JetBlue Faces $630,000 Tax Bill After Court Ruling in Florida

JetBlue Airways has lost a legal battle against the Florida Department of Revenue regarding a tax assessment that amounts to over $630,000. A Florida judge ruled that the airline owes corporate taxes accrued between 2019 and 2021, rejecting JetBlue’s argument that the tax was unfairly calculated based on areas beyond Florida’s borders.

The airline contended that the method used by the state included revenue miles from regions outside its jurisdiction, such as international waters and sections of other U.S. states. The judge upheld the state’s calculation approach, which relies on the “Florida Box,” a defined geographical area that extends beyond Florida’s state lines. This method accounts for the number of revenue miles that pass through this area, which includes parts of the Gulf of Mexico and the Atlantic Ocean.

Florida Box Tax Calculation Under Scrutiny

According to Bloomberg Tax, JetBlue’s legal action was initiated after the airline claimed that its tax obligations were miscalculated. The ruling now requires JetBlue to pay the full amount after the Florida Department of Revenue’s motion to dismiss the case was initially denied. The court found that the Department’s tax assessment did not violate the U.S. Constitution, which JetBlue had argued by asserting that the tax was imposed on flights conducted outside of state boundaries.

Florida’s tax calculation system is unique compared to most other states, which often use airport-based or revenue-centric formulas for tax assessments. In the past, airlines such as Southwest Airlines and American Airlines have also challenged Florida’s tax methods, seeking refunds for what they considered overpaid taxes. These disputes have often led to settlements outside of court.

JetBlue’s Operations in Florida

Florida is a crucial market for JetBlue, ranking as the airline’s third-largest operational state after New York and Massachusetts. JetBlue currently serves eight airports in Florida, including key hubs such as Fort Lauderdale-Hollywood International Airport (FLL) and Orlando International Airport (MCO). The airline plans to expand its presence in the state by adding two more airports by the end of December 2025.

Operations at Daytona Beach International Airport (DAB) will resume on December 4, 2025, while Vero Beach Regional Airport (VRB) will see new service starting on December 11, 2025. Additionally, JetBlue is set to increase its route offerings from Fort Lauderdale, adding destinations such as Atlanta, Austin, Norfolk, and Tampa. The airline will also ramp up daily frequencies to existing routes including major cities like Las Vegas, Los Angeles, and Phoenix.

As JetBlue navigates its tax obligations and operational expansions, the airline remains a significant player in Florida’s aviation landscape, despite the recent legal setback.