Form 8-K JETBLUE AIRWAYS CORP For: Dec 13

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December 13, 2016 11:36 AM EST

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): December 13, 2016

JETBLUE AIRWAYS CORPORATION

(Exact name of registrant as specified in its charter)



Delaware	000-49728	87-0617894
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)



27-01 Queens Plaza North, Long Island City, New York (Address of principal executive offices)		11101 (Zip Code)
(718) 286-7900 (Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):



o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01. Regulation FD Disclosure.

Executives of JetBlue Airways Corporation ("JetBlue" or the "Company") will present today at the Company's previously announced Investor Day. Materials to be used in conjunction with the presentation are furnished as Exhibit 99.1 to this Form 8-K.

The information in this report (including the exhibits) that is being furnished pursuant to Item 7.01 of Form 8−K shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the "Securities Act"), except as expressly set forth in such filing. This report will not be deemed an admission as to the materiality of any information in the report that is required to be disclosed solely by Regulation FD.

Statements in this Form 8-K and the attached exhibits that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections or strategies for the future, may be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Exchange Act. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections and strategies reflected in or suggested by the forward-looking statements. 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. 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; volatility in fuel prices, maintenance costs and interest rates; our ability to implement our growth strategy; our significant fixed obligations and substantial indebtedness; our ability to attract and retain qualified personnel and maintain our culture as we grow; our reliance on high daily aircraft utilization; 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 reliance on a limited number of suppliers; 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 government regulation; changes in our industry due to other airlines' financial condition; acts of war or terrorist attacks; global economic conditions or an economic downturn leading to a continuing or accelerated decrease in demand for domestic and business air travel; the spread of infectious diseases; 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 and 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 2015 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. In light of these risks and uncertainties, the forward-looking events discussed in this presentation might not occur. We undertake no obligation to update any forward-looking statements to reflect events or circumstances that may arise after the date of this presentation.

The following presentation also includes certain “non-GAAP financial measures” as defined in Regulation G under the Securities Exchange Act of 1934. We refer you to the reconciliations made available in our Quarterly Report on Form 10-Q for the third quarter of 2016 (available on our website at jetblue.com and at sec.gov), which reconcile the non-GAAP financial measures included in the following presentation to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit 99.1 Investor Day Presentation*

*Furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



	JETBLUE AIRWAYS CORPORATION

	By: /s/ Alexander Chatkewitz
	Alexander Chatkewitz
	Vice President, Controller and Chief Accounting Officer (principal accounting officer)

Date: December 13, 2016

EXHIBIT INDEX



Exhibit Number	Description
99.1	Investor Day Presentation*

*Furnished herewith.

JETBLUE INVESTOR DAY DECEMBER 13, 2016

SAFE HARBOR 2

ROBIN HAYES | PRESIDENT WHY INVEST IN JETBLUE? ROBIN HAYES PRESIDENT & CEO 3

WHY INVEST IN JETBLUE? 4

IMPROVE THE JETBLUE EXPERIENCE 5

FOCUS ON EXECUTION 6

BUILD ON STRENGTH LA Basin San Juan Boston New York Fort Lauderdale Orlando 7

DEVELOPING OUR TOOLKIT MARTY ST. GEORGE EVP COMMERCIAL AND PLANNING 8

WE’RE DELIVERING ON 2014 RETURN INITIATIVES CABIN RESTYLING FARE OPTIONS MINT CREDIT CARDS 9

FARE OPTIONS EXCEEDING ORIGINAL EXPECTATIONS [VALUE]m [VALUE]m [VALUE]m [VALUE]m 2015 2016E 2017E 2014 Expectations ($m) Actual (2015) & Current Expectations ($m) $280m+ FARE OPTIONS EARNINGS BENEFIT Opportunity to evolve Fare Options further through pricing and bundled offerings 10

CREDIT CARD ALSO EXCEEDING EXPECTATIONS INCREMENTAL CREDIT CARD EARNINGS BENEFIT 2016E 2017E 2018E 2019E 2020E 2021E 2022E ~$60m run-rate by mid 2019 ~$80m run-rate by 2022 11

GROWING TRUEBLUE PARTNERSHIPS 12

2008 2009 2010 2011 2012 2013 2014 2015 2016E 2017E ANCILLARY CONTRIBUTION EXPECTED TO EXCEED $25 PER CUSTOMER IN 2016 ANCILLARY PER CUSTOMER CAGR = +6% 13

