JetBlue posts $257 million quarterly loss as fuel expenses surge

JetBlue Airways recorded a net loss of $257 million for the third quarter ended Sept. 30. This deficit represents a widening of losses compared with the $143 million reported during the same period last year. The primary driver of the financial decline was a 61% increase in fuel expenses, which reached $868 million.

The airline reported that average fares climbed more than 19% to $245.11, up from $205.67 in the prior year. CEO Joanna Geraghty stated that resilient demand and strong yields pushed revenue above initial expectations. She noted that this performance allowed the company to recapture more of the increased fuel costs than originally projected. Geraghty added that this momentum has continued into the fourth quarter, with Fort Lauderdale delivering strong results despite expanded capacity.

Despite the reported deficit, JetBlue stock jumped approximately 11% in after-hours trading on Monday. The share price had fallen to a new low earlier that day, prompting the carrier to address investor concerns. Executives are scheduled to hold an earnings call at 10 a.m. ET on Tuesday. Analysts are expected to question the company regarding its long-term financial health amid sustained losses.

The Wall Street Journal reported on Friday that a group of senior creditors is working with restructuring adviser PJT Partners. This development occurs while the airline navigates a multiyear turnaround plan. The strategy includes cost reductions and revenue growth through premium seat investments, such as a new domestic first-class section recently put on sale. JetBlue has not posted an annual profit since 2019.

The company ended the quarter with $2.2 billion in liquidity. Its unencumbered asset base totals $7 billion, which includes $2.8 billion in aircraft and engines. Total debt stood at $8.4 billion as of Sept. 30. CFO Ursula Hurley said the company believes it has sufficient financing options to bridge the gap to at least $1 in earnings per share and positive free cash flow by 2028.

JetBlue's adjusted loss per share came in at 60 cents, missing Wall Street estimates of 55 cents. Revenue totaled $2.81 billion, slightly below the expected $2.82 billion. The carrier faces ongoing competition from larger rivals after a federal judge ruled its proposed acquisition of Spirit Airlines anticompetitive. A judge also blocked a regional partnership with American Airlines, leading JetBlue to establish a partnership with United Airlines instead.