JetBlue earnings: Fuel costs drive $257 million quarterly deficit

The airline industry continues to face pressure from rising input costs. JetBlue Airways reported a net loss of $257 million for the third quarter ended Sept. 30. This figure represents a widening of the deficit compared to the $143 million loss reported during the same period last year.

Fuel expenses were the primary driver of the financial strain. The carrier’s fuel bill climbed 61% to $868 million. Revenue came in at $2.81 billion, slightly below the $2.82 billion consensus estimate from LSEG. The adjusted loss per share was 60 cents, exceeding the expected loss of 55 cents.

Passenger fares increased substantially during the quarter. The average fare rose to $245.11 from $205.67 in the year-earlier period, a gain of more than 19%. CEO Joanna Geraghty stated that resilient demand and strong yields allowed the company to recapture a portion of the increased fuel costs. She noted that this momentum has continued into the fourth quarter, with the Fort Lauderdale hub delivering strong results as capacity expands.

Investors reacted positively to the report after shares hit a new low on Monday. JetBlue stock rose approximately 11% in after-hours trading. The company ended the quarter with $2.2 billion in liquidity. Its unencumbered asset base stands at $7 billion, which includes $2.8 billion in aircraft and engines. Total debt reached $8.4 billion as of Sept. 30.

CFO Ursula Hurley said the company has sufficient liquidity and financing options to bridge to at least $1 in earnings per share and positive free cash flow in 2028. She emphasized a focus on disciplined cost execution and capital management. Executives will host an earnings call on Tuesday at 10 a.m. ET to address analyst questions regarding the airline's long-term financial health.

The company is part of a multiyear turnaround plan that includes cost cuts and investments in premium seating. A new domestic first class section recently went on sale. JetBlue has not posted an annual profit since 2019. A group of senior creditors is reportedly working with restructuring adviser PJT Partners, according to the Wall Street Journal. The airline previously sought to acquire Spirit Airlines, a deal blocked by a federal judge on anticompetitive grounds. A regional partnership with American Airlines was also blocked, leading JetBlue to establish a partnership with United Airlines.