CABIN RESTYLING: EXPANDING NEW CORE PRODUCT TO THE A320 14a

CABIN RESTYLING: EXPANDING NEW CORE PRODUCT TO THE A320 14b

0% 20% 40% 60% 80% 100% Year 1 Year 2 Year 3 Year 4 CABIN RESTYLING: $100M EARNINGS BENEFIT A320 PROGRAM ADDS TO 2017 A321 BENEFIT PERCENT OF A320 FLEET CONVERTED ILLUSTRATIVE A320 ASM IMPACT - Y/Y GROWTH* Expected start to ‘Year 1’ is Fall 2017 * Assumes capacity growth, reflecting only A320 fleet modifications and does not include any typical adjustments to fleet utilization or network. Conversions currently expected to take ~36 months -2% -1% 0% 1% 2% 3% 4% 5% Year 1 Year 2 Year 3 Year 4 15

MINT: SURPRISING & DELIGHTING 16

+17 June 2014 TTM June 2015 TTM June 2016 TTM +18 October 2014 TTM October 2015 TTM October 2016 TTM MINT: ORIGINALLY DESIGNED TO SOLVE A SPECIFIC NETWORK PROBLEM Mint Launch Mint Launch JFK-LAX MARGIN VS. SYSTEM (pre and post Mint Launch) JFK-SFO MARGIN VS. SYSTEM (pre and post Mint Launch) 17

JFK-LAX FREQUENCY AND MARGIN 5 5 7 10 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Core Daily Margin (gap to system) MINT: MARGIN BENEFITS EXTEND BEYOND MINT SEATS JFK-LAX Mint Launch 18

Q2-14 Q1-15 Q4-15 Q3-16 BOS MINT ROUTES PERFORMANCE: TTM MARGIN GAP TO SYSTEM MINT: BOSTON MARKETS FOLLOWING NYC SUCCESS BOS-SFO Mint Launch BOS-LAX Mint Launch Margin vs. System improved 11 points 19

BOS JFK LAX SFO MINT: WITH ROOM TO GROW Current 20a

BOS JFK LAX SFO MINT: WITH ROOM TO GROW Current 2017 Start SAN FLL 20b

BOS JFK LAX SFO MINT: WITH ROOM TO GROW Current 2017 Start Announced SAN LAS SEA FLL 20c

WE’RE DELIVERING ON 2014 RETURN INITIATIVES CABIN RESTYLING FARE OPTIONS MINT CREDIT CARDS 21

GROWING OUR NETWORK SCOTT LAURENCE SVP AIRLINE PLANNING 22

APPLYING OUR TOOLKIT 23

WE’VE DEVELOPED A STRONG, DEFENSIBLE NETWORK… Fort Lauderdale LA Basin Orlando San Juan 2007 7% 6% 8% 2% 4 11 Source: Diio Note: ASMs as a percent of total JetBlue network 24a 56% New York 14% Boston

WE’VE DEVELOPED A STRONG, DEFENSIBLE NETWORK… Fort Lauderdale LA Basin Orlando San Juan 2017 42% New York 14% 21% Boston 7% 15% 6% 8 8% 2% Source: Diio Note: ASMs as a percent of total JetBlue network 24b

+ 24 pts + 34 pts + 10 pts + 15 pts + 24 pts + 28pts NYC BOS FLL MCO SJU LA Basin MARGIN BY FOCUS CITY: THEN AND NOW …THAT GENERATES STRONG MARGINS IN EACH FOCUS CITY Q3 2006 TTM Q3 2016 TTM Boston Fort Lauderdale Orlando San Juan New York 25

DIFFERENTIATED BY OUR FOCUS ON LARGE ‘LOCAL’ MARKETS 0% 10% 20% 30% 40% 50% 60% 70% System Domestic International PERCENT CONNECTING TRAFFIC JBLU “Big 3” LUV Source: US DOT OD1B, T100 26

JFK-FLL JFK-MCO 5 10 500 1,000 1,500 2013 2014 2015 2016 5 10 500 1,000 1,500 2013 2014 2015 2016 TOOLKIT ALSO INCLUDES 200-SEAT A321 Frees up 1 JFK slot pair Frees up 2 JFK slot pairs Seats/Day JFK Slots Seats/Day JFK Slots 27

0% 20% 40% 60% 80% 100% ¹ Based on 2015 seat share by carrier BOSTON: AMPLE OPPORTUNITY REMAINS SEAT SHARE IN TOP 20 US METRO AREAS #1 seat share carrier #2 seat share carrier #3 seat share carrier Source: Diio 28

