside financial and legal advisors, that the unsolicited proposal received from JetBlue Airways to acquire Spirit in an all-cash transaction for $33.00 per share could reasonably be likely to lead to a “Superior Proposal” as defined in Spirit’s merger agreement with Frontier Group Holdings, Inc., parent company of Frontier Airlines, Inc.

Spirit intends to engage in discussions with JetBlue with respect to JetBlue’s proposal, in accordance with the terms of the Company’s merger agreement with Frontier.

Spirit remains bound by the terms of the merger agreement with Frontier, and Spirit’s Board has not determined that JetBlue’s proposal in fact constitutes a Superior Proposal as defined in the merger agreement with Frontier.

In addition, Spirit notes that there can be no assurance that the discussions with JetBlue will result in a transaction. Spirit shareholders do not need to take any action at this time, and Spirit’s Board has made no change to its recommendation that its shareholders adopt the merger agreement with Frontier.

Barclays and Morgan Stanley & Co. LLC are serving as financial advisors to Spirit and Debevoise & Plimpton LLP is serving as legal advisor.

Bidding war? – JetBlue is also interested in acquiring Spirit

Spirit Airlines has made this announcement:

Spirit Airlines, Inc. today announced that it has received an unsolicited proposal from JetBlue Airways to acquire all of the outstanding shares of Spirit’s common stock in an all-cash transaction for $33.00 per share.

Consistent with its fiduciary duties, the Spirit Board of Directors will work with its financial and legal advisors to evaluate JetBlue’s proposal and pursue the course of action it determines to be in the best interests of Spirit and its stockholders. The Board will conduct this evaluation in accordance with the terms of the Company’s merger agreement with Frontier and respond in due course. Spirit shareholders do not need to take any action at this time.

As announced on February 7, 2022, Spirit entered into a merger agreement with Frontier Group Holdings, Inc., parent company of Frontier Airlines, Inc., under which Spirit and Frontier would combine in a stock and cash transaction. Under the terms of the merger agreement, Spirit equity holders would receive 1.9126 shares of Frontier plus $2.13 in cash for each existing Spirit share they own. The transaction is subject to customary closing conditions, including completion of the regulatory review process and approval by Spirit stockholders.

Barclays and Morgan Stanley & Co. LLC are serving as financial advisors to Spirit and Debevoise & Plimpton LLP is serving as legal advisor.

JetBlue Airways followed with this statement:

JetBlue Airways today confirmed it has submitted a proposal to the Board of Directors of Spirit Airlines to acquire Spirit for $33 per share in cash, implying a fully diluted equity value of $3.6 billion and providing full and certain value to Spirit shareholders. The proposal represents a premium of 52% to Spirit’s undisturbed share price on February 4, 2022¹, and a premium of 50% to Spirit’s closing share price on April 4, 2022². JetBlue firmly believes its proposal constitutes a “superior proposal” under Spirit’s merger agreement with Frontier and represents the most attractive opportunity for Spirit’s shareholders.

The combination of the two airlines would position JetBlue as the most compelling national low-fare challenger to the four large dominant U.S. carriers by accelerating JetBlue’s growth and expanding the reach of the “JetBlue Effect,” which occurs when legacy carriers react to JetBlue’s unique combination of low fares and award-winning customer service with lower fares. JetBlue triggers significantly greater fare decreases from legacy airlines when it enters a new market than when ultra-low-cost carriers enter a market.

Challenges the Dominant Carriers with Low Fares and Award-Winning Customer Service

In the 22 years since JetBlue first brought low fares to New York, airline mergers have created a landscape where the four largest U.S. carriers control more than 80 percent of the domestic market, to the detriment of consumers. The combination of JetBlue and Spirit would create the fifth largest domestic airline, better positioning it on a national level as a customer-centric, low-fare alternative to the dominant “Big Four” airlines.

JetBlue is loved by customers for its award-winning onboard service, featuring the most legroom in coach (a); free and fast Fly-Fi broadband internet (b); complimentary and unlimited name-brand snacks and soft drinks; and free, live DIRECTV® programming at every seat. The current merger proposal assumes the rebranding and retrofitting of Spirit’s fleet as JetBlue, introducing a superior onboard experience to Spirit customers.

“While JetBlue and Spirit are different in many ways, we also have much in common, including a focus on keeping our costs low so we can profitably expand and offer an attractive alternative to the dominant ‘Big Four’ airlines. We would conduct a full review of Spirit’s product offering, operational and customer technology, and talent pool to optimize the combined airline,” said Hayes.

