1. Construct FCF

2. Based on the discounted cash flow approach, at what price would you recommend that JetBlue offers its shares?

3. Calculate terminal value

Exhibit 1 JetBlue Airways IPO Valuation Selections from JetBlue Prospectus The Offering Common stock offered 5,500,000 shares We intend to use the net proceeds, together with existing cash, for Use of proceeds working capital and capital expenditures, including capital expenditures related to the purchase of aircraft. We have not declared or paid any dividends on our common stock. We Dividends currently intend to retain our future earnings, if any, to finance the further expansion and continued growth of our business. Proposed NASDAQ National Market symbol JBLU Results of operations Three Months Ended Dec 31, 2000 Mar 31, 200 Jun 30, 2001 Sep 30, 2001 ec 31, 2001 (unaudited) operating Statistics: Revenue passengers 523,246 644,419 753,937 791,551 926,910 Revenue passenger miles (in thousands) 469,293 600.343 766,350 863,855 1,051,287 960,744 Available seat miles in thousands) 623,297 745,852 1,131,013 1,370,658 Load factor 75.3% 80.5% 79.8% 76.4% 76.7% Breakeven load factor 79.4% 73.2% 70.6% 74.6% 76.2% Aircraft utilization hours per day) 11.8 13.1 13.1 12.8 11.8 90.65 Average fare 96.15 101.01 101 66 $99.37 Yield per passenger mile (cents 10.11 10.32 9.94 9.29 8.76 Passenger revenue per available seat mile (cents) 7.61 7.93 7.10 6.72 Operating revenue per available seat mile (cents) 7.85 8.16 7.30 6.97 Operating expenses per available seat mile (cents 8.03 7.55 7.01 6.93 6.68 Departures 4,620 5,283 6,332 6,936 7,783 Average stage length (miles 833 937 1,007 1,087 Average number of operating aircraft during period 9.2 10.5 13.2 15.9 19.4 Full-time equivalent employees at period end 1,028 1.350 1,587 1,876 2,116 Average fuel cost per gallon (cents 103.38 86.03 83.24. 79.53 60.94 Fuel gallons consumed in thousands) 14,958 17571 Percent of sales through jetblue.com during period 45.1% 51.3%