(9.0) (6.0) (3.0) 0.0 3.0 6.0 9.0 12.0 15.0 ($300) ($200) ($100) $100 $200 $300 $400 $500 Q2 08 Q2 09 Q2 10 Q2 11 Q2 12 Q2 13 Q2 14 Q2 15 Q2 16 Gap to System P&L (M) 31 32 35 42 45 48 51 58 61 BOSTON: MARGINS HAVE IMPROVED AS WE’VE GROWN RELEVANCE Nonstop Markets: TTM Profit BOS vs System (ex-BOS) BOSTON OPERATING MARGIN VS. SYSTEM 29

JFK SAN LAS SEA SFO DEN FLL RSW MCO TPA PBI RDU CLT PHX PIT RIC SJU AUS IAD BUF CUN AUA BOSTON: WE ARE IN 39 OF THE TOP 50 DOMESTIC AND INTERNATIONAL DESTINATIONS 2007 30a

JFK SAN LAS SEA SFO DEN FLL RSW MCO TPA PBI RDU CLT PHX PIT RIC SJU AUS IAD BUF CUN AUA BOSTON: WE ARE IN 39 OF THE TOP 50 DOMESTIC AND INTERNATIONAL DESTINATIONS 2007 EWR CLE MSY LAX ATL ORD SLC DFW DTW BWI DCA PHL LGA BNA PDX HOU JAX 2017E 30b

¹ Based on 2015 seat share by carrier SOUTH FLORIDA: AN UNDERSERVED MARKET SEAT SHARE IN TOP 20 US METRO AREAS Source: Diio 0% 20% 40% 60% 80% 100% #1 seat share carrier #2 seat share carrier #3 seat share carrier 31

82% 75% 74% 39% 0% 20% 40% 60% 80% 100% B6 WN NK AA (MIA) RASM (top 3 carriers) Source: US DOT OD1B, T100, Form 41 for YE2Q16 FORT LAUDERDALE: WE GENERATE A STRONG REVENUE PREMIUM WITH A LOCAL FOCUS PERCENT LOCAL TRAFFIC (top 3 carriers) 5.00 7.00 9.00 11.00 13.00 B6 WN NKJBLU LUV SAVE JBLU LUV SAVE AAL (MIA) Note: Stage adjusted. Unshaded area reflects estimated ancillary revenue. 32

-10 -5 0 5 10 1 4 7 10 13 16 19 22 25 28 31 34 M a rgin P ts v s Indu s tr y Growth Program Age (Quarters) FORT LAUDERDALE: MARGINS AS EXPECTED FOR THIS STAGE OF DEVELOPMENT Boston Margins vs. Industry Ft. Lauderdale Margins vs. Industry FT. LAUDERDALE VS. BOSTON MARGINS BY QUARTER Source: Company reports 33

EWR JFK HPN LGA BUF 2007 SOUTH FLORIDA: WE ARE IN 29 OF THE TOP 50 DOMESTIC AND INTERNATIONAL DESTINATIONS 34a

EWR JFK HPN LGA BUF LIM ORD BOS RDU PIT CLE MSY DTW BWI DCA PHL BNA LAS SFO LAX BDL PVD BOG MEX SJU CUN PAP SDQ NAS 2007 2017E SOUTH FLORIDA: WE ARE IN 29 OF THE TOP 50 DOMESTIC AND INTERNATIONAL DESTINATIONS 34b

EWR JFK HPN LGA BUF LIM ORD BOS RDU PIT CLE MSY DTW BWI DCA PHL BNA LAS SFO LAX BDL PVD BOG MEX SJU CUN PAP SDQ NAS 2007 2017E Not Currently Served SOUTH FLORIDA: WE ARE IN 29 OF THE TOP 50 DOMESTIC AND INTERNATIONAL DESTINATIONS SEA DEN TPA CLT PHX ATL DFW MSP STL CVG ACY HOU GRU EZE LHR YYZ YUL PTY CCS SCL MAD 34c

2017 CAPACITY GUIDANCE Region % of Total Capacity ASMs Low High Transcon 30% 11.5% 13.5% Latin 29% 4.5% 6.5% Florida 28% 4.5% 6.5% East 6% 17.5% 19.5% Central 4% 4.5% 6.5% West 3% 15.5% 17.5% System 6.5% 8.5% 35

APPLYING OUR TOOLKIT 36

QUESTIONS 37

BREAK 38

ROBIN HAYES | PRESIDENT IMPROVING THE JETBLUE EXPERIENCE JOANNA GERAGHTY EVP CUSTOMER EXPERIENCE JEFF MARTIN EVP OPERATIONS 39

