JetBlue Revenue Jumps 21.1% to $2.812 Billion as Third-Quarter Loss Widens
Key Facts
JetBlue reported operating revenue of $2.812 billion in the third quarter of 2026, up 21.1% year over year, while its net loss widened to $257 million from $143 million in the same period of 2025. The company said strong yields and resilient demand lifted revenue above its initial expectations, but higher fuel and other costs continued to pressure profitability. Operating revenue per available seat mile rose 18.4% year over year, according to the earnings release. Chief Executive Joanna Geraghty said, "Demand remained resilient and strong yields drove revenue well above our initial expectations." She added that improved yields enabled the company to recover more of the increase in fuel costs than expected.
Revenue growth did not translate into an improved bottom line, as operating expense per available seat mile rose 19.4% year over year in the third quarter. JetBlue attributed most of the increase to higher fuel prices, while expenses excluding fuel and certain items rose 7.0%. The company paid an average of $3.91 per gallon for fuel, up 57% from the same period a year earlier. Aircraft fuel expense rose 61% to $868 million. Meanwhile, revenue passengers increased 2.2% to 10.607 million, reflecting passenger traffic growth alongside higher costs to operate flights.
Revenue growth came in a quarter when system capacity rose 2.3% year over year, within the revised range of 1.5% to 3.5%. JetBlue said improvements to its revenue management technology drove most of the outperformance against its initial expectations. Loyalty program revenue also rose 20% year over year, alongside double-digit growth in co-branded card spending. In Fort Lauderdale, operating revenue per available seat mile increased about 15% despite capacity growth of more than 65%. The company plans to exceed 150 daily departures at the winter peak, up 39% year over year.
The results coincided with a group of JetBlue creditors hiring financial and legal advisers, Bloomberg reported. The group includes holders of $2 billion in bonds due in 2031, as well as holders of a $742 million first-lien secured loan, and is working with PJT Partners and Akin Gump. Bloomberg said the company’s debt and shares hit record lows in the week before its report on the creditors’ move. Reuters reported that the stock had fallen 42% from the start of 2026 through Oct. 23 and remained volatile in extended trading. It also reported that as of June 30 the company had $1.66 billion in cash and equivalents, compared with $8.5 billion in debt and finance lease obligations.
JetBlue said it ended the third quarter with $2.2 billion in liquidity, including an undrawn $600 million credit facility. The company expects an additional $250 million in aircraft-backed financing during the fourth quarter. It also said its unencumbered asset base had expanded to about $7 billion, including $2.8 billion in aircraft and engines. These figures provide a picture of the financing resources the company has reported as some of its creditors work with advisers. Higher fuel costs remain a challenge, with JetBlue expecting fuel to average $4.64 per gallon in the fourth quarter.
JetBlue raised its forecast for fourth-quarter operating revenue per available seat mile growth to a range of 18.0% to 22.0% year over year, while expecting available seat miles to grow between 3.0% and 4.0%. The company is targeting adjusted operating margin expansion of about one to two percentage points year over year in the same quarter. Further out, it said it aims to achieve sustainable operating profitability in 2027, followed by earnings per share of at least $1 and positive free cash flow in 2028. JetBlue scheduled a call to discuss its third-quarter results for Oct. 27, 2026, at 10:00 a.m. Eastern time. The company is scheduled to present its results and outlook to investors during the call.