Earnings

JetBlue Posts $257 Million Third-Quarter Loss, Wider Than Last Year, And Guides To Fourth-Quarter Margin Gains

Revenue rose 21.1% and fares climbed, but fuel at $3.91 a gallon kept the airline at a $0.68-a-share loss.

JetBlue Airways, the New York-based airline, lost $257 million in the third quarter, or $0.68 a share, against a $143 million loss ($0.39 a share) a year earlier, it said Monday. Revenue rose 21.1% to $2.8 billion, and management guided to 1 to 2 points of operating margin improvement in the fourth quarter.

Fares up, fuel up more

Revenue per available seat mile, the airline's unit-revenue gauge, rose 18.4%, which CEO Joanna Geraghty said ran well ahead of initial expectations. JetBlue said higher yields drove most of the outperformance, and it recaptured about 87% of higher fuel costs through fares, ahead of the 70% to 80% it had expected.

Still, aircraft fuel expense climbed 61% to $868 million as the average price rose 57% to $3.91 a gallon. Unit costs rose 19.4%, which the company said was largely driven by higher fuel prices.

The operating loss was $144 million, and the operating margin slipped to negative 5.1% from negative 4.3%. Excluding special items, which this year included a litigation-reserve adjustment, adjusted operating margin improved slightly to negative 3.9% from negative 4.1%. For the first nine months the net loss was $823 million, versus $425 million a year earlier.

Fourth-quarter guidance

For the fourth quarter, JetBlue forecast unit revenue up 18% to 22% and fuel at $4.64 a gallon, which it said would be 85% higher than a year earlier. Unit costs excluding fuel are guided to a change of negative 1% to positive 1%, after a 7.0% rise in the third quarter. Chief Financial Officer Ursula Hurley said the company expects margin expansion "despite fuel prices forecasted to be 85% higher than in the same period last year."

Full-year adjusted operating margin is guided to negative 4.5% to negative 6.5%. Management reiterated targets of operating profitability in 2027 and at least $1 in earnings per share, plus positive free cash flow, in 2028.

Liquidity and the Fort Lauderdale bet

JetBlue ended the quarter with $2.2 billion of liquidity, including a $600 million undrawn credit facility, and expects another $250 million of aircraft-backed financing in the fourth quarter. Cash stood at $1.258 billion, down from $1.946 billion at the end of 2025, and total debt was $8.393 billion.

The airline flies to destinations across the U.S., the Caribbean, Latin America, Canada and Europe. In Fort Lauderdale, unit revenue rose nearly 15% on capacity growth of more than 65%. Its BlueFirst first-class product is on sale on more than 30 routes, with service starting December 8 between Boston and Fort Lauderdale.

A Reuters item citing a Wall Street Journal report said a creditor group was working with restructuring adviser PJT Partners, according to people familiar with the matter.

JetBlue holds its earnings call Tuesday at 10 a.m. Eastern.