Authenticated encryption (AE) schemes provide both privacy and integrity ofdata. CAESAR is a competition to design and analysis of the AE schemes. AnAE scheme has two components: a mode of operation and a primitive. In thispaper JHAE, a novel authenticated encryption mode, is presented based on theJH (SHA-3 finalist) hash mode. JHAE is an on-line and single-pass dedicatedAE mode based on permutation that supports optional associated data (AD).It is proved that this mode, based on ideal permutation, achieves privacy andintegrity up to O(2 n/2 ) queries where the length of the used permutation is 2n.To decrypt, JHAE does not require the inverse of its underlying permutationand therefore saves area space. JHAE has been used by Artemia, one of theCAESAR’s first round candidates.