JetBlue Airways reported a wider net loss for the third quarter on Monday, though the airline said robust travel demand is helping it offset sharply higher fuel prices. The update came as the company tried to reassure investors after its shares fell to a new low earlier in the day.
The New York-based carrier posted a net loss of $257 million for the three months ended Sept. 30, up from a loss of $143 million a year earlier. Its fuel bill climbed 61% to $868 million. Shares rose roughly 11% in after-hours trading following the report.
Adjusted loss per share came in at 60 cents, worse than the 55-cent loss that analysts surveyed by LSEG had expected. Revenue was $2.81 billion, just under the $2.82 billion forecast.
Chief Executive Joanna Geraghty pointed to demand as the bright spot. "Resilient demand and strong yields drove revenue well ahead of our initial expectations, allowing us to recapture more of the increase in fuel costs than we initially expected," she said in the earnings release. She added that the momentum has carried into the fourth quarter, and that Fort Lauderdale continues to deliver "exceptional results" even as the airline significantly grows capacity there.
Average fares rose more than 19% to $245.11 in the third quarter, from $205.67 a year earlier. The airline said demand has held up despite fares that are up more than 20% this year. Higher fuel costs have weighed on airline profits across the industry.
On its finances, JetBlue said it ended the quarter with $2.2 billion in liquidity and an unencumbered asset base of $7 billion, including $2.8 billion in aircraft and engines. Total debt stood at $8.4 billion as of Sept. 30. The Wall Street Journal reported Friday that a group of the airline's senior creditors is working with restructuring adviser PJT Partners.
Chief Financial Officer Ursula Hurley said the company believes it has "the liquidity and financing options to create a strong bridge to at least $1 EPS and positive free cash flow in 2028." She said JetBlue remains focused on disciplined cost execution and capital management. Executives are scheduled to hold an earnings call Tuesday at 10 a.m. ET, where analysts are expected to press them on the company's long-term health amid sustained losses.
JetBlue last posted an annual profit in 2019. It is in the middle of a multiyear turnaround plan that includes cost cutting and efforts to raise revenue through premium offerings, such as a new domestic first class section that recently went on sale.
The airline has also struggled against larger rivals. Its attempt to acquire the now-defunct Spirit Airlines was blocked after a federal judge ruled the deal anticompetitive. A judge also blocked a regional partnership between JetBlue and American Airlines, which the carriers had argued would help them compete in the congested Northeast. JetBlue now has a partnership with United Airlines.
