JetBlue posts 60-cent per-share loss in third quarter; shares jump 8% after the bell
Key Facts
JetBlue on October 26 reported an adjusted loss of 60 cents per share for the three months ended September 30, compared with a loss of 40 cents in the same period a year earlier, while analysts expected a loss of 55 cents, according to data compiled by LSEG and cited by Reuters. The results followed a session in which the stock fell about 10%, before jumping 8% in after-hours trading following the announcement, according to Reuters. The volatile move puts third-quarter results at the center of investor focus on the airline, with revenue growth on one side and pressure from fuel costs and debt on the other. Operating revenue was $2.8 billion, up 21.1% year over year, the company said. Passenger revenue per available seat mile also rose 18.4% year over year.
JetBlue attributed most of its revenue outperformance to higher yields, supported by improvements in revenue-management technology, and said demand remained resilient despite higher fuel prices. Both premium and core cabins posted double-digit growth in passenger revenue per available seat mile, according to the company’s statement. Chief Executive Joanna Geraghty said, "Resilient demand and strong yields drove revenue significantly above our initial expectations." The company added that it recouped about 87% of the increase in fuel costs during the quarter through revenue strength. JetBlue had previously guided to year-over-year growth in passenger revenue per available seat mile of between 12.5% and 16.5% for the third quarter, and between 10.0% and 12.5% for the year, according to investor-relations data.
But higher costs outweighed revenue gains: operating expenses per available seat mile increased 19.4% year over year in the third quarter, largely due to higher fuel prices, the company said. The average fuel price was $3.91 per gallon, up 57% from a year earlier, according to the company’s results. Reuters said the increase overshadowed the effect of fare increases and surcharges. JetBlue’s average fuel cost was slightly below its previous estimate of $3.96 per gallon, announced in the month before the quarter. The figures show how revenue growth coincided with pressure from operating expenses in a quarter that ended with an adjusted loss larger than both the year-earlier loss and analysts’ expected loss.
JetBlue had $2.2 billion in liquidity at the end of the third quarter, including an undrawn $600 million credit facility, according to the company. The company expects an additional $250 million in aircraft-backed financing in the fourth quarter, as part of its usual financing arrangements. Company data show cash and cash equivalents of $1.258 billion on September 30, compared with $1.946 billion at the end of 2025, while total debt stood at $8.393 billion at the end of September. Reuters had reported that creditors were working with restructuring advisers amid growing concerns about debt. On June 30, cash and cash equivalents stood at $1.66 billion, compared with $8.5 billion in debt and finance lease obligations, according to Reuters.
JetBlue said it expects year-over-year operating margin expansion of 1 to 2 percentage points in the fourth quarter, despite expecting fuel prices to be 85% higher than in the year-earlier period. The company also said capital expenditures, including pre-delivery payments, totaled $189 million in the third quarter, below revised guidance of about $275 million. It attributed spending below that guidance to the timing of an aircraft delivery and payments for LaGuardia Airport slots. Further out, the company is targeting sustainable operating profitability in 2027, and earnings per share of at least $1 and positive free cash flow in 2028. JetBlue’s JetForward strategy includes a target of adding between $850 million and $950 million in earnings before interest, taxes, depreciation and amortization by 2027; the company had said the strategy added $305 million in 2025.
JetBlue is scheduled to hold a call to discuss its quarterly results on October 27, 2026, at 10:00 a.m. Eastern time. The call follows a session in which the stock fell about 10%, then rose 8% after the bell, according to Reuters. The timing gives management an opportunity to detail third-quarter results and its fourth-quarter outlook, including the effects of fuel and yields on operating margin. The company’s shares closed at $2.63 on October 23, within a trading range of $2.48 to $2.69, according to S&P Global Market Intelligence data published via StockAnalysis. Quarterly figures and guidance remain central to investors’ assessment of the company’s financial performance.