PRODUCT & SERVICE MATTER Source: DOT OD1B, T100 REVENUE PREMIUM 40 NPS VS. RELATIVE REVENUE PERFORMANCE

INVESTMENTS ALLOW US TO FOCUS ON CUSTOMER EXPERIENCE 41

IMPROVING OPERATIONAL PROCESS TO MATCH PRODUCT AND FLEET EVOLUTION JBLU JBLU 42

ENHANCING RELIABILITY IN A HIGH UTILIZATION MODEL Aircraft Utilization Technical Dispatch Reliability *A321 YE aircraft totals: 2014 – 13; 2015 – 25; 2016 – 37 1 2016 YTD Aircraft Utilization data as of 10/31/2016 2 2016 YTD TDR data as of 11/14/2016 Note: “Aircraft Utilization” as publicly reported is calculated as Completed Block Hours divided by the daily number of aircraft in fleet, regardless of availability to operations. E190 60 Aircraft A320 130 Aircraft A321 37 Aircraft* 9.7 9.9 9.7 7 8 9 10 2014 2015 2016 (YTD)1 12.7 12.7 12.8 11 12 13 14 2014 2015 2016 (YTD)1 12.1 12.9 13.5 11 12 13 14 2014 2015 2016 (YTD)1 97.645 98.205 98.344 96 97 98 99 100 2014 2015 2016 (YTD)2 97.664 97.639 97.654 96 97 98 99 100 2014 2015 2016 (YTD)2 97.862 97.947 97.946 96 97 98 99 100 2014 2015 2016 (YTD)2 * * 43

WE OPERATE IN THE MOST COMPLEX U.S. AIRSPACE 0 5 10 0% 50% 100% Ice Storm (Feb '07) Ice Storm (Dec '10) Sandy (Oct '12) Hercules (Jan '14) Matthew (Oct '16) Major Storm Comparison Completion Factor (lhs) # of Days impacting operations (rhs) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% JBLU UAL AAL DAL ALK LUV % of Departures Scheduled in/out of SFO, ORD, DCA, PHL, NYC Metro, BOS Pct Flights Pct ASMs Source: Diio 44

SAFETY: OUR NUMBER ONE VALUE OJI "TOTAL RECORDABLE" CASE RATE PER 200,000 HOURS WORKED – YTD 3Q16 0 1 2 3 4 5 6 7 8 A4A-1 A4A-2 A4A-3 JBLU A4A-7 Total Recordable Case Rate Industry Average OJI, on the job injury Source: A4A. NOTE: Industry data provided by A4A, current through September 2016; A4A carriers: JetBlue, American Airlines, Atlas Air Worldwide, United Airlines, UPS, Alaska Airlines, Southwest, Fedex, Hawaiian, Air Canada (Associate Member) 0.0 1.0 2.0 3.0 4.0 5.0 A4A-1 A4A-2 A4A-3 A4A-4 A4A-5 A4A-6 A4A-7 A4A-8 A4A-10 GROUND DAMAGE EVENT RATE PER 10,000 DEPARTURES – YTD 3Q16 JBLU 45

ROBIN HAYES | PRESIDENT FINANCIAL SUMMARY & OUTLOOK JIM LEDDY SVP TREASURER & CHIEF FINANCIAL OFFICER (INTERIM) 46

JETBLUE APPROACH FINDING TRACTION, FOCUS ON SUSTAINING RELATIVE MARGIN GAINS RASM GROWTH VS. PEERS COST GROWTH VS. PEERS Seat Miles (CAGR) RASM (CAGR) CASM ex-Fuel, P/S (CAGR) 0.4% -2.4% 0.0% [VALUE ] 2011-2016E 2014-2016E 7.5% 9.1% 1.9% 3.3% 2011-2016E 2014-2016E 2.4% 0.7% 1.7% 1.4% 2011-2016E 2014-2016E CAPACITY GROWTH VS. PEERS JBLU PEERS Peers include AAL, ALK, DAL, LUV, SAVE, UAL and VA. Source: Company Financial Reports JBLU PEERS JBLU PEERS 47

JETBLUE APPROACH FINDING TRACTION, FOCUS ON SUSTAINING RELATIVE MARGIN GAINS * Peers include: AAL, ALK, DAL, LUV, SAVE, UAL 0% 5% 10% 15% 20% 2011 2012 2013 2014 2015 2016E PRE-TAX MARGINS JBLU PEERS Peers include AAL, ALK, DAL, LUV, SAVE, UAL and VA. 1. In 2014, JBLU had a pre-tax gain of $241 million from the sale of LiveTV, resulting in a pre-tax margin of 10.7% on a GAAP basis and pre-tax margin of 6.6% on a non-GAAP basis. Source: Company Financial Reports 1 48