Builds on Its Northeast Alliance with American Airlines While Further Deepening JetBlue’s Commitment to New York and Florida

JetBlue has established deep roots in New York, where it has long been New York’s Hometown Airline®. The combined company would maintain the JetBlue brand and continue to be based in New York City.

Through its successful Northeast Alliance (NEA) with American Airlines, JetBlue is currently experiencing significant growth in New York and Boston. In the New York area, JetBlue plans to grow from 200 to nearly 300 daily flights across JFK, LaGuardia, and Newark airports this year. JetBlue’s expanded presence is already significantly benefitting the community, with plans to hire 5,000 new crewmembers in the New York-New Jersey region this year and offering travelers in and out of the New York and Boston areas more choices, low fares, and JetBlue’s award-winning experience. The combination with Spirit would complement the NEA’s positive impact in the Northeast by similarly expanding JetBlue’s presence nationwide.

JetBlue has a long history in Florida, starting with the airline’s first revenue flight in 2000 between New York and Fort Lauderdale. With Spirit’s existing headquarters in the Fort Lauderdale area and presence at Fort Lauderdale-Hollywood International Airport (FLL), JetBlue would have the opportunity to deepen its longstanding commitment to Florida. Both Fort Lauderdale and Orlando are JetBlue focus cities, and its JetBlue Travel Products subsidiary – best known for its fast-growing JetBlue Vacations and Paisly product offerings – is also based in the Fort Lauderdale area. The combined airline would offer more than 170 daily flights at FLL, building JetBlue’s relevance as a stronger low-fare competitor in South Florida. At Orlando International Airport (MCO), JetBlue would grow to more than 130 daily flights. JetBlue maintains its training campus and a customer support center in Orlando, and would plan for significant expansion in Florida to support the larger, combined airline.

Offers Crewmembers Greater Opportunities Supported by JetBlue’s Differentiated Culture

JetBlue’s differentiated culture has made it a leading place to work since its first flight in 2000. Supported by JetBlue’s mission to Inspire Humanity and its values-based culture, the combined airline would have 32,000 crewmembers with plans to hire more as the airline grows.

By bringing together the power of the JetBlue and Spirit teams, with their shared commitment to customers and innovation, the combination would strengthen JetBlue’s ability to grow, deliver outstanding service, and compete in a domestic market dominated by the four largest airlines. A larger, financially stronger JetBlue would provide current and future crewmembers with more career growth opportunities, broader travel benefits, more opportunities to make a bigger difference in the communities JetBlue and Spirit serve, and a deeper bench of intellectual capital to support the future growth of the airline.

JetBlue is committed to working with labor leaders representing crewmembers and team members at both airlines to ensure the combination supports the needs of those that operate the airline, especially as Spirit team members join JetBlue. JetBlue intends to continue having direct crewmembers in places where it has them today and would insource Spirit roles in those cities. In locations where JetBlue does not currently insource, it would plan to conduct a full review to evaluate Spirit’s staffing model and determine the optimal path forward for the combined company.

Unlocks JetBlue Growth Across the U.S., Caribbean, and Latin America

The proposed transaction would turbocharge JetBlue’s network strategy, diversifying and expanding JetBlue’s footprint across the U.S., Caribbean, and Latin America. The combined network would serve more than 77 million customers annually on more than 1,700 daily flights to over 130 destinations in 27 countries from Peru to the United Kingdom – increasing customer options with a significantly broader network and increasing relevance and connectivity in JetBlue’s focus cities.

The transaction would allow JetBlue to grow in its focus cities like Los Angeles, Fort Lauderdale/Hollywood, Orlando, and San Juan, as well as in legacy hubs where the dominant carriers control with high fares, including Las Vegas, Dallas, Houston, Chicago, Detroit, Atlanta, and Miami. The combination would introduce JetBlue for the first time to new destinations, including St. Louis; Memphis, Tenn.; Louisville, Ky., Atlantic City, N.J.; Myrtle Beach, S.C.; and four additional destinations in Colombia.

The combination would leverage JetBlue and Spirit’s complementary Airbus fleet and order book to drive sustained, profitable growth. The combined airline would have a fleet of 455 aircraft with 312 Airbus aircraft on order. The joint fleet would be one of the youngest and most fuel efficient in the industry. With JetBlue’s Embraer E190 fleet set for retirement, a common Airbus fleet and engine commonality would simplify integration, reducing the need for additional training and offering opportunities to better utilize spares, parts, and manufacturer support across both airlines.

