JetBlue Posts $257 Million Third-Quarter Loss as Fuel Bill Jumps 61%

JetBlue Airways posted a $257 million net loss for the third quarter as its fuel bill climbed 61%, even as average fares rose and revenue came in close to analyst expectations.

The loss for the three months ended Sept. 30 compared with $143 million a year earlier. Fuel expense reached $868 million, and revenue was $2.81 billion, just below the $2.82 billion analysts expected. JetBlue’s adjusted loss was 60 cents per share, versus an expected loss of 55 cents.

Average fares rose more than 19% to $245.11 from $205.67 in the year-earlier quarter. CEO Joanna Geraghty credited resilient demand and strong yields with taking revenue above JetBlue’s initial expectation, allowing the airline to recapture more of the fuel-cost increase than anticipated.

Geraghty said the momentum continued into the fourth quarter. Fort Lauderdale delivered strong results while JetBlue added capacity there, she said.

At quarter-end, JetBlue had $2.2 billion in liquidity and $8.4 billion in total debt. Its unencumbered asset base was $7 billion, including $2.8 billion in aircraft and engines.

Chief Financial Officer Ursula Hurley said JetBlue believes its liquidity and financing choices can support a 2028 target of at least $1 per share in earnings and positive free cash flow. She also said the company remains focused on controlling costs and managing capital as it pursues sustained profitability.

The airline’s multiyear turnaround plan aims to reduce expenses and grow premium revenue. A new domestic first-class section recently went on sale. JetBlue last recorded an annual profit in 2019.

JetBlue had raised its third-quarter fuel-price assumption in September to $3.96 per gallon from $3.49, as outlined in its earlier fuel-price outlook.

JetBlue shares had fallen more than 40% this month before gaining roughly 11% in after-hours trading Monday. Executives are scheduled to discuss the results with analysts at 10 a.m. ET Tuesday (14:00 UTC).