2017 GUIDANCE Metric Guidance Range Capacity 6.5 – 8.5% CASM excluding fuel 1 – 3% Capex (aircraft) $1.05bn - $1.2bn Capex (non-aircraft) $150m – $200m Other Income/(Expense) ($95m) – ($105m) * Scheduled vs scheduled ASMs Note: Detailed 2015 guidance will be provided in January 2015 on JetBlue’s fourth quarter and full year earnings call 49

STAGE LENGTH, LABOR AND MAINTENANCE ARE PRIMARY CASM EX-FUEL PRESSURES 2017 CASM EX-FUEL HEADWINDS AND TAILWINDS ~1.5pts ~0.5pts ~0.0pts 2.0% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% Stage Length Salaries, Wages & Benefits, MM&R and Profit Sharing All Other 2017 (Midpoint of Guidance) 2 0 1 7 C A S M e x -Fue l Y o Y % 50

MEDIUM TERM FINANCIAL GOALS Metric 2017-2020 Capacity High Single Digit CAGR CASM excluding fuel 1-3% in 2017 Flat to 1% CAGR 2018-2020 Capex Average of ~$1.3bn 51

ROBIN HAYES | PRESIDENT STRUCTURAL COST INITIATIVES STEVE PRIEST VP STRUCTURAL PROGRAMS 52

COMMITTED TO $250-$300M IN STRUCTURAL SAVINGS BY 2020 Maintenance Planning Crew Resourcing Model Parts Optimization Crew Resourcing Model Corporate Automation Customer Self-Service Capex Governance Tech Ops Airports Corporate TOTAL Distribution Channel Strategy Digital Offering COST CATEGORY EXPECTED 2020 RUN-RATE SAVINGS KEY LEVERS DRIVING SAVINGS $100-$125m $55-$65m $75-$90m ~$20m $250-$300m Strategic Sourcing 53

TECH OPS: $100-$125M OPPORTUNITY 54

CORPORATE: $75-$90M OPPORTUNITY Source: XXXXX 55

AIRPORTS: $55-$65M OPPORTUNITY 56

DISTRIBUTION: ~$20M OPPORTUNITY JBLU 57

COMMITTED TO $250-$300M IN STRUCTURAL SAVINGS BY 2020 AIRPORTS TECH OPS CORPORATE DISTRIBUTION 58

ROBIN HAYES | PRESIDENT CAPITAL ALLOCATION JIM LEDDY SVP TREASURER & CHIEF FINANCIAL OFFICER (INTERIM) 59

MAINTAIN A STRONG BALANCE SHEET TO SUPPORT FUTURE GROWTH THROUGH THE CYCLE 1 97 169 227 2011 2016E GROWING UNENCUMBERED FLEET INCREASED LIQUIDITY LEVERS REDUCED LEVERAGE Unencumbered Total 27% 14% 1% 25% 6% 2011 2016E Cash + STI Unencumbered Aircraft 70% LTV Revolver As % of TTM Revenue 5.9x 1.2x $2.9 $1.3 2011 2016E Adj. Debt to EBITDAR Net Debt ($bn) LTV, loan to value; STI, short term investments. Adjusted debt calculated as short-term debt + long-term debt + 7x TTM leases 60

INVESTING IN NETWORK GROWTH WHILE SUPPLEMENTING WITH ‘ACCELERATOR CAPITAL’ CAPITAL EXPENDITURE Aircraft Non-Aircraft 2017E $1.2bn - $1.4bn 2018E $1.1bn - $1.2bn Non-Aircraft Capital Efficiency Focused Network Growth, Mint & Aircraft Capital Efficiency IT Infrastructure Tech Ops Planning Customer Facing Tech Self-Service Cabin Restyling NextGen 61

MATURING APPROACH TO CAPITAL ALLOCATION AS LEVERAGE REACHES TARGET Substantial progress in de-risking balance sheet • Targeting lower end of 30-40% range Continuing to invest in the medium and long term JetBlue vision and growth Measured capital return to shareholders: Increased authorization to $500M deployment 2016-2019 • Commenced with 2016 $120M ASR YE17+ 30-40% 3Q16 39% YE15 46% YE13 62% YE11 70% ADJUSTED DEBT TO CAPITALIZATION 62