JetBlue posts adjusted loss of $0.60 per share as fuel costs rise 57.4%
Key Facts
JetBlue reported an adjusted loss of $0.60 per share in the third quarter of 2026, compared with a loss of $0.40 in the same period a year earlier, while net loss widened to $257 million from $143 million. Reuters reported that the adjusted loss was wider than market expectations, attributing the deterioration to higher fuel costs. That came despite a 21.1% year-on-year increase in operating revenue to $2.812 billion. Passenger revenue was $2.600 billion, while other revenue totaled $212 million. The results put sales growth against clear pressure on profitability, as operating costs rose faster than revenue per available seat-mile.
Scheduled capacity rose 2.3% year on year, while operating revenue per available seat-mile increased 18.4%, reflecting a significant improvement in revenue generated from operating capacity. Chief Executive Joanna Geraghty said, "Resilient demand and strong yields drove revenue above our initial expectations." She added that this allowed the company to recover more of the increase in fuel costs than it had expected. In its September 10 update, JetBlue had raised its third-quarter growth forecast for this metric to a range of 17%-20%, from its previous range of 12.5%-16.5%. At the same time, it cut its capacity growth forecast to 1.5%-3.5% from 3%-6%, before capacity ultimately posted year-on-year growth of 2.3%.
Fuel remained the main driver of higher costs, with the average price of jet fuel reaching $3.91 per gallon in the third quarter, up 57.4% from the same period a year earlier. Fuel expense rose to $868 million from $539 million. The company said operating cost per available seat-mile increased 19.4% year on year, while the cost excluding fuel and certain items rose 7.0%. JetBlue said higher fuel prices were the primary driver of the increase in overall costs. The comparison between the two metrics highlights the scale of fuel's contribution to the increase, while underlying costs excluding fuel remained below the overall rise.
The company ended the quarter with liquidity of $2.2 billion, including an undrawn credit facility worth $600 million. It also expects an additional $250 million in aircraft-backed financing in the fourth quarter. In its updated full-year outlook, JetBlue raised its 2026 seat revenue growth range to 13.5%-14.5%, from a previous range of 10%-12.5%. For the fourth quarter, the company expects year-on-year growth in operating revenue per available seat-mile of between 18% and 22%, and capacity growth of between 3% and 4%. Its outlook also indicates an average fuel price of $4.64 per gallon in the fourth quarter, with adjusted operating margin expanding by one to two points year on year.
JetBlue said it is targeting sustainable operating profitability in 2027 and aims to reach earnings of at least $1 per share and positive free cash flow in 2028. The targets come as the company awaits the aircraft financing expected in the fourth quarter and contends with fuel price expectations above the third-quarter average. In trading, the company's shares closed down about 10% on October 26 after reports said its creditors had hired restructuring advisers, before rising 10% in after-hours trading, according to Reuters. JBLU shares closed at $2.63 on October 23, according to EL7 data. The company is scheduled to hold a call to discuss its third-quarter results on October 27, 2026, at 10:00 a.m. Eastern time.