ITEM 1. Business Overview General Our Industry and Competition 2013 Operational Highlights JetBlue Airways Corporation, or JetBlue, is New York’s Hometown Airline ™ .  In 2013 JetBlue carried over 30 million passengers with an average of  800 daily flights and served 82 destinations in the United States, the  Caribbean and Latin America. JetBlue was incorporated in Delaware in August 1998, commenced service  on February 11, 2000 and by the end of 2013 had grown to become the 5 th largest passenger carrier in the U.S. based on revenue passenger miles as  reported by these passenger airlines. We believe our differentiated product  and service offering combined with our competitive cost advantage enables  us to compete fiercely in the high-value geography we serve. Looking to  the future we plan to continue to grow in our high-value geography, invest  in industry-leading products and provide award winning service by our  15,000 dedicated employees, whom we refer to as Crewmembers. We  believe in the future we will continue to differentiate ourselves from the  other airlines, enable us to continue to attract a higher mix of business  travelers and allocate further profitable growth to the Caribbean and  Latin America. We are focused on driving to deliver solid results for our  shareholders, our Crewmembers and our customers.   As used in this Form 10-K, the terms “JetBlue”, “we”, “us”, “our” and  similar terms refer to JetBlue Airways Corporation and its subsidiaries,  unless the context indicates otherwise. Our principal executive offices are  located at 27-01 Queens Plaza North, Long Island City, New York 11101  and our telephone number is (718) 286-7900. We believe our differentiated product, high-value geography and competitive  cost advantage relative to the other airlines have contributed to our continued  success in 2013. Our 2013 operational highlights include: The U.S. airline industry is extremely competitive, challenging and often  volatile. It is uniquely susceptible to external factors such as domestic and  international economic downturns, inclement weather, natural disasters  and acts of terrorism. We operate in a capital and energy intensive  industry which has high fixed costs as well as heavy taxation and fees.  Airline returns are sensitive to slight changes in fuel prices, average fare  levels and passenger demand. The principal competitive factors in the  airline industry include fares, brand and customer service, route networks,  flight schedules, aircraft types, safety records, code-sharing and interline  relationships, in-flight entertainment and connectivity systems and frequent  flyer programs. Price competition is strong in our industry and occurs through price  discounting, fare matching, targeted sale promotions, ancillary fee additions  and frequent flyer travel initiatives. All of these measures are usually matched  by other airlines in order to maintain their competitive position. Our ability  to meet this price competition depends on, among other things, our ability  to operate at costs equal to or lower than our competitors. Since 2001, the majority of traditional network airlines have undergone  significant financial restructuring including bankruptcies, mergers and  consolidations. These processes typically result in a lower cost structure  through reduction of labor costs, restructuring of commitments (including  debt terms, leases and fleet), modification or termination of pension plans,  increased workforce flexibility and innovative offerings. These actions also  have provided significant opportunities for realignment of route networks,  alliances and frequent flyer programs. These factors have had a significant  influence on the industry’s improved profitability. expected to reduce fuel consumption. Most of the aircraft currently in  our fleet are expected to be retrofitted with Sharklets ®  starting in 2015.  Finally, we took delivery of the Airbus A321, a variant of the A320. With  up to 190 seats we expect it will help us better serve our high-value  geography more effectively. • Fleet  - We restructured our long-term order book so as to better match  our capacity with network demand at a lower unit cost in the future.  Specifically, we deferred 24 EMBRAER 190 aircraft from 2014-2018  to 2020-2022, converted 18 Airbus A320 positions to larger A321s  and added an incremental order for 35 A321 aircraft. All Airbus aircraft  delivered going forward are to be equipped with Sharklets ®  which are  • Product enhancements  - Throughout 2013 we continued to invest in  industry-leading products which we believe will continue to differentiate  our product offering from the other airlines. We launched Fly-Fi ™ in-flight internet service with connectivity speed significantly faster  JETBLUE AIRWAYS CORPORATION  -  2013 Annual Report 06 PART I