JetBlue's September Fares Beat July For The First Time Ever, President Says
Marty St. George also said 93% of seats took the latest fare increase and that 2027 capacity growth should sit nearer the low end of its guide.
JetBlue's average fare in September topped its July average, which has never happened in the airline's history, President Marty St. George said on the company's third-quarter earnings call Tuesday. JetBlue, a US airline flying to 112 destinations across the US, the Caribbean and Latin America, Canada and Europe as of December 31, 2025, has been raising fares to recover a jump in fuel costs.
A trough that did not drop
"Our average fare in September was higher than our average fare in July, which has never happened in the history of JetBlue," St. George said. He called the strength of the seasonal trough the big surprise of the quarter: JetBlue has historically seen a steep drop from August to September when children go back to school, and it had planned for one again.
The airline had pushed through sizable fare increases after a fuel spike in August. Management said it recaptured 87% of higher fuel costs in the third quarter, against an initial expectation of 70% to 80%. Unit revenue rose 18.4% in the quarter, and the company guided fourth-quarter unit revenue up 18% to 22% from a year earlier.
Third-quarter fuel cost $3.91 a gallon, 57% higher than a year earlier, and the company expects about $4.64 in the fourth quarter.
The fare hike St. George says did not fail
A Deutsche Bank analyst asked whether a fare increase JetBlue led days earlier, which appeared not to stick, showed consumers hitting their limit. St. George, who took credit for the increases, answered: "don't believe everything you read."
He said 93% of JetBlue's seats were subject to the increase, while 7% were pulled back because one competitor did not match it. He said prices in 2026 remain below 2019 levels in real terms, and he saw no meaningful signs that demand is sensitive to price.
2027: capacity and fuel recapture
JetBlue is not issuing 2027 guidance until its fourth-quarter call, but St. George said he would expect capacity growth to land nearer the low end than the high end of the range it gave earlier. He said JetBlue is confident it will recapture 100% of fuel costs in 2027, "even early 27," calling the current lag a matter of timing after the spike.
The airline ended the quarter with $2.2 billion in liquidity, and CEO Joanna Geraghty reiterated a goal of at least $1 in earnings per share and positive free cash flow in 2028. Analysts pressed on liquidity; Chief Financial Officer Ursula Hurley said the airline has given notice to draw an extra $250 million of aircraft-backed financing in the fourth quarter.
Management said the fourth-quarter call will bring the full 2027 outlook, including capacity and fuel recapture.
Sources
- JetBlue (JBLU) 3Q 2026 earnings — CNBC
- JetBlue Airways Q3 2026 Earnings Call Transcript - JetBlue Airways (NASDAQ:JBLU) — benzinga.com
- Document — sec.gov
- JetBlue shares rally in premarket trading — Bloomberg
- JetBlue rises premarket as revenue outlook strengthens despite wider loss (JBLU:NASDAQ) — seekingalpha.com
