JetBlue executives struck an upbeat tone on a Tuesday morning earnings call despite a third-quarter net loss and a Wall Street Journal report alleging a group of JetBlue creditors has hired restructuring advisors.
"I'm very encouraged by the strength we saw in the underlying business this quarter," JetBlue CEO Joanna Geraghty said Tuesday. "Revenue materially exceeded our initial expectations and strengthened as the quarter progressed, with momentum continuing into the fourth quarter. Demand remained resilient even as industry fares moved higher in response to elevated jet-fuel costs."
JetBlue reported its average fare increased to $245.11 during the third quarter from $205.67 a year prior. The carrier also recaptured 87 percent of its increased fuel costs in the quarter, above its initial expectation of 70 percent to 80 percent, Geraghty said.
"We know there is still work ahead, … but our third-quarter performance provides further evidence that JetForward is delivering results," she added, referring to the carrier's two-year-old plan to boost profitability. "We've now delivered four consecutive quarters of improving year-over-year rasm growth."
JetBlue's third-quarter operating revenue per available seat mile was up 18 percent year over year to 16.28 cents.
"The big surprise in the third quarter was the strength of the trough," JetBlue president Marty St. George said. "Historically for JetBlue, we've had a pretty big drop off from August to September when kids go back to school, and our original expectation was to see a similar dropoff, but the results we saw in September with the pricing environment of pretty significant fare increases due to the spike of fuel in August surprised us a lot."
Though executives on the call did not mention corporate revenue, the segment for the quarter increased 25 percent year over year, according to an earnings presentation.
The Wall Street Journal late Friday reported the group of creditors had hired an investment bank and a law firm as the carrier faces financial pressure. However, on Tuesday, Geraghty told Reuters that the carrier was not in talks with its creditors and is not considering restructuring.
JetBlue Q3 Metrics
JetBlue third-quarter passenger revenue increased nearly 22 percent year over year to $2.6 billion. Total revenue was up 21 percent to more than $2.8 billion. The net loss for the quarter was $257 million compared with a net loss of $143 million a year prior.
Capacity increased 2.3 percent year over year for the third quarter, while the average fuel cost was $3.91 per gallon, up from the $2.49 in Q3 2025.
The carrier estimates fourth-quarter capacity to increase 3 percent to 4 percent year over year and 1.5 percent to 2.5 percent for the full year. Revenue per available seat mile is projected to increase 18 percent to 22 percent for the quarter and 13.5 percent to 14.5 percent for the full year. The average fuel cost is projected to be $4.64 per gallon for Q4 and $3.95 for full-year 2026.
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