Expands JetBlue’s Goal to Achieve Net Zero Carbon Emissions Ahead of Industry

JetBlue is taking bold steps to address its emissions and reduce its contribution to climate change. Its combined fleet with Spirit would accelerate its transition to next generation aircraft composed of modern and fuel-efficient aircraft to achieve its sustainability goals. JetBlue plans to achieve net zero carbon emissions by 2040 – 10 years ahead of the broader industry’s goal. JetBlue’s sustainability programs aim to:

Decrease aircraft emissions 25% per available seat mile (ASM) by 2030 from 2015 levels, excluding offsets.
Convert 10% of total jet fuel to blended sustainable aviation fuel by 2030, and 30% in New York.
Convert 40% of three main ground service equipment vehicle types to electric by 2025 and 50% by 2030.
Eliminate single-use plastic service ware where possible. Where not possible, ensure plastic is recyclable.
Maintain at least an 80% recycling rate for audited domestic flights.

Delivers Superior Value and High Degree of Certainty for All Shareholders

JetBlue’s proposal offers Spirit shareholders full and certain value, and a high degree of certainty. The proposal values Spirit at $33 per share in cash, which represents:

A 52%¹ premium to Spirit’s undisturbed share price as of February 4, 2022, the last trading day before the Frontier transaction announcement.
A 50%² premium to Spirit’s closing price on April 4, 2022, or a premium of $11.01 per share in cash to Spirit shareholders.
A 37%³ premium to the value implied by the Frontier transaction as of April 4, 2022.
An implied aggregate equity value of $3.6 billion and an adjusted enterprise value of $7.3 billion for Spirit.⁴

No JetBlue shareholder vote is required to complete the proposed transaction, which will not be subject to financing contingency. JetBlue has approximately $2.8 billion of cash on hand as of December 31, 2021, and has a variety of unencumbered assets available to finance, worth in aggregate approximately $9 billion.

The proposed transaction is expected to deliver $600-700 million in net annual synergies once integration is complete, driven in large part by expanded customer offerings resulting from the greater scale of the network. The combined airline is projected to have annual revenues of approximately $11.9 billion based on 2019 revenues. JetBlue expects the transaction to be accretive to earnings per share in the first full year, excluding integration costs.

Given its conviction in securing the necessary regulatory approvals, JetBlue is highly confident that its proposed transaction would be completed on a timely basis and on a timeframe generally consistent with the pending transaction with Frontier. JetBlue’s proposal contemplates that the definitive agreement for the proposed transaction would contain contractual commitments designed to address any regulatory concern, including, while JetBlue is highly confident in the completion of the transaction, a “reverse break-up fee” that would become payable to Spirit in the unlikely event the proposed transaction is not consummated for antitrust reasons. These terms represent a meaningful improvement compared to the terms contemplated in the pending transaction with Frontier.

Transaction Details

JetBlue intends to fund the transaction with cash on hand and debt financing led by Goldman Sachs & Co. LLC.

The execution of a definitive merger agreement between JetBlue and Spirit would be subject to approval by each company’s Board of Directors and completion of the transaction would be subject to customary closing conditions, including receipt of required regulatory approvals and approval of Spirit’s shareholders.

JetBlue to operate to London from Boston this summer

JetBlue Airways will restore flights between its Boston focus city and London starting this summer. New nonstop service between Boston Logan International Airport (BOS) and London Gatwick Airport (LGW) takes off from the U.S. on July 19, 2022, followed by nonstop service between Boston and London Heathrow Airport (LHR) on August 22, 2022.

Flights on both Gatwick and Heathrow routes will operate daily on JetBlue’s new Airbus A321 Long Range (LR) aircraft with 24 redesigned Mint suites, 114 core seats and the sleek and spacious Airspace cabin interior. The A321LR platform – offering the range of a wide-body but with the economics of a single-aisle aircraft – allows JetBlue to effectively compete with the airline’s award-winning service and attractive fares on flights between Boston and London.

Daily Schedule between Boston (BOS) and London Gatwick (LGW)
Beginning July 19, 2022 (Eastbound) & July 20, 2022 (Westbound)

BOS – LGW Flight #2104	LGW – BOS Flight #1926
6:37 p.m. – 6:35 a.m. (+1)	12:15 p.m. – 3:02 p.m.

