JetBlue quarterly loss doubles as fuel bills spike

The airline industry has faced rising fuel expenses across the board, but JetBlue Airways reported a larger deficit than expected for the final three months of its fiscal year. Investors reacted quickly to the numbers released Monday.

JetBlue posted a net loss of $257 million for the quarter ending September 30. This figure compares to a loss of $143 million during the same period last year. The adjusted loss per share came in at 60 cents, which was worse than the 55 cent loss anticipated by analysts.

The primary driver of the expanded deficit was a sharp increase in fuel costs. The carrier's fuel bill climbed 61% to reach $868 million. Revenue totaled $2.81 billion, slightly missing the $2.82 billion estimate compiled by LSEG. However, the company managed to raise prices substantially to help cover these operational expenses.

Average fares for JetBlue passengers rose 19% to $245.11 in the third quarter. This compares to $205.67 a year earlier. CEO Joanna Geraghty stated in an earnings release that resilient demand and strong yields allowed the airline to recapture more of the fuel cost increases than initially projected. She noted that this momentum has continued into the fourth quarter, with the Fort Lauderdale hub delivering strong results despite capacity growth.

Financial health remains a focus for creditors and shareholders. JetBlue ended the quarter with $2.2 billion in liquidity. The company holds an unencumbered asset base of $7 billion, which includes $2.8 billion in aircraft and engines. Total debt stood at $8.4 billion as of September 30. CFO Ursula Hurley said the company has financing options to reach positive free cash flow by 2028. A group of senior creditors is reportedly working with restructuring adviser PJT Partners, according to a Friday report by The Wall Street Journal.

JetBlue has not posted an annual profit since 2019. The carrier is executing a multiyear turnaround that involves cost cuts and revenue boosts through premium seat investments. The company recently launched a new domestic first class section. Recent legal battles have also shaped its competitive position. A federal judge blocked the acquisition of Spirit Airlines on anticompetitive grounds. A separate ruling blocked a regional partnership with American Airlines. JetBlue currently maintains a partnership with United Airlines.

Shares of the New York based carrier surged roughly 11% in after-hours trading on Monday. Executives are scheduled to discuss these results on an earnings call at 10 a.m. ET Tuesday.