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Improving Our Communities and Our World

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Improving Our Communities and Our World Improving Our Communities and Our World 2008 and 2009 Environmental and Social Report http://www.jetblue.com/green LETTER FROM THE CEO JetBlue is pleased to provide this Environmental As we discuss in the “Reducing Our Impact” section and Social Report (ESR). At JetBlue, we are working of this report, we continue our pledge to actively to make a difference to the environment — within manage our carbon footprint. Since 2006, our our industry and our communities. We believe it GHG management strategy has been based on a Dave Barger is our responsibility to reduce our environmental triple-tiered approach: eliminate, reduce and offset Chief Executive Officer impacts, volunteer our services and educate our GHG emissions. While we operate one of the ourselves — and others. youngest, most fuel-efficient fleets in America, we continue to look for ways to safely reduce fuel burn This ESR is greatly expanded from our prior reports. and GHG emissions. In December 2009, we signed We have spent much time developing supporting memoranda of understanding with two producers data to discuss environmental, social and for a future supply of alternative aviation fuel. Our governance (ESG) topics that are not consolidated in partnership with Carbonfund.org allows customers any other document available to our stakeholders. to offset CO2 emissions generated by their individual The result of this effort is our first Global Reporting air travel through the purchase of carbon offsets. Initiative (GRI) compliant report. This ESR was To set an example, JetBlue has purchased carbon prepared consistent with the GRI application level C. offsets for all our company business travel since We are excited by this new format and look forward 2008. We are committed to this triple-tiered to the not-too-distant future when our ESR reports approach and believe, in combination, these provide a truly integrated perspective of our key measures help make our operations the ESG-related metrics to ensure our stakeholders benchmark of our industry. We invite you to have a single and convenient means of analyzing learn more about our approach to managing our economic, social, and environmental GHG emissions as well as other environmental, performance — our triple-bottom-line. social and governance topics in this report. Many aspects of airlines’ operations are subject to increasingly stringent environmental regulations, and growing concerns about climate change may result in additional regulation. There is growing consensus that federal regulation will be forthcoming with respect to greenhouse gas (GHG) emissions (including carbon dioxide (CO2)) and/or cap-and-trade legislation. | H | JetBlue Environmental and Social Report | CONTENTS OUR STORY .....................................................................................................................1 LEADING WITH AFFIRMATIVE ACTION AND LABOR FORCE DIVERSITY — A TERMINAL 5 INITIATIVE .............................................................................................11 SAFETY AND SECURITY ................................................................................................15 REDUCING OUR IMPACT ................................................................................................17 VOLUNTEER OUR SERVICES .........................................................................................25 EDUCATE OURSELVES — AND OTHERS ........................................................................29 AWARDS .......................................................................................................................31 ABOUT OUR REPORTING ...............................................................................................33 GRI Index ......................................................................................................................35 | 2008-2009 | http://www.jetblue.com/green | H | OUR STORY JetBlue Airways Corporation commenced service on February 11, 2000. JetBlue is incorporated in Delaware; however, our principal executive offices are at 27-01 Queens Plaza North, Long Island City, NY 11101. JetBlue operates primarily on point-to-point routes, LTD (Bermuda corporation); LiveTV Airfone, Inc. transporting customers between domestic U.S. and (Delaware corporation); and JetBlue Airways Caribbean operations. Passenger service accounted Corporation Sucursal Colombia for 89% of our capacity in 2009 (the remainder of (Colombia corporation). capacity services is cargo operations). JetBlue is the seventh largest domestic passenger carrier based Through LiveTV, LLC LiveTV International, Inc. and on revenue passenger miles. LiveTV Airfone, Inc., our LiveTV® service provides in- flight entertainment, voice communication and data Our goal is to become “Americas’ Favorite Airline” — connectivity services for commercial and general for our crewmembers, customers and shareholders. aviation aircraft. LiveTV® has agreements with Our plan in achieving this goal is dependent upon 11 other domestic and international commercial continuing to provide superior customer service airlines for the sale and installation of hardware, and delivering the JetBlue Experience. Our financial programming and maintenance of its live in-seat strategy includes a commitment to positive free satellite television and XM Satellite Radio service. cash flow and long-term sustainable growth LiveTV® also has general aviation customers to while also maintaining an adequate liquidity which it supplies voice and data communication position. Our commitment to these goals drives services. a focus on controlling costs, maximizing unit revenues, managing capital expenditures and Bermuda corporate is a wholly owned subsidiary disciplined growth. that assists us in maintaining a low cost structure and is a captive insurance entity, while Colombia SUBSIDIARIES corporation is a subsidiary we were required to form As of December 31, 2009, JetBlue has five under Colombian law in order to operate subsidiaries. These are LiveTV, LLC (Delaware in the country. limited liability company); LiveTV International, Inc. (Delaware corporation); BlueBermuda Insurance, | 1 | JetBlue Environmental and Social Report | CORPORATE PERFORMANCE ECONOMICS We spent considerable time in 2008 and 2009 In 2008, we reported a net loss of $84 million and developing meaningful strategic goals for JetBlue. an operating margin of 3.3%, compared to net This process of establishing goals, operating with income of $12 million and an operating margin those metrics and considering the applicability of 6% in 2007. The year-over-year decline in our of the selected targets has evolved and continues financial performance was primarily a result of a to evolve. 43% increase in our realized fuel price and a net $53 million impairment charge related to the write- As events transpired during 2008, including an down of our auction rate securities, or ARS, which unprecedented increase in fuel costs, dramatic was mitigated in part by continued modifications to erosion of credit markets and liquidity, and related our growth plans and increased focus on revenue traffic and revenue patterns, it became apparent initiatives. that a flexible approach was crucial to our success in building value. In 2009, we established more In 2009, we reported net income of $61 million and focused performance targets for each of four an operating margin of 8.6%. The year-over-year equally weighted (25%) targets: operating margin, improvement in our financial performance was liquidity, crewmember net promoter score (NPS) primarily a result of a 33% decrease in our realized and customer NPS. Combined, these measure our fuel price and a net $53 million holding loss related overall corporate performance factor (CPF). to the valuation of our ARS in 2008. Achieving our operating margin and liquidity We derive our revenue primarily from transporting (i.e., cash as a percentage of trailing 12-month customers on our aircraft. This passenger revenue revenue) goals indicates to us that we are accounted for 89% of our total operating revenues running the business the right way. NPS is a for the year ended December 31, 2009. Revenues brand loyalty analysis. We believe that if we treat generated from international routes, excluding our crewmembers right (producing a strong Puerto Rico, accounted for 13% of our total ticketing crewmember NPS) and we treat our customers revenues in 2009. Revenue is recognized either right (producing a strong customer NPS), we should when transportation is provided or after the ticket or drive continued success in the future. We continue customer credit expires. to explore the most appropriate methods of measuring our performance and will report results, as appropriate, in our quarterly and annual financial reports. | 2008-2009 | http://www.jetblue.com/green | 2 | We measure capacity in terms of available seat by LiveTV® for the sale of and ongoing services miles, which represents the number of seats provided for in-flight entertainment systems on available for customers multiplied by the number other airlines. of miles the seats are flown. Yield, or the average amount one customer pays to fly one mile, is The airline industry is one of the most heavily calculated by dividing passenger revenue by revenue taxed in the U.S., with taxes and fees accounting passenger miles. We strive to increase passenger for approximately 16% of the total fare charged to a revenue primarily by increasing our yield per flight, customer. Airlines are obligated to fund all
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