A Home at Heathrow

JetBlue’s expanded presence at London Heathrow Airport, the city’s busiest, gives the U.S.-based travel company enhanced visibility at the iconic global hub to grow its base of travelers in the U.K. and beyond. JetBlue operates from Heathrow’s newest terminal – Terminal 2 – which offers travelers a modern airport experience with access to dozens of shops and restaurants. Heathrow travelers benefit from a variety of convenient ground transportation options including the Heathrow Express and London Underground, which offer rail connections with Central London.

Daily Schedule between Boston (BOS) and London Heathrow (LHR)
Beginning August 22, 2022 (Eastbound) & August 23, 2022 (Westbound)

BOS – LHR Flight #1620	LHR – BOS Flight #1621
6:32 p.m. – 6:30 a.m. (+1)	8:25 a.m. – 11:13 a.m.

JetBlue to create 5,000 new jobs in New York City

JetBlue Airways, New York’s Hometown Airline® and New York City Mayor Eric Adams today announced that the company will be adding 5,000 jobs in New York City in 2022. JetBlue will also work with the city to create a new workforce partnership to connect more New Yorkers with high quality JetBlue jobs and to develop a strong pipeline for future careers at the airline. Mayor Adams joined JetBlue leaders today at a major hiring event to assist in filling many of these new positions.

Today’s hiring event, held at JetBlue’s hangar at John F. KennedyInternational Airport (JFK), facilitated on the spot interviews and conditional hiring of diverse candidates for a variety of positions within the JetBlue operation based in New York City, including roles in airport operations, ground operations, technical operations, inflight, information technology and other support center roles. JetBlue currently employs around 8,000 crewmembers based in New York City, at the airports as well as in JetBlue’s Long Island City Support Center, its corporate headquarters. The airline’s growth and hiring as well as its low fare expansion is due in great part to the Northeast Alliance, a partnership it has entered into with American Airlines. Those seeking information about future JetBlue hiring events and careers at JetBlue should visit jetblue.com/careers.

“As New York’s Hometown Airline, JetBlue’s commitment goes well beyond the flights we operate here,” said Robin Hayes, chief executive officer, JetBlue. “We’re thrilled to partner with Mayor Adams to support his administration’s Blueprint for New York City’s Economic Recovery by encouraging travel to New York City. We’ll do that by hiring thousands of new JetBlue crewmembers in 2022, and through our continued engagement in the community to create a strong pipeline for future JetBlue crewmembers and a more resilient workforce for New York City as a whole.”

“New York City is coming back, and we are working with our business community to invest in our people, restart our economic engines, and give New Yorkers pathways to quality jobs,” said New York City Mayor Eric Adams. “Not only is JetBlue one of our largest home-grown employers, but the company is creating 5,000 new jobs in our city. I look forward to working with them on a new workforce partnership that will provide more New Yorkers with career pathways and opportunities in this critical industry.”

“Getting visitors back to the five boroughs and supporting our tourism industry are critical in our efforts to drive an equitable economic recovery,” said New York City Deputy Mayor for Economic and Workforce Development Maria Torres-Springer. “Not only is JetBlue adding thousands of jobs in New York, but they are also making it easier for people to access the amazing attractions our city has to offer.”

“As the tourism and travel industry bounces back from COVID-19’s disruption, initiatives like Mayor Adams’ and JetBlue’s workforce partnership program will ensure New Yorkers of all backgrounds share in the industry’s recovery and growth. Furthermore, this initiative will open doors for qualified diverse professionals who – although highly skilled – may lack the connections and access often key to securing an offer,” said Rep. Gregory W. Meeks (NY-5). “Breaking down such artificial barriers in employment is key to ensuring communities like the one I represent can share in our nation’s prosperity. I look forward to seeing the positive outcomes of this program, especially here in Queens at JFK, the gateway to America.”

The partnership announced today builds on JetBlue’s long history of supporting community programs and fostering local aviation talent in New York City. JetBlue partners with a range of community organizations and schools, including the Council for Airport Opportunity, CUNY’s Aviation Institute at York College, and Vaughn College, to develop and attract crewmembers to join the airline. As part of JetBlue’s mission of Inspiring Humanity, the airline works to inspire students and open their eyes to a range of aviation career options, from pilots and engineers to air traffic controllers and more. The organizations JetBlue partners with and supports helps not only to spark interest in science, technology, engineering and math (STEM), but also break down barriers that block or prevent underrepresented youth from achieving their dreams. The JetBlue Foundation provides grants benefitting STEM education and has supported the Aviation High School in Long Island City, which introduces aviation science to students from a variety of backgrounds.

