JetBlue revenue jumps 21.1% to $2.812 billion as quarterly losses deepen
Key Facts
JetBlue reported operating revenue of $2.812 billion in the third quarter of 2026, up 21.1% from $2.322 billion in the same period of 2025. But the company posted a GAAP core loss of $0.68 per share, compared with $0.39 a year earlier. Net loss excluding special items and investment gains was $226 million, compared with $144 million in the third quarter of 2025. Chief Executive Joanna Geraghty said, "Resilient demand and strong yields drove revenue to a level well above our initial expectations." The results show revenue expanding alongside wider losses, while fuel costs rose faster than revenue.
Revenue growth came with an increase in average fare to $245.11 from $205.67 a year earlier, a rise of 19.2%. Revenue per available seat mile increased 18.4% year over year, while scheduled capacity rose 2.3%. The divergence reflects greater growth in revenue per unit of capacity than in the number of seats offered, according to the company’s indicators. Geraghty said the momentum extended into the fourth quarter, alongside resilient demand and strong yields. These indicators put pricing and yield growth at the center of the company’s explanation for higher quarterly revenue.
By contrast, jet fuel expense rose to $868 million in the third quarter from $539 million in the year-earlier period, an increase of 61%. The average fuel price was $3.91 per gallon, 57% above its level a year earlier. At the industry level, Reuters said higher jet fuel expenses linked to the Iran war pressured U.S. airlines’ margins despite rising ticket prices and stable travel demand. Reuters did not attribute this industry-wide picture specifically to JetBlue’s quarterly figures. Higher fuel costs are putting pressure on margins as the company expects prices to remain elevated in the following quarter.
Amid the pressures on the company, Bloomberg Law reported that a group of JetBlue creditors is working with PJT Partners and Akin Gump, citing people familiar with the matter. The group includes holders of $2 billion in bonds due in 2031, as well as a lender on a $742 million first-lien term loan. In the stock market, the company’s shares closed at $2.91 on October 19 and 20, then at $2.93 on October 21. They fell to $2.65 on October 22 and $2.63 on October 23. The moves came in the period before the third-quarter results were announced.
JetBlue expects operating margin to expand by one to two percentage points year over year in the fourth quarter. At the same time, the company estimated fuel prices at $4.64 per gallon in the fourth quarter and $3.95 for 2026. Chief Financial Officer Ursula Hurley said the company sees a path to funding a profit of at least $1 per share and positive free cash flow in 2028. On investment, capital expenditures, including predelivery payments, totaled $189 million in the third quarter, below revised guidance of about $275 million. The company attributed the gap to the timing of an aircraft delivery and LaGuardia slot payments that shifted to the fourth quarter.