“Today’s hiring event is just the first step in JetBlue’s workforce partnership with New York City,” Hayes said. “In partnership with Mayor Adams and his team, we’ll be able to attract even more high quality talent to JetBlue even as we invest in nurturing the next generation of aviation professionals.”

JetBlue is also committed to creating development opportunities for current frontline and operations crewmembers to prepare for and pursue corporate opportunities in JetBlue’s Long Island City Support Center. Participants in the JET OPS to Support Services Pathway Programreceive holistic on-the-job training in skill areas they may otherwise not be exposed to, including finance and marketing. Current JetBlue crewmembers at all levels can pursue a path to a JetBlue pilot or maintenance technician position through the industry-leading JetBlue Gateways development programs. JetBlue Gateways creates opportunities for external candidates as well, and as part of the program in 2021, the airline partnered with Vaughn College to work in creating a direct pipeline of local pilots.

JetBlue’s Busiest Summer Travel Season Yet

Today’s event comes as JetBlue, thanks to its Northeast Alliance with American Airlines, is preparing and staffing for what it expects to be the busiest summer in the company’s 22 year history. With more than 500 NEA operated flights arriving into New York City expected per day at the season’s peak and millions of customers looking to travel, this summer is poised to help tourism rebound.

JetBlue and NYC Go Together

To encourage even more travel to New York City, JetBlue Vacations is launching a travel promotion to remind customers that the city is ready and waiting for them. JetBlue Vacations is offering $200 off vacation packages for those heading to New York City¹. With world-renowned theaters, museums and unbeatable dining, summer is the time to visit New York.

“It is clear that our customers want to travel and New York City is back to welcome them,” said Joanna Geraghty, president and chief operating officer, JetBlue. “We are committed to doing everything we can to assist in the economic recovery of our hometown. This city has so much to offer, and as we employ its incredible talent as crewmembers, we will continue to promote this great place as a top destination.”

JetBlue recently announced its strengthened commitment to New York and its decision to keep its corporate headquarters at its current home in Long Island City. In addition, the airline continues to further plans to bring more air service to New Yorkers across the region’s three main airports. Its flagship Terminal 5 at JFK has been celebrated for its customer-friendly design and facilities, and plans are in place to develop a $3 billion world-class terminal on the Terminals 6 and 7 sites.

“We are proud of the work our team at NYCEDC did to keep JetBlue’s headquarters in NYC and expand Terminal 6 at JFK,” said Andrew Kimball, president and CEO, New York Economic Development Corporation. “We believed if JetBlue would remain our hometown airline, it would mean good jobs for New Yorkers and that’s what we are seeing here today with the promise of 5,000 new jobs for our families and communities. The combination of access to talent at all levels, creating a strong pipeline, along with New York City’s culture of innovation and dynamism is a perfect draw for all companies to locate and grow here.”

The new Terminal 6 project will seamlessly integrate with Terminal 5, building on JetBlue’s award-winning customer experience while expanding the airline’s footprint farther into the north side of the airport. It helps secure JetBlue’s long-term future at JFK with opportunities for new gates starting in 2025, and offers partner airlines the ability to co-locate with JetBlue to improve connectivity for customers.

JetBlue Airways lands in the Heart of America with nonstop flights to Kansas City from Boston and New York

JetBlue Airways has announced it has officially launched service from New York’s John F. Kennedy International Airport (JFK) and Boston’s Logan International Airport (BOS) to Kansas CityInternational Airport (MCI), with the first flight arriving on March 27.

Enabled by JetBlue’s Northeast Alliance (NEA), Kansas City service expands the airline’s presence in the Midwest, while diversifying and advancing its New York and Boston focus city strategy. Kansas City is one of more than half a dozen new cities recently added to JetBlue’s route map. In 2022, the NEA will offer nearly 500 daily departures from New York’s three major airports and 200 daily departures from Boston.

Schedule between Boston (BOS) and Kansas City (MCI)
Daily service starting March 27, 2022
*all times local

BOS-MCI Flight #2363	MCI-BOS Flight #2364
7:00 a.m. – 9:32 a.m.	6:40 p.m. – 10:36 p.m.

Schedule between New York (JFK) and Kansas City (MCI)
Daily service starting March 27, 2022
*all times local

JFK – MCI Flight #2221	MCI-JFK Flight #2222
3:30 p.m. – 5:55 p.m.	10:18 a.m. – 1:59 p.m.

Kansas City service will operate using Airbus A220 aircraft, a next-generation aircraft that combines style and substance with its game-changing economics and a custom-created cabin design offering an industry-leading onboard customer experience. All JetBlue aircraft offer the airline’s award-winning service featuring the most legroom in coach (a); free and fast Fly-Fi broadband internet (b); complimentary and unlimited name-brand snacks and soft drinks; and free, live DIRECTV® programming at every seat.

JetBlue and Qatar Airways announce plans to expand existing global partnership

JetBlue Airways announced it intends to expand the depth and breadth of its existing partnership with Qatar Airways to offer customers even more benefits when booking travel to and from international destinations on the global partner airline. This will include more codesharing in additional markets in the coming months, enhanced benefits for JetBlue TrueBlue® and Qatar Airways’ Privilege Club loyalty members, expanded marketing opportunities and refinements to flight schedules to create new, convenient connections across both carriers.

Already, Qatar Airways is one of JetBlue’s top partners for connecting customers across the Americas to its global network, with traffic expected to grow further through new enhancements within the partnership. This new agreement will provide more options to travel between JetBlue’s 100+ destinations across North America and the Caribbean and Qatar Airways global network of 82 countries. JetBlue places its code on Qatar Airways flights in – or offers connections through – nine U.S. gateways.

In addition, the airlines plan to develop an integrated airside transfer option for customers connecting at New York-JFK, JetBlue’s largest focus city and Qatar Airways’ most served U.S. destination.

JetBlue customers currently enjoy travel options via Doha, Qatar’s Hamad International Airport (DOH) – named in 2021 as the Best Airport in the World – to more than 80 destinations in Africa, Asia Pacific, the Middle East and South Asia. At the same time, Qatar Airways customers also already benefit from access to more than 60 destinations across JetBlue’s network. The two airlines have partnered since 2011.

Customers also currently enjoy enhancements that link the carriers’ loyalty programs. TrueBlue and Privilege Club members benefit from the ability to accrue TrueBlue points or Privilege Club Avios. In the future, those benefits will expand with the ability to redeem points on either carrier’s flights.

American Airlines and JetBlue introduce enhanced perks for Loyalty Status members

American Airlines and JetBlue Airways are elevating the travel experience for their most loyal travelers, with new perks for AAdvantage® and TrueBlue Mosaic status members when traveling on either airline. It is the latest round of customer benefits made possible by the airlines’ innovative Northeast Alliance (NEA).

Starting today, when checking in for an American or JetBlue flight, AAdvantage status members and TrueBlue Mosaic members can choose complimentary Main Cabin Extra or Even More® Space seats when available. American’s Main Cabin Extra and JetBlue’s Even More Space amenities include extra legroom, early boarding and dedicated overhead bin space.

AAdvantage Executive Platinum and Platinum Pro members and TrueBlue Mosaic members are also eligible for same-day confirmed flight changes when traveling on either carrier.

These new customer benefits are in addition to the priority check-in, priority baggage, priority security and priority boarding benefits that were implemented last fall. AAdvantage status members receive up to two complimentary checked bags when traveling on JetBlue and TrueBlue Mosaic members can also now check two complimentary checked bags at American Airlines kiosks when arriving at the airport.

Also starting in April, Admirals Club members traveling on JetBlue will be able to access Admirals Club lounges, including the newly opened lounge space at LaGuardia Airport (LGA). American’s Admirals Club lounges are membership-based lounges that feature complimentary amenities like food and beverages, Wi-Fi, business centers, and kids’ rooms.

In summer 2022, the NEA will offer nearly 500 daily departures from New York’s three major airports and 200 daily departures from Boston. As part of the growth related to the NEA, American plans to launch new nonstop service between John F. Kennedy International Airport (JFK) and Hamad International Airport (DOH) in Doha, Qatar, in June, becoming the only U.S.-based carrier to serve the Middle East destination. Separately, JetBlue will launch its first-ever Canadian route with new nonstop service between JFK and Vancouver, Canada (